BMTC Group Inc. announces financial results for its year ended December 31st, 2012

MONTREAL, Feb. 21, 2013 /CNW Telbec/ - For the fiscal year ended December 31, 2012, the Corporation's revenue decreased by $31,861,000 to $716,870,000, from the $748,731,000 recorded in the 2011 year. Net income for the fiscal year ended December 31, 2012, stood at $44,955,000 compared with $57,231,000 for the previous fiscal year. Basic earnings per share decreased from $1.16 in 2011 to $0.94 in 2012.

Recognition of the cost of options in earnings resulted in an increase basic net earnings by $0.01 per share, compared to a decrease of $0.04 per basic share for the previous year. While the Corporation recognizes options as either an expense or revenue in the net earnings calculation, it believes it is preferable to inform readers of its financial statements of the impact of this element, which is beyond the Corporation's control and varies based on the Black-Scholes calculation method. An increase in the Corporation's share price increases expenses, while the opposite occurs with a decrease in the Corporation's share price. Of particular concern is that the reader could be made to believe that the Corporation's profitability had risen in the event of a major decrease in this value. It is for this reason that, in its Management's Discussion and Analysis and press releases, the Corporation adjusts net earnings in absolute dollars and per-share dollars excluding this costing of options effect, it is therefore unlikely that they can be compared with the same type of measures presented by other issuers. It is worth noting that the Corporation offers a stock option program that allows holders to exercise their options for cash, therefore being one of 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.

During the month of December 2012, the Corporation made an offset past service contribution of $3,324,000 before taxes ($9,518,000 in 2011), or $2,430,000, net of taxes or $0.05 per basic share ($6,815,000, net of taxes or $0.14 per basic share in 2011), to partially offset the 2011 and 2010 solvency deficiency in the pension fund.

The share repurchase program contributed $0.05 to basic net earnings per share during the year.

Excluding these effects, the variation of net earnings would have been $20,368,000 or $0.43 per basic share.

The $20,368,000 variation in net adjusted earnings in 2012 breaks down as follows:

  (in thousands of $)
2012   2011
Net earnings 44 955   57 231
Change in option costs (net of taxes) (676)   1 842
(Gain) resulting from the sale of fixed assets
(after-tax)
(1 189)   -
Offset past service contribution to pension fund 2 430   6 815
Adjusted net earnings 45 520   65 888
Minus: Adjusted net earnings for the 2011 period 65 888    
       
Variation (20 368)  

This decrease in adjusted and after-tax operating income is allocated as follows:

      (in thousands of $)    
  Increase
(decrease)
Retail operating
earnings
  Increase
(decrease)
Investment income
  Increase
(decrease)
Adjusted operating
income
           
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 (5 838)   105   (5 728)
           
Total: (20 846)   478   (20 368)

Annual Financial Information
(In thousands of dollars, except per share amounts)

       
Revenue 2012 2011
$ $
716 870 748 731
Net earnings 44 955 57 231
Total assets 285 318 274 446
Net earnings per share    
  basic 0.94 1.16
  diluted 0.94 1.16
Dividends per share 0.24 0.24

Quarterly Results (unaudited)
(In thousands of $, except per share amounts)

                   
  March 31 June 30 September 30 December 31
2012
$
2011
$
2012
$
2011
$
2012
$
2011
$
2012
$
2011
$
Revenue 154 760 163 174 185 841 194 146 195 599 196 715 180 670 194 156
Net earnings (1 760) 2 814 13 882 21 456 20 135 17 857 12 698 15 104
Net earnings per share*                
  Basic (0,04) 0,05 0,29 0,43 0,42 0,36 0,27 0,32
  Diluted (0,04) 0,05 0,29 0,42 0,42 0,36 0,27 0,33

For the three-month period ended December 31, 2012, revenue totaled $180,670,000, a $13,486,000 decline from $194,156,000 for the corresponding period in 2011. For the three-month period ended December 31, 2012, net earnings amounted to $12,698,000, or $0.27 per basic share, compared with $15,104,000, or $0.32 per basic share for the corresponding period in 2011. For the three-month period ended December 31, 2012, recognition in earnings of the change in the cost of options had no effect on earnings per basic share, compared with a $0.02 increase in earnings per basic share for the corresponding period in 2011.

The share redemption program during the quarter resulted in a $0.01 increase in earnings per basic share.

During the month of December 2012, the Corporation made an offset past service contribution of $3,324,000 before taxes ($9,518,000 in 2011), or $2,430,000, net of taxes or $0.05 per basic share ($6,815,000, net of taxes or $0.14 per basic share in 2011), to partially offset the 2011 and 2010 solvency deficiency in the pension fund.

Excluding these effects, the variation in net earnings would have been $5,728,000 or $0.12 per basic share.

The $5,728,000 variation in net adjusted earnings for the quarter ended December 31, 2012 breaks down as follows:


(in thousands of $)
2012   2011
Net earnings 12 698   15 104
Change in option costs (net of taxes) (161)   (1 224)
Offset past service contribution to pension fund 2 340   6 815
Adjusted net earnings 14 967   20 695
Minus: Adjusted net earnings for the 2011 period 20 695            
       
Variation (5 728)    

During the twelve-month period ended December 31, 2012, no options were exercised or granted. As at December 31, 2012, options for 262,800 Class "A" Subordinate Shares were outstanding, representing 0.56% of the Corporation's issued and outstanding shares, and 5,710,864 options, representing 12.11% of the Corporation's issued and outstanding shares, may still be granted pursuant to the Plan. The outstanding options may be exercised at a price of $17.85 per Class "A" Subordinate Shares.

The number of the Corporation's outstanding shares changed again during the 12-month period ended December 31, 2012, due to the share redemption program implemented in March 2012 and the conversion of Class "B" Multiple Voting Shares. Accordingly, 1,135,000 Class "A" Subordinate Shares were redeemed by the Corporation and cancelled, whereas 157,555 Class "B" Multiple Voting Shares were converted into the same number of Class "A" Subordinate Shares. As a result of these changes, as at December 31, 2012, there were 1,961,280 Class "B" Multiple Voting Shares and 45,178,720 Class "A" Subordinate Shares outstanding.

During the fiscal year, the Corporation paid eligible dividends of $0.24 per share to holders of Class "A" Subordinate Shares and Class "B" Multiple Voting Shares.

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, Ste-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