MONTREAL, Nov. 10, 2016 /CNW Telbec/ - For the nine month period ended September 30th, 2016, the Company's revenues increased by $22,560,000 to $549,598,000, compared to $527,038,000 recorded in the corresponding 2015 period, a 4.3% increase. Same store revenues grew by 2.9% during the same period. Net earnings for the nine month period ended September 30th, 2016, amounted to $26,157,000 compared to net earnings of $25,292,000 for the corresponding 2015 period. Basic net earnings per share increased to $0.70 compared to $0.58 in 2015.
During the period ended September 30th, 2015, the Company proceeded with the sale of land for an amount of $2,393,000 resulting in an after tax gain of $1,617,000 or $0.04 per basic share.
The effect of the cost of options had no impact on basic net earnings per share for the nine month period ended September 30th, 2016 and 2015.
For the nine month period ended September 30th, 2016, the share repurchase program contributed to an increase in basic net earnings per share of $0.09.
Excluding all these effects, the variation to the adjusted net earnings would have been $2,658,000 or $0.07 per basic share for the nine month period ended September 30th, 2016.
The $2,658,000 variation in adjusted net earnings in 2016 is as follows:
| (Unaudited and $ in thousands) |
||||
| 2016 |
2015 |
|||
| Net earnings |
26 157 |
25 292 |
||
| Gain on disposal of land (after-tax) |
(1 617) |
|||
| Variation of cost of options (after-tax) |
(21) |
(197) |
||
| Adjusted net earnings |
26 136 |
23 478 |
||
| Minus: Adjusted net earnings for 2015 |
23 478 |
|||
| Variation |
2 658 |
|||
This variation in adjusted after-tax income is allocated throughout the quarters as follows:
| Increase |
Increase |
Increase |
|||
| (decrease) |
(decrease) |
(decrease) |
|||
| retail operating |
investment |
adjusted |
|||
| earnings |
income |
operating earnings |
|||
| 1st quarter 2016 |
1 113 |
(1 960) |
(847) |
||
| 2nd quarter 2016 |
416 |
(217) |
199 |
||
| 3rd quarter 2016 |
227 |
3 079 |
3 306 |
||
| Total |
1 756 |
902 |
2 658 |
| Annual Financial Information |
|||||
| ($ in thousands, except for per share amounts) |
|||||
| 2 015 |
2 014 |
||||
| $ |
$ |
||||
| Revenue |
717 338 |
701 356 |
|||
| Net Earnings |
41 528 |
48 647 |
|||
| Total Assets |
274 022 |
362 350 |
|||
| Net Earnings Per Share |
|||||
| Basic |
0,99 |
1,08 |
|||
| Diluted |
0,99 |
1,08 |
|||
| Dividends Per Share |
0,24 |
0,24 |
|||
Financial Position and Dividends
Cash and investments increased by $19,844,000 during the nine month period ended September 30th, 2016. Investments consist primarily of bank notes and common shares, which at the close of the quarter had a market value of $82,333,000 (including cash).
As of September 30th, 2016, the working capital showed a surplus of $6,071,000 an increase of $4,161,000 compared to December 31st, 2015. The Company's shareholders' equity increased from $172,968,000 as at December 31st, 2015 to $182,583,000 as at September 30th, 2016. As of September 30th, 2016, the book value per share stood at $4.93, compared to $4.56 as at December 31st, 2015.
Pursuant to the normal course issuer bid put in place on March 14th, 2016, accordingly, 913,850 Common Shares were repurchased and cancelled by the Company. As a result of this change, the Company had as of September 30th, 2016, 37,000,000 Common Shares issued and outstanding.
During the nine month period ended September 30th, 2016, no options were granted. As at September 30th, 2016, options for 219,000 Common Shares, representing 0.59% of the Company's outstanding shares remain issued and 5,710,864 authorized share options, representing approximately 15.43% of the Company's outstanding shares, may still be granted pursuant to the Plan. The issued and outstanding options may be exercised at a price of $17.85 per Common Shares.
A semi-annual eligible dividend of $0.12 per Common Share has been declared to holders registered at the close of business on December 21st, 2016 which will be payable on January 3rd, 2017.
| Quarterly Results |
|||||
| (Unaudited and $ in thousands, except for per share amounts) |
|||||
| March 31st |
June 30th |
||||
| 2016 |
2015 |
2016 |
2015 |
||
| $ |
$ |
$ |
$ |
||
| Revenue |
154 943 |
149 280 |
197 043 |
188 373 |
|
| Net (Loss) Earnings |
(958) |
59 |
12 407 |
12 196 |
|
| Net (Loss) Earnings Per Share |
|||||
| Basic |
(0,02) |
- |
0,32 |
0,27 |
|
| Diluted |
(0,02) |
0,32 |
0,27 |
||
| September 30th |
December 31st |
||||
| 2016 |
2015 |
2015 |
2014 |
||
| $ |
$ |
$ |
$ |
||
| Revenue |
197 612 |
189 385 |
190 300 |
183 150 |
|
| Net (Loss) Earnings |
14 708 |
13 037 |
16 236 |
17 824 |
|
| Net (Loss) Earnings Per Share |
|||||
| Basic |
0,40 |
0,31 |
0,41 |
0,40 |
|
| Diluted |
0,40 |
0,31 |
0,41 |
0,40 |
|
For the quarter ended September 30th, 2016, the Company's revenues increased by $8,227,000 to $197,612,000, compared to $189,385,000 recorded in the corresponding 2015 period, a 4.3% increase. Same store revenues grew by 3.5% during the same period. Net earnings for the quarter ended September 30th, 2016, amounted to $14,708,000 compared to net earnings of $13,037,000 for the corresponding 2015 period. Basic net earnings per share increased to $0.40 compared to $0.31 in 2015.
