Groupe Bikini Village inc.

Groupe Bikini Village inc.

April 21, 2011 14:55 ET

Groupe Bikini Village inc. Reports Sales and Net Earnings Increases in Its Fourth Quarter to Close Fiscal Year 2010

SAINTE-JULIE, QUEBEC--(Marketwire - April 21, 2011) - Groupe Bikini Village inc. (TSX:GBV) ("Groupe Bikini Village" or the "Corporation") today reported fourth quarter 2010 results reflecting increased profitability, a stronger overall financial picture, and a good inventory position. Highlights of the quarter included increased sales, overall improvement in gross margins, tight control on direct and indirect expenses, and a disciplined approach to inventory management.

Fourth quarter 2010 results

Net sales for the fourth quarter of 2010 were $13.8 million, an increase of 6.1% compared to the $13 million posted in the fourth quarter of last year. Comparable sales, which compares the sales from the same number of stores year-over-year, increased by 8.1% over the same period.

Groupe Bikini Village delivered EBITDA1 of $2 million, or 14.2%, in the fourth quarter of 2010, compared to EBITDA1 of $1.8 million, or 13.7%, for the fourth quarter of 2009.

Net earnings for the quarter ended January 29, 2011 were $939,000 ($0.49 per share*, basic and diluted), as compared to net earnings of $796,000 ($0.59 per share*, basic and diluted) for the same quarter in the previous year.

Results for fiscal 2010

Net sales for fiscal 2010, at $44.6 million, increased by 8.8% over the $41 million earned in fiscal 2009. Comparable sales also increased, by 10.2% year-over-year. The significant increase in our sales in 2010 is largely due to the efficiency of the Corporation's dynamic inventory management strategy, which allowed Groupe Bikini Village to maximize full-price sales throughout the year while taking full advantage of favourable market conditions that presented themselves at different points in 2010.

Groupe Bikini Village delivered EBITDA1 of $3 million in the fiscal year ended January 29, 2011 compared to $487,000 for the comparable period in the previous year. Our $2.5 million increase in operating income in fiscal 2010 is the direct result of our strategy to tightly manage inventories, focus on full-price selling and control costs – all of which led to stronger overall gross margin and better store results.

For fiscal 2010, net earnings totalled $418,000 ($0.26 per share*, basic and diluted), as compared to a net loss totalling $1.5 million (($1.10) per share*, basic and diluted) in fiscal 2009.

Outlook (2)

"Our 2010 results, in a challenging year, offer tangible proof of the appropriateness of our approach," said Yves Simard, President and CEO of Groupe Bikini Village inc. "Over the last three years we have addressed operational and structural issues, and we have consistently applied a prudent and disciplined management approach: as a result, we enter 2011 more competitive, confident and enthusiastic for the future. Recognizing the successes these strategies have yielded, we will continue to execute them, paying particular attention to performance at all levels of the Corporation, to increase our business volumes while further improving profitability."

"Groupe Bikini Village's improved performance and successful rights offering and private placement in 2010 led to a strengthened balance sheet – and as a result, the Corporation enters 2011 with good positions in both inventory and cash," said Mr. Simard.

"In fiscal 2011, we look forward to leveraging these strengths – and the flexibility they afford us – to further improve our competitive position and build shareholder value. As always, we will keep our eyes on the long-term, seeking out ways to do this both by creating our own opportunities and by considering other strategic alternatives that may arise," he said.

Groupe Bikini Village inc.'s