BMTC Group Inc. announces financial results for its semester ended June 30, 2007



    MONTREAL, Aug. 9 /CNW Telbec/ - For the six-month period ended June 30,
2007, the Company's revenue decreased by $4,3 million to $394,6 million, from
the $398,9 million recorded in the corresponding 2006 period. Net income for
the six-month period ended June 30, 2007, stood at $16,933,000 compared with
$12,428,000, for the corresponding 2006 period. Earnings per share ("EPS")
increased by $0.16 to $0.52 for the semester ended June 30, 2007.
    For the six-month period ended June 30, 2007, results from the costing of
options had the effect of reducing net earnings by $0.18 per share, compared
to a reduction of $0.09 per share for the corresponding 2006 period. 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 is one of few
public companies to expense options on an ongoing basis. The sale of fixed
assets during the period resulted in an increase in net per share earnings of
$0.06 compared with $0.01 for the corresponding period. The share repurchase
program contributed $0.02 to net per share earnings for the semester ended
June 30, 2007.
    Excluding all these effects, net earnings would have increased by 5.9 M$
or $0.18 per share for the six-month period ended June 30th, 2007.

    The adjusted 5.9 M$ in net earnings breaks down as follows:

    
                                                            2007        2006
                                                     ($ in thousands, except
                                                       for per share amounts)

    Net Earnings                                          16,933      12,428
    Cost (gain) of options
    (after-tax)                                            5,957       2,963
    (Gain) resulting from the sale of fixed assets
     (after-tax)                                          (1,958)       (362)
                                                       ----------   ---------
    Adjusted Net Earnings                                 20,932      15,029
    MINUS : Adjusted Net Earnings 2006                    15,029
                                                       ----------

    Increase 2007                                          5,903

    This increase is mainly attributable to the second quarter of 2007, since
the first management report indicated increased operating results of $739,000
or $0.02 per share.

    Annual Financial Information

                                                2006        2005        2004
                                            ---------   ---------   ---------
                               ($ in thousands, except for per share amounts)

    Revenue(*)                              $835,681    $804,361    $788,721
    Net earnings                              45,633      41,891      44,464
    Total Assets                             284,963     274,702     248,754
    Net Earnings per share
      Basic                                    $1.35       $1.20       $1.21
      Diluted                                   1.30        1.16        1.18

    Dividends per share                         0.24        0.13        0.11

    (*) Following the changes in the interpretation of the accounting
        principles in EIC-123 of the CICA entitled "Reporting Revenue Gross
        as a Principal Versus Net as an Agent", the Company modified its
        presentation of revenues from extended services contracts on certain
        products in order to present them at the net amount obtained for the
        services rendered. Consequently, the Company adjusted the results for
        the year ended December 31, 2005 and 2004 by reducing operating
        revenues as well as the cost of products sold, and commercial and
        administrative expenses in the amount of $14,409,000 and $13,125,000.
        These changes had no impact on net earnings.

    Quarterly Results (unaudited)

    ($ in thousands, except for per share amounts)

                                     Quarter Ended           Quarter Ended
                                       March 31                 June 30
                                    2007        2006        2007        2006
                                ---------   ---------   ---------   ---------

    Revenue(*)                  $178,452    $182,969    $216,109    $215,959
    Net earnings                   2,055         285      14,878      12,143
    Net Earnings per share
      Basic                        0.060       0.010       0.460       0.350
      Diluted                      0.060       0.010       0.440       0.340


                                     Quarter Ended           Quarter Ended
                                      September 30             December 31
                                    2006        2005        2006        2005
                                ---------   ---------   ---------   ---------

    Revenue(*)                  $216,731    $211,901    $220,022    $208,992
    Net earnings                  16,666      16,321      16,539       8,598
    Net Earnings per share
      Basic                        0.490       0.460       0.500       0.260
      Diluted                      0.470       0.460       0.480       0.240

    (*) Following the changes in the interpretation of the accounting
        principles in EIC-123 of the CICA entitled "Reporting Revenue Gross
        as a Principal Versus Net as an Agent", the Company modified its
        presentation of revenues from extended services contracts on certain
        products in order to present them at the net amount obtained for the
        services rendered. Consequently, the Company adjusted its quarterly
        results for 2006 and 2005 by reducing operating revenues as well as
        the cost of products sold, and commercial and administrative
        expenses. These changes had no impact on net earnings.

    As for the three-month period ended June 30th, 2007 revenues from
operations totaled 216.1 M$, representing an increase of 0.1 M$ over the
216.0 M$ for the corresponding 2006 period. The Company's net income for the
three-month period ended June 30th 2007, totaled $ 14,878,000, or $0.46 per
share, compared with $ 12,143,000 or $0.35 per share for the corresponding
2006 period. For the three-month period ended June 30th 2007, the results from
costing of options had the effect of reducing the earnings per share by $0.11
compared with an increase in earnings of $0.01 for the corresponding 2006
period. The sale of fixed assets during the period resulted in an increase in
net per share earnings of $0.06 compared with $0.01 for the corresponding
period. The share repurchase program contributed $0.02 to net per share
earnings for the quarter ended June 30, 2007.
    Excluding all these effects, net earnings would have increased by 5.2 M$
or $0.16 per share for the three-month period ended June 30th, 2007.

    The adjusted 5.2 M$ in net earnings breaks down as follows:

                                                2007        2006        2005
                               ($ in thousands, except for per share amounts)

    Net Earnings                              14,878      12,143      15,451
    Cost (gain) of options
     (after-tax)                               3,610        (415)     (1,363)
    (Gain) resulting from the
     sale of fixed assets
     (after-tax)                              (1,958)       (362)          -
                                            ---------   ---------   ---------
    Adjusted Net Earnings                     16,530      11,366      14,088
    MINUS : Adjusted Net
     Earnings 2006                            11,366      14,088
                                            ---------   ---------

    Increase (reduction)                       5,164      (2,722)
    

    The first two quarters of 2006 were rather lack luster following the
increase of promotional cost related to financed sales, as well as expenses
incurred for the opening of our Ville Saint-Laurent liquidation centre.
Results from our current quarters are more in line with those of the 2005
period.
    A semi-annual eligible dividend of $0.14 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 23rd, 2007 which will
be payable on August 30th , 2007.
    No options have been granted or exercised during the second quarter. As
at June 30th, 2007, options for 1 613 370 Class A Subordinate Voting Shares
therefore remain outstanding and 2,986,832 options may still be issued
pursuant to the Plan. The outstanding options may be exercised at prices
ranging between $2.52 and $7.19 per Class A Subordinate Voting Shares.
    The number of outstanding shares of the Company changed during 2007 due
to the share redemption programs implemented in September 2006, and the
conversion of Class B Multiple Voting Shares. Accordingly, 602,226 Class B
Multiple Voting Shares and 894,124 Class A Subordinate Voting Shares were
redeemed by the Company and cancelled, while 720,451 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 July 31st, 2007, 11,086,676
Class B Multiple Voting Shares and 20,331,374 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-Hyacinthe, St-Jean-sur-le-Richelieu, Granby, Repentigny, 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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