MONTREAL, Dec. 6, 2018 /CNW Telbec/ -
Results *
For the nine month period ended October
31st, 2018, the Company's revenues increased by $915,000 to $565,949,000, compared to $565,034,000 recorded in the period ended
September 30th, 2017. Same store
revenues grew by 2.5% during the same period. Net earnings for the
nine month period ended October 31th,
2018, amounted to $33,352,000
compared to $31,615,000 for the
period ended September 30th, 2017.
Basic net earnings per share amounted to $0.95 compared to $0.86 in 2017.
The effect of the cost of options had no impact on basic net
earnings per share for the nine month period ended October 31st, 2018 and for the nine month period
ended September 30th 2017.
During the nine moth period ended October
31st, 2018, the Company proceeded with the sale of the
Repentigny store for an amount of
$9,000,000 resulting in an after tax
gain of $4,522,000 or $0.13 per basic share.
For the nine month period ended October
31st, 2018, the share repurchase program contributed to an
increase in basic net earnings per share of $0.04.
Excluding all these effects, the variation to the adjusted net
earnings would have been ($2,927,000)
or ($0.08) per basic share for the
nine month period ended October 31st,
2018.
The ($2,927,000) variation in
adjusted net earnings is as follows:
|
|
(Unaudited and
$ in thousands)
|
|
|
Oct. 31,
2018
|
|
Sept. 30,
2017
|
Net
earnings
|
|
33
352
|
|
31 615
|
Gain on disposal of
fixed assets (after-tax)
|
|
(4
522)
|
|
-
|
Variation of cost of
options (after-tax)
|
|
(212)
|
|
(70)
|
Adjusted net
earnings
|
|
28
618
|
|
31 545
|
Minus: Adjusted net
earnings for 2017
|
|
31
545
|
|
|
Variation
|
|
(2
927)
|
|
|
* The Company proceded to change it's financial year end date
from December 31st to January 31st.
This change came into effect with the 2018 financial year end,
therefore the accounting period of the 2018 consolidated financial
statements corresponds to a 13 month period ending January 31st, 2018 compared to a 12 month period
for the current consolidated financial statements. Starting
February 1st, 2018, these unaudited
interim financial statements will correspond to the quarters ending
in April 30th, July 31st and October
31st.
Net earnings per quarter is not comparable following the
modification of the quarterly periods for the current fiscal year.
The nine month period ended October 31st,
2018 does however allow more adequate comparison. The
decrease in adjusted net earnings after the nine month period, is
due to the decrease in gross margins and the increase in sales
financing fees.
This variation in adjusted after-tax income is allocated
throughout the quarters as follows:
|
(Unaudited and $ in
thousands)
|
|
|
|
|
|
|
|
Increase (decrease) retail
operating earnings
|
|
Increase (decrease) investment income
|
|
Increase
(decrease)
adjusted
operating
earnings
|
|
|
|
|
|
|
1st
quarter
|
1 934
|
|
(1 815)
|
|
119
|
2ndquarter
|
1 870
|
|
1 095
|
|
2 965
|
3rd
quarter
|
(6
242)
|
|
231
|
|
(6
011)
|
|
(2
438)
|
|
(489)
|
|
(2
927)
|
|
|
|
|
|
|
|
|
|
|
|
|
Annual Financial
Information
|
($ in thousands,
except for per share amounts)
|
|
|
|
|
January 31,
2018
|
|
December 31,
2016
|
|
|
|
13
months
|
|
12 months
|
|
|
|
$
|
|
$
|
Revenue
|
|
|
810
144
|
|
746 649
|
Net
Earnings
|
|
|
49
335
|
|
43 830
|
Total
Assets
|
|
|
312
569
|
|
309 483
|
Net Earnings Per
Share
|
|
|
|
|
|
|
Basic
|
|
|
1,36
|
|
1,17
|
|
Diluted
|
|
|
1,36
|
|
1,17
|
Dividends Per
Share
|
|
|
0,24
|
|
0,24
|
Financial Position and Dividends
Cash and investments increased by $26,626,000 during the nine month period ended
October 31st, 2018. Investments
consist primarily of bank notes and common stocks, which at the
close of the quarter had a market value of $117,474,000 (including cash).
