BMTC Group Inc. announces financial results for its second quarter ended June 30, 2008



    MONTREAL, Aug. 7 /CNW Telbec/ - For the six-month period ended June 30th,
2008, the Company's revenue increased by $12.6 million to $407.2 million, from
the $394.6 million recorded in the corresponding 2007 period. Net income for
the six-month period ended June 30th, 2008, stood at $28,663,000 compared with
$16,933,000, for the corresponding 2007 period. Earnings per share ("EPS")
increased by $0.40 to $0.92 for the semester ended June 30th, 2008.
    For the six-month period ended June 30th, 2008 results from the variation
of costing options had the effect of increasing net earnings by $0.18 per
share, compared to a reduction of $0.18 per share for the corresponding 2007
period. 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 which varies along with the course of the
Company's share price in any given time period. An increase in the Company's
share price incurs an expense, while a decrease in the Company's share price
incurs revenue. Of particular concern is that the reader could be made to
believe that the Company's profitability had risen in the context of a major
decrease in the Company's share price. It is for this reason that the Company
includes net earnings in absolute dollars and per-share dollars excluding this
costing of options effect, even though doing so does not conform to GAAPs, it
is therefore unlikely that we can compare them with the same type of measures
presented by other issuers. It is worth noting that the Company is one of few
public companies to expense options on an ongoing basis.
    The sale of fixed assets resulted in an increase in net per share
earnings of $0.11 compared with an increase of $0.06 for the corresponding
period of 2007. The share repurchase program contributed $0.03 to the net per
share earnings for the semester ended June 30th, 2008. Excluding all these
effects, net earnings would have decreased by $1.2 million or $0.04 per share
for the six-month period ended June 30th, 2008 compared to the corresponding
period.
    The adjusted $1.2 million decrease in net earnings breaks down as
follows:

    
                                                             2008       2007
                                                     ($ in thousands, except
                                                       for per share amounts)

    Net Earnings                                           28,663     16,933
    Cost (gain) of options
     (after-tax)                                           (5,632)     5,957
    (Gain) resulting from the sale
     of fixed assets (after-tax)                           (3,266)    (1,958)
                                                        ---------- ----------
    Adjusted Net Earnings                                  19,765     20,932

    MINUS : Adjusted Net Earnings for the
     2007 period                                           20,932
                                                        ----------
    Decrease  2008                                          1,167


    Annual Financial Information
                                                  2007       2006       2005
                                             ---------- ---------- ----------
                                                   ($ in thousands, except
                                                    for per share amounts)

    Revenue(*)                                $841,544    $835,681  $804,361
    Net earnings                                49,033      45,633    41,891
    Total Assets                               283,861     284,963   274,702
    Net Earnings per share
      Basic                                      $1.54       $1.35     $1.20
      Diluted                                     1.48        1.30      1.16

    Dividends per share                           0.29        0.24      0.13

    (*) Following the changes in the interpretation of the accounting
        principles in EIC-123 of the CICA entitled "Reporting Revenue Gross
        as a Principal Versus Net as an Agent", the Company modified its
        presentation of revenues from extended services contracts on certain
        products in order to present them at the net amount obtained for the
        services rendered. Consequently, the Company adjusted the results for
        the year ended December 31st, 2005 by reducing operating revenues as
        well as the cost of products sold, and commercial and administrative
        expenses in the amount of $14,409,000. These changes had no impact on
        net earnings.


    Quarterly Results (unaudited)

    ($ in thousands, except for per share amounts)

                                        Quarter Ended         Quarter Ended
                                           March 31              June 30
                                       2008       2007       2008       2007
                                  ---------- ---------- ---------- ----------

    Revenue                        $181,744   $178,452   $225,508   $216,109
    Net earnings                     11,569      2,055     17,094     14,878
    Net Earnings per share
      Basic                            0.37       0.06       0.55       0.46
      Diluted                          0.35       0.06       0.54       0.44

                                        Quarter Ended         Quarter Ended
                                         September 30          December 31
                                       2007       2006       2007       2006
                                  ---------- ---------- ---------- ----------

    Revenue                        $223,355   $216,731   $223,628   $220,022
    Net earnings                     15,970     16,666     16,130     16,539
    Net Earnings per share
      Basic                            0.50       0.49       0.52       0.50
      Diluted                          0.48       0.47       0.50       0.48


    As for the three-month period ended June 30th, 2008 revenues from
operations totaled 225.5 M$, representing an increase of 9.4 M$ over the
216.1 M$ for the corresponding 2007 period. The Company's net income for the
three-month period ended June 30th, 2008, totaled $ 17,094,000, or $0.55 per
share, compared with $ 14,878,000 or $0.46 per share for the corresponding
2007 period. For the three-month period ended June 30th 2008, the results from
the variation of costing options had the effect of increasing the earnings per
share by $0.01 compared with a decrease in earnings of $0.11 for the
corresponding 2007 period. The sale of fixed assets during the 2007 period
resulted in an increase in net per share earnings of $0.06 while no
corresponding amount for the 2008 period. The share repurchase program
contributed $0.01 to net per share earnings for the quarter ended June 30,
2008.
    Excluding all these effects, net earnings would have increased by 0.6 M$
or $0.02 per share for the three-month period ended June 30th, 2008 compared
to the corresponding period.
    The adjusted 0.6 M$ in net earnings breaks down as follows for the quarter
ended June 30th, 2008:

                                                             2008       2007
                                                     ($ in thousands, except
                                                       for per share amounts)

    Net Earnings                                           17,094     14,878
    Cost (gain) of options
     (after-tax)                                             (162)     3,610
    (Gain) resulting from the sale
     of fixed assets (after-tax)                                -     (1,958)
                                                        ---------- ----------
    Adjusted Net Earnings                                  16,932     16,530
    MINUS : Adjusted Net Earnings for
     2007 corresponding quarter                            16,530
                                                        ----------
    Increase 2008                                             582
    

    A semi-annual eligible dividend of $0.17 per share has been declared to
holders of Class A Subordinate voting shares and Class B Multiple voting
shares of record as of the close of business on August 21st, 2008,  which will
be payable on August 28th, 2008. This represents an increase of $0.02 per
share from the last semi-annual dividend paid by the Company.
    No options have been granted during the second quarter ended June 30th,
2008. As at June 30th, 2008, options for 1,613,370 Class A Subordinate Voting
Shares therefore remain outstanding and 2,986,832 options may still be issued
pursuant to the Plan. The outstanding options may be exercised at prices
ranging between $2.52 and $7.19 per Class A Subordinate Voting Shares.
    Finally, the number of outstanding shares of the Company changed yet
again in 2008 due to the share redemption programs implemented in September
2007, the conversion of Class B Multiple Voting Shares. Accordingly, 20,644
Class B Multiple Voting Shares and 1,079,256 Class A Subordinate Voting Shares
were redeemed by the Company and cancelled in 2008, while 120,000 Class B
Multiple Voting Shares were converted into as many Class A Subordinate Voting
Shares. As a result of these changes, the Company had, as of July 31st, 2008,
10,799,951 Class B Multiple Voting Shares and 19,166,049 Class A Subordinate
Voting Shares outstanding.

    BMTC Group inc., which Class A Subordinate Voting Shares are listed on
the Toronto Stock Exchange, is an important retailer of furniture, electronic
goods and household appliances in appliances in the areas of 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 through its subsidiary Brault & Martineau
and Ameublements Tanguay.




For further information:

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


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