BMTC Group Inc. announces financial results for its quarter ended March 31st, 2014

MONTREAL, May 8, 2014 /CNW Telbec/ - For the quarter ended March 31st, 2014, the Company's revenues decreased by $6,731,000 to $145,118,000, compared to $151,849,000 recorded in the corresponding 2013 period. Net loss for the quarter ended March 31st, 2014, amounted to $1,468,000 compared to net earnings of $1,215,000 for the corresponding 2013 period. For the quarter ended March 31st, 2014, the Company recorded a basic net loss per share of $0.03 compared to a net basic earnings per share of $0.03 for the corresponding 2013 period.

The effect of costing options had no impact on net basic earnings per share for the periods ended March 31st, 2014 and 2013. 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 increased in the context of a major decrease in the value attributed. For this reason the Company discloses adjusted net 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 share repurchase program contributed to a decrease of $0.01 in basic net loss per share during the first quarter 2014.

Including these effects, the net loss would have been $2,432,000 or $0.05 per basic share.

The $2,432,000 variation in adjusted net loss in 2014 breaks down as follows:

  2014    2013
  ($ in thousands)
Net Loss (1 468)   1 215
Variation of cost of options (after-tax) 147    (104)
Adjusted net loss (1 321)   1 111
       
Minus: Adjusted net earnings for 2013 1 111    
       
Variation (2 432)  

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

($ in thousands)
  Increase (decrease)   Increase (decrease)   Increase (decrease)
  retail earnings   investment   adjusted earnings
           
1st quarter 2014 (2 031)   (401)   (2 432)

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

Revenue 2013 2012
$ $
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, except for per share amounts)

  March June September December
  2014 2013 2013 2012 2013 2012 2013 2012
  $ $ $ $ $ $ $ $
Revenue 145 118 151 849 181 411 185 841 187 315 195 599 174 168 180 670
Net (loss) earnings (1 468) 1 215 13 574 13 882 15 840 20 135 26 625 16 395
Net (loss) earnings per share                
                 
  Basic (0,03) 0,03 0,29 0,29 0,34 0,42 0,58 0,35
  Diluted (0,03) 0,03 0,29 0,29 0,34 0,42 0,58 0,35

During the three month period ended March 31st, 2014, no options were granted or exercised. As at March 31st, 2014, options for 251,850 Class A Subordinate Voting Shares, representing 0.06% of the Company's outstanding shares remain issued and 5,710,864 authorized share options, representing approximately 12.66% 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 Class A Subordinate Voting Shares.

The number of outstanding shares of the Company changed during the three month period ended March 31st, 2014 pursuant to the normal course issuer bid  March 12th, 2013 which was renewed on March 13th, 2014 and the conversion of Class B Multiple Voting Shares. Accordingly, 143,000 Class A Subordinate Voting Shares were repurchased and cancelled by the Company. As a result of these changes the Company had on March 31st, 2014, 1,811,280 Class B Multiple Voting Shares and 43,313,720 Class A Subordinate Voting Shares outstanding.

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