Groupe Bikini Village inc.
TSX : GBV

Groupe Bikini Village inc.

September 11, 2009 09:19 ET

Groupe Bikini Village Inc. Reports Second Quarter Results

SAINTE-JULIE, QUEBEC--(Marketwire - Sept. 11, 2009) - Groupe Bikini Village inc. (TSX:GBV) ("Groupe Bikini Village" or the "Company") today released the results of its second quarter, ended August 1st, 2009, which reflected the negative combined impacts of H1N1 flu-related vacation cancellations in May, unseasonable summer weather in June and July, and the general economic downturn throughout the quarter.

The Company posted net sales for the second quarter and the six-month period ended August 1st, 2009 of $11.4 million and $21.3 million, respectively, compared to $12.8 million and $22.7 million in the corresponding periods of the previous year. Comparable sales, which compare sales from the same number of stores year-over-year, decreased by 15.9% for the second quarter, and 10.8% for the six-month period ended the same date.

"While a number of outside factors presented challenges to our sales in the second quarter - not to mention that additional discounts needed to spur sales reduced our gross margins in the quarter, as well - the steamy August we enjoyed in many of our markets (and the related resurgence in swimwear purchases) makes up for early summer sales lag" said Yves Simard, president and CEO. "By the end of August, our net sales year-to-date are almost equal to net sales at the end of August 2008."

Operating income (EBITDA(1)) for the second quarter and six-month period totalled $408,000 and $614,000, compared to operating income of $1.8 million and $2.4 million in the same periods in 2008. The $1.4 million decrease in operating income in the second quarter of 2009 compared to the second quarter of 2008 was primarily caused by the decreases in business volumes and gross margins.

For the quarter ended August 1st, 2009, Groupe Bikini Village's net loss was $169,000 (nil per basic and diluted share), as compared to net earnings of $839,000 (nil per share, basic and diluted) for the same period in the previous year. For the six-month period ended on that date, net loss totalled $455,000 (nil per share, basic and diluted), as compared to net earnings of $1 million ($0.01 per share, basic and diluted) in the same period in the previous year.
.
Outlook

"Exceptionally, net sales for the month of August 2009 were $3.2 million, compared to $2.0 million in August 2008, an increase of 60.3%. Comparable sales in August increased by 48.7% over last year. For comparison's sake, our average August sales over the last six years was $2.3 million; so the $3.2 million we posted in August 2009 is a significant change," said Mr. Simard. "Our outstanding August sales leave us in line with respect to our business objectives in working capital and inventory management going forward throughout this volatility period."

In its quarterly report, the Company indicated that it will continue to adapt its operational approach and financial plans to match market realities, keeping a strong focus on managing working capital, inventory, supply risk, and capital expenditures, as well as overhead and indirect costs.

"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.

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

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 62 stores and employs approximately 550 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 www.bikinivillage.com.

Notes

(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 six-month period ended August 1, 2009, dated September 10, 2009, entitled "Non-GAAP Financial Measures." It is available on SEDAR at www.sedar.com.

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.



GROUPE BIKINI VILLAGE INC.
STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(in thousands of dollars except per share amounts)

Three months ended Six months ended
August 1, August 2, August 1, August 2,
2009 2008 2009 2008
--------------------------------------------------------------------------

Operating revenue $ 11,408 $ 12,768 $ 21,322 $ 22,689

Cost of goods sold,
operating and
administrative
expenses 11,000 10,998 20,708 20,289

--------------------------------------------------------------------------

Operating income -
EBITDA(1) 408 1,770 614 2,400

Interest 196 98 389 160

Amortization 401 411 786 705

--------------------------------------------------------------------------

Earnings (loss) before
income taxes (189) 1,261 (561) 1,535

Income taxes (recovery) (20) 422 (106) 529
--------------------------------------------------------------------------

NET EARNINGS (LOSS)
AND COMPREHENSIVE
INCOME (LOSS) $(169) $ 839 $(455) $ 1,006

--------------------------------------------------------------------------
--------------------------------------------------------------------------

EARNINGS (LOSS) PER
SHARE, basic and
diluted - - - 0.01

--------------------------------------------------------------------------
--------------------------------------------------------------------------

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


Contact Information