BMTC Group inc. announces financial results for its year ended December 31,
2009

MONTREAL, Feb. 19 /CNW Telbec/ - For the fiscal year ended December 31st, 2009, the Company's revenue and net earnings decreased by 4% over the corresponding period.

For the fiscal year ended December 31st, 2009, the Company's revenue decreased by $38.1 million to $818.1 million, from the $856.2 million recorded in the corresponding 2008 period. Net income for the fiscal year ended December 31st, 2008, stood at $67.0 million compared with $69.9 million, for the previous fiscal year. Basic earnings per share increased going from $2.36 in 2008 to $2.53 in 2009.

Results from the costing of options had the effect of reducing net basic earnings by $0.44 per share, compared to an increase of $0.20 per basic 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 during the corresponding period resulted in an increase in net basic per share earnings of $0.17.

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 $1,315,000 after tax or $0.05 per basic share was recorded as an additional provision for the estimated lost in value, which brings the provision to 100% of its nominal value, last year for the corresponding period the Company recorded a charge of $3,004,000 before tax or $2,535,000 after tax or $0.09 per basic share.

The share repurchase program contributed $0.24 to net per basic share earnings.

Excluding all these effects, net earnings would have increased by $18.7 million or $0.70 per basic share for 2009.

The adjusted $18.7 million increase in net earnings breaks down as follows:

    
                                                          2009        2008

                                                   ($ in thousands, except
                                                     for per share amounts)
    Net Earnings                                        67,029      69,908
    Expense (revenue) of options (after-tax)            11,746      (6,014)
    (Gain) resulting from the sale of fixed
     assets (after-tax)                                      -      (4,992)
    Provision for ABCP (after-tax)                       1,315       2,535
                                                      ---------   ---------
    Adjusted Net Earnings                               80,090      61,437
    MINUS : Adjusted Net Earnings for the
     2008 period                                        61,437
                                                      ---------

    Increase 2009                                       18,653
    

This increase in adjusted and after tax operating earnings was spread out through the quarters as follows:

    
                                                         ($ in
                                                     thousands)
                                          Increase                Increase
                                            retail    Increase    adjusted
                                         operating  Investment   operating
                                          earnings      income    earnings

    1st quarter 2009                           582         828       1,410

    2nd quarter 2009                            39       3,990       4,029

    3rd quarter 2009                         3,721       3,551       7,272

    4th quarter 2009                          (501)      6,443(1)    5,942
                      -------------------------------------------------------
      Total:                                 3,841      14,812      18,653

    (1) The increase in investment income does not account for provisions of
        ABCP.
    

Annual Financial Information

    
    -------------------------------------------------------------------------
                                              2009        2008        2007
                                              ----        ----        ----
                                           ($ in thousands, except for per
                                                    share amounts)
    -------------------------------------------------------------------------
    Revenue                               $818,072    $856,229    $841,544
    -------------------------------------------------------------------------
    Net earnings                            67,029      69,908      49,033
    -------------------------------------------------------------------------
    Total Assets                           313,925     244,532     284,939
    -------------------------------------------------------------------------
    Net Earnings per share
      Basic                                  $2.53       $2.36       $1.54
      Diluted                                 2.45        2.27        1.48
    -------------------------------------------------------------------------
    Dividends per share                       0.38        0.35        0.29
    -------------------------------------------------------------------------
    

Quarterly Results (unaudited)

($ in thousands, except for per share amounts)

    
                                   Quarter Ended           Quarter Ended
                                      March 31                June 30
    -------------------------------------------------------------------------
                                  2009        2008        2009        2008
                                  ----        ----        ----        ----
    -------------------------------------------------------------------------
    Revenue                   $168,805    $181,744    $204,956    $225,508
    -------------------------------------------------------------------------
    Net earnings                 3,084      11,569      19,685      17,094
    -------------------------------------------------------------------------
    Net Earnings per share
      Basic                       0.11        0.37        0.72        0.55
      Diluted                     0.10        0.35        0.70        0.54
    -------------------------------------------------------------------------

                                   Quarter Ended           Quarter Ended
                                    September 30            December 31
    -------------------------------------------------------------------------
                                  2009        2008        2009        2008
                                  ----        ----        ----        ----
    -------------------------------------------------------------------------
    Revenue                   $220,363    $232,129    $223,948    $216,848
    -------------------------------------------------------------------------
    Net earnings                25,517      19,389      18,743      21,856
    -------------------------------------------------------------------------
    Net Earnings per share
      Basic                       0.98        0.65        0.72        0.79
      Diluted                     0.95        0.62        0.70        0.76
    -------------------------------------------------------------------------
    

For the quarter ended December 31st, 2009, the Company's revenue increased by $7.1 million to $223.9 million, from the $216.8 million recorded in the corresponding 2008 period. Net income for the quarter ended December 31st, 2008, stood at $18.7 million compared with $21.9 million, for the previous fiscal year. Basic earnings per share decreased going from $0.79 in 2008 to $0.72 in 2009.

