BMTC Group Inc. announces financial results for its quarter ended March 31st, 2017

MONTREAL, May 11, 2017 /CNW Telbec/ -

Results

For the quarter ended March 31st, 2017, the Company's revenues increased by $7,055,000 to $161,998,000, compared to $154,943,000 recorded in the corresponding 2016 period, a 4.6% increase. Same store revenues grew by 4.1% during the same period. Net earnings for the quarter ended March 31st, 2017, amounted to $57,000 compared to a net loss of ($958,000) for the corresponding 2016 period. Basic net earnings per share amounted to $0.00 compared to a net loss of ($0.02) in 2016.

The effect of the cost of options had no impact on basic net earnings per share for the quarter ended March 31st, 2017 and 2016.

For quarter ended March 31st, 2017, the share repurchase program contributed to an increase in basic net earnings per share of $0.01.

Excluding all these effects, the variation to the adjusted net earnings would have been $945,000 or $0.03 per basic share for the quarter ended March 31st, 2017.

The $945,000 variation in adjusted net earnings for the first quarter of 2017 is as follows:

 



(Unaudited and $ in thousands)








2017


2016






Net (loss) earnings


57


(958)

Variation of cost of options (after-tax)


(30)


40

Adjusted net (loss) earnings


27


(918)

Minus: Adjusted net loss for 2016


(918)








Variation


945



 

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

 



(Unaudited and $ in thousands)










Increase


Increase


Increase



(decrease)


(decrease)


(decrease)



retail operating


investment


adjusted



earnings


income


operating earnings








1st quarter 2017


(1 506)


2 451


945

 

Annual Financial Information


($ in thousands, except for per share amounts)


2016


2015


$


$

Revenue

746 649


717 338

Net Earnings

43 830


41 528

Total Assets

309 483


274 022

Net Earnings Per Share





Basic

1,17


0,99


Diluted

1,17


0,99

Dividends Per Share

0,24


0,24

 

Financial Position and Dividends

Cash and investments increased by $702,000 during the quarter ended March 31st, 2017. Investments consist primarily of bank notes and common shares, which at the close of the quarter had a market value of $85,619,000 (including cash).

As of March 31st, 2017, the working capital showed a surplus of $12,212,000 a decrease of $1,524,000 compared to December 31st, 2016. The Company's shareholders' equity decreased from $199,681,000 as at December 31st, 2016 to $198,685,000 as at March 31st, 2017. As of March 31st, 2017, the book value per share stood at $5.40, compared to $5.42 as at December 31st, 2016.

Pursuant to the normal course issuer bid put in place on March 14th, 2016, and renewed on March 23rd 2017, accordingly, 82,600 Common Shares were repurchased and cancelled by the Company. As a result of this change, the Company had as of March 31st, 2017, 36,777,400 Common Shares issued and outstanding.

During the quarter ended March 31st, 2017, no options were granted or exercises.  As at March 31st, 2017, options for 219,000 Common Shares, representing 0.60% of the Company's outstanding shares remain issued and 5,710,864 authorized share options, representing approximately 15.53% 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.

 

Quarterly Results


(Unaudited and $ in thousands, except for per share amounts)



March 31st


June 30th


2017


2016


2016


2015


$


$


$


$

Revenue

161 998


154 943


197 043


188 373

Net (Loss) Earnings

57


(958)


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


2016


2015


2016


2015


$


$


$


$

Revenue

197 612


189 385


197 051


190 300

Net Earnings

14 708


13 037


17 673


16 236

Net Earnings Per Share









Basic

0,31


0,31


0,41


0,41


Diluted

0,31


0,31


0,41


0,41

 

Operations

BMTC Inc.

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 banner Brault & Martineau is now completed and operational since November, 2015. The process of implementation will continue throughout 2017 and 2018 for the following phases as well as the restructuring for all the other banners of the Company. The Company is also reviewing 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 Corporation decided to invest and to modify its existing IT systems, the integration and implementation will continue for a 3 to 5 year period. As at September 30th, 2016, the Company had to re-evaluate its costs related to these modifications, which are now estimated to be $17,000,000. A portion of these costs, $6,500,000 were incurred during 2015 and 2016 and the balance will be recorded in the subsequent years.

Brault & Martineau Division

The Company concluded the purchase of land at the junction of the Highway 15 and route 117, for the construction of the new 80,000 square foot Brault & Martineau prototype store that will replace the Ste-Thérèse store and set the standard for all remaining stores. The construction of the new Ste-Thérèse store will begin in the spring of 2017.

Caution regarding forward-looking statements

This Quarterly Management Report 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 Quarterly Management Report, 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 includes or excludes 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 and more appropriate to provide additional information.

The Company also discloses same store revenues, which have been realised in stores opened for more than a 12 month period. This measure is used by management and is a similar measures presented by other issuers in our industry.

Adjusted net earnings, adjusted operating earnings, adjusted administrative expenses as well as same store revenues are not an earnings measure recognised by IFRS and does not have a standardised meaning prescribed by IFRS. Therefore, adjusted net earnings and same store revenues 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 calculated according to IFRS, but rather as additional information.

The Company discloses in this MD&A under the section "Results" a reconciliation between net earnings and adjusted net earnings.

BMTC Group Inc.'s Common Shares are listed on the Toronto Stock Exchange and through its subsidiary Ameublements Tanguay Inc., and its two divisions, Brault & Martineau and EconoMax, the Company 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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