As of October 31st, 2018, the
working capital showed a surplus of $18,363,000 an increase of $26,694,000 compared to January 31st, 2018. The Company's shareholders'
equity, at the end of the nine month period ended October 31st, 2018, increased from $204,376,000 as at January
31st, 2018 to $226,664,000 as
at October 31st, 2018. As of
October 31st, 2018, the book value
per share stood at $6.53, compared to
$5.82 as at January 31st, 2018.
Pursuant to the normal course issuer bid put in place on
March 23th, 2017, and renewed on
April 13th 2018, accordingly, 401,800
Common Shares were repurchased and cancelled by the Company. As a
result of this change, the Company had as of October 31st, 2018, 34,718,200 Common Shares
issued and outstanding.
During the nine month period ended October 31st, 2018, no options were granted or
exercises. During the nine month period ended October 31st, 2018, 21,900 options were
cancelled. As at October 31st,
2018, options for 197,100 Common Shares, representing 0.57%
of the Company's outstanding shares remain issued and 5,710,864
authorized share options, representing approximately 16.45% of the
Company's outstanding shares, may still be granted pursuant to the
Plan. The issued and outstanding options may be exercised at a
price of $17.85 per Common
Shares.
A semi-annual eligible dividend of $0.14 per Common Share has been declared to
holders registered at the close of business on December 21st, 2018 which will be payable on
January 3rd, 2019.
Quarterly
Results
|
(Unaudited and $ in
thousands, except for per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
April
30th
2018
|
|
March 31st
Dec. 31st,
2016
|
|
July
31st
2018
|
|
June 30th
2017
|
|
|
|
|
|
|
|
$
|
|
$
|
|
$
|
|
$
|
Revenue
|
|
162
194
|
|
161 998
|
|
219
640
|
|
199 314
|
Net (Loss)
Earnings
|
|
4
806
|
|
57
|
|
16
933
|
|
14 014
|
Net (Loss) Earnings
Per Share
|
|
|
|
|
|
|
|
|
|
Basic
|
|
0,13
|
|
-
|
|
0,48
|
|
0,38
|
|
Diluted
|
|
0,13
|
|
-
|
|
0,48
|
|
0,38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oct.
31st
2017
|
|
Sept. 30th
Dec. 31st,
2016
|
|
January
31st
2018
|
|
December
31st
2017
|
|
|
|
|
|
|
|
|
|
|
|
(4
months)
|
|
(3 months)
|
|
|
$
|
|
$
|
|
$
|
|
$
|
Revenue
|
|
184
115
|
|
203 722
|
|
245
110
|
|
197 051
|
Net (Loss)
Earnings
|
|
11
613
|
|
17 544
|
|
17
720
|
|
17 673
|
Net (Loss) Earnings
Per Share
|
|
|
|
|
|
|
|
|
|
Basic
|
|
0,34
|
|
0,48
|
|
0,50
|
|
0,47
|
|
Diluted
|
|
0,34
|
|
0,48
|
|
0,50
|
|
0,47
|
For the quarter ended October 31st,
2018, the Company's revenues decreased by $19,607,000 to $184,115,000, compared to $203,772,000 recorded in the quarter ended
September 30th, 2017, a 9.6%
decrease. Same store revenues grew by 0.3% during the same period.
Net earnings for the quarter ended October
31st, 2018, amounted to $11,613,000 compared to net earnings of
$17,544,000 for the quarter ended
September 30th, 2017. Basic net
earnings per share decreased to $0.34
compared to $0.48 in 2017.
The effect of the cost of options had no impact on basic net
earnings per share for the three month periods ended October 31st, 2018 and the three month period
ended September 30th, 2017.
For the three month period ended October
31st, 2018, the share repurchase program contributed to an
increase in basic net earnings per share of $0.03.
Excluding all these effects, the variation to the adjusted net
earnings would have been ($6,011,000)
or ($0.17) per basic share for the
three month period ended October 31st,
2018.
The ($6,011,000) variation in
adjusted net earnings in 2018 is as follows for the three month
period ended October 31st, 2018 is as
follow:
|
|
(Unaudited and $ in
thousands)
|
|
|
Oct. 31,
2018
|
|
Sept. 30,
2017
|
|
|
|
|
|
Net
earnings
|
|
11
613
|
|
17 544
|
Variation of cost of
options (after-tax)
|
|
(50)
|
|
30
|
Adjusted net
earnings
|
|
11
563
|
|
17 574
|
Minus: Adjusted net
earnings for 2017
|
|
17
574
|
|
|
Variation
|
|
(6
011)
|
|
|
Operations
BMTC Inc.
