BMTC Group Inc. announces financial results for its quarter ended June 30th, 2016

MONTREAL, Aug. 4, 2016 /CNW Telbec/ -

Results

For the semester ended June 30th, 2016, the Company's revenues increased by $14,333,000 to $351,986,000, compared to $337,653,000 recorded in the corresponding 2015 period, a 4.2% increase. Same store revenues grew by 2.6% during the same period. Net earnings for the semester ended June 30th, 2016, amounted to $11,449,000 compared to net earnings of $12,255,000 for the corresponding 2015 period. Basic net earnings per share increased to $0.30 compared to $0.27 in 2015.

The effect of the cost of options had no impact on basic net earnings per share for the semesters ended June 30th, 2016 and 2015.

For the six month period ended June 30th, 2016, the share repurchase program contributed to an increase in basic net earnings per share of $0.05.

The variation to the adjusted net earnings would have been $(648,000) or $(0.02) per basic share for the semester ended June 30th, 2016.

The $(648,000) variation in adjusted net earnings in 2016 is as follows:

 


(Unaudited and $ in thousands)


2016


2015





Net earnings  

11 449


12 255

Variation of cost of options (after-tax)

(43)


(201)

Adjusted net earnings  

11 406


12 054

Minus: Adjusted net earnings for 2015

12 054







Variation

(648)



 

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

 


($ in thousands)


Increase

(decrease)

 retail operating
earnings

Increase

(decrease)


Investment income


Increase

(decrease)

Adjusted operating

 earnings

1st quarter 2016

 

1 113

(1 960)


(847)

2nd quarter 2016

416

(217)


199

Total

 

1 529

(2 177)


(648)






 

Annual Financial Information








($ in thousands, except for per share amounts)


2015


2014


$


$

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 $13,403,000 during the semester ended June 30th, 2016. Investments consist primarily of bank notes and common shares, which at the close of the semester had a market value of $75,892,000 (including cash).

As of June 30th, 2016, the working capital showed a deficit of $1,018,000 a decrease of $2,928,000 compared to December 31st, 2015. The Company's shareholders' equity decreased from $172,968,000 as at December 31st, 2015 to $172,315,000 as at June 30th, 2016. As of June 30th, 2016, the book value per share stood at $4.66, compared to $4.56 as at December 31st, 2015.

Pursuant to the normal course issuer bids 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 June 30th, 2016, 37,000,000 Common Shares issued and outstanding.

During the semester ended June 30th, 2016, no options were granted. As at June 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 August 15th, 2016 which will be payable on August 17th, 2016.

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


2015

2014

2015

2014


$

$

$

$

Revenue

189 385

190 207

190 300

183 150

Net (Loss) Earnings

13 037

18 271

16 236

17 824

Net (Loss) Earnings Per Share






Basic

0,31

0,40

0,41

0,40


Diluted

0,31

0,40

0,41

0,40

 

For the quarter ended June 30th, 2016, the Company's revenues increased by $8,670,000 to $197,043,000, compared to $188,373,000 recorded in the corresponding 2015 period, a 4.6% increase. Same store revenues grew by 1% during the same period. Net earnings for the quarter ended June 30th, 2016, amounted to $12,407,000 compared to net earnings of $12,196,000 for the corresponding 2015 period. Basic net earnings per share increased to $0.32 compared to $0.27 in 2015.

The effect of the cost of options had no impact on basic net earnings per share for the quarters ended June 30th, 2016 and 2015.

For the three month period ended June 30th, 2016, the share repurchase program contributed to an increase in basic net earnings per share of $0.05.

The variation to the adjusted net earnings would have been $199,000 or $0.00 per basic share for the quarter ended June 30th, 2016.

The $199,000 variation in adjusted net earnings in 2016 is as follows:


  ($ in thousands)


2016


2015





Net earnings

12 407


12 196

Variation of cost of options (after-tax)

(83)


(71)

Adjusted net earnings

12 324


12 125

Minus: Adjusted net earnings for 2015

12 125







Variation

199



 

Operations

BMTC Inc.

On April 14th, 2016, Mme Sylvie Bélanger was named CFO of the Company. She replaces M. Yves Des Groseillers, who remains President and Chief Executive Officer of the Company.

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 second phase of the implementation process will continue throughout 2016 for all the other banners of the Company. The Company has reviewed 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 this evaluation, the Company decided to invest in a new computer system, the integration and implementation of which began in the third quarter of 2014. The costs related to these modifications are estimated to be $10,600,000, some costs were incurred in 2015 and the balance will be recorded during 2016 and subsequent years.

Brault & Martineau Division

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.

The Company has announced that it 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.

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.

Same store revenues are not an earnings measure recognised by IFRS and does not have a standardised meaning prescribed by IFRS. Therefore, same store sales as discussed in this MD&A may not be compared to similar measures presented by other issuers.

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.

For further information: Mr. Yves Des Groseillers, Chairman, President and Chief Executive Officer, BMTC Group Inc., (514) 648-5757

RELATED LINKS
www.braultetmartineau.com

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