The Brick Group reports same store sales growth of 6.2% for the fourth quarter and 6.1% for the year 2006



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

    EDMONTON, March 20 /CNW/ - (TSX:BRK.UN) The Brick Group Income Fund (the
"Brick Group") today announced its financial results for the fourth quarter
and year ended December 31, 2006. The Brick Group's fourth quarter results and
Management's Discussion and Analysis can be found on the Brick Group's website
at www.thebrickgroup.ca.
    2006 fourth quarter same store sales grew by 6.2% over the same quarter
in 2005, representing the fourth straight quarter of positive same store sales
growth for the Brick Group. 2006 annual same store sales grew 6.1% over 2005.
Total sales and operating revenues grew 10.5% for the fourth quarter over the
same period last year, and 9.4% for the year, bringing our total consolidated
sales and operating revenues to just over $1.3 billion for the 2006 year.
    Fourth quarter consolidated EBITDA grew 5.1% or $1.1 million over 2005.
Annual consolidated EBITDA grew 9.4% over 2005, driven primarily by the
success of management's top line initiatives including the ongoing growth of
the financial services segment. Adjusted EBITDA for 2006 was $79.5 million
EBITDA as compared to $75.9 million in 2005.
    Through the end of December 2006, and for the 29th consecutive month
since becoming an income fund, we have continued to meet all of our
distribution commitments. Our distributable cash payout ratio for the twelve
months ended December 31, 2006 was 96.7%. Under our alternative view of
distributable cash, the payout ratio for the twelve months ended December 31,
2006 was 91.4%. To the end of December, 2006, and since going public in July,
2004, the Brick Group has paid out just over $169 million in distributions to
our unit holders.
    "2006 was a year of significant accomplishments and we are pleased with
our results," said Kim Yost, President and Chief Executive Officer. "We have
continued to show strong total and same store sales growth over last year.
Beyond these positive metrics, we completed our rebannering initiative, where
we exceeded our $4 million incremental EBITDA target in 2006 for those
locations impacted by the initiative. We have built a net additional 500,000
square feet of state-of-the-art distribution space. In total, we now have in
excess of 2.2 million square feet of distribution space. Our expanded capacity
across Canada will support increased sales of our existing locations as well
as new locations to be added over the coming years, both corporate and
franchise owned. In addition, we opened 5 new Brick stores, including a
clearance centre, 6 Brick Mattress Stores and 2 new Franchises during the
year. Management believes our success on these fronts leave us well positioned
for future growth. Our focus in 2007 will be to absorb the impact of these
initiatives, drive down our cost structure and improve upon our operating
efficiencies."
    The following are some key highlights, compared to the same period last
year:

    
                                    For the three months ended December 31
                                 --------------------------------------------
    (000's of $ except %, and                          $ Increase % Increase
     store amounts)                    2006       2005  (Decrease) (Decrease)
    -------------------------------------------------------------------------
    Retail Segment - Sales and
     operating revenue           $  369,403 $  335,927 $   33,476      10.0%
    Financial Services Segment -
     Sales and operating
     revenue                         10,281      7,620      2,661      34.9%
                                 ----------------------
    Consolidated - Sales and
     operating revenue              379,684    343,547     36,137      10.5%
                                 ----------------------
                                 ----------------------
      Same Store Sales                 6.2%      -1.6%
      Franchise Sales                31,155     19,295     11,860      61.5%

    Retail Segment - EBITDA          16,987     16,627        360       2.2%
    Financial Services Segment -
     EBITDA                           5,554      4,818        736      15.3%
                                 ----------------------
    Consolidated - EBITDA            22,541     21,445      1,096       5.1%
                                 ----------------------
                                 ----------------------

    Retail Segment - Net Earnings     8,380      7,216      1,164      16.1%
    Financial Services Segment -
     Net Earnings                     6,248      6,237         11       0.2%
                                 ----------------------
    Consolidated - Net Earnings      14,628     13,453      1,175       8.7%
                                 ----------------------
                                 ----------------------

      EBITDA - Adjusted              25,347     24,819        528       2.1%
      Payout Ratio for the period
       ended December 31              74.4%      71.5%

    Stores at period end                201        194
    -------------------------------------------------------------------------


                                         For the year ended December 31
                                 --------------------------------------------

    (000's of $ except %, and                          $ Increase % Increase
     store amounts)                    2006       2005  (Decrease) (Decrease)
    -------------------------------------------------------------------------
    Retail Segment - Sales and
     operating revenue           $1,291,804 $1,189,224 $  102,580       8.6%
    Financial Services Segment -
     Sales and operating
     revenue                         36,517     25,181     11,336      45.0%
                                 ----------------------
    Consolidated - Sales and
     operating revenue            1,328,321  1,214,405    113,916       9.4%
                                 ----------------------
                                 ----------------------

