Groupe Bikini Village inc.

Groupe Bikini Village inc.

June 07, 2012 15:16 ET

Groupe Bikini Village inc. Reports its Results for the First Quarter of 2012

SAINTE-JULIE, QUEBEC--(Marketwire - June 7, 2012) - Groupe Bikini Village inc. (TSX:GBV) ("Groupe Bikini Village" or the "Corporation") today reported the results of its first quarter of 2012. During the quarter, the Corporation increased its operating margin (EBITDA1) and decreased its net loss compared to 2011, despite reduced sales.

2012 first quarter results

Net sales for the first quarter, which ended April 28, 2012, were $9.7 million, compared to $9.9 million in the corresponding quarter of the previous year, a decrease of 1.7%. Comparable sales, which compares the sales from the same number of stores year over year, increased by 2.8% for the quarter.

The Corporation's EBITDA1 for the first quarter was $109,000 compared to $83,000 EBITDA1 in the same period in 2011. The increase is principally due to a reduction in operating expenses related to reduce occupancy costs following the Corporation's closure of underperforming stores. The increase in gross margin percentage offset the loss of marginal contribution related to the decrease in sales volume.

For the quarter ended April 28, 2012, the Corporation's net loss was $300,000 (($0.16) per share, basic and diluted), as compared to net loss of $353,000 (($0.18) per share, basic and diluted) for the same quarter in the previous year.

Outlook 2

In the first quarter of 2012, Groupe Bikini Village consistently applied its flexible and disciplined management strategy and achieved results in line with its financial prospects for this period. For the months and quarter to come, Groupe Bikini Village is well positioned to deliver on its strategic and financial objectives for the year. "We will continue to remain faithful to our strategies by paying a particular attention to the performance of all levels of the organization, to increase our business volumes while generating increased profitability. Furthermore, we will continue to seek and prioritize actions to create long-term value, by creating our own opportunities or by taking advantage of other strategic alternatives which may arise," said Yves Simard, President and CEO of Groupe Bikini Village inc.

Groupe Bikini Village inc.'s full first quarter 2012 report, as well as previous shareholder reports and other information of interest to investors, are available on SEDAR at, and on the Corporation's website at

About Groupe Bikini Village

Groupe Bikini Village inc., serving Canadians for more than a quarter-century, is a leader in the retail sale of beachwear products, 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 and cruise wear and accessories, in the most popular brands the industry has to offer and in styles to suit every figure. Headquartered in Sainte-Julie, Quebec, Groupe Bikini Village operates 57 stores and employs approximately 450 people; its securities trade on the Toronto Stock Exchange under the stock symbol GBV. For more information about Groupe Bikini Village, please visit our website at


1 The term EBITDA (earnings before finance costs, income taxes, depreciation, amortization, net impairment loss, reorganization fees and unusual items) does not have any standardized meaning prescribed by Canadian Generally Accepted Accounting Principles applicable to publicly accountable enterprises ("GAAP") and may not be comparable to similarly-titled measures presented by other companies. Please refer to the section of Groupe Bikini Village inc's. MD&A for the for the three-month period ended April 28, 2012, dated June 7, 2012, entitled "Non-GAAP Financial Measures." It is available on SEDAR at

2 To be read in conjunction with "Forward-looking Statements" below.

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 Corporation. 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.

(in thousands of Canadian dollars, except amounts related to shares)
Three months ended
April 28, 2012 April 30, 2011
(unaudited) (unaudited)
Revenues$9,720 $9,890
Cost of goods sold 4,100 4,265
Gross profit 5,620 5,625
Operating and administrative expenses 5,849 5,876
Net finance costs 169 216
Loss before income tax recovery (398) (467)
Income tax recovery (98) (114)
Basic and diluted (0.16) (0.18)
Weighted average number of oustanding shares
Basic and diluted 1,910,597 1,910,597
(1) A reconciliation of net loss and comprehensive loss to earnings before interest, taxes, depreciation and amortization ("EBITDA") is as follows:
Net loss and comprehensive loss$(300)$(353)
Income tax recovery (98) (114)
Net finance costs 169 216
Depreciation and amortization of capital and intangible assets 338 334
EBITDA$109 $83

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