BMTC Group Inc. announces financial results for its quarter ended September 30th, 2012

MONTREAL, Nov. 8, 2012 /CNW Telbec/ - For the nine month period ended September 30th, 2012, the Company's revenues decreased by $17,835,000 to $536,200,000, compared to $554,035,000 recorded in the corresponding 2011 period. Net earnings for the nine month period ended September 30th, 2012, amounted to $32,257,000 compared to $42,127,000 for the corresponding 2011 period resulting in a net basic earnings per share of $0.67 compared to $0.84 in 2011.

Results from the costing of options had the effect of increase net basic earnings by $0.01 per share, compared to a decrease of $0.06 per basic share for corresponding 2011 period. While the Company costs options as either an expense or revenue in the net earnings calculation, the Company believes it is preferable to inform readers of its financial statements of the impact of this element, which is outside the Company's control and that varies according to a calculation based on the Black-Scholes method. An increase in that value is recorded as an expense, while a decrease in value has the opposite effect. Of particular concern is the reader may conclude that the Company's profitability has risen in the context of a major decrease in the value attributed. For this reason the Company discloses net adjusted earnings in absolute dollars and on a per share basis to exclude the effect of costing options. These adjusted figures are likely not comparable with the same type of measures reported by other public issuers. It is worth noting that the Company offers a stock option program that allows the holder to receive cash in lieu of shares upon exercising stock options therefore making BMTC Group Inc. one of the few public companies to expense options on an ongoing basis.

The sale of fixed assets during the 2012 period resulted in an increase in net per share earnings of $0.02 while no corresponding amount for the 2011 period.

The share repurchase program contributed to an increase of net per basic share earnings of $0.04.

Excluding the effect of options and of the sale of fixed assets, net earnings would have decreased by $14,640,000 or $0.30 per basic share.

The decrease of $14,640,000 is explained as follows:

    2012   2011
    ($ in thousands)
Net Earnings   32 257   42 127
(Gain) resulting from the sale of fixed assets (after-tax)   (1 189)   -
Variation of cost of options (after-tax)   515   3 066
Adjusted Net Earnings   30 553   45 193
ADD : Adjusted Net Earnings for the 2011 period   45 193    
Decrease   14 640    



        ($ in thousands)    
    Increase (decrease)
retail operating
earnings
   
Increase (decrease)
investment income
  Increase (decrease)
adjusted
operating earnings
             
1st  quarter 2012   (7 586)   (154)   (7 740)
2nd  quarter 2012   (6 310)   (355)   (6 665)
3rd  quarter 2012   (1 117)   882   (235)
4th  quarter 2012            
Total:   (15 013)   373   (14 640)



Annual Financial Information
($ in thousands, except for per share amounts)

2011
$
  2010
$
Revenue 748 731   822 507
Net earnings 57 231   74 193
Total Assets 274 446   320 182
Net Earnings per share      
  Basic 1,16   1,44
  Diluted 1,16   1,38
Dividends per share 0,24   0,24


For the three month period ended September 30th, 2012, the Company's revenue decreased by $1,116,000 to $195,599,000, from the $196,715,000 recorded in the corresponding 2011 period. Net earnings for the three month period ended September 30th, 2012, stood at $20,135,000 compared with $17,857,000, for the corresponding 2011 period. Basic earnings per share increased going from $0.36 in 2011 to $0.42 in 2012. Results from the costing of options had the effect of increasing net basic earnings by $0.01 per share, compared to a decrease of $0.02 per basic share for corresponding 2011 period.

The sale of fixed assets during the 2012 period resulted in an increase in net per share earnings of $0.02 while no corresponding amount for the 2011 period.

The share repurchase program contributed to an increase of net per basic share earnings of $0.01.

Excluding these effects, net earnings would have decreased by $235,000 or $0.00 basic share.

The adjusted $235,000 decrease in net earnings breaks down as follows:

    2012   2011
    ($ in thousands)
Net Earnings   20 135   17 857
(Gain) resulting from the sale of fixed assets (after-tax)   (1 189)   -
Variation of cost of options (after-tax)   (365)   959
Adjusted Net Earnings   18 581   18 816
MINUS : Adjusted Net Earnings for the 2011 period   18 816    
Decrease   235    


The number of outstanding shares of the Company changed during the nine month period ended September 30th, 2012 pursuant to the normal course issuer bid renewed on March 8th, 2012 and the conversion of Class B Multiple Voting Shares. Accordingly, 789,200 Class A Subordinate Voting Shares were repurchased and cancelled by the Company and 150,498 Class B Multiple Voting Shares were converted into 150,498 Class A Subordinate Voting Shares. As a result of these changes the Company had on September 30th, 2012, 1,968,337 Class B Multiple Voting Shares and 45,517,463 Class A Subordinate Voting Shares outstanding.

A semi annual eligible dividend of $0.12 per share has been declared to holders of Class A Subordinate Voting Shares and Class B Multiple Voting Shares of record as of the close of business on December 20th, 2012 which will be payable on January 3rd, 2013.

BMTC Group Inc.'s Class A Subordinate Voting Shares are listed on the Toronto Stock Exchange and through its subsidiaries, ABTM Group Inc. and Ameublements Tanguay Inc., is a major retailer of furniture, electronic goods and household appliances operating in the Montreal, Quebec City, Repentigny, Ste-Therese, Laval, Longueuil, Kirkland, St-Georges, Trois-Rivières, Sherbrooke, Chicoutimi, Rivière-du-Loup, Rimouski, Levis, Beauport, Ste-Foy, Gatineau, St-Hyacinthe, St-Jean-sur-le-Richelieu, Granby, Vaudreuil, Mascouche and St-Jérôme areas.

SOURCE: BMTC GROUP INC.

For further information:

Mr. Yves Des Groseillers
Chairman, President and
Chief Executive Officer
BMTC Group inc.

(514) 648-5757