May 12, 2011 (Canada NewsWire Group) --
MONTREAL, May 12 /CNW Telbec/ - For the quarter ended March 31st, 2011, the Company's revenue decreased by $19,974,000 to $163,174,000, from the $183,148,000 recorded in the corresponding 2010 period. Net earnings for the quarter ended March 31st, 2011, stood at $2,814,000 compared with $3,821,000, for the corresponding 2010 period. Basic earnings per share decrease going from $0.07 in 2010 to $0.05 in 2011.
Results from the costing of options had the effect of reducing net basic earnings by $0.06 per share, compared to a decrease of $0.09 per basic share for corresponding 2010 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 according to calculation based on the Black Scholes method. An increase in this value incurs an expense, while a decrease 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 value attributed. It is for this reason that the Company includes net earnings in absolute dollars and per-share dollars excluding this costing of options effect, 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 did not contribute to net per basic share earnings.
Excluding this effect, net earnings would have decreased by $2,459,000 or $0.05 per basic share.
The adjusted $2,459,000 decrease in net earnings breaks down as follows:
| 2011 | 2010 | |
| ($ in thousands) | ||
| Net Earnings | 2,814 | 3,821 |
| Variation of cost of options (after-tax) | 3,181 | 4,633 |
| Adjusted Net Earnings | 5,995 | 8,454 |
| MINUS : Adjusted Net Earnings for the 2010 period | 8,454 | |
| Decrease 2011 | (2,459) | |
This decrease in adjusted and after tax operating earnings was spread out through the quarters as follows:
| ($ in thousands) | |||
|
Increase (decrease) retail operating earnings |
Increase (decrease) investment income |
Increase (decrease) adjusted operating earnings |
|
| 1st quarter 2011 | (3,197) | 738 | (2,459) |
| 2nd quarter 2011 | |||
| 3rd quarter 2011 | |||
| 4th quarter 2011 | |||
| Total: | (3,197) | 738 | (2,459) |
Annual Financial Information
($ in thousands, except for per share amounts)
| IFRS | GAAP* | |||
| 2010 | 2010 | 2009 | ||
| Revenue |
822,507 |
822,507 |
818,072 |
|
| Net earnings | 74,193 | 75,122 | 67,029 | |
| Total Assets | 320,182 | 347,502 | 313,925 | |
| Net Earnings per share** | ||||
| Basic | 1.44 | 1.46 | 1.27 | |
| Diluted | 1.38 | 1.40 | 1.23 | |
| Dividends per share | 0.24 | 0.24 | 0.19 | |
*The financial information has been prepared in accordance with Canadian Generally Accepted Accounting Principles (« GAAPs »)
** After taking into account the 2 for 1 stock split effect of April 6th, 2010, comparables have been adjusted.
Quarterly Results (unaudited)
($ in thousands, except for per share amounts)
| March 31 | June 30 | September 30 | December 31 | ||||||
|
|
2011 $ |
2010 $ |
2010 $ |
2009* $ |
2010 $ |
2009* $ |
2010 $ |
2009* $ |
|
| Revenue | 163,174 | 183,148 | 207,801 | 204,956 | 215,712 | 220,363 | 215,846 | 223,948 | |
| Net earnings | 2,814 | 3,821 | 16,966 | 19,685 | 21,362 | 25,517 | 32,044 | 18,743 | |
| Net Earnings per share** | |||||||||
| Basic | 0.05 | 0.07 | 0.33 | 0.36 | 0.41 | 0.49 | 0.63 | 0.36 | |
| Diluted | 0.05 | 0.06 | 0.33 | 0.35 | 0.40 | 0.48 | 0.59 | 0.35 | |
*The financial information has been prepared in accordance with Canadian Generally Accepted Accounting Principles (« GAAPs »)
** After taking into account the 2 for 1 stock split effect of April 6th, 2010, comparables have been adjusted.
During the three month period ended March 31st, 2012, options were exercised. On March 16th, 2011, the Company paid an amount before tax of $21,114,000 as cash award in lieu of shares, as a result of the exercise of 1,088,000 options. As at March 31st, 2011, options for 966,800 Class A Subordinate Voting Shares, representing 2% 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 $3.60 and $17.85 per Class A Subordinate Voting Shares.
The number of outstanding shares of the Company changed during the three month period ended March 31st, 2011 due to the share redemption programs implemented in March 2011 and the conversion of Class B Multiple Voting Shares. Accordingly, 944,600 Class A Subordinate Voting Shares were redeemed by the Company and cancelled and also 212,143 Class B Multiple Voting Shares were converted into 212,143 Class A Subordinate Voting Shares. As a result of these changes, the Company had, as of March 31st, 2011, 2,253,643 Class B Multiple Voting Shares and 47,487,257 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 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.
Mr. Yves Des Groseillers
Chairman, President and
Chief Executive Officer
BMTC Group inc. (514) 648-5757