MONTREAL, April 25, 2022 /CNW Telbec/ -
Results
For the year ended January 31,
2022, the Company's revenues increased by $170,389,000 to $819,445,000 compared to $649,056,000 recorded for the year ended
January 31, 2021, a 26.3% increase.
Net earnings for the year ended January 31,
2022 amounted to $81,931,000
compared to $54,842,000 recorded for
the year ended January 31, 2021.
Basic net earnings per share amounted to $2.43 compared to $1.61 recorded for the year ended January 31, 2021.
For the year ended January 31,
2022, the share repurchase program contributed to an
increase in basic earnings of $0.02
per share, whereas during the year ended January 31, 2022, it contributed to an increase
of $0.01 on basic net earnings per
share.
The Company met the eligibility criteria for the Canadian
Emergency Wage Subsidy (CEWS) during the quarter ended April 30, 2021. The Company received $1,441,000 after-tax which contributed to an
increase of $0.04 on basic net
earnings per share compared to $5,759,000 $ after-tax for the year ended
January 31, 2021 which contributed to
an increase of $0.17 on basic net
earnings per share.
The Company has chosen to provide readers in this annual
management report the results for the years ended January 31, 2020, and 2019 in addition to those
of January 31, 2021. Management
believes that the results for the year ended January 31, 2021 are not representative of the
normal course results of the company. The impact of COVID-19 on the
year ended January 31, 2021, makes it
difficult to compare and analyze the results.
The variation in adjusted net earnings would be $31,407,000 or $0.93 per basic share for the year ended
January 31, 2022, as well as the
comparable years ended of January 31,
2021, 2020 and 2019 are explained as follows:
|
|
($ in
thousands)
|
|
|
January,
31
2022
|
|
January, 31
2021
|
|
January, 31
2020
|
|
January,
31
2019
|
|
|
|
|
|
|
|
|
|
Net earnings
|
|
81
931
|
|
54 842
|
|
36 034
|
|
45 165
|
Gain on disposal of
fixed assets (after-tax)
|
|
-
|
|
-
|
|
(1 048)
|
|
(4 522)
|
Variation in cost of
options (after-tax)
|
|
-
|
|
-
|
|
(87)
|
|
(226)
|
CEWS
(after-tax)
|
|
(1
441)
|
|
(5 759)
|
|
-
|
|
-
|
Adjusted net
earnings
|
|
80
490
|
|
49 083
|
|
34 899
|
|
40 417
|
Minus: Adjusted net
earnings for the previous period
|
|
49
083
|
|
34 899
|
|
40 417
|
|
49 513
|
Variation
|
|
31
407
|
|
14 184
|
|
(5 518)
|
|
(9 096)
|
The variations in net adjusted earnings is allocated throughout
the quarters as follows for the years ended January 31, 2022, 2021, 2020 and 2019:
|
|
|
|
|
|
|
Increase
|
|
Increase
|
|
Increase
|
|
(decrease)
|
|
(decrease)
|
|
(decrease)
|
|
in adjusted
|
|
in retail
operations
|
|
in
investment
|
|
net earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at April 30,
2021
|
5 733
|
|
15 929
|
|
21 662
|
As at July 31,
2021
|
7 524
|
|
1 580
|
|
9 104
|
As at Oct 31,
2021
|
340
|
|
2 724
|
|
3 064
|
As at Jan. 31,
2022
|
1
419
|
|
|
(3
842)
|
|
|
(2
423)
|
Total
|
15
016
|
|
16
391
|
|
31
407
|
|
|
|
|
|
|
As at April 30,
2020
|
784
|
|
(9 695)
|
|
(8 911)
|
As at July 31,
2020
|
1 707
|
|
4 416
|
|
6 123
|
As at Oct 31,
2020
|
7 897
|
|
(1 616)
|
|
6 281
|
As at Jan. 31,
2021
|
|
4 905
|
|
|
5 786
|
|
|
10 691
|
Total
|
15
293
|
|
(1
109)
|
|
14
184
|
|
|
|
|
|
|
|
Increase
|
|
Increase
|
|
Increase
|
|
(decrease)
|
|
(decrease)
|
|
(decrease)
|
|
in adjusted
|
|
in retail
operations
|
|
in
investment
|
|
net earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
As at April 30,
2019
|
(5 586)
|
|
1 924
|
|
(3 662)
|
As at July 31,
2019
|
(1 681)
|
|
(1 772)
|
|
(3 453)
|
As at Oct 31,
2019
|
(3 249)
|
|
2 333
|
|
|
(916)
|
As at Jan. 31,
2020
|
|
230
|
|
|
2 283
|
|
|
2 513
|
Total
|
(10
286)
|
|
4
768
|
|
(5
518)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at April 30,
2018
|
1 934
|
|
(1 815)
|
|
119
|
As at July 31,
2018
|
1 870
|
|
1 095
|
|
2 965
|
As at Oct 31,
2018
|
(6 242)
|
|
231
|
|
|
(6 011)
|
