BMTC GROUP INC. ANNOUNCES FINANCIAL RESULTS FOR THE YEAR ENDED JANUARY 31st, 2025

MONTREAL, April 24, 2025 /CNW/ -

Results 

For the year ended January 31, 2025, the Company's revenues increased by $23,756,000 to $602,701,000 compared to $578,945,000 recorded for the corresponding period of 2024, an increase of 4.1%.  Of this increase, $3,481,000 comes from investment property income from the new real estate division. Therefore, the retail operation revenues of the Tanguay division increased by 3.5%. Same-store-sales increased by 4.8% for the year ended January 31, 2025. Net earnings for the year ended January 31, 2025, amounted to $43,909,000 compared to $47,427,000 recorded for the corresponding period of 2024. Basic net earnings per share amounted to $1.35 compared to $1.44 recorded for the corresponding period of 2024. This variation is primarily attributable to the recognition, in the prior fiscal year, of an after-tax gain of $50,962,000 ($1.54 per basic share) resulting from the sale of the Company's distribution center in Montréal. This significant gain was however partially offset in 2025 by a substantial increase in the after-tax unrealized gain on other financial assets, which rose to $27,464,000 compared to $279,000 for the corresponding period in 2024 representing a $27,185,000 increase.

The operating results as at January 31, 2025, partly reflect the synergies generated by the operational and commercial reorganization carried out in May 2023 with the Tanguay division. Although these synergies are not expected to have as significant an impact in the upcoming financial year, they should nonetheless help sustain stable and consistent operational performance.

For the year ended January 31, 2025, the share repurchase program contributed to an increase of $0.01 on basic net earnings per share. As for the corresponding period of 2024, the share repurchase program contributed to a decrease of $0.02 on basic net earnings per share.

During the year ended January 31, 2025, the Company disposed of fixed assets in the amount of $13,427,000, resulting in a total after-tax gain of $9,244,000, or $0.28 per basic share.  This total amount includes an after-tax gain of $2,097,000, or $0.07 per basic share, received as an additional settlement obtained by winning the dispute relating to the expropriation of the former Kirkland store by the Réseau express métropolitain (REM) in 2019. The total amount also includes the sale of the Trois-Rivières store for an amount of $4,500,000, resulting in after-tax gain of $3,362,000, or $0.10 per basic share. Finally, the total amount includes the sale of the Brossard store, an asset classified as held for sale, for an amount of $6,510,000, resulting in after-tax gain of $3,785,000, or $0.11 per basic share.

The variation in adjusted net earnings for non-recurring elements would be $38,200,000 or $1.18 per basic share for the period ended January 31, 2025, when compared to the year ended January 31, 2024, is explained as follows:

                                                            ($ in thousands)

The variations in net adjusted earnings is allocated as follows:

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           Annual financial information
           ($ in thousands, except for per share amounts)

Financial position and dividends

Cash and investments, net of bank overdraft, decreased by $58,018,000 during the year ended January 31, 2025. This decrease is principally explained by to the acquisition of the RONA distribution center on April 15, 2024, and of the land situated in Lévis, these transactions were paid in full in cash from financial investments held by the Company. However, the decrease caused by the acquisition of the aforementioned assets has been partly offset by the significant increase in the unrealized gains on the investments. Financial investments consist of treasuries bearing interest, common and preferred shares, which at the close of the year ended January 31, 2025, had a market value of $205,324,000 (including cash).

The Company created a real estate division at the end of the 2024 financial year and commencing 1st quarter ended April 30, 2024, the Company presents its results in a segment manner identifying income from investment properties. Real estate activities include the ownership of buildings in Quebec with the intention of carrying out development activities or obtaining rental income from them. Details are presented in Note 4 and Note 10 to the consolidated financial statements as at January 31, 2025.

