The Brick Group reports record breaking results for its third quarter



    /NOT FOR DISTRIBUTION THROUGH U.S. NEWS WIRE SERVICES OR DISSEMINATION IN
    THE U.S/

    EDMONTON, Nov. 6 /CNW/ - (TSX:BRK.UN) - The Brick Group Income Fund (the
"Brick Group") today announced its financial results for the third quarter of
2007. The Brick Group's third quarter results and Management's Discussion and
Analysis ("MD&A") can be found on the Brick Group's website at
www.thebrickgroup.ca.
    For the third quarter, the Brick Group's EBITDA of $26.1 million, was the
highest ever reported for a quarter. Consolidated sales and operating revenue
of $375.1 million, represents an 11.0% increase over the prior year. Same
store sales growth of 7.7%, strong in both Eastern and Western Canada, was
driven by a strong promotional calendar in conjunction with improved supply
chain management. This was our seventh consecutive quarter of positive same
store sales growth.
    "In its most simple terms, our strong quarter was driven by more
effectively executing against strong written sales," said Kim Yost, President
and Chief Executive Officer. "We have improved our supply chain, reduced
inventories, improved our cash position, and narrowed our focus to driving
sales and maximizing customer satisfaction. Management remains excited not so
much by what we have done, but more so by what we believe the future holds."
    The following are some key highlights, compared to the same period last
year:

    
    -------------------------------------------------------------------------
                                     For the three months ended September 30
                                   ------------------------------------------
    (000's of $ except %,                               $ Increase % Increase
     and store amounts)                2007       2006  (Decrease) (Decrease)
    -------------------------------------------------------------------------
    Retail Segment - Sales and
     operating revenue            $ 362,590  $ 328,203     34,387      10.5%
    Financial Services Segment -
     Sales and operating revenue     12,513      9,580      2,933      30.6%
                                 ----------------------
    Consolidated - Sales and
     operating revenue              375,103    337,783     37,320      11.0%
    Franchise Sales                  30,922     22,983      7,939      34.5%
                                 ----------------------
    Consolidated and Franchise
     Sales and operating revenue  $ 406,025  $ 360,766     45,259      12.5%
                                 ----------------------
                                 ----------------------
    Same Store Sales Growth
     (corporate stores)                7.7%       2.9%

    Same Store Sales Growth
     (corporate and franchise
     stores)                           7.5%       2.8%

    Retail Segment - EBITDA       $  18,969  $  13,424      5,545      41.3%
    Financial Services Segment -
     EBITDA                           7,165      5,842      1,323      22.6%
                                 ----------------------
    Consolidated - EBITDA         $  26,134  $  19,266      6,868      35.6%
                                 ----------------------
                                 ----------------------

    Retail Segment - Net income
     (loss)                       $  10,018  $   4,793      5,225     109.0%
    Financial Services Segment -
     Net income                       7,143      6,915        228       3.3%
                                 ----------------------
    Consolidated - Net income
     (loss)                       $  17,161  $  11,708      5,453      46.6%
                                 ----------------------
                                 ----------------------

    EBITDA - Adjusted             $  28,156  $  22,130      6,026      27.2%

    Distributable cash per unit
     for the three months ended
     September 30                 $    0.44  $    0.34       0.10      29.1%

    Payout Ratio for the three
     months ended September 30        69.0%      87.4%

    Distributable cash per unit
     for the twelve months ended
     September 30                 $    1.29  $    1.26       0.03       2.4%

    Payout Ratio for the twelve
     months ended September 30        92.8%      95.4%

