Groupe Bikini Village inc.

Groupe Bikini Village inc.

June 12, 2009 09:00 ET

Groupe Bikini Village Inc. Contained Comparable Sales Decline Despite Tough Economic Times and Announces Change to its Board of Directors

First quarter 2009 results issued today

SAINTE-JULIE, QUEBEC--(Marketwire - June 12, 2009) - Groupe Bikini Village inc. (TSX:GBV) ("Groupe Bikini Village" or the "Company") today released the results of its first quarter ended May 2, 2009, reporting steady total sales despite challenging economic, travel and retail conditions in virtually all markets. Net sales for the first quarter, which ended May 2, 2009, were $9.9 million - unchanged from the same period last year. Comparable sales, which compares sales from the same number of stores year-over-year, decreased by 4.6% for the first quarter.

"The fact that we were able to contain comparable sales decline despite a weak retail market shows that our strategies to attract and serve our customers are working," said Yves Simard, President and CEO of Groupe Bikini Village. "We have made cautious strategic investments in our retail network and changes to our administrative processes which, together, are proving to give our customers a great experience in our stores, and our operations a stronger foundation for profitability down the road".

The Company delivered EBITDA(1) of $205,000, or 2.1% of sales, in the first quarter of 2009, as compared to EBITDA(1) of $632,000, or 6.4%, posted in the first quarter of 2008. A large percentage of the decrease in EBITDA(1) ($401,000 of the $427,000 difference) resulted from increased markdowns the Company had to make to entice consumers to spend in the tough economic environment of the first quarter.

Groupe Bikini Village's first quarter 2009 report also indicated that net loss totalled $286,000 (nil per share, basic and diluted), as compared to net earnings of $167,000 (nil per share, basic and diluted) in the same period in 2008.

Change to its Board of Directors and shareholding

Groupe Bikini Village also announces that the Company's board of directors has received the resignation of Mrs. Melinda Lee and would like to thank her for her services. Following Mrs. Lee's resignation, the board has decided to reduce the number of directors from five to four.

Furthermore, the Company was informed by Les Investments Elmag Inc. that it has purchased a significant number of shares for investment purposes and now owns approximately 9% of the shares of the Company. The Company welcomes this new shareholder.


"Based on current economic conditions, we will continue to adapt our operational approach and financial plans to match market realities. Accordingly, we will keep a strong focus on managing working capital, inventory, supply risk, capital expenditures and overhead and indirect costs," he said.

"In the quarters ahead, we will continue to make smart strategic investments in our retail network, while carefully controlling working capital and doing everything we can to deliver efficiencies in our work," continued Mr. Simard.

"We are encouraged by our success in containing comparable sales decline despite the external challenges we have faced in months past, and look forward to continuing our work to enhance shareholder value in the months ahead," he said.

Groupe Bikini Village inc.'s full 2009 first quarter report, as well as previous shareholder reports and other information of interest to investors, is available on SEDAR at, and on the Company's website at

About Groupe Bikini Village

Groupe Bikini Village inc., serving Canadians for almost a quarter-century, is a leading swimwear retailer with a network of new and renovated boutiques across Eastern Canada. In its bright and inviting stores with comfortable change rooms and knowledgeable staff, Groupe Bikini Village helps its customers choose from among Canada's widest selection of swimsuits, beach accessories, and cruisewear, in the most popular brands the industry has to offer and in styles to suit every figure. Headquartered in Sainte-Julie, Quebec, Groupe Bikini Village inc. operates 61 stores and employs approximately 500 people; its securities trade on the Toronto Stock Exchange under the stock symbol GBV. For more information about Groupe Bikini Village inc., please visit our website at


(1) The term EBITDA (earnings before interest, taxes, depreciation, amortization and reorganization fees and unusual items) does not have any standardized meaning prescribed by Canadian generally accepted accounting principles ("GAAP") and may not be comparable to similar measures presented by other companies. Please refer to the section of Groupe Bikini Village inc.'s MD&A for the three-month period ended May 2, 2009, dated June 11, 2009, entitled "Non-GAAP Financial Measures". It is available on SEDAR at

Forward-looking statements

This news release contains certain forward-looking statements concerning Groupe Bikini Village inc.'s future operations, economic performance, financial conditions and financing plans. These statements are based on certain assumptions and analyses made by management in light of their experience and their perception of historical trends, current conditions and expected future developments, as well as other factors they believe are appropriate under the circumstances. However, whether actual results and developments will conform to management's expectations and predictions is subject to a number of risks, uncertainties and assumptions. Consequently, all of the forward-looking statements made in this news release are qualified by these cautionary statements, and there can be no assurance that the results or developments anticipated by management will be realized or, even if substantially realized, that they will have the expected consequences or effects on the Company. Management undertakes no obligation and does not intend to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required under applicable law.

(in thousands of dollars except per share amounts)

Three months ended
May 2, 2009 May 3, 2008

Operating revenue $9,914 $9,921

Cost of goods sold, operating and
administrative expenses 9,709 9,289

Operating income - EBITDA(1) 205 632

Interest 193 63

Amortization 385 295

Earnings (loss) before income taxes (373) 274

Income taxes (87) 107


EARNINGS (LOSS) PER SHARE, basic and diluted - -

Weighted average number of shares outstanding,
basic and diluted 167,678,115 172,677,515

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