As at Januray 31, 2025, working capital showed a deficit of ( $12,661,000) a decrease of $21,174,000 compared to the year ended January 31, 2024. The Company's shareholders' equity increased from $476,897,000 as at January 31, 2024, to $529,507,000 as at January 31, 2025. As at January 31, 2025, the book value per share stood at $16.36 compared to $14.59 as at January 31, 2024.

Pursuant to the normal course issuer-bid put in place on April 15, 2023, and renewed on April 15, 2024, accordingly, 322,750 common shares were repurchased and cancelled by the Company. As a result of this change, the Company had, as at January 31, 2025, 32,362,300 common shares issued and outstanding.

During the year ended January 31, 2025, no options were granted. The Company may still grant pursuant to the Stock Option Plan a total of 5,710,864 options, representing 17.65% of the issued and outstanding shares of the Company.

During the fiscal year ended January 31, 2025, the Company paid eligible dividends totalling $0.36 per common share to holders.

Quarterly results 
($ in thousands, except for per share amounts)

For the three-month period ended January 31, 2025, the Company's revenues increased by $17,692,000 to $152,382,000, compared to $134,690,000 recorded for the corresponding 2024 period, a 13.1% increase. Of this increase, $3,000 comes from investment property income from the new real estate division. Therefore, the retail operation revenues of the Tanguay division increased by 13.1%. Same-store-sales increased by 13.7% for the three-month period ended January 31, 2025. Net earnings for the three-month period ended January 31, 2025, amounted to $14,490,000 compared to $14,496,000 recorded for the corresponding 2024 period.  Basic net earnings per share increased to $0.45 compared to $0.44 for the corresponding 2024 period.

For the three-month period ended January 31, 2025, the share repurchase program had no impact on basic net earnings per share. As for the corresponding period of 2024, the share repurchase program contributed to an increase of $0.01 on basic net earnings per share.

The variation in adjusted net earnings for non-recurring elements would be ($6,000) or ($0.01) per basic share for the three-month period ended January 31, 2025, when compared to the three-month period of 2024 period, is explained as follows:

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Operations

Tanguay division

The Company has decided to make significant changes to transform its former Brault & Martineau and EconoMax stores into Tanguay stores in order to provide a better product and service offering and a unique customer experience in its market. The stores revitalization program across our entire network was initially estimated at $28,000,000, but as of January 31, 2024, the amount was reassessed downward to $20,000,000. During the year ended January 31, 2024, $15,500,000 of these costs were recorded in operating expenses in the consolidated statements of earnings and comprehensive income. In the year ended January 31, 2025, the Company completed its network-wide revitalization program and an additional amount of $3,192,000 was recognized in operating expenses in the consolidated statements of earnings and comprehensive income. The total cost of the revitalization program over the two years amounted to $18,692,000, which is $1,308,000 less than originally anticipated.

As announced on February 1, 2023, the Company concluded the sale of its distribution center in Montreal for an amount of $66,500,000, resulting in an after-tax gain of $50,962,000, or $1.54 per basic share.  The Company remains a tenant and uses this distribution center for its operations in the Montreal metropolitan region. The initial lease was for 2 years and in February 2024, the Company renewed its lease.

Real estate division

On April 15th, 2024, the Company finalised the purchase of the RONA distribution center bearing the civic address 2055, boulevard des Entreprises in the city of Terrebonne. The transaction was in the amount of $96,000,000 before taxes which includes a lease-back agreement with RONA. The transaction was paid in full in cash from investments held by the Company. The Company intends to continue on a long-term basis to collect lease revenues from this property. The Company is currently pursuing extension and optimization work at this property, aimed at improving its operational efficiency and, consequently, creating greater rental value. During the year ending January 31, 2025, the Company made commitments totaling $28,810,000 regarding the extension, of which $3,045,000 was capitalized in investment properties under construction at the end of the year. The Company also incurred costs of $20,125,000 for the optimization of this center, of which $10,238,000 remains outstanding at the end of the year. Consequently, a decrease in the financial assets used to finance this project is expected during the coming year. The Company estimates that the project will be completed by the end of summer 2025 and will be available for lease at that time.

