MONTRÉAL, Sept. 8,
2022 /CNW Telbec/ -
Results
For the second quarter ended July 31,
2022, the Company's revenues decreased by $14,234,000 to $394,598,000 compared to $408,832,000 recorded for the second quarter
ended July 31, 2021, a 3.5% decrease.
Net earnings for the second quarter ended July 31, 2022, amounted to $15,053,000 compared to $39,162,000 recorded for the second quarter ended
July 31, 2021. Basic net earnings per
share amounted to $0.45 compared to
$1.16 recorded for the second quarter
ended July 31, 2021.
For the second quarter ended July 31,
2022, the share repurchase program had not impact on basic
earnings per share, whereas during the second quarter ended
July 31, 2021, 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 last quarter ended
April 30, 2021. The Company received
$1,244,000 after-tax which
contributed to an increase of $0.04
on basic net earnings per share.
The variation in adjusted net earnings would be ($22,865,000) or ($0.68) per basic share for the second quarter
ended July 31, 2022, as well as the
comparable period ended July 31, 2021
are explained as
follows:
(Unaudited and $ in thousands)
|
|
|
|
July 31,
2022
|
|
|
July 31,
2021
|
|
|
|
|
|
|
|
|
|
|
Net earnings
|
|
|
|
|
15
053
|
|
|
|
39 162
|
CEWS
(after-tax)
|
|
|
|
|
-
|
|
|
|
(1 244)
|
Adjusted net
earnings
|
|
|
|
15
053
|
|
|
|
37 918
|
Minus: Adjusted net
earnings for
2021
|
|
|
37
918
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Variation
|
|
|
|
|
(22
865)
|
|
|
|
|
The variations in net adjusted earnings is allocated as follows
for the second quarter ended July 31,
2022 and 2021:
(Unaudited and $ in thousands)
|
|
|
|
|
|
|
Increase
|
|
|
|
|
Increase
|
|
Increase
|
|
(decrease)
|
|
|
|
|
(decrease)
|
|
(decrease)
|
|
in adjusted
|
|
|
|
|
in retail
operations
|
|
in
investment
|
|
net earnings
|
|
|
|
|
|
|
|
|
|
|
As at April 30,
2022
|
|
|
1 670
|
|
(10 098)
|
|
(8 428)
|
As at July 31,
2022
|
|
|
(6 428)
|
|
(8 009)
|
|
(14 437)
|
Total
|
|
|
(4
758)
|
|
(18
107)
|
|
(22
865)
|
Annual financial information
($ in thousands, except
for per share amounts)
|
|
|
|
January 31,
2022
|
|
January 31,
2021
|
|
|
|
|
|
|
|
|
|
|
|
$
|
|
$
|
Revenue
|
|
|
|
819
445
|
|
649 056
|
Net earnings
|
|
|
81
931
|
|
54 842
|
Total assets
|
|
|
|
549
926
|
|
450 207
|
|
|
|
|
|
|
|
Net earnings per share
basic and diluted
|
|
2,43
|
|
1,61
|
Dividends per
share
|
|
|
0,34
|
|
0,29
|
Financial position and dividends
Cash and investments increased by $7,059,000 during the second quarter ended
July 31, 2022. Investments consist of
treasuries bearing interest, government and corporate bonds and
common shares, which at the close of the quarter had a market value
of $244,385,000 (including cash).
As at July 31, 2022, the working
capital showed a surplus of $12,831,000, an increase of $13,200,000 compared to the year ended
January 31, 2022. The Company's
shareholders' equity increased from $387,866,000 as at January
31, 2022, to $393,855,000 as
at July 31, 2022. As at July 31, 2022, the book value per share stood at
$11.86, compared to $11.60 as at January 31,
2022.
Pursuant to the normal course issuer-bid put in place on
April 15, 2021, and renewed on
April 15, 2022, accordingly,
210,526 common shares were repurchased and cancelled by the
Company. As a result of this change, the Company had as at
July 31, 2022, 33,212,474 common
shares issued and outstanding.
During the second quarter ended July 31,
2022, no options were granted. The Company may still grant
pursuant to the Plan a total of 5,710,864 options, representing
17.19% of the issued and outstanding shares of the Company.
