MONTREAL, Feb. 22 /CNW Telbec/ - BMTC Group Inc. announced that, for the year ended on December 31, 2006, its revenues totaled 835.7 million dollars, representing an increase of 31.3 million $ over the 804.4 million dollars for 2005. The Company's net income, for the period, totaled $45,633,000, or $1.35 per share, compared with $41,891,000, or $1.20 per share, for the corresponding 2005 period.
Results from the costing of options had the effect of reducing net earnings by $0.07 per share, compared to a reduction of $0,12 per 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 is one of few public companies to expense options on an ongoing basis.
The share repurchase program contributed $0.04 to net per-share earnings. Excluding all these effects, net earnings would have increased by $1.8 million or $0.06 per share for 2006.
The adjusted $1.8 million increase in net earnings breaks down as follows:
2006 2005
-------- --------
($ in thousands, except for per share amounts)
Net Earnings 45,633 41,891
Cost (gain) of options (after-tax)
2,297 4,188
-------- --------
Net Earnings before options 47,930 46,079
MINUS : Net Earnings 2005 46,079 --------
-------- --------
Increase 2006 1,851
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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(xx)
Basic $1.35 $1.20 $1.21
Diluted 1.30 1.16 1.18
Dividends per share(xx) 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.
(xx) After taking into account the 2 for 1 stock splits effected on
December 11, 2003, June 3, 2002 and December 6, 2000.
For the last quarter 2006, net earnings stood at $16,539,000 or $0.50 per
share, compared with $8,598,000 or $0.26 per share for the corresponding 2005
period. The result from costing of options had the effect of increasing the
earnings per share by $0.01 compared to a decrease of $0.07 for the
corresponding period. After two years of lackluster results in the fourth
quarter, the Company managed to return to a similar level of profitability
from previous years (2002-03).
Quarterly Results (unaudited)
($ in thousands, except for per share amounts)
Quarter Ended Quarter Ended
March 31 June 30
2006 2005 2006 2005
--------- --------- --------- ---------
Revenue(x) $182,969 $169,197 $215,959 $214,271
Net earnings 285 1,521 12,143 15,451
Net Earnings per
share(xx)
Basic 0.010 0.040 0.350 0.440
Diluted 0.010 0.040 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(xx)
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.
(xx) After taking into account the 2 for 1 stock splits effected on
December 11, 2003, June 3, 2002 and December 6, 2000.
Finally, BMTC Group Inc. has indicated that in the course of its redemption programs implemented in September 2006, and the conversion of Class B Multiple Voting Shares, the Company has redeemed a total of 997,700 Class A Subordinate Voting Shares with respect to which the average redemption price was $17.92 per share, and 20,000 Class B Multiple Voting Shares with respect to which the average redemption price was $18.00 per share, while 15,200 Class B Multiple Voting Shares were converted into as many Class A Subordinate Voting Shares. As of February 22nd, 2007, 20,136,247 Class A Subordinate voting shares and 12,409,353 Class B Multiple voting shares were 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.