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BMTC GROUP INC. ANNOUNCES FINANCIAL RESULTS FOR THE SEMESTER ENDED JULY 31st, 2022.

·10 min read

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.

Cision
Cision

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