    Stores at period end                206        196
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                                     For the nine months ended September 30
                                   ------------------------------------------
    (000's of $ except %,                               $ Increase % Increase
     and store amounts)                2007       2006  (Decrease) (Decrease)
    -------------------------------------------------------------------------
    Retail Segment - Sales and
     operating revenue           $1,002,813  $ 922,401     80,412       8.7%
    Financial Services Segment -
     Sales and operating revenue     35,631     26,236      9,395      35.8%
                                 ----------------------
    Consolidated - Sales and
     operating revenue            1,038,444    948,637     89,807       9.5%
    Franchise Sales                  82,135     62,221     19,915      32.0%
                                 ----------------------
    Consolidated and Franchise
     Sales and operating revenue $1,120,579 $1,010,858    109,722      10.9%
                                 ----------------------
                                 ----------------------
    Same Store Sales Growth
     (corporate stores)                6.4%       6.0%

    Same Store Sales Growth
     (corporate and franchise
     stores)                           6.2%       6.0%

    Retail Segment - EBITDA       $  32,812  $  29,567      3,245      11.0%
    Financial Services Segment -
     EBITDA                          19,948     15,852      4,096      25.8%
                                 ----------------------
    Consolidated - EBITDA         $  52,760  $  45,419      7,341      16.2%
                                 ----------------------
                                 ----------------------

    Retail Segment - Net income
     (loss)                       $ (38,433) $   4,914    (43,347)   -0,882%
    Financial Services Segment -
     Net income                      20,784     18,026      2,758      15.3%
                                 ----------------------
    Consolidated - Net income
     (loss)                       $ (17,649) $  22,940    (40,589)   -176.9%
                                 ----------------------
                                 ----------------------

    EBITDA - Adjusted             $  60,165  $  54,190      5,975      11.0%

    Distributable cash per unit
     for the three months ended
     September 30

    Payout Ratio for the three
     months ended September 30

    Distributable cash per unit
     for the twelve months ended
     September 30

    Payout Ratio for the twelve
     months ended September 30

    Stores at period end                206        196
    -------------------------------------------------------------------------
    

    Overview

    For the third quarter, the Brick Group's EBITDA of $26.1 million, and
consolidated net income of $17.2 million, were the highest ever reported for a
quarter.
    Our third quarter consolidated sales and operating revenue of
$375.1 million, increased by 11.0%, or $37.3 million, over the same quarter in
2006. This increase was due primarily to the retail segment where same store
sales growth was strong at 7.7%. Same store sales growth, strong in both
Eastern and Western Canada, was driven by a strong promotional calendar in
conjunction with improved supply chain management. Supply chain improvements
have enhanced the effectiveness of our merchandising strategy, yielding
improvements such as increased turnover of high margin items. As anticipated,
we were successful in leveraging the investment in our distribution
infrastructure which is providing us with the capacity to deliver our sales
more efficiently. This was our seventh consecutive quarter of positive same
store sales growth.
    Our third quarter consolidated EBITDA increased by 35.6%, or
$6.9 million, over the same quarter in 2006. By returning our focus to
management basics, as discussed in our second quarter 2007 MD&A, we have
achieved improvements in key revenue and expense line items, most notably
within our supply chain infrastructure. As a result, Selling, General and
Administrative (SG&A) expense, as a percentage of sales and operating revenue,
fell below prior year levels for the first time in four quarters, and EBITDA,
as a percentage of sales and operating revenue, increased by 1.3 ppts over the
same quarter last year.
    Adjusted EBITDA for the third quarter of $28.2 million increased by
27.2%, or $6.0 million, over the same quarter in 2006.
    Our third quarter consolidated net income increased by 46.6%, or
$5.5 million, over the same quarter in 2006. The retail segment contributed
$5.2 million of the quarter over quarter increase in consolidated net income.
    Our distributable cash per unit of $0.44 increased by $0.10, or 29.1%,
when compared to the same quarter of 2006.
    Through the end of September 2007, and for the 38th consecutive month
since becoming an income fund, we have continued to meet all of our
distribution commitments. This represents just over $217 million distributed
to our unitholders. The payout ratio for the twelve months ended September 30,
2007 was 92.8%, reflecting an improvement of 7.1 ppts from the June 30, 2007
twelve month ratio. Management is very pleased with the improvement shown in
just one quarter.
    Under our alternative view of distributable cash, the payout ratio for
the twelve month period ended September 30, 2007 was 93.3%.
    Our fourth quarter typically has the highest sales volume of the year. We
believe we are well positioned to continue to take advantage of our new
infrastructure and optimize operational efficiencies to deliver strong results
in the last quarter of 2007.

