Groupe Bikini Village inc.
TSX : GBV

Groupe Bikini Village inc.

June 12, 2006 13:37 ET

Groupe Bikini Village Announces Improved First Quarter Results

BOUCHERVILLE, QUEBEC--(CCNMatthews - June 12, 2006) - Groupe Bikini Village inc. (TSX:GBV) today reported its financial results for its first quarter ended April 29, 2006.

The Company's sales from continuing operations increased by 10.3%, to $8.5 million compared to the $7.7 million for the same period last year. Comparable sales for the first quarter increased by 11.2%.

Operating income (EBITDA) from continuing operations also increased to $153,000 compared to a negative of $111,000 for the corresponding period of the previous year, an improvement of $264,000.

In addition, the operating margin was 1.8%, compared to a negative operating margin of 1.4% the previous year. Loss from continuing operations decreased by over $1.1 million to $17,000 (zero per share basic and diluted), from a loss of $1.1 million (($0.07) per share basic and diluted) in the previous year. The net loss for the quarter was $17,000 (zero per share basic and diluted) compared to a net loss of $2.8 million (($0.17) per share basic and diluted) for the same period in 2005. The 2005 amount included a $1.7 million loss (($0.10) per share basic and diluted), related to the subsidiary Les Ailes de la Mode Incorporees, which was sold in August 2005.

The interest expense for the first quarter of 2005 included $830,000, related to the Company's unsecured 12% debentures, which were due in 2008. The debentures were cancelled on February 20, 2006 and they together with the unpaid accrued interest up to and including November 4, 2005, were exchanged for common shares of the Corporation.

"The first quarter was in line with our expectations," said Leslie Glazerman, President and Chief Executive Officer. "Since merchandising sales for our company are traditionally higher in the second quarter, the first quarter results are not necessarily indicative of the full years operating results. With the financial and operational restructuring primarily behind us, we look forward to exploring and realizing upon future opportunities which was highlighted in our fiscal 2005 Annual Report. We remain committed to increasing shareholder value through improved profitability focusing on continued cost containment measures, opportunistic buying, product sourcing, leasehold improvement to certain retail locations and overall enhanced operational performance," added Mr. Glazerman.

Director's appointment

Groupe Bikini Village inc. has confirmed the appointment of Sylvie Lalande as a company director. Mrs. Lalande is filling the vacancy left by the departure of Normand Legault.

Outlook

The Company continues to explore certain strategic alternatives, including but not limited to geographic expansion, strategic acquisitions, alliances and financing opportunities pertaining thereto.

ABOUT GROUPE BIKINI VILLAGE INC.

Groupe Bikini Village inc.'s swimwear division operates 57 swimwear boutiques in Quebec and Ontario under the Bikini Village and Ocean Bikini Village banners. The company employs approximately 450 people.

The annual general meeting of the shareholders will be held Wednesday, July 5, 2006 at 10:00 am at the Hotel des Gouverneurs, located at 2405 Ile Charron, Longueuil (Quebec).

Forward-looking statements

This news release contains certain forward-looking statements concerning our future operations, economic performances, financial conditions and financing plans. These statements are based on certain assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments as well as other factors we believe are appropriate in the circumstances. However, whether actual results and developments will conform to our expectations and predictions is subject to a number of risks, uncertainties and assumptions. Consequently, all of the forward-looking statements made in news release are qualified by these cautionary statements, and there can be no assurance that the results or developments anticipated by us will be realized or, even if substantially realized, that they will have the expected consequences to or effects on us and our subsidiaries or their businesses or operations.

We undertake no obligation and do 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.




Three months Three months
ending ending
April 29, April 30,
2006 2005
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OPERATING RESULTS
Net sales $8,494 $7,701
Operating income (loss) (EBITDA) 153 -111
- Operating margin 1.80% -1.44%
Net loss related to continuing
operations -17 -1,163
- Net loss on continuing
operations / net sales -0.20% -15.10%
Net loss from discontinued
operations - -1,676
Net loss -17 -2,839
Internally generated cash
flows on continuing operations 151 -728

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PER SHARE
Basic and diluted
From continuing operations - -0.07
From discontinued operations - -0.10
Net loss, basic and diluted - -0.17

Internally generated cash flows
on continuing operations - -0.04

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OTHER STATISTICS
Capital expenditures 35 278
Number of stores at the end
of the period 57 58
Number of employees 450 500

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Contact Information

  • Groupe Bikini Village inc.
    Leslie E. Glazerman
    (450) 449-1313