At the end of April 2024, the Company finalised the purchase of land in Lévis located in the Quebec region, for an amount of $20,223,000. As of January 31, 2025, this land was transferred to the Company's real estate division, in accordance with the Company's intention to hold it for real estate development purposes or as long-term investment.

The Company entered into a partnership agreement with Urbania, who will be responsible for the development and construction of its property at 500 boulevard Le Corbusier in Laval into several residential rental towers. The Company intends to finance this real estate project at 75% with a long-term mortgage. The estimated value of the entire project is approximately $600,000,000. The Company created a new subsidiary, Le Corbusier-Concorde S.E.C. for this real estate project on January 31st, 2022. This real estate project was supposed to begin in the summer of 2025, but the Company is still waiting for the approval of all permits by the City of Laval. In fact, the Company is facing delays beyond its control, resulting in additional delays related to administrative procedures governed by  the City of Laval. This situation is preventing the start of construction work, initially planned for June 2025, despite the Company's sustained and continued efforts to move the project forward. At this date, the new expected start date is March 2026. Once construction begins, the project should span over a period of 8 to 10 years with the construction of 5 rental residential towers for a total of approximately 1,200 doors.

The Company intends to proceed with the real estate development of several rental residential towers on its property located at 125 boul. Desjardins Est in Sainte-Thérèse. This real estate project is currently in the exploratory phase and the Company has identified a potential developer for the project. We are currently evaluating the initial budget estimates and financial models to complete the project's profitability analysis. At the same time, the Company has initiated preliminary steps with the City of Ste-Thérèse, with a view to proactive planning aimed at optimizing completion times. If the project proves profitable, we estimate that we will be able to obtain the necessary permits in December 2025 and begin construction in March 2026. Following the profitability analysis and the conclusion of an agreement with a potential developer, the Company should be able to announce the details of this real estate project during the next fiscal year.

These investments are part of the Company's strategy to increase the value of its real estate assets while generating new sources of recurring revenue.

Management discussion and outlook for the Future of the Company

In the last few years, e-commerce has developed exponentially in Quebec. The Company continues to focus on online sales 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.

It is also Management's opinion that the digital platforms of our banner is 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.

Management has assessed that the recently announced tariffs by the Government of Canada are not expected to have a significant impact on the Company's operations, given the current sourcing of its supply chain. However, it remains difficult to assess the potential impact of these measures on the overall Canadian economy and consumer behavior, which could affect the Company's results. There is also a degree of uncertainty regarding the evolution of these tariffs in the coming months. Furthermore, the market volatility induced by these announcements represents a factor that could affect the performance of the Company's investment portfolio, which could also have an impact on its results.

However, the results for the fourth quarter of 2025 were promising and management remains confident that, thanks to its effective management, the operational and commercial reorganization carried out in May 2023 and the solidity of its financial structure, the Company will be able to maintain its objectives which consist of increasing its market share in Quebec and its profitability, even in a more difficult market.

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 2025 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 elements that are not considered representative or recurrent 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 Annual Management Report 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 Annual Management Report under the section "Results" a reconciliation between net earnings and adjusted net earnings.

BMTC Group Inc. is a company governed the Business Companies Act (Quebec). Its registered office and principal place of business is located at 8500 Place Marien, Montréal East, Quebec, H1B 5W8. Its common shares are listed on the Toronto Stock Exchange. The BMTC Group Inc. is now formed of the Tanguay division and its subsidiaries Le Corbusier-Concorde S.E.C., Commandité Le Corbusier-Concorde Inc. and 9519-2340 Québec Inc. (collectively designated as the "Company"). The Company manages and operates a retail network of furniture, household appliances and electronic products, in Quebec, while also overseeing the management of its real estate division.

SOURCE BMTC Group Inc.