      Same Store Sales                 6.1%      -1.4%
      Franchise Sales                93,180     57,604     35,576      61.8%

    Retail Segment - EBITDA          46,553     47,010       (457)     -1.0%
    Financial Services Segment -
     EBITDA                          21,407     15,138      6,269      41.4%
                                 ----------------------
    Consolidated - EBITDA            67,960     62,148      5,812       9.4%
                                 ----------------------
                                 ----------------------

    Retail Segment - Net Earnings    13,656     15,734     (2,078)    -13.2%
    Financial Services Segment -
     Net Earnings                    24,274     16,270      8,004      49.2%
                                 ----------------------
    Consolidated - Net Earnings      37,930     32,004      5,926      18.5%
                                 ----------------------
                                 ----------------------

      EBITDA - Adjusted              79,538     75,896      3,642       4.8%
      Payout Ratio for the period
       ended December 31              96.7%      99.5%

    Stores at period end                201        194
    -------------------------------------------------------------------------

    Distributable Cash and Payout Ratio

    -   Through the end of December 2006, and for the 29th consecutive month
        since becoming an income fund, we have continued to meet all of our
        distribution commitments.

    -   Our distributable cash payout ratio for the twelve months ended
        December 31, 2006 was 96.7%.

    -   Under our alternative view of distributable cash, the payout ratio
        for the twelve months ended December 31, 2006 was 91.4%.

    Consolidated Sales and Operating Revenue

    -   In the fourth quarter consolidated sales and operating revenue
        increased by $36.1 million to $379.7 million compared to prior year
        fourth quarter. This represents a 10.5% increase over 2005.

    -   Our 2006 December sales exceeded all previous December sales records.

    Same Store Sales

    -   2006 fourth quarter same store sales grew by 6.2% over the same
        quarter in 2005 and 2006 annual same store sales grew 6.1% over 2005.

    Franchise Sales

    -   Sales at franchise stores in the fourth quarter increased by 61.5% to
        $31 million compared to prior year, continuing the trend seen in the
        previous three quarters of 2006 due to 6 new franchise stores added
        since December 31, 2005.

    Consolidated EBITDA and Adjusted EBITDA

    -   Fourth quarter consolidated EBITDA increased 5.1% or $1.1 million
        over 2005. 2006 annual consolidated EBITDA increased 9.4% or
        $5.8 million over 2005.

    -   Adjusted EBITDA for the fourth quarter of 2006 was $25.3 million, an
        increase of 2.1% or $0.5 million over 2005.

    -   Adjusted EBITDA for 2006 was $79.5 million as compared to
        $75.9 million in 2005.

    Consolidated Net Earnings

    -   Fourth quarter consolidated net earnings of $14.6 million was 8.7% or
        $1.2 million higher than in 2005.

    Operations

    -   Management is pleased with the success of the rebannering initiative.
        As at December 31, 2006, we have exceeded our $4 million incremental
        EBITDA target for the year for those locations impacted.

    -   In the fourth quarter, we opened:

        -  3 Brick stores in the following locations: Lachenaie and Gatineau
           in Quebec, and Calgary, Alberta, and closed 2 United Furniture
           stores and rebannered 1 to a Brick store.
        -  2 Brick Mattress Stores located in Spruce Grove and Ft.
           Saskatchewan in Alberta.
        -  1 Brick Franchise in Thompson, Manitoba.
        -  1 Brick Clearance Center in Edmonton, Alberta.

    -   We ended the year with 175 corporate stores and 26 franchise
        locations.

    -   In the fourth quarter, we completed a 153,000 square foot expansion
        of our distribution centre in Burnaby, which now totals 397,000
        square feet. This completed the Brick group distribution centre
        infrastructure build-out which increased our distribution centre
        square footage by 30% or 516,000 square feet.
    

    The Brick will be hosting an investor conference call at 2 p.m. EST
(12 noon MST) on Wednesday, March 21, 2007. To access the call, please call
either (403) 398-9531 or (416) 644-3416 five minutes prior. For a listen-only
version of the conference, log on to
http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=1754940.

    Replay Audience Dial-in Number & Codes:
    From: Wednesday, March 21, 2007 16:00 (4:00PM) EST
    To: Wednesday, March 28, 2007 23:59 (11:59PM) EST
    Access Number: 416-640-1917 passcode 21221454 followed by the pound
    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.
    This news release does not constitute an offer to sell or the
solicitation of an offer to buy the securities referred to herein. The units
will not be registered under the U.S. Securities Act of 1933, as amended (the
"Securities Act") and may not be offered or sold within the United States or
to, or for the account or benefit of, U.S. persons except in certain
transactions exempt from the registration requirements of the Securities Act.

    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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