BMTC profit jumps in 2010
Michael J. Knell -- Furniture Today, March 25, 2011
MONTREAL — BMTC Group has reported significant improvements in profitability for both fourth quarter and the 2010 fiscal year. However, Quebec's dominant furniture and appliance retailer also reported declining sales for the quarter and essentially flat year-over-year top line results.
Fourth-quarter revenue of C$215.8 million was down 3.6 from same period in the prior year.
Net income, however, was C$32.6 million or 64 Canadian cents per share, compared with C$18.7 million or 36 cents per share in the 2009 fourth quarter - a gain of 88.8% on a per share basis.
BMTC said its method of costing the options offered to senior executives increased earnings per share by nine cents during the fourth quarter, and compared with a decrease of 15 cents in the 2009 quarter. BMTC costs options as either an expense or revenue in its net earnings calculation. An increase in the company's share price incurs an expense, while a decrease incurs revenue.
BMTC also said its share repurchase program reduced net earnings by one cent per share for the fourth quarter. Also negatively impacting fourth quarter earnings was a pretax charge of C$1.5 million or five cents a share attributed to the declining market value of the company's investments.
For the fiscal year, revenues of C$822.5 million were up a scant 0.5% from 2009. Net income in 2010 was C$75.1 million or C$1.46 per share, compared with C$67 million or C$1.27 per share the previous year - up 13% on a per share basis.
For the year, the costing of operations reduced net earnings by 17 cents per share, compared to a decrease of 22 cents for the 2009 fiscal year.
BMTC also announced that it has received approval from the Toronto Stock Exchange to renew its stock repurchase program for a one year. The company said it intends to purchase for cancellation as many as 2.4 million of its Class A shares, about 5% of the total outstanding.
BMTC operates 32 stores in Quebec under the Brault & Martineau and Ameublements Tanguay banners.
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