MONTREAL, June 9, 2022 /CNW Telbec/ -

Results

For the first quarter ended April 30, 2022, the Company's revenues decreased by $1,549,000 to $175,659,000 compared to $177,208,000 recorded for the first quarter ended April 30, 2021, a 0.9% decrease. Net earnings for the first quarter ended April 30, 2022, amounted to $807,000 compared to $10,479,000 recorded for the first quarter ended April 30, 2021. Basic net earnings per share amounted to $0.02 compared to $0.31 recorded for the first quarter ended April 30, 2021.

For the first quarter ended April 30, 2022, the share repurchase program had not impact on basic earnings per share, whereas during the first quarter ended April 30, 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 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 ($8,428,000) or $0.25 per basic share for the first quarter ended April 30, 2022, as well as the comparable period ended April 30, 2021, are explained as follows:





(Unaudited and $ in thousands) 












April 30, 2022


April 30, 2021








Net earnings



807


10 479

CEWS (after-tax)



-


(1 244)

Adjusted net earnings



807


9 235








Minus: Adjusted net earnings for the previous period

9 235


(12 427)








Variation




(8 428)


21 662

 

The variations in net adjusted earnings is allocated as follows for the first quarter ended April 30, 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, 2021

1 670


(10 098)


(8 428)

As at April 30, 2020

5 733


15 929


21 662


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 $19,675,000 during the first quarter ended April 30, 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 $258,750,000 (including cash).

As at April 30, 2022, the working capital showed a surplus of $2,137,000, an increase of $2,506,000 compared to the year ended January 31, 2022. The Company's shareholders' equity decreased from $387,866,000 as at January 31, 2022, to $387,530,000 as at April 30, 2022. As at April 30, 2022, the book value per share stood at $11.62, 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 76,000 common shares were repurchased and cancelled by the Company. As a result of this change, the Company had as at April 30, 2022, 33,347,000 common shares issued and outstanding.

During the first quarter ended April 30, 2022, no options were granted. The Company may still grant pursuant to the Plan a total of 5,710,864 options, representing 17.13% of the issued and outstanding shares of the Company.

A semi-annual eligible dividend of $0.18 per Common Share has been declared to holders registered at the close of business on June 23, 2022, which will be paid on July 5, 2022.

Quarterly results

(Unaudited and $ in thousands, except for per share amounts)


April 30


April 30


July 31


July 31


2022


2021


2021


2020









Revenue

175 659


177 208


231 624


175 973

Net earnings

807


10 479


28 683


19 579

Net earnings per share








                  Basic and diluted

0,02


0,31


0,85


0,57


















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 earnings per share








 Basic and diluted

0,60


0,61


0,67


0,79

 

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 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 2021 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.

Copyright 2022 Canada NewsWire

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