The result from costing of options had the effect of reducing the basic earnings per share by $0.30 compared to an increase of $0.03 for the corresponding period.

The sale of fixed assets during the corresponding period resulted in an increase in net basic per share earnings of $0.06.

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 $1,315,000 after tax or $0.05 per basic share was recorded as an additional provision for the estimated lost in value, which brings the provision to 100% of its nominal value, last year for the corresponding period the Company recorded a charge of $3,004,000 before tax or $2,535,000 after tax or $0.09 per basic share.

The share repurchase program contributed $0.06 to net basic per share earnings for the quarter ended December 31st, 2009.

Excluding all these effects, net earnings would have increased by 5.9 M$ or $0.22 per basic share for the three-month period ended December 31st, 2009.

The adjusted 5.9 M$ increase in net earnings breaks down as follows for the three-month period ended December 31st, 2009:

    
                                                          2009        2008

                                                   ($ in thousands, except
                                                     for per share amounts)
    Net Earnings                                        18,743      21,856
    Expense (revenue) of options (after-tax)             7,981        (568)
    (Gain) resulting from the sale of fixed
     assets (after-tax)                                      -      (1,726)
    Provision for ABCP (after-tax)                       1,315       2,535
                                                      ---------   ---------
    Adjusted Net Earnings                               28,039      22,097
    MINUS : Adjusted Net Earnings for the
     2008 period                                        22,097
                                                      ---------

    Increase 2009                                        5,942
    

During the fiscal year, the Company paid eligible dividends of $0.38 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, 2009, due to the conversion of Class B Multiple Voting Shares. Accordingly, 119,660 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, 2010, 10,141,031 Class B Multiple Voting Shares and 16,001,769 Class A Subordinate Voting Shares outstanding.

Renewal of Normal Course Issuer Bid

The Company announces that it has received the required regulatory approvals to renew its normal course issuer bid to acquire Class A Subordinate Voting Shares listed on the Toronto Stock Exchange (the "TSX") for the period between March 1, 2010 and February 28, 2011 at the latest. The Company's previous normal course issuer bid expired on November 23, 2009. Pursuant to its renewed normal course issuer bid, the Company intends to acquire, through the facilities of the TSX and in accordance with the requirements of the TSX, up to 800,088 of Class A Subordinate Voting Shares, representing about 5% of the 16,001,769 Class A Subordinate Voting Shares issued and outstanding as at February 15, 2010.

The average daily trading volume of the Company's Class A Subordinate Voting Shares for the most recently completed six calendar months was 4,529 shares (the "ADTV"). Accordingly, under TSX rules and policies, the Company is entitled on any trading day to purchase up to 1,132 Class A Subordinate Voting Shares. Once a week, in excess of the daily Class A Subordinate Voting Shares repurchase limit, the Company may also purchase a block of Class A Subordinate Voting Shares not owned by an insider (i) having a purchase price of $200,000 or more, (ii) of at least 5,000 Class A Subordinate Voting Shares having a purchase price of at least $50,000, or (iii) of at least 20 board lots of Class A Subordinate Voting Shares which total 150% or more of the ADTV, in accordance with TSX rules. The Company has retained National Bank Financial Inc. as broker to manage its normal course issuer bid.

The price that the Company will pay for any Class A Subordinate Voting Shares purchased under its normal course issuer bid will be the market price for the Class A Subordinate Voting Shares on the TSX at the time of the acquisition. The Class A Subordinate Voting Shares acquired through the normal course issuer bid will be cancelled. The Company considers that the acquisition of Class A Subordinate Voting Shares that it may effect from time to time in the course of its normal course issuer bid is a sound use of its funds.

Within the last 12 months, the Company acquired for cancellation, under its previous normal course issuer bid, a total of 581,100 Class A Subordinate Voting Shares with respect to which the weighted average price paid was $20.52 per share.

2 for 1 Stock Split

The Company also announces that its board of directors has approved, subject to TSX approval, a 2 for 1 stock split of its Class A Subordinate Voting Shares and Class B Multiple Voting Shares. The record date for this stock split will be the close of business on April 6, 2010.

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.

SOURCE BMTC Group Inc.

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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