BMTC Group Inc. announces financial results for its year ended December 31st, 2013

MONTREAL, Feb. 27, 2014 /CNW Telbec/ - For the fiscal year ended December 31, 2013, the Corporation's revenue decreased by $22,127,000 to $694,743,000, from the $716,870,000 recorded in the 2012 year. Net income for the fiscal year ended December 31, 2013, stood at $57,254,000 compared with $48,652,000 for the previous fiscal year. Basic earnings per share increased from $1.02 in 2012 to $1.24 in 2013.

Recognition of the cost of options in earnings had no impact on basic net earnings per share in 2013, compared to an increase of $0.01 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 2013 period.

During the fourth quarter 2013, the Corporation re-evaluated the amortized cost of their Asset-backed commercial paper (MAV). It is the Corporations opinion that the market for MAV is now a more liquid market where indications of bids and offers vary between approximately 80% and 90% depending on the class of the papers. Based on this information, the Corporation recorded an impairment reversal of $5,400,000 before taxes or $4,674,000 net of taxes or $0.10 per basic share.

During the 2013 fiscal year, the Corporation made an offset past service contribution of $5,687,000 before taxes ($3,324,000 in 2012), or $4,158,000, net of taxes or $0.09 per basic share ($2,430,000, net of taxes or $0.05 per basic share in 2012), to partially offset the solvency deficiency in the pension fund over the past fiscal years.

The share repurchase program contributed $0.04 to basic net earnings per share during the year.

Excluding these effects, the variation of net earnings would have been $7,322,000 or $0.16 per basic share.

The $7,322,000 variation in net adjusted earnings in 2013 breaks down as follows:

  (in thousands of $)
  2013   2012
Net earnings 57 254   48 652
Impairment reversal (MAV) (net of taxes) (4 674)   -
Change in option costs (net of taxes) (199)   (676)
(Gain) resulting from the sale of fixed assets (after-tax) -   (1 189)
Offset past service contribution to pension fund 4 158   2 430
Adjusted net earnings 56 539   49 217
Minus: Adjusted net earnings for the 2012 period 49 217    
Variation 7 322    


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

  (in thousands of $)
  Increase
(decrease)
Retail operations
Increase
(decrease)
Investment
Increase
(decrease)
Adjusted income
             
1st quarter 2013 1 678   1 178   2 856  
2nd quarter 2013 344   (477)   (133)  
3rd quarter 2013 (3 574)   752   (2 822)  
4th quarter 2013 6 344   1 077   7 421  
             
Total: 4 792   2 530   7 322  


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

       
  2013   2012
  $   $
Revenue 694 743   716 870
Net earnings 57 254   48 652
Total assets 306 296   285 318
Net earnings per share      
  basic 1,24   1,02
  diluted 1,24   1,02
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
2013
$
2012
$
2013
$
2012
$
2013
$
2012
$
2013
$
2012
$
Revenue 151 849 154 760 181 411 185 841 187 315 195 599 174 168 180 670
Net earnings 1215 (1 760) 13 574 13 882 15 840 20 135 26 625 16 395
Net earnings per share*                
  Basic 0,03 (0,04) 0,29 0,29 0,34 0,42 0,58 0,35
  Diluted 0,03 (0,04) 0,29 0,29 0,34 0,42 0,58 0,35


For the three-month period ended December 31, 2013, revenue totaled $174,168,000, a $6,502,000 decline from $180,670,000 for the corresponding period in 2012. For the three-month period ended December 31, 2013, net earnings amounted to $26,625,000, or $0.58 per basic share, compared with  $16,395,000, or $0.35 per basic share for the corresponding period in 2012.

For the three-month period ended December 31, 2013 and 2012 recognition in earnings of the change in the cost of options had no effect on earnings per basic share.

During the fourth quarter 2013, the Corporation re-evaluated the amortized cost of their Asset-backed commercial paper (MAV). It is the Corporations opinion that the market for MAV is now a more liquid market where indications of bids and offers vary between approximately 80% and 90% depending on the class of the papers. Based on this information, the Corporation recorded an impairment reversal of $5,400,000 before taxes or $4,674,000 net of taxes or $0.10 per basic share.

The share redemption program during the quarter resulted in a $0.02 increase in earnings per basic share.

During the 2013 fiscal year, the Corporation made an offset past service contribution of $5,687,000 before taxes ($3,324,000 in 2012), or $4,158,000, net of taxes or $0.09 per basic share ($2,430,000, net of taxes or $0.05 per basic share in 2012), to partially offset the solvency deficiency in the pension fund over the past fiscal years.

Excluding these effects, the variation in net earnings would have been $7,421,000 or $0.16 per basic share.

The $7,421,000 variation in net adjusted earnings for the quarter ended December 31, 2013 breaks down as follows:

  (in thousands of $)
  2013   2012
Net earnings 26 625   16 395
Impairment reversal (MAV) (net of taxes) (4 674)   -
Change in option costs (net of taxes) (24)   (161)
Offset past service contribution to pension fund 4 158   2 430
Adjusted net earnings 26 085   18 664
Minus: Adjusted net earnings for the 2012 period 18 664    
Variation 7 421    


During the twelve-month period ended December 31, 2013, no options were exercised or granted. On July 11th, 2013, 10,950 options were cancelled. As at December 31, 2013, options for 251,850 Class "A" Subordinate Shares were outstanding, representing 0.06% of the Corporation's issued and outstanding shares, and 5,710,864 options, representing 12.06% 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, 2013, due to the share redemption program implemented on March 13th, 2013 and the conversion of Class "B" Multiple Voting Shares. Accordingly, 1,872,000 Class "A" Subordinate Shares were redeemed by the Corporation and cancelled, whereas 150,000 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, 2013, there were 1,811,280 Class "B" Multiple Voting Shares and 43,456,720 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