As at Jan. 31,
2019
|
|
(6 367)
|
|
|
198
|
|
|
(6 169)
|
Total
|
(8
805)
|
|
(291)
|
|
(9
096)
|
Annual financial information
($ in thousands, except
for per share amounts)
|
|
|
|
January 31,
2022
|
|
Januray 31,
2021
|
|
January 31,
2020
|
|
January 31,
2019
|
|
|
|
|
$
|
|
$
|
|
$
|
|
$
|
Revenue
|
|
819
445
|
|
649 056
|
|
720 169
|
|
742 474
|
Net earnings
|
|
|
|
81
931
|
|
54 842
|
|
36 034
|
|
45 165
|
Total assets
|
|
|
|
549
926
|
|
450 207
|
|
382 040
|
|
367 624
|
Net earnings per
share
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
2,43
|
|
1,61
|
|
1,05
|
|
1,29
|
Dividends per
share
|
|
|
0,34
|
|
0,29
|
|
0,28
|
|
0,28
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial position and
dividends
Cash, net of the bank overdraft, and investments increased by
$62,234,000 during the year ended
January 31, 2022. Investments consist
of treasuries bearing interest, government and corporate bonds and
common shares, which at the close of the year had a market value of
$237,326,000 (including cash net of
bank overdraft).
As at January 31, 2022, the
working capital showed a deficit of $369,000, a decrease of $34,237,000 compared to the year ended
January 31, 2021. The Company's
shareholders' equity increased from $270,708,000 as at January
31, 2021, to $387,866,000 as
at January 31, 2022. As at
January 31, 2022, the book value per
share stood at $11.60, compared to
$7.99 as at January 31, 2021.
Pursuant to the normal course issuer-bid put in place on
April 15, 2020, and renewed on
April 15, 2021, accordingly, 457,000
common shares were repurchased and cancelled by the Company. As a
result of this change, the Company had as at January 31, 2022, 33,423,000 common shares issued
and outstanding.
During the year ended January 31,
2022, no options were granted. The Company may still grant
pursuant to the Plan a total of 5,710,864 options, representing
17.09% of the issued and outstanding shares of the Company.
During the fiscal year ended January 31,
2021, the Company paid eligible dividends totalling
$0.34 per common share to
holders.
Quarterly results
($ in thousands, except for per
share amounts)
|
April
30
|
|
April 30
|
|
April 30
|
|
April 30
|
|
2021
|
|
2020
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
Revenue
|
177
208
|
|
100 445
|
|
150 310
|
|
162 754
|
Net (loss)
earnings
|
10
479
|
|
(12 427)
|
|
(3 455)
|
|
4 806
|
Net (loss) earnings per
share
|
|
|
|
|
|
|
|
Basic and diluted
|
0,31
|
|
(0,36)
|
|
(0,10)
|
|
0,13
|
|
|
|
|
|
|
|
|
|
July
31
|
|
July 31
|
|
July 31
|
|
July 31
|
|
2021
|
|
2020
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
Revenue
|
231
624
|
|
175 973
|
|
215 067
|
|
220 368
|
Net earnings
|
28
683
|
|
19 579
|
|
13 480
|
|
16 933
|
Net earnings per
share
|
|
|
|
|
|
|
|
Basic and diluted
|
0,85
|
|
0,57
|
|
0,39
|
|
0,48
|
|
October
31
|
|
October 31
|
|
October 31
|
|
October 31
|
|
2021
|
|
2020
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
Revenue
|
213
955
|
|
194 352
|
|
183 312
|
|
184 718
|
Net earnings
|
20
189
|
|
20 775
|
|
10 649
|
|
11 613
|
Net earnings per
share
|
|
|
|
|
|
|
|
Basic and
diluted
|
0,67
|
|
0,61
|
|
0,31
|
|
0,34
|
|
|
|
|
|
|
|
|
|
January
31
|
|
January 31
|
|
January 31
|
|
January 31
|
|
2022
|
|
2021
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
196
658
|
|
178 286
|
|
171 480
|
|
174 634
|
Net earnings
|
22
580
|
|
26 915
|
|
15 360
|
|
11 813
|
Net earnings per
share
|
|
|
|
|
|
|
|
Basic and
diluted
|
0,67
|
|
0,79
|
|
0,45
|
|
0,34
|
For the three month period ended January
31, 2022, the Company's revenues increased by $18,372,000 to $196,658,000, compared to $178,286,000 recorded for the corresponding 2021
period, a 10.3% increase. Net earnings for the three month
period ended January 31, 2022,
amounted to $22,580,000 compared to
$26,915,000 recorded for the
corresponding 2021 period. Basic net earnings per share decreased
to $0.67 compared to $0.79 for the corresponding 2021 period.
