BMTC Group Inc. announces financial results for its year ended December 31, 2008



    MONTREAL, Feb. 19 /CNW Telbec/ - BMTC Group Inc. announced that, for the
year ended on December 31, 2008, revenue increased by $14.7 million to $856.2
million, from the $841.5 million recorded in the corresponding 2007 period.
Net income for the fiscal year ended December 31st, 2008, stood at $69.9
million compared with $49.0 million, for the previous fiscal year. Earnings
per share ("EPS") increased going from $1.54 in 2007 to $2.36 in 2008.
    Results from the costing of options had the effect of increasing net
earnings by $0.20 per share, compared to a reduction of $0.20 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 offers a stock option program that allows the holder to exercise his
options in lieu of cash therefore being 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 $0.17 compared with $0.06 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 $3,004,000 before tax or $2,535,000
after tax or $0.8 per share was recorded as an additional provision for the
estimated lost in value, which brings the provision to 75% of its nominal
value, last year for the corresponding period the Company recorded a charge of
$1,525,000 before tax or $1,288,000 after tax or $0.04 per share. Last year
the Company recorded an extraordinary charge in the amount of $1,731,000 or of
$0.05 per share on an after-tax basis representing the full amount of an award
by the Superior Court in relation to a class action. The Company has since
appealed this judgement and is confident that it will ultimately succeed in
reversing this judgement. The share repurchase program contributed $0.13 to
net per-share earnings.
    Excluding all these effects, net earnings would have increased by $5.0
million or $0.17 per share for 2008.
    The adjusted $5.0 million increase in net earnings breaks down as
follows:

    
                                                              2008      2007
                                                             ($ in thousands,
                                                              except for per
                                                              share amounts)
    Net Earnings                                            69,908    49,033
    Cost (gain) of options (after-tax)                      (6,014)    6,345
    (Gain) resulting from the sale of fixed assets
     (after-tax)                                            (4,992)   (1,958)
    Provision for judgment (after-tax)                           -     1,731
    Provision for ABCP (after-tax)                           2,535     1,288
                                                          --------- ---------
    Adjusted Net Earnings                                   61,437    56,439
    MINUS : Adjusted Net Earnings for the 2007 period       56,439
                                                          ---------
    Increase  2008                                           4,998


    Annual Financial Information
                                                    2008      2007      2006
                                                --------- --------- ---------
                                                    ($ in thousands, except
                                                     for per share amounts)
    Revenue                                     $856,229  $841,544  $835,681
    Net earnings                                  69,908    49,033    45,633
    Total Assets                                 244,532   284,939   284,963
    Net Earnings per share
      Basic                                        $2.36     $1.54     $1.35
      Diluted                                       2.27      1.48      1.30
    Dividends per share                             0.35      0.29      0.24


    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
                                          2008      2007      2008      2007
                                      --------- --------- --------- ---------
    Revenue                           $232,129  $216,731  $216,848  $223,628
    Net earnings                        19,389    16,666    21,856    16,130
    Net Earnings per share
      Basic                               0.65      0.49      0.79      0.52
      Diluted                             0.62      0.47      0.76      0.50
    

    The result from costing of options had the effect of increasing the
earnings per share by $0.03 compared to a reduction of $0.01 for the
corresponding period. The sale of fixed assets resulted in a increase in net
per share earnings of $0.06 for the quarter, no amount where recorded in the
corresponding period of 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
$3,004,000 before tax or $2,535,000 after tax or $0.08 per share was recorded
as an additional provision for the estimated lost in value, which brings the
provision to 75% of its nominal value. Last year, the Company recorded a
charge of $1,525,000 before tax or $1,288,000 after tax or $0.04 per share for
the corresponding 2007 period. The share repurchase program contributed $0.06
to net per share earnings for the quarter ended December 31st, 2008. Excluding
all these effects, net earnings would have increased by 4,6 M$ or $0.15 per
share for the three-month period ended December 31st, 2008.
    The adjusted 4,6 M$ increase in net earnings breaks down as follows for
the three-month period ended December 31st, 2008:

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

    Net Earnings                                            21,856    16,130
    Cost (gain) of options (after-tax)                        (568)      129
    (Gain) resulting from the sale of fixed assets
     (after-tax)                                            (1,726)        -
    Provision for ABCP  (after-tax)                          2,535     1,288
                                                          --------- ---------
    Adjusted Net Earnings                                   22,097    17,547
    MINUS : Adjusted Net Earnings for the 2007 period       17,547
                                                          ---------
    Increase  2008                                           4,550
    

    During the fiscal year, the Company paid eligible dividends of $0.35 per
share to holders of Class A Subordinate Voting Shares and Class B Multiple
Voting Shares.
    The number of outstanding shares of the Company changed yet again since
December 31st, 2008, due to the share redemption program implemented in
September 2008 and the conversion of Class B Multiple Voting Shares.
Accordingly, 48,100 Class A Subordinate Voting Shares were redeemed by the
Company and cancelled in 2009, while 55,824 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 February 19th, 2009, 10,414,667 Class B
Multiple Voting Shares and 16,337,233 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 the Montreal, Quebec City, Laval, Ste-Foy,
Sherbrooke, Trois-Rivières, Rimouski, St-Georges, Rivière-du-Loup, Chicoutimi,
and Gatineau regions through its affiliates Brault & Martineau Inc. 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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