Quarterly results *
(Unaudited and $ in thousands,
except for per share amounts)
|
|
|
April
30,
|
|
April 30,
|
|
July
31,
|
|
July 31,
|
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
$
|
|
$
|
|
$
|
|
$
|
Revenue
|
|
|
175
659
|
|
177 208
|
|
218
939
|
|
231 624
|
Net earnings
|
|
|
807
|
|
10 479
|
|
14
246
|
|
28 683
|
Net basic earnings per
share
|
|
0,02
|
|
0,31
|
|
0,43
|
|
0,85
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
October
31,
|
|
October 31,
|
|
January
31,
|
|
January 31,
|
|
|
|
2021
|
|
2020
|
|
2022
|
|
2021
|
|
|
|
$
|
|
$
|
|
$
|
|
$
|
Revenue
|
|
|
213
955
|
|
194 352
|
|
196
658
|
|
178 286
|
Net earnings
|
|
|
20
189
|
|
20 775
|
|
22
580
|
|
26 915
|
Net basic earnings per
share
|
|
0,60
|
|
0,61
|
|
0,67
|
|
0,79
|
For the three month period ended July 31,
2022, the Company's revenues decreased by $12,685,000 to $218,939,000, compared to $231,624,000 recorded for the corresponding
2021 period, a 5.5% decrease. Net earnings for the three
month period ended July 31, 2022,
amounted to $14,246,000 compared to
$28,683,000 recorded for the
corresponding 2021 period. Basic net earnings per share decreased
to $0.43 compared to $0.85 for the corresponding 2021 period.
For the three month period ended July 31,
2022, the share repurchase program had no impact on basic
net earnings per share, as well as corresponding 2021 period.
The variation in adjusted net earnings would be ($14,437,000) or ($0.43) per basic share for the three month
period ended July 31, 2022, as well
as the comparable period July 31,
2021, are explained as follows:
(Unaudited and $ in thousands)
|
|
|
|
July 31,
2022
|
|
July 31,
2021
|
|
|
|
|
|
|
|
|
|
|
Net earnings
|
|
|
|
|
14
246
|
|
|
|
28 683
|
Adjusted net
earnings
|
|
|
|
|
14
246
|
|
|
|
28 683
|
Minus: Adjusted net
earnings for 2021
|
|
|
28
683
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Variation
|
|
|
|
|
(14
437)
|
|
|
|
|
Operations
BMTC Group Inc.
As of September 12th,
2022, the migration to the Tanguay banner IT system will be rolled
out simultaneously in the Brault & Martineau and EconoMax
banners. The IT system implementation and integration process,
including its e-commerce platform, will be completed and
operational before December
31st, 2022.
This IT standardisation will allow the Company to create
significant operational synergies that will allow us to merge our
administrative and operational services in order to create broad
and diversified teams that will be better able to cope with the
realities of business today. In recent weeks, the Company has
conducted a comprehensive review of its organisational structure
within its three banners.
In order to orchestrate this important change, the Company has
chosen to surround itself with people of experience and trust to
bridge the gap between our past and focus on the future.
Management is pleased to announce that Mr. Jacques Tanguay, President of Tanguay, will
become the Chief Operating Officer (COO) of the BMTC Group, and Mr.
Charles Tanguay, Vice-President of
Tanguay, will become President of Brault & Martineau, EconoMax
and Tanguay. This restructuring allows the Company to keep a single
management for its 3 banners and thus unifying a multitude of
departments that previously existed under each of the banners.
This decision comes at an opportune time for the Company. The
difficulty of obtaining skilled labour, the retail trade that is
constantly changing and evolving, the competition that is now
spread across Canada and
the United States of America and
the shift of consumer spending towards e-commerce means that this
change will allow the Company to be much more agile in its business
decisions. We believe that the IT standardisation, the
organisational and structural changes will enable the Company to
maintain its leadership in its market, as well as significantly
improve its profitability and financial structure and continue its
objectives of increasing its market share in Quebec.
Management discussion and outlook for the Future of the
Company
The Company continues to focus on online sales, which
experienced a record increase since the start of the pandemic in
2020, 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.
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.
It is difficult to predict the future level of consumer
spending, although we are now seeing that the Company's results in
the last quarter are not reflecting the performance of the last two
years. This downward trend continued in subsequent months. We can
therefore expect a significant drop, around 20% if the trend
continues. The high level of inflation combined with gas prices has
a direct 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, consumer spending
has in part transfer back to these types of spending.
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.'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.