Groupe Bikini Village inc.
TSX : GBV

Groupe Bikini Village inc.

June 12, 2008 09:14 ET

Groupe Bikini Village First Quarter Results Deliver Sustained Growth in Sales and Earnings

BOUCHERVILLE, QUEBEC--(Marketwire - June 12, 2008) - Groupe Bikini Village inc. (TSX:GBV)(the "Company") today released the results of its first quarter, which ended May 3, 2008, reflecting sustained sales and earnings growth largely resulting from the aggressive renovation and expansion strategy that is refreshing the Company's retail presence across Eastern Canada.

"Our first quarter results illustrate that our retail strategy is on-target - and that our execution is hitting the mark," said Yves Simard, President and CEO of Groupe Bikini Village inc. "As we advance our renovation and expansion plan, our sales and earnings continue to improve. Between the positive impacts of this ongoing strategy, a strong Canadian dollar, and a busier travel season caused by a long and severe winter in all our markets, our first three months of 2008 delivered an enviable performance, in what is traditionally a non profitable quarter.

Groupe Bikini Village inc. posted a 23.9% increase in sales for the three-month period ended May 3, 2008 as compared to the same period a year earlier, with sales of $9.9 million versus $8 million in 2007. Comparable sales, which is a comparison of sales from the same number of stores year-over-year, also grew by 13%.

The Company delivered EBITDA(1) of $632,000, or 6.4% of sales, in the first quarter of 2008, as compared to the negative EBITDA(1) of $26,000, or (0.3%) posted in the first quarter of 2007.

Overall, Groupe Bikini Village's net earnings were $167,000 (nil per basic and diluted share) in its first quarter of 2008, an improvement of $296,000 versus a net loss of $129,000 (nil per basic and diluted share) posted in the same period last year.

In the first quarter of fiscal 2008, the Company adopted the Canadian Institute of Chartered Accountants new standard relating to the accounting for inventory costs (Section 3031 - Inventories) retrospectively, without restatement of prior periods.

The adoption of this new standard resulted in an increase in EBITDA(1) of $244,000 and an increase of net earnings for the quarter ended May 3, 2008 of $163,000.

"We are delighted that our strategy is already yielding positive results, even allowing us to deliver growth in a quarter that, due to seasonal variability, is traditionally marked by a loss," said Mr. Simard. "We are encouraged and energized by such a good start for fiscal 2008; we look forward to building on our growing momentum in the quarters ahead."

Outlook

In the coming months, the Company will continue to invest in its retail network and to its corporate organization, which it expects to deliver further growth in sales and profitability in markets where it has identified opportunities to increase its market share. Groupe Bikini Village inc. will also seek out and create further operational efficiencies, to reduce overhead expenses and increase overall profitability. The Company's strong current cash situation and financing facilities are sufficient to support all of its strategic initiatives, both in its retail network and in its internal processes, without any requirement for further financing.

"As each quarter builds on the last, we are increasingly encouraged and energized by the results our renovation and expansion strategy is delivering," said Mr. Simard. "We are enthusiastic about the opportunity to leverage our refreshed retail presence in the summer season ahead - and to keep building on it so as to create further shareholder value in the future."

Groupe Bikini Village inc.'s full First Quarter 2008 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 styles to suit every figure. Headquartered in Boucherville, Quebec, Groupe Bikini Village inc. operates 59 stores and employs approximately 500 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 period ended May 3, 2008, dated June 11, 2008, 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
(in thousands of dollars except per share amounts)

Three months ended
May 3, May 5,
2008 2007
(unaudited) (unaudited)
------------------------------------------------------------------------
Operating revenue $9,921 $8,009

Cost of goods sold, operating and
administrative expenses 9,289 8,035
------------------------------------------------------------------------

Operating income (loss) - EBITDA(1) 632 (26)

Interest 63 (35)

Amortization 295 199
------------------------------------------------------------------------

Earnings (losses) before income taxes 274 (190)

Income taxes 107 (61)
------------------------------------------------------------------------

NET EARNINGS (LOSSES) AND
COMPREHENSIVE EARNINGS (LOSSES) $167 $(129)
------------------------------------------------------------------------
------------------------------------------------------------------------

EARNINGS (LOSSES) PER SHARE, basic and
diluted - -
------------------------------------------------------------------------
------------------------------------------------------------------------


Contact Information