4Q sales, earnings drop for BMTC Group
Michael J. Knell -- Furniture Today, March 11, 2013
MONTREAL - BMTC Group, Quebec's largest full-line furniture, mattress and appliance retailer, suffered declining sales and earnings in the fourth quarter and full year, a reflection of the challenged retail environment.
Fourth quarter revenues of C$180.7 million were down 6.9%. The company does not publish same-store sales figures.
Net earnings for the quarter were C$12.7 million or 27 cents per share, down from C$15.1 million of 32 cents per share a year earlier - a drop of 15.6% on a per share basis.
The cost of stock options offered to its senior management had no effect on earnings per share during the quarter, compared with a two cent per share increase for the corresponding period in 2011.
In a practice not mirrored by many other public companies, BMTC costs options paid to senior management as either an expense or revenue. An increase in the company's share price incurs an expense, while a decrease incurs revenue. The company said no options were exercised in either the quarter or the year.
BMTC's ongoing share buy-back program added one cent per share to earnings, offset by a five cent per share reduction resulting from a pre-tax contribution of C$3.3 million to reduce a deficit in the pension fund.
For the full year, revenues of C$716.9 million were down 4.2% from 2011.
Net earnings were C$44.9 million or 94 cents per share, compared with C$57.2 million or C$1.16 per share the prior year, a fall of 18.9% on a per share basis.
The cost of options increased earning by one cent per share for the year, compared to a decrease of four cents per share for the previous year. The sale of fixed assets in 2012 - primarily a since-replaced store in Lévis, Quebec - contributed two cents per share, while the share repurchase program added another five cents.
BMTC Group operates a total of 32 stores in Quebec under the Brault & Martineau, Economax and Ameublesment Tanguay banners.