BMTC profit rises 31.6% in third quarter
Revenue declines 5% to C$220.6 million
Michael Knell -- Furniture Today, November 13, 2009
MONTREAL — BMTC Group, Quebec's largest full-line furniture and appliance retailer, reported improved profitability for the third quarter, although sales fell 5% year-over-year.Revenues amounted to C$220.4 million, while net income of C$25.5 million or 98 cents per share was up 31.6% from the C$19.4 million or 65 cents per share posted a year earlier.
The company noted that its share repurchase program contributed 10 cents to earnings per share, while the method used to cost options offered to senior management reduced net earnings by five cents per share.
The company costs options as either an expense or revenue in its net earnings calculations depending on its current share price. An increase in share price incurs and expense, while a decrease incurs revenue.
Revenue for the first nine months of 2009 totalled C$594.1 million, a decrease of 7.1% from the comparable period last year. Net income was C$48.3 million or C$1.81 per share, up from C$48.1 million or C$1.57 per share last year.
The share repurchase program contributed 18 cents per share to net earnings for the year-to-date. Since the beginning of the year, the company has purchased and cancelled some 657,200 Class A voting shares.
In a note to shareholders, BMTC Chairman and CEO Yves Des Grosseillers noted that consumer confidence has eroded to the point that revenues fell 3% in the final quarter of 2008, which was compounded by drops of 7% and 9% in the first two quarters of 2009.
"The third quarter saw a reduction of 5% - showing a slight improvement over the previous quarters," he said. "The economic indicators seem to demonstrate that the recession has ended. Hopefully, we shall see growth returning to our top line."
Des Grosseillers also attributed the company's improved profitability to its efforts to cut costs, along with increased income from its investments.
At the end of September, BMTC had no bank debt and cash of more than C$100 million. It operates 32 stores in Quebec under the Brault & Martineau and Ameublesment Tanguay banners.
BMTC profit rises 31.6% in third quarter
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