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(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 2007 2006
--------- --------- --------- ---------
Revenue(x) $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(x) $216,731 $211,901 $220,022 $208,992
Net earnings 16,666 16,321 16,539 8,598
Net Earnings per share
Basic 0.490 0.460 0.500 0.260
Diluted 0.470 0.460 0.480 0.240
(x) Following the changes in the interpretation of the accounting
principles in EIC-123 of the CICA entitled "Reporting Revenue Gross
as a Principal Versus Net as an Agent", the Company modified its
presentation of revenues from extended services contracts on certain
products in order to present them at the net amount obtained for the
services rendered. Consequently, the Company adjusted its quarterly
results for 2006 and 2005 by reducing operating revenues as well as
the cost of products sold, and commercial and administrative
expenses. These changes had no impact on net earnings.
As for the three-month period ended June 30th, 2007 revenues from
operations totaled 216.1 M$, 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-Rivieres, Rimouski, St-Georges, Riviere-du-Loup, Chicoutimi, and Gatineau regions through its affiliates Brault & Martineau Inc. and Ameublements Tanguay.