    Consolidated and Franchise Sales and Operating Revenue

    Consolidated and franchise sales and operating revenue was
$406.0 million, including $30.9 million of franchise sales, compared to
$360.8 million, including $23.0 million of franchise sales, in the same
quarter last year. This represents a 12.5% increase. Same store sales growth
for corporate stores together with franchise stores was 7.5% compared to 2.8%
in 2006.
    Compared to the same quarter a year ago, sales at franchise stores
increased by 34.5% to $30.9 million.
    We began the quarter with 29 franchise stores and ended with 31, while in
2006, we began the quarter with 22 franchise stores and ended with 25.

    WEBCAST AND CONFERENCE CALL
    ---------------------------
    The Brick will host an investor conference call at 2 p.m. eastern time
(12 noon Alberta time) on Wednesday, November 7, 2007. To access the call,
please call either (800) 590-1817 or (416) 644-3426 five minutes prior. For a
listen-only version of the conference, log on to
http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=2062720.

    Replay Audience Dial-in Number & Codes:

    From: Wednesday, November 7, 2007, 2:00 P.M. (MT)
    To: Wednesday, November 14, 2007, 11:59 P.M. (MT)
    Access Number: 416-640-1917/passcode 21251206 followed by the number sign

    ABOUT THE BRICK GROUP

    The Brick Group is one of Canada's largest volume retailers of household
furniture, mattresses, appliances and home electronics, operating under four
banners: The Brick, United Furniture Warehouse, The Brick Superstore, and The
Brick Mattress Store. In addition, through its corporate sales division, the
Brick Group services the subdivision, condominium, and high-rise builder
market. The Brick Group's retail operations are located in British Columbia,
Alberta, Saskatchewan, Manitoba, Ontario, Quebec, Prince Edward Island, Nova
Scotia and the Yukon Territory.

    Notice to Readers

    Certain forward-looking statements are made in this news release, within
the meaning of applicable securities laws. These statements reflect the Brick
Group's current expectations and are based on information currently available
to management. The words "may", "will", "should", "believe", "expect", "plan",
"anticipate", "intend", "estimate", "predict", "potential", "continue", or the
negative of these terms, identify forward-looking matters. These statements
speak only as of the date of this press release. The actual results could
differ materially from those anticipated in these forward-looking statements.
    Reliance should not be placed on forward-looking statements because they
involve known and unknown risks, uncertainties and other factors, which may
cause the actual results, performance or achievements of the Brick Group to
differ materially from anticipated future results, performance or achievement
expressed or implied by such forward-looking statements. Factors that could
cause actual results to differ materially from those set forth in the
forward-looking statements include, but are not limited to, the
non-satisfaction of any conditions precedent to the completion of the offering
of Notes, fluctuations in interest rates and currency values, legislative and
regulatory developments, legal developments, the occurrence of weather-related
and other natural catastrophes, changes in tax laws, and those risks and
uncertainties detailed in the section entitled "Risk Factors" in the Brick
Group's Management's Discussion and Analysis. The preceding list is not an
exhaustive list of possible factors. These and other factors should be
considered carefully and readers are cautioned not to place undue reliance on
these forward-looking statements. The Brick Group undertakes no obligation to
publicly update or revise any forward-looking statements, whether as a result
of new information, future events or otherwise, other than as required by
applicable law.





For further information:

For further information: Kim Yost, President and CEO, The Brick Group,
(780) 930-6300, investor@thebrickgroup.ca; Mike Borys, Executive Vice
President and CFO, The Brick Group, (780) 930-6300, investor@thebrickgroup.ca

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