Groupe Bikini Village inc.

Groupe Bikini Village inc.

December 06, 2006 14:02 ET

Groupe Bikini Village Announces Third Quarter Results and Senior Management Appointment

BOUCHERVILLE, QUEBEC--(CCNMatthews - Dec. 6, 2006) - Groupe Bikini Village Inc. (TSX:GBV) announces the appointment of Mr. Yves Simard, CA, to the position of President and Chief Executive Officer of the company. Mr. Simard was a member of the Board of Directors and President of the Audit Committee since July 2006. This appointment is effective immediately. Mr. Leslie Glazerman is leaving the company and the Board of Directors wishes to thank him for his valuable contribution.

Groupe Bikini Village inc. is also reporting its financial results for the third quarter of 2006. Net sales for the third quarter and the period of nine months ended October 28, 2006 were $5.6 million and $28.2 million respectively, compared to net sales of $5.4 million and $28.1 million for the corresponding period of the previous year. Comparable sales increased by 5.8% for the quarter compared to 2005, and are up 1.9% for the period of nine months ended October 28, 2006 compared to 2005.

Operating income ("EBITDA"(1), a non GAAP measure) from continuing operations for the third quarter ended October 28, 2006 reflects a deficit of $1.3 million, which was similar to the EBITDA for the corresponding period of the previous year, which also reflected a deficit of $1.4 million. For the period of nine months ended October 28, 2006, the EBITDA is $1.3 million, as compared to $1.7 million for the corresponding period in 2005.

For the three-month period ended October 28, 2006, the Company recorded net losses of $1.4 million (($0.01) per basic and diluted share) compared to a net loss of $1.6 million (($0.09) per basic and diluted share) for the same period in 2005. Net earnings for the period of nine months ended October 28, 2006 was $375,000 (nil per share) compared to a net loss of $16.3 million (($0.92) per basic and diluted share) for the nine months ended October 29, 2005. The 2005 net loss included a loss from discontinued operations related to the subsidiary Les Ailes de la Mode Incorporees of $55,000 (nil per share) for the third quarter of 2005 and of $14.7 million (($0.83) per basic and diluted share) for the period of nine months ended October 29, 2005.

"Despite the fact that the third quarter is historically the weakest quarter with respect to sales and profitability, we are pleased with our year-to-date performance," said Yves Simard, President and Chief Executive Officer. "Our sales and gross margins for the period increased over last year. However, the bottom line did not reflect the total impact of this, due to the full absorption of certain administrative costs that had previously been allocated proportionally to the subsidiary that was divested. The costs that are now being absorbed totally are, however generally in line with our budget for the year."


Groupe Bikini Village inc.'s swimwear division operates 56 swimwear boutiques in Quebec and Ontario under the Bikini Village and Ocean Bikini Village banners. The company employs approximately 400 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 2006 Third quarter MD&A dated December 6, 2006, entitled "Non-GAAP Financial Measures," available on SEDAR at

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.

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

Three months ended Nine months ended
October October October October
28, 2006 29, 2005 28, 2006 29, 2005
Sales $5,628 $5,418 $28,190 $28,117

Cost of goods sold,
operating and
administrative expenses 6,935 6,790 26,842 26,389

Operating income (loss)
(EBITDA) (1,307) (1,372) 1,348 1,728

Interest on convertible
debentures - 674 - 2,621

Interest - other (5) 109 11 175

Amortization 180 153 514 478


Earnings (loss) before
income taxes and the
undernoted items (1,482) (2,308) 823 (1,546)

Unusual items - stock
based compensation - - 448 -


Earnings (loss) before
income taxes from
continuing operations (1,482) (2,308) 375 (1,546)

Income taxes (98) (683) - 101


Earnings (loss) from
continuing operations (1,384) (1,625) 375 (1,647)

Discontinued operations,
net of related
income taxes - 55 - (14,682)


NET EARNINGS (LOSS) $(1,384) $ (1,570) $375 $(16,329)


basic and diluted
Continuing operations (0.01) (0.09) - (0.09)
Discontinued operations - - - (0.83)


and diluted (0.01) (0.09) - (0.92)

Weighted average number
of shares outstanding 172,427,515 18,181,924 122,274,134 17,669,549

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