Groupe Bikini Village inc.

Groupe Bikini Village inc.

September 08, 2011 14:50 ET

Groupe Bikini Village inc. Reports Its Results for the Second Quarter of 2011

SAINTE-JULIE, QUEBEC--(Marketwire - Sept. 8, 2011) - Groupe Bikini Village inc. (TSX:GBV) ("Groupe Bikini Village" or the "Corporation") today reported the results of its second quarter of 2011, which were marked by a 4% decline in sales and a decline in our margins mostly due to the late arrival of summer weather conditions. Throughout this challenging early summer period, the Corporation continued to consistently apply its prudent and disciplined management approach, controlling both direct and indirect expenses and managing its inventories in a dynamic way, to mitigate the impact of this external factor.

Second quarter and first six-month period of 2011 results

Net sales for the second quarter and the first six-month period of 2011 were $13.6 million and $23.5 million respectively, compared to $14.2 million and $24.3 million in the corresponding periods of the previous year. Comparable sales, which is the comparison of the sales from the same number of stores year-over-year, decreased by 3.1% for the quarter and 1.6% for the six-month period ended July 30, 2011.

Groupe Bikini Village delivered EBITDA(1) of $1.8 million in the second quarter of 2011 and $1.9 million in the first six-month period of the year, compared to EBITDA(1) of $2.4 million for the second quarter of 2010 and $2.5 million for the first six-month period of the previous year. The $530,000 decrease in operating margin in the second quarter of 2011 compared to the second quarter of 2010 is due to a $575,000 reduction in marginal contribution on sales, partially offset by a $45,000 reduction in operating expenses. The reduced marginal contribution on sales in the second quarter was due to a decrease in sales volume in the Corporation's "regular price" sales channel due to the late arrival of summer weather conditions, and the additional promotional activities Groupe Bikini Village undertook proactively in its "discounted price" channel to drive sales in this challenging early summer period.

Net earnings for the for the three-month period ended July 30, 2011 was $890,000, as compared to net earnings of $1.3 million for the same quarter in the previous year. For the six-month period ended on that date, net earnings totalled $537,000, as compared to net earnings of $972,000 in the same period in 2010.

Effective the first quarter of 2011, Groupe Bikini Village reports its financial results in accordance with International Financial Reporting Standards ("IFRS"), including comparative information. The changeover to IFRS has had impacts on a number of aspects of the Corporation's financial reporting; these are highlighted in note 24 to the unaudited interim condensed financial statements.


"We know that summer demand for our products is affected by the weather – and that we need to be prepared to create demand when the weather doesn't cooperate," said Yves Simard, President and CEO of Groupe Bikini Village inc. "In the second quarter of 2011, Groupe Bikini Village met the challenges of a late-arriving summer head-on, responding to a difficult retail environment with targeted promotional activities in its "discounted price" channel, working diligently to preserve its positions in both inventory and cash."

"The combination of our prudent and disciplined management approach and the momentum we have built with an improved August performance give Groupe Bikini Village a strong launching pad for the second half of the year. We will leverage the strengths that have led to solid market and financial success in the past, and continue our work behind the scenes, optimizing operations to ensure stronger revenues turn into higher profits and increased shareholder value. Finally, as in quarters past, we will keep our eyes open for strategic opportunities, both investigating those which present themselves and working to create new ones," Mr. Simard said.

Groupe Bikini Village inc.'s full second quarter 2011 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 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 in styles to suit every figure. Headquartered in Sainte-Julie, Quebec, Groupe Bikini Village inc. operates 57 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


* Comparable data have been adjusted to take into account the 1 for 125 stock consolidation which took effect on September 30, 2010.

(1) The term EBITDA (earnings before interest, taxes, depreciation, amortization, impairment, 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 six-month period ended July 30, 2011, dated September 8, 2011, entitled "Non-GAAP Financial Measures." 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 endedSix months ended
July 30, 2011July 31, 2010July 30, 2011July 31, 2010
Revenues $ 13,642$ 14,230$ 23,532$ 24,258
Cost of goods sold6,0976,11010,36210,351
Gross profit7,5458,12013,17013,907
Operating and administrative expenses6,0906,08111,96612,064
Net finance costs203247419504
Earnings before income tax expense (1)1,2521,7927851,339
Income tax expense362482248367
Weighted average number of oustanding shares *
*Comparable data have been adjusted to take into account the 1 for 125 stock consolidation which took effect on September 30, 2010.
(1)A reconciliation of earnings before income tax expense to earnings before interest, taxes, depreciation and amortization ("EBITDA") is as follows:
Earnings before income tax expense$ 1,252$ 1,792$ 785$ 1,339
Net finance costs203247419504
Depreciation, amortization and impairment of capital and intangible assets



EBITDA$ 1,844$ 2,374$ 1,927$ 2,522

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