The Company proceeded to change its financial year end date from
December 31st to January 31st. This
change came into effect with the 2018 financial year end, therefore
the accounting period of the 2018 consolidated financial statements
corresponds to a 13 month period ending January 31st, 2018 compared to a 12 month period
for the current consolidated financial statements. Starting
February 1st, 2018, these unaudited
interim financial statements will correspond to the quarters ending
in April 30th, July 31st and October
31st.
The Company continues to restructure all of its websites and the
first phase of the implementation of a distinct e-commerce platform
for its banner Brault & Martineau and EconoMax is now completed
and operational. The process of implementation will continue
throughout 2018 and 2019 for the following phases as well as the
restructuring for all the other banners of the Company. The Company
is also reviewing its IT systems in to order standardise them
throughout the banners, as well as to allow them to be more aligned
with our e-commerce strategies. Following this evaluation, the
Corporation decided to invest and to modify its existing IT
systems, the integration and implementation will continue for a 3
to 5 year period. The cost of these modifications are estimated to
be $17,000,000. A portion of these
costs, $9,686,000 were incurred and
the balance will be recorded in the subsequent years.
On October 11th, 2018, Raymond
Chabot Grant Thornton S.E.N.C.R.L. resigned as auditor of the
Company at the request of the Company. The Board of Directors of
the Company, upon recommendation of the Audit Committee of the
Board of Directors of the Company, approved the appointment of the
Successor Auditor to fill the vacancy created by the resignation of
the Former Auditor and to hold such position until the next annual
meeting of shareholders of the Company.
There were no modifications of opinion by the Former Auditor in
the Former Auditor's reports on the Company's financial statements
for the two most recently completed fiscal years ended December 31, 2016 and January 31, 2018.
Caution regarding forward-looking statements
This press release contains certain forward-looking statements
with respect to the Company. These forward-looking statements are
identified by the use of terms and phrases such as "anticipate",
"believe", "estimate", expect", "intend", "may", "plan", "predict",
"project", "will", "would", as well as the negative of these terms
and similar terminology, including references to assumptions.
Forward-looking statements, by their nature, necessarily involve
risks and uncertainties that could cause actual results to differ
materially from those contemplated by these forward-looking
statements. Results indicated in forward-looking statements may
differ materially from actual results for a number of reasons which
the Company has identified in the 2018 Annual Information Form
under "Narrative Description of the Business - Risk Factors", and
other risks detailed from time to time in the Company's continuous
disclosure documents.
The reader is cautioned that the factors we refer above are not
exhaustive of the factors that may affect any of the Company's
forward-looking statements. The reader is also cautioned to
consider these and other factors carefully and not to put undue
reliance on forward-looking statements.
The Company made a number of assumptions in making
forward-looking statements in this press release. The Company
considers the assumptions on which these forward-looking statements
are based to be reasonable.
These statements reflect current expectations regarding future
events and operating performance and speak only as of the date of
release of this press release, and represent the Company's
expectations as of that date. The Company disclaims any intention
or obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise,
other than as required by law.
Non International Financial Reporting Standards (IFRS)
financial measures
The Company discloses adjusted net earnings, which includes or
excludes certain amounts that are not considered representative of
performance measures for the Company. Management believes that this
measure is useful in understanding and analysing the operational
performance of the Company and more appropriate to provide
additional information.
The Company also discloses same store revenues, which have been
realised in stores opened or closed for comparable months.
Adjusted net earnings as well as same store revenues are not an
earnings measure recognised by IFRS and does not have a
standardised meaning prescribed by IFRS. Therefore, adjusted net
earnings and same store revenues as discussed in this MD&A may
not be compared to similar measures presented by other issuers.
This measure of performance should not be considered as an
alternative as an indicator of performance calculated according to
IFRS, but rather as additional information.
The Company discloses in this MD&A under the section
"Results" a reconciliation between net earnings and adjusted net
earnings.
BMTC Group Inc.'s Common Shares are listed on the Toronto Stock
Exchange and through its subsidiary Ameublements Tanguay Inc., and
its two divisions, Brault & Martineau and EconoMax, the Company
is a major retailer of furniture, electronic goods and household
appliances operating in the province of Quebec.
SOURCE BMTC Group Inc.