BMTC 4Q earnings decline 12.6%
By Michael J. Knell -- Furniture Today, April 9, 2006
Montreal — An increasingly competitive Quebec marketplace resulted in flat fourth-quarter revenues and a 12.6% drop in net earnings for BMTC Group, the largest full-line furniture retailer in the province.
In the quarter, the company recorded revenues of C$212.6 million, virtually the same as in the comparable 2004 quarter. Net earning were C$8.6 million.
For the year, revenues rose 2% to C$818.8 million, and net earnings came to C$41.9 million, down 5.8% from 2004.
"The fourth quarter is typically the strongest for electronic products, and the company had anticipated lower sales for that commodity as a result of a new competitor entering the market," said Chairman, President and CEO Yves Des Groseillers. "This was offset by stronger results in appliances and furniture."
Fourth-quarter earnings were hurt by the cost of options for a retiring board member, which cut earnings per share seven cents.
Des Groseillers said sales in the Quebec City region were up 10% for the year but were mixed in Montreal — weak in the first quarter and choppy the rest of the year. The 2% sales growth for 2005 was a same-store increase since no stores were added in 2005. In November, BMTC replaced a store in Rimouski.
"Despite limited sales growth, the company managed to improve gross margins and reduce expenses," he said.
Earnings were eroded by the costs of stock-option compensation and a share redemption program. Without these expenses, earnings per share would have risen seven cents for the year, the company said.
While management remains positive about 2006, Des Groseillers said the rate of growth will slow thanks to a maturing housing market and increased competition.
"The past few years have seen much change in the Quebec market — rapid expansion, the arrival of several new competitors and a wave of consolidation," he said. "The company has managed to ... retain its pre-eminent position in the marketplace.
"Management feels strongly that the key to this success has been, and will remain, its determined and aggressive advertising and marketing campaign."
| BMTC Group (a) | |||
|---|---|---|---|
| Owns Ameublements Tanguay and Brault & Martineau | |||
| Earnings per share are fully diluted, and all figures in parentheses are losses or declines. | |||
| Year ended 12/31 | 2005 | 2004 | Change |
| (a) In Canadian dollars. | |||
| Revenues | $818,770,000 | $801,846,000 | 2.1% |
| Operating income | 62,887,000 | 68,470,000 | (8.2%) |
| Net income | 41,891,000 | 44,464,000 | (5.8%) |
| Earnings per share | 1.16 | 1.18 | (1.7%) |
-
4Q sales flat, profits down for Quebec retailer BMTC
Mar 27, 2006
Specialty retailer LoveSac introduces new store design
Kincaid Furniture honors Jimmy and Rosalynn Carter for Habitat work
Belfort Furniture, Lawrance Furniture are NHFA Retailers of Year
Omnia Furniture ends relationship with Kathy Ireland Worldwide
Singapore furniture show expecting increased turnout
Featured Company
-
FurnitureCore.com
FurnitureCore.com is a dynamic web application aimed at the furniture industry. Retailers and manufacturers alike will find our deep reserve of tools to be exactly what their furniture business needs.www.furniturecore.com... more
VIEW ALL GALLERIES
