MONTREAL, Nov. 6 /CNW Telbec/ - For the nine-month period ended September 30th, 2008, the Company's revenue increased by $21.5 million to $639.4 million, from the $617.9 million recorded in the corresponding 2007 period. Net income for the nine-month period ended September 30th, 2008, stood at $48,052,000 compared with $32,903,000, for the corresponding 2007 period. Earnings per share ("EPS") increased by $0.55 to $1.57 for the nine-month period ended September 30th, 2008.
For the nine-month period ended September 30th, 2008 results from the variation of costing options had the effect of increasing net earnings by $0.17 per share, compared to a reduction of $0.19 per share for the corresponding 2007 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 resulted in an increase in net per share earnings of $0.11 compared with an increase of $0.06 for the corresponding period of 2007. Last year the Company recorded an extraordinary charge in the amount of $1.731 million or of $0.05 per share on an after-tax basis representing the full amount of an award by the Superior Court in relation to a class action. The Company has since appealed this judgement and is confident that it will ultimately succeed in reversing this judgement. The share repurchase program contributed $0.07 to the net per share earnings for the nine-month period ended September 30th, 2008. Excluding all these effects, net earnings would have increased by $0,4 million or $0.02 per share for the nine-month period ended September 30th, 2008 compared to the corresponding period.
The adjusted $0,4 million increase in net earnings breaks down as follows for the nine-month period ended September 30th, 2008:
2008 2007
($ in thousands, except
for per share amounts)
Net Earnings 48,052 32,903
Cost (gain) of options
(after-tax) (5,446) 6,216
(Gain) resulting from the sale
of fixed assets (after-tax) (3,266) (1,958)
Provision for judgment (after-tax) - 1,731
---------- ----------
Adjusted Net Earnings 39,340 38,892
MINUS : Adjusted Net Earnings for the
2007 period 38,892
----------
Increase 2008 448
Annual Financial Information
2007 2006 2005
---------- ---------- ----------
($ in thousands, except for per
share amounts)
Revenue(x) $841,544 $835,681 $804,361
Net earnings 49,033 45,633 41,891
Total Assets 283,861 284,963 274,702
Net Earnings per share
Basic $1.54 $1.35 $1.20
Diluted 1.48 1.30 1.16
Dividends per share 0.29 0.24 0.13
(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 31st, 2005 by reducing operating revenues as
well as the cost of products sold, and commercial and administrative
expenses in the amount of $14,409,000. These changes had no impact on
net earnings.
Quarterly Results (unaudited)
($ in thousands, except for per share amounts)
Quarter Ended Quarter Ended
March 31 June 30
2008 2007 2008 2007
---------- ---------- ---------- ----------
Revenue $181,744 $178,452 $225,508 $216,109
Net earnings 11,569 2,055 17,094 14,878
Net Earnings per share
Basic 0.37 0.06 0.55 0.46
Diluted 0.35 0.06 0.54 0.44
Quarter Ended Quarter Ended
September 30 December 31
2008 2007 2007 2006
---------- ---------- ---------- ----------
Revenue $232,129 $216,731 $223,628 $220,022
Net earnings 19,389 16,666 16,130 16,539
Net Earnings per share
Basic 0.65 0.49 0.52 0.50
Diluted 0.62 0.47 0.50 0.48
As for the three-month period ended September 30th, 2008 revenues from
operations totaled 232.1 M$, representing an increase of 8.7 M$ over the 223.4
M$ for the corresponding 2007 period. The Company's net income for the
three-month period ended September 30th, 2008, totaled $ 19,389,000, or $0.65
per share, compared with $ 15,970,000 or $0.50 per share for the corresponding
2007 period. For the three-month period ended September 30th 2008, the results
from the variation of costing options had the effect of reducing the earnings
per share by $0.01 compared with a decrease in earnings of $0.01 for the
corresponding 2007 period. Last year the Company recorded an extraordinary
charge in the amount of $1.731 million or of $0.05 per share on an after-tax
basis representing the full amount of an award by the Superior Court in
relation to a class action. The Company has since appealed this judgement and
is confident that it will ultimately succeed in reversing this judgement. The
share repurchase program contributed $0.04 to net per share earnings for the
quarter ended September 30th, 2008.
Excluding all these effects, net earnings would have increased by 1.6 M$
or $0.06 per share for the three-month period ended September 30th, 2008
compared to the corresponding period.
The adjusted 1.6 M$ in net earnings breaks down as follows for the quarter
ended September 30th, 2008:
2008 2007
($ in thousands, except
for per share amounts)
Net Earnings 19,389 15,970
Cost (gain) of options
(after-tax) 186 259
Provision for judgment (after-tax) - 1,731
---------- ----------
Adjusted Net Earnings 19,575 17,960
MINUS : Adjusted Net Earnings for 2007
corresponding quarter 17,960
----------
Increase 2008 1,615
A semi-annual eligible dividend of $0.18 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 December 19th, 2008, which will be payable on January 2nd, 2009.
No options have been granted during the third quarter ended September 30th, 2008. As at September 30th, 2008, 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 yet again in 2008 due to the share redemption programs implemented in September 2007 and 2008, and the substantial issuer bid and the conversion of Class B Multiple Voting Shares. Accordingly, 20,644 Class B Multiple Voting Shares and 4,231,823 Class A Subordinate Voting Shares were redeemed by the Company and cancelled in 2008, while 403,816 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 September 30th, 2008, 10,516,135 Class B Multiple Voting Shares and 16,297,298 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-Rivieres, Sherbrooke, Chicoutimi, Riviere-du-Loup, Rimouski, Levis, Beauport, Ste-Foy, Gatineau, Ste-Hyacinthe, St-Jean-sur-le-Richelieu, Granby, Vaudreuil, Mascouche and St-Jerome through its subsidiary Brault & Martineau and Ameublements Tanguay.