MONTREAL, May 10 /CNW Telbec/ - BMTC Group Inc. announced that, for the quarter ended on March 31, 2007, its revenues totaled 178.4 million $, representing a decrease of 4.5 million $ over the 182.9 million $ for the corresponding period of 2006. The Company's net income, for the period, totaled $2,055,000, or $0.06 per share, compared with $285,000, or $0.01 per share, for the corresponding 2006 period.
The share repurchase program during the first quarter 2007, had no effect on net per-share earnings. Results from the costing of options had the effect of reducing net earnings by $0,07 per share, compared to a decrease of $0,10 per share for the corresponding 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.
Excluding all these effects, net earnings would have increased by $739,000 or $0,02 per share for the first quarter ended March 31st, 2007.
The adjusted $739,000 increase in net earnings breaks down as follows:
2007 2006
---------- ----------
($ in thousands, except
for per share amounts)
Net Earnings 2,055 285
Cost (gain) of options (after-tax)
2,347 3,378
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Net Earnings before options 4,402 3,663
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MINUS : Net Earnings 2006 3,663
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Increase 2007 739
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Annual Financial Information
2006 2005 2004
---------- ---------- ----------
($ in thousands, except for per share amounts)
Revenue(x) $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
(x) 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 2006 2005
---------- ---------- ---------- ----------
Revenue(x) $178,452 $182,969 $215,959 $214,271
Net earnings 2,055 285 12,143 15,451
Net Earnings
per share
Basic 0.060 0.010 0.350 0.440
Diluted 0.060 0.010 0.340 0.420
Quarter Ended Quarter Ended
September 30 December 31
2006 2005 2006 2005
---------- ---------- ---------- ----------
Revenue(x) $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
(x) 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.
On March 1, 2007 the Company issued 50,630 class A subordinate voting shares for amount of $1,000,000 following the exercise of 50,630 options. No options have been granted during the period ended March 31st, 2007. As at March 31st, 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 the first quarter ended March 31, 2007 due to the share redemption programs implemented in September 2006, and the conversion of Class B Multiple Voting Shares. Accordingly, 250,176 Class B Multiple Voting Shares and 607,554 Class A Subordinate Voting Shares were redeemed by the Company and cancelled in 2007, while 306,951 Class B Multiple Voting Shares were converted into as many Class A Subordinate Voting Shares. Also, 50,630 class subordinate voting shares were issued following the exercise of a similar amount of options. As a result of these changes, the Company had, as of May 10th, 2007, 11,852,226 Class B Multiple Voting Shares and 20,255,074 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-Foy, Sherbrooke, Trois-Rivieres, Rimouski, St-Georges, Riviere-du-Loup, Chicoutimi, and Gatineau regions through its affiliates Brault & Martineau Inc. and Ameublements Tanguay.