For the three month period ended January
31, 2022, the share repurchase program contributed to an
increase in basic earnings of $0.01
per share where during the corresponding 2021 period, it had no
impact on basic net earnings or losses per share.
The Company determined that it met the eligibility criteria and
applied for the Canadian Emergency Wage Subsidy (CEWS) during the
quarter ended January 31, 2021. The
Company received $1,912,000 after-tax
which contributed to an increase of $0.06 on basic net earnings per share.
The variation in adjusted net earnings would be ($2,423,000) or ($0.07) per basic share for the three month
period ended January 31, 2022, as
well as the comparable periods ended of 2021, 2020 and 2019 are
explained as follows:
|
|
($ in
thousands)
|
|
|
January 31,
2022
|
|
January 31,
2021
|
|
January 31,
2020
|
|
January
31, 2019
|
|
|
|
|
|
|
|
|
|
Net earnings
|
|
22
580
|
|
26 915
|
|
15 360
|
|
11 813
|
Gain on disposal of
fixed assets (after-tax)
|
|
-
|
|
-
|
|
(1 048)
|
|
-
|
Variation of cost of
options (after-tax)
|
|
-
|
|
-
|
|
-
|
|
(14)
|
CEWS
(after-tax)
|
|
-
|
|
(1 912)
|
|
-
|
|
-
|
Adjusted net
earnings
|
|
22
580
|
|
25 003
|
|
14 312
|
|
11 799
|
Moins: Résultat net
ajusté de la période précédente
|
|
25
003
|
|
14 312
|
|
11 799
|
|
17 968
|
|
|
|
|
|
|
|
|
|
Variation
|
|
(2 423)
|
|
10 691
|
|
2 513
|
|
(6 169)
|
Operations
Brault & Martineau Division
The Brault & Martineau store, at 500 boulevard Le Corbusier in Laval, ceased its operations on December 5, 2021. As announced earlier this year,
the company entered into a partnership agreement for the
development of this property into several residential rental
towers. The real estate development will begin in the year
2022.
Management discussion and outlook
for the Future of the Company
On March 11th, 2020, the World
Health Organization declared COVID-19 a global pandemic. The
financial impact of COVID-19 began to manifest itself by a decrease
in store traffic and consequently store revenues in the early weeks
of March 2020. Following the rapid
rise of COVID-19 cases in the province of Quebec, our priority during this difficult
period remains at all times the health and safety of our employees
and clients. In order to protect the Quebec population and to prevent the spread of
COVID-19 by encouraging social distancing initiatives recommended
by both levels of government, the Company decided on March 18th, 2020, to temporarily close its retail
sales network, namely our Ameublements Tanguay subsidiary in the
Quebec City area and the Brault
& Martineau and EconoMax banners in the Montreal area. On March
23rd, 2020, the Quebec
government announced, for the same reason, the closure of all
non-essential retail stores across the province.
In order to address the devastating effects of COVID-19 and to
assure its short and long-term financial health, the Company
decided to maintain its operations at a strict minimum level while
preserving its presence in our market and controlling its working
capital position. The following actions were undertaken by the
Company during these last weeks in order to support its operating
and working capital objectives:
- Following the closure of our retail sales network on
March 18th, 2020, the Company
temporarily laid off approximately 75% of its personnel, the vast
majority stemming from our retail stores.
- Our online and delivery services remained operational across
Quebec to ensure the population in
confinement the ability to rely on essential goods while respecting
government-mandated security protocols. We modified our services to
offer contactless home delivery.
- During this period, the Company introduced several measures and
protocols in preparation for the reopening of our stores across our
sales network to ensure and protect the health and security of our
employees and our clients. These new measures and protocols will be
in effect until the end of the COVID-19 pandemic.
- The Company has also made technological and operational
improvements to its sales network. These modifications will allow
us to reduce our fixed costs and will contribute to our initiatives
of effective cost controls.
