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:
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(Unaudited and $ in
thousands)
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April 30,
2022
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April 30,
2021
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Net earnings
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807
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10 479
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CEWS
(after-tax)
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-
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(1 244)
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Adjusted net
earnings
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807
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9 235
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Minus: Adjusted net
earnings for the previous period
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9
235
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(12 427)
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Variation
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(8
428)
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21 662
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The variations in net adjusted earnings is allocated as follows
for the first quarter ended April 30,
2022 and 2021:
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(Unaudited and $ in
thousands)
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Increase
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Increase
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Increase
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(decrease)
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(decrease)
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(decrease)
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in adjusted
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in retail
operations
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in
investment
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net earnings
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As at April 30,
2021
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1
670
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(10 098)
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(8 428)
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As at April 30,
2020
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5 733
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15 929
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21 662
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Annual financial information
($ in thousands, except for per
share amounts)
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January 31,
2022
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January 31,
2021
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$
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$
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Revenue
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819
445
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649 056
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Net earnings
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81
931
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54 842
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Total assets
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549
926
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450 207
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Net earnings per share
basic and diluted
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2,43
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1,61
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Dividends per
share
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0,34
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0,29
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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)
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April
30
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April 30
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July 31
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July 31
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2022
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2021
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2021
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2020
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Revenue
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175
659
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177 208
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231 624
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175 973
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Net earnings
|
807
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10 479
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28 683
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19 579
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Net earnings per
share
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Basic and diluted
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0,02
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0,31
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0,85
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0,57
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October 31
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October 31
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January 31
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January 31
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2021
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2020
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2022
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2021
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Revenue
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213 955
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194 352
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196 658
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178 286
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Net earnings
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20 189
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20 775
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22 580
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26 915
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Net earnings per
share
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Basic and
diluted
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0,60
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0,61
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0,67
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|
0,79
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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.