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
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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 $2.53 $2.36 $1.54
Diluted 2.45 2.27 1.48
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Dividends per share 0.38 0.35 0.29
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Quarterly Results (unaudited)
($ 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
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Net Earnings per share
Basic 0.11 0.37 0.72 0.55
Diluted 0.10 0.35 0.70 0.54
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Quarter Ended Quarter Ended
September 30 December 31
-------------------------------------------------------------------------
2009 2008 2009 2008
---- ---- ---- ----
-------------------------------------------------------------------------
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 0.98 0.65 0.72 0.79
Diluted 0.95 0.62 0.70 0.76
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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.
For further information: Mr. Yves Des Groseillers, Chairman, President and Chief Executive Officer, BMTC Group inc., (514) 648-5757
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