During the period ended September 30th, 2015, the Company proceeded with the sale of land for an amount of $2,393,000 resulting in an after tax gain of $1,617,000 or $0.04 per basic share.
The effect of the cost of options had no impact on basic net earnings per share for the quarters ended September 30th, 2016 and 2015.
For the three month period ended September 30th, 2016, the share repurchase program contributed to an increase in basic net earnings per share of $0.04.
Excluding all these effects, the variation to the adjusted net earnings would have been $3,306,000 or $0.09 per basic share for the quarter ended September 30th, 2016.
The $3,306,000 variation in adjusted net earnings in 2016 is as follows:
| (Unaudited and $ in thousands) |
||||
| 2016 |
2015 |
|||
| Net earnings |
14 708 |
13 037 |
||
| Gain on disposal of land (after-tax) |
- |
(1 617) |
||
| Variation of cost of options (after-tax) |
22 |
4 |
||
| Adjusted net earnings |
14 730 |
11 424 |
||
| Minus: Adjusted net earnings for 2015 |
11 424 |
|||
| Variation |
3 306 |
|||
Operations
BMTC Inc.
The Company has started the restructuration of all of its websites. The first phase of the implementation of a distinct e-commerce platform for its Brault & Martineau banner is now complete and operational since November 2015. The implementation process will continue throughout 2016, 2017 and 2018 for the subsequent phases as well as for the implementation to all the other banners of the Company. The Company continuously reviews its IT systems in order standardise them throughout the banners, as well as to allow them to be more aligned with our e-commerce strategies. Following these evaluations, the Company decided to invest and improve its computer system, the integration and implementation are ongoing and with a time frame for completion of 3 to 5 years. As at September 30th, 2016, the Company had to re-evaluate its costs related to these modifications, which are now estimated to be $17,000,000. A portion of these costs were incurred in 2015 and during 2016 and the balance will be recorded in the subsequent years.
Brault & Martineau Division
As previously announced, the Company will be closing its six Sleep Gallery stores when their leases expire. The Company made this decision after a lengthy reflection on its mattress sale strategy. Even though these stores are profitable, management believes that the level of profitability does not warrant keeping these stores open. The Company will continue to sell the same wide range of mattresses, box springs and bedding accessories at the best prices in its Brault & Martineau stores as it currently does. To that effect, the Sleep Gallery departments located inside the Brault & Martineau mega stores will remain in operation. The Company believes that closure of the six Sleep Gallery stores will not have any material impact on the Company's financial performance. The lease expiry dates of the six stores that will close vary between November 2016 and November 2022. The Company is not excluding the possibility that one or several of these leases will be assigned or sublet before their expiry date.
The Company is presently evaluating the refitting of its furniture and electronic departments in all of its stores. The objective of this improvement is to offer our clients a unique shopping experience which will help differentiate us from online shopping. The costs related to these renovations for the next two years, 2016 and 2017, are estimated to be $15,000,000.
Ameublements Tanguay
Ameublements Tanguay opened a new 80,000 square feet store in Trois-Rivières on October 27th, 2016. The old store will be transformed into a liquidation center which will open around November 15th, 2016.
Caution regarding forward-looking statements
This press release contains certain forward-looking statements with respect to the Company. These forward-looking statements are identified by the use of terms and phrases such as "anticipate", "believe", "estimate", expect", "intend", "may", "plan", "predict", "project", "will", "would", as well as the negative of these terms and similar terminology, including references to assumptions.
Forward-looking statements, by their nature, necessarily involve risks and uncertainties that could cause actual results to differ materially from those contemplated by these forward-looking statements. Results indicated in forward-looking statements may differ materially from actual results for a number of reasons which the Company has identified in the 2015 Annual Information Form under "Narrative Description of the Business – Risk Factors", and other risks detailed from time to time in the Company's continuous disclosure documents.
The reader is cautioned that the factors we refer above are not exhaustive of the factors that may affect any of the Company's forward-looking statements. The reader is also cautioned to consider these and other factors carefully and not to put undue reliance on forward-looking statements.
The Company made a number of assumptions in making forward-looking statements in this Quarterly Management Report. The Company considers the assumptions on which these forward-looking statements are based to be reasonable.
These statements reflect current expectations regarding future events and operating performance and speak only as of the date of release of this press release, and represent the Company's expectations as of that date. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, other than as required by law.
Non International Financial Reporting Standards (IFRS) financial measures
The Company discloses adjusted net earnings, which includs or excluds certain amounts that are not considered representative of performance measures and financial recurrence of the Company. Management believes that this measure is useful in understanding and analysing the operational performance of the Company.
The Company discloses in this press release under the section "Results" a reconciliation between net earnings and adjusted net earnings.
Adjusted net earnings are not an earnings measure recognised by IFRS and does not have a standardised meaning prescribed by IFRS. Therefore, adjusted net earnings as discussed in this MD&A may not be compared to similar measures presented by other issuers. This measure of performance should not be considered as an alternative as an indicator of performance, but rather as additional information.
The Company also discloses same store revenues, which have been realised in stores opened for more than a 12 month period. This measure is used by management and is a similar measures presented by other issuers in our industry.
BMTC Group Inc.'s Common Shares are listed on the Toronto Stock Exchange and through its subsidiary, Ameublements Tanguay Inc. and it's two divisions Brault & Martineau and EconoMax, is a major retailer of furniture, electronic goods and household appliances operating in the province of Quebec.
SOURCE BMTC Group Inc.
Mr. Yves Des Groseillers, Chairman, President and Chief Executive Officer, BMTC Group Inc., (514) 648-5757
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