Groupe Bikini Village inc.

Groupe Bikini Village inc.

June 14, 2007 08:16 ET

Groupe Bikini Village Announces its First Quarter Results

BOUCHERVILLE, QUEBEC--(Marketwire - June 14, 2007) - Groupe Bikini Village Inc. (TSX:GBV) reports the results of its first quarter ended May 5, 2007.

Net sales for the first quarter ended May 5, 2007 were $8 million compared to net sales of $8.5 million for the corresponding period of the previous year. Comparable sales decreased by 3.71%.

The decrease in sales for the quarter results from the permanent closure of two non performing stores, the temporary closure of stores for renovations and the shift of one week in the quarter when compared to the same quarter of 2006. In 2007 the first quarter stretched out from February 4th, 2007 to May 5th, 2007 compared to 2006, where the first quarter stretched out from January 29th to April 29th, 2006. The business volume being traditionally lower in May compared to January, this shift entailed a temporary unfavourable variance of $0.3 million.

The renovated stores have reopened in time for the summer season and the temporary unfavourable shift will reverse in the next quarters.

Operating loss ("EBITDA" (1)) for the first quarter was established at $26,000, compared to an operating income of $153,000 for the first quarter of last year. The operating loss is explained by the decrease in business volume partially compensated by the strengthening of the gross margin.

For the quarter ended May 5, 2007, the Company recorded a net loss of $129,000 (zero per basic and diluted share) compared to a net loss of $17,000 (zero per basic and diluted share) for the same period in the previous year.


The Company continues to concentrate on different growth and value-creation strategies. The principal avenues of added value being pursued remains as follows: i) increasing points of sales, and ii) accelerating the renovation schedule and iii) developing in new territories and distribution channels of its knowledge of concepts and development of product, of trademarks and tools for operating a distribution network.

The investment from the Solidarity Fund QFL and the renewal of its operating credits under more favourable conditions, will allow the Company to finance its working capital needs, accelerate its renovation schedule and increase its point of sales.

Furthermore, the support from financial partners, also allows the Company to consider opportunities for a growth strategy by acquisition, besides the organic growth strategy.


Groupe Bikini Village inc.'s swimwear division operates 58 swimwear boutiques in Quebec and Ontario under the Bikini Village and Ocean Bikini Village banners. The company employs approximately 480 people.


(1) The term EBITDA (earnings before interest, taxes, depreciation, amortization and reorganisation 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 Annual MD&A dated April 16, 2007, entitled "Non-GAAP Financial Measures," available on SEDAR at


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.

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.

(in thousands of dollars except per share amounts, unaudited)

Three months ended
May 5, 2007 April 29, 2006
Operating revenue $8,009 $8,494

Cost of goods sold, operating and
administrative expenses 8,035 8,341

Operating income (loss) (EBITDA(1)) (26) 153

Interest (35) 10

Amortization 199 160

Loss before income taxes (190) (17)

Income taxes (61) -

NET LOSS $(129) $(17)

LOSS PER SHARE, basic and diluted - -

Weighted average number of shares
outstanding 172,677,515 47,447,525

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