BMTC Group Inc. announces financial results for its quarter ended June 30th,
2010
MONTREAL, Aug. 5 /CNW Telbec/ - BMTC Group inc. announced that for the six month period ended June 30th, 2010, the Company's revenue totalled $390,949,000 an increase of $17,188,000 compared to the $373,761,000 recorded in the corresponding 2009 period. For the six month period ended June 30th, 2010, the net income stood at $21,529,000 compared to $22,769,000, for the corresponding 2009 period. The net earnings per share stood at $0.41 compared to $0.42 for the corresponding 2009 period.
Results from the costing of options had the effect of reducing net basic earnings by $0.13 per share, compared to a decrease of $0.04 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 share repurchase program contributed in an increase of net earnings per basic share of $0.02 for the period.
Excluding all these effects, net earnings would have increased by $3,083,000 or $0.06 per basic share for the period.
The adjusted $3,083,000 increase in net earnings breaks down as follows:
2010 2009
($ in thousands)
Net Earnings 21,529 22,769
Expense of options (after-tax) 6,758 2,435
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Adjusted Net Earnings 28,287 25,204
MINUS : Adjusted Net Earnings for the 2009 period 25,204
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Increase 2010 3,083
This increase in adjusted and after tax operating earnings was spread out through the quarters as follows:
($ in thousands)
Increase
Increase Increase (decrease)
retail (decrease) adjusted
operating investment operating
earnings income earnings
1st quarter 2010 3,338 689 4,027
2nd quarter 2010 3,438 (4,382) (944)
3rd quarter 2010
4th quarter 2010
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Total: 6,776 (3,693) 3,083
Annual Financial Information
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2009 2008 2007
---- ---- ----
($ in thousands, except for per share amounts)
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Revenue $818,072 $856,229 $841,544
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Net earnings 67,029 69,908 49,033
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Total Assets 313,925 244,532 284,939
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Net Earnings per share*
Basic $1.27 $1.18 $0.77
Diluted 1.23 1.14 0.74
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Dividends per share 0.19 0.18 0.15
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* After taking into account the 2 for 1 stock split effect of
April 6th, 2010.
Quarterly Results (unaudited)
($ in thousands, except for per share amounts)
Quarter Ended Quarter Ended
March 31 June 30
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2010 2009 2010 2009
---- ---- ---- ----
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Revenue $183,148 $168,805 $207,801 $204,956
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Net earnings 3,615 3,084 17,914 19,685
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Net Earnings per share*
Basic 0.07 0.06 0.34 0.36
Diluted 0.06 0.05 0.34 0.35
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Quarter Ended Quarter Ended
September 30 December 31
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2009 2008 2009 2008
---- ---- ---- ----
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Revenue $220,363 $232,129 $223,948 $216,848
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Net earnings 25,517 19,389 18,743 21,856
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Net Earnings per share*
Basic 0.49 0.33 0.36 0.40
Diluted 0.48 0.31 0.35 0.38
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* After taking into account the 2 for 1 stock split effect of
April 6th, 2010.
As for the three-month period ended June 30th, 2010 revenues from operations totaled $207,801,000, representing an increase of $2,845,000 over the $204,956,000 for the corresponding 2009 period. The Company's net income for the three-month period ended June 30th, 2010, totaled $17,914,000, or $0.34 per basic share, compared with $19,685,000 or $0.36 per basic share for the corresponding 2009 period. For the three-month period ended June 30th 2010, the results from the variation of costing options had the effect of reducing the earnings per basic share by $0.04 compared with a decrease in earnings of $0.02 for the corresponding 2009 period. The share repurchase program contributed $0.02 to net per basic share earnings for the quarter ended June 30th, 2010.
Excluding these effects, as indicated in the following table, net earnings would have decreased by $944,000 or $0.02 per basic share for the three-month period ended June 30th, 2010 compared to the corresponding period.
2010 2009
($ in thousands, except
for per share amounts)
Net Earnings 17,914 19,685
Cost (gain) of options (after-tax) 2,103 1,276
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Adjusted Net Earnings 20,017 20,961
MINUS : Adjusted Net Earnings for 2008
corresponding quarter 20,961
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Decrease 2010 (944)
During the six month period ended June 30th, 2010, options were exercised on two occasions. First, on February 25th, 2010, the Company paid an amount before tax of $770,032 as cash award in lieu of shares, as a result of the exercise of 24,461 options. Secondly, on February 26th, 2010, the Company paid an amount before tax of $9,360,944 as cash award in lieu of shares, as a result of the exercise of 297,597 options. On April 1st, 2010, the Company granted 131,400 options at an exercised price of $35.70 ($17.85 following a 2 for 1 stock split) for a period of 10 years, to its directors and management. On April 6th, 2010, the Company issued 1,035,342 options following the 2 for 1 stock split. As at June 30th, 2010, options for 2,070,684 Class A Subordinate Voting Shares, representing 4% of the Company's shares in circulation, therefore remain outstanding and 5,710,864 options, representing 11% of the Company's shares in circulation, may still be issued pursuant to the Plan. The outstanding options may be exercised at prices ranging between $1.26 and $17.85 per Class A Subordinate Voting Shares.
The number of outstanding shares of the Company changed during the six month period ended June 30th, 2010 due to the share redemption programs implemented in February 2010, the 2 for 1 stock split on April 6th, 2010 and the conversion of Class B Multiple Voting Shares. Accordingly, 810,500 Class A Subordinate Voting Shares were redeemed by the Company and cancelled, while the Company issued 10,037,987 class B multiple voting shares and 15,962,013 Class A subordinate voting shares following the 2 for 1 stock split, and finally 398,968 Class B Multiple Voting Shares were converted into 398,968 Class A Subordinate Voting Shares. As a result of these changes, the Company had, as of June 30th, 2010, 19,899,710 Class B Multiple Voting Shares and 31,432,590 Class A Subordinate Voting Shares outstanding.
A semi-annual eligible dividend of $0.12 per share, representing an increase of $0.02 per share, has been declared to holders of Class A Subordinate voting shares and Class B Multiple voting shares of record as of the close of business on August 19th, 2010, which will be payable on August 26th, 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 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: Mr. Yves Des Groseillers, Chairman, President and Chief Executive Officer, BMTC Group Inc., (514) 648-5757
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