- The Company applied for the Canada Emergency Wage Subsidy given the 30% or
more decrease in revenues during the prescribed period (CEWS).
During the first quarter of 2020, the Company had all of its 32
points of sale closed for a period of 43 consecutive days, leaving
only online sales operational. The loss of revenues arising from
the store closures during this period amounted to $52,029,000. During the second quarter of 2020,
the Company had 15 points of sale closed for a period of 25
consecutive days, leaving only online sales operational. The loss
of revenues arising from the store closures during this period
amounted to $25,465,000.
The Company has proactively aligned its cost structure in order
to mitigate the loss of revenues incurred during the last fiscal
year due to the store closures. The Company intends to maintain
these measures throughout the fiscal year 2022, in order to protect
the Company's viability and preserve its working capital during
these highly uncertain times. Thanks to these new measures the
Company believes it will be able to produce positive operating
results.
The Company continues to focus on online sales, which
experienced a record increase since the start of the pandemic, by
actively pursuing the improvement of its digital platforms, its
live chat initiative with online customers as well as the
improvement of our telephone sales department for all of the BMTC
Group Inc. banners.
It is also Management's opinion that the digital platforms of
our banners are essential in order to allow the Company to increase
its market shares as well as to allow customers to start their
shopping experience online to then complete their purchases in one
of our stores with the help of our sales representatives.
The Company was able to increase significantly it's revenues
during the year ended January 31,
2022 compared to results during the corresponding 2021
period as well as the corresponding 2020 and 2019 periods. In fact,
the Company recorded one of the highest revenues in its history.
This is partly due to improvements in marketing and strategic
measures implemented, our extensive store network and the strength
of digital platforms, which have enabled the Company to increase
its market share in Quebec.
Since mid-June 2021, the Company
has had issues with its supply logistics. Many of the Company's
suppliers, who have also been affected by the consequences of
COVID-19, are unable to honour and deliver placed orders. This
problem seems widespread in our industry and is not unique to the
Company.
On May 5, 2021, the Canadian
federal government imposed important tariffs on upholstered
furniture imported from Vietnam
and China while not allowing any
grace period either for orders in production or for products
already in transit to Canada,
which can take up 3 to 4 months to reach our ports.
Complaints about unfairly priced Chinese and Vietnamese-made
products have been a long simmering issue in the furniture
business. Although, when the Canadian federal government announced
it was seeking to level the playing fields with tariffs, everyone
in the industry was expecting tariffs in the range of 10 to 20 per
cent, similar to what the U.S. recently implemented.
It is difficult to predict the future level of consumer
spending, although it is quite possible that the Company's future
results may not reflect the performance of the last two years. The
high level of inflation combined with gas prices will have an
impact on consumer spending. Also, management is aware that the
increase in the last two years was partly due to the fact that the
Company benefited from a transfer of consumer spending related to
the restrictions imposed by the various levels of government due to
COVID-19 pandemic, more precisely the restrictions related to
travel, the closure of restaurants and all other forms of
entertainment in the cultural and sporting world. Since these
restrictions are no longer in place, we expect consumer spending
could transfer back to these types of spending.
Management is confident that the Company's operational
efficiency during this crisis, its market leadership and solid
financial position will allow us to emerge a stronger organization
despite these difficult market conditions and maintain its
objectives increasing its market share and profitability in
Quebec.
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 opposites 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 2022 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
the performance measures and financial recurrence of the Company.
Management believes that this measure is useful in understanding
and analyzing the operational performance of the Company and that
it can provide additional information.
Adjusted net earnings as well as same store revenues are not an
earnings measure recognized by IFRS and do not have a standardized
meanings prescribed by IFRS. Therefore, adjusted net earnings and
same store revenues as discussed in this press release may not be
compared to similar measures presented by other issuers. These
measures of performance should not be considered as alternatives to
indicators of performance calculated according to IFRS, but rather
as a source of additional information.
The Company discloses in this press release under the section
"Results" a reconciliation between net earnings and adjusted net
earnings.
BMTC Group Inc. is a company governed the Business Companies Act
(Quebec). Its registered office
and principal place of business is located at 8500 Place
Marien, Montréal East, Quebec,
H1B 5W8. Its common shares are listed on the Toronto Stock
Exchange. The Company, through its subsidiaries Ameublements
Tanguay Inc., Le Corbusier-Concorde
S.E.C. and its two divisions Brault & Martineau
and EconoMax, manages and operates a retail network of furniture,
household appliances and electronic products, in Quebec.
SOURCE BMTC Group Inc.