BMTC Group inc. announces financial results for its year ended December 31, 2007



    MONTREAL, Feb. 21 /CNW Telbec/ - BMTC Group inc. announced that, for the
year ended on December 31, 2007, its revenues totaled 841.5 million dollars,
representing an increase of 5.8 million $ over the 835.7 million dollars for
2006. The Company's net income, for the period, totaled $49,033,000, or
$1.54 per share, compared with $45,633,000, or $1.35 per share, for the
corresponding 2006 period.
    Results from the costing of options had the effect of reducing net
earnings by $0.20 per share, compared to a reduction of $0.07 per share for
the previous year. 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.
    On December 31st 2007, given the volatility in the financial markets,
management altered its way of estimating the cost of the Company's options,
going from using the average stock price (weighted) during the 30 days
preceding and following the close of the measured period to the market price
at the close of the reporting period. This had the effect of increasing the
cost of these options by $2 804 000 after taxes. In previous years, the method
used by the Company; the 60-day weighted average, gave approximately the same
results as the new method of market value at closing.
    The sale of fixed assets resulted in an increase in net per share
earnings of $0.06 compared with $0.01 for the corresponding period. The
Superior Court of Quebec rendered a judgment against the Company's subsidiary
Brault et Martineau, ordering it to pay punitive damages. The Company recorded
a charge in the amount of $ 2,545,000 or $ 1,731,000 on an after-tax basis,
representing the full amount of the award by the Superior Court and the
Company's estimate of the ancillary distribution costs. This net amount
represents a reduction of $0.05 to the net per share earnings for the year
ended December 31st, 2007. The Company records its investments at market
value. However, due to the liquidity issue with respect to ABCP, there is
currently no market for the Company's ABCP investments. Therefore, a charge of
$1,525,000 before tax or $1,288,000 after tax or $0.04 per share was recorded
as a provision for the estimated lost in value. The share repurchase program
contributed $0.08 to net per-share earnings. Excluding all these effects, net
earnings would have increased by $8.8 million or $0.28 per share for 2007.

    
    The adjusted $8.8 million increase in net earnings breaks down as follows:

                                                       2007             2006
                                                     ($ in thousands, except
                                                       for per share amounts)

    Net Earnings                                     49,033           45,633
    Cost (gain) of options
     (after-tax)                                      6,345            2,297
    (Gain) resulting from the sale
     of fixed assets (after-tax)                     (1,958)            (254)
    Provision for judgment (after-tax)                1,731                -
    Provision for ABCP (after-tax)                    1,288                -
                                                  ------------   ------------
    Adjusted Net Earnings                            56,439           47,676

    MINUS : Adjusted Net Earnings 2006               47,676
                                                  ------------

    Increase  2007                                    8,763


    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
                                          2007      2006      2007      2006
                                          ----      ----      ----      ----

    Revenue                           $178,452  $182,969  $216,109  $215,959
    Net earnings                         2,055       285    14,878    12,143
    Net Earnings per share
      Basic                              0.060     0.010     0.460     0.350
      Diluted                            0.060     0.010     0.440     0.340

                                          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                              0.500     0.490     0.520     0.500
      Diluted                            0.480     0.470     0.500     0.480


    For the last quarter 2007, net earnings stood at $16,130,000 or $0.52 per
share, compared with $16,539,000 or $0.50 per share for the corresponding 2006
period.
    The result from costing of options had the effect of reducing the earnings
per share by $0.01 compared to an increase of $0.01 for the corresponding
period. The Company records its investments at market value. However, due to
the liquidity issue with respect to ABCP, there is currently no market for the
Company's ABCP investments. Therefore, a charge of $1,525,000 before tax or
$1,288,000 after tax or $0.04 per share was recorded as a provision for the
estimated lost in value. The share repurchase program contributed $0.04 to net
per share earnings for the quarter ended December 31st, 2007. Excluding all
these effects, net earnings would have increased by 1,3 M$ or $0.04 per share
for the three-month period ended December 31st, 2007.

    The adjusted 1,3 M$ in net earnings breaks down as follows for the
three-month period ended December 31st, 2007:

                                                       2007             2006
                                                     ($ in thousands, except
                                                       for per share amounts)

    Net Earnings                                     16,130           16,539
    Cost (gain) of options
     (after-tax)                                        129             (325)
    (Gain) resulting from the sale
     of fixed assets (after-tax)                          -                -
    Provision for ABCP  (after-tax)                   1,288                -
                                                  ------------   ------------
    Adjusted Net Earnings                            17,547           16,214

    MINUS : Adjusted Net Earnings 2006               16,214
                                                  ------------

    Increase  2007                                    1,333


    Finally, BMTC Group inc. has indicated that in the course of its
redemption programs implemented in September 2007, and the conversion of Class
B Multiple Voting Shares, the Company has redeemed a total of 418,062 Class A
Subordinate Voting Shares with respect to which the average redemption price
was $21.48 per share, and 48,288 Class B Multiple Voting Shares with respect
to which the average redemption price was $20.29 per share, while 121,800
Class B Multiple Voting Shares were converted into as many Class A Subordinate
Voting Shares. As of February 21, 2008, 19,920,205 Class A Subordinate voting
shares and 10,915,595 Class B Multiple voting shares were 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 affiliates 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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