Groupe Bikini Village inc.
TSX : GBV

Groupe Bikini Village inc.

April 17, 2007 08:35 ET

Groupe Bikini Village Announces its Fourth Quarter and Year End Results and Changes to the Board of Directors

BOUCHERVILLE, QUEBEC--(CCNMatthews - April 17, 2007) - Groupe Bikini Village Inc. (TSX:GBV) reports the results of its fourth quarter and year ended February 3, 2007.

Net sales for the fourth quarter and year ended February 3, 2007 were $12.3 million and $40.5 million respectively, compared to net sales of $9.5 million and $37.6 million for the corresponding period of the previous year. Comparable sales increased by 18.2% for the quarter compared to the previous year, and are up 6.4% for the year ended February 3, 2007.

Operating income ("EBITDA" (1)) from continuing operations for the fourth quarter rose to $983,000, compared to $914,000 for the fourth quarter of last year. EBITDA for the year ended February 3, 2007 was $2.3 million compared to $2.6 million for the the previous year.

"The last quarter of the year was strong, principally due to favourable conditions for travel, an efficient strategy in offer of products and the clientele generated by the launch of the magazine TROPIK, in mid-October 2006," said Yves Simard, President and Chief Executive Officer. "The EBITDA, however, does not totally reflect the positive impact of this, due to the full absorption of certain administrative costs that had previously been allocated proportionally to the subsidiary Les Ailes de la Mode Incorporees which was divested and to severance paid."

For the fourth quarter ended February 3, 2007, the Company recorded net earnings of $1.6 million ($0.01 per basic and diluted share) compared to a net earning of $441,000 ($0.02 per basic and nil per diluted share) for the same period in the previous year. Net earnings for the quarter ended February 3, 2007 includes, however, an income tax credit of $829,000 relative to future income taxes, for which in past years a valuation allowance was registered.

The net earnings for the year ended February 3, 2007 were $2 million ($0.01 per basic and diluted share) compared to a net loss of $15.9 million (($0.88) per basic and diluted share) for the year ended January 28, 2006. The net loss for the fourth quarter of the previous year included a loss of $14.6 million (($0.81) per basic and diluted share) from discontinued operations related to the subsidiary Les Ailes de la Mode Incorporees.

Furthermore, GBV inc., announces that Mr. Yves Simard, CA, President and Chief Executive Officer, has resigned from the Board of directors. Ms. Melinda Lee, CA, Vice-President of Investments, Clarke inc. has been appointed to the Board to replace Mr. Simard, effective immediately. Groupe Bikini Village inc. is pleased to welcome Ms. Lee's experience and contribution to the Company's Board of Directors.

Clarke inc., a shareholder holding approximately 10% of the Company's shares, agreed to cancel the Special Meeting of the Shareholders, which was to be held on May 10, 2007.

OUTLOOK

The Company continues to consider other different possible growth and added value strategies.

The principal avenues of added value being pursued are as follows: i) an increase in points of sales, primarily in Ontario; ii) an acceleration in the concept renovation schedule; and iii) the development in new territories and distribution channels of the Company's know-how in designing and developing products, trademarks and distribution network operation tools.

However, the development of these strategic alternatives and growth strategies is conditional on putting in place adequate financing before these projects are undertaken. The Company is currently pursuing financing opportunities and has some viable options.

ABOUT GROUPE BIKINI VILLAGE INC.

Groupe Bikini Village inc.'s swimwear division operates 55 swimwear boutiques in Quebec and Ontario under the Bikini Village and Ocean Bikini Village banners. The company employs approximately 450 people.

NOTES

(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 www.sedar.com.

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.

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.



GROUPE BIKINI VILLAGE INC.
STATEMENT OF EARNINGS
(in thousands of dollars except per share amounts)

Three months ended Fiscal year ended
February 3, January 28, February 3, January 28,
2007 2006 2007 2006
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(14 weeks) (13 weeks) (53 weeks) (52 weeks)

Operating revenue $ 12,333 $ 9,527 $ 40,523 $ 37,644

Cost of goods sold,
operating and
administrative
expenses 11,350 8,613 38,191 35,001

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Operating income
(EBITDA) 983 914 2,332 2,643

Interest on
convertible
debentures - 48 - 2,638

Interest - other (7) 21 4 227

Amortization 256 159 771 637
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Earnings (loss)
before income
taxes and the
undernoted items 734 686 1,557 (859)

Unusual items
Reorganization costs - 343 - 343
Stock based
compensation - - 448 -
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Earnings (loss)
before income taxes
from continuing
operations 734 343 1,109 (1,202)

Income taxes (848) (24) (848) 77

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Earnings (loss)
from continuing
operations 1,582 367 1,957 (1,279)

Discontinued
operations,
net of related
income taxes - 74 - (14,609)
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NET EARNINGS (LOSS) $ 1,582 $ 441 $ 1,957 $ (15,888)

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NET EARNINGS (LOSS)
PER SHARE, basic
Continuing
operations 0.01 0.02 0.01 (0.07)
Discontinued
operations - - - (0.81)
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NET EARNINGS
(LOSS) PER
SHARE, basic 0.01 0.02 0.01 (0.88)

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NET EARNINGS
(LOSS) PER
SHARE, diluted
Continuing
operations 0.01 - 0.01 (0.07)
Discontinued
operations - - - (0.81)
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NET EARNINGS (LOSS)
PER SHARE, diluted 0.01 - 0.01 (0.88)

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Weighted average
number of shares
outstanding 172,427,515 18,732,517 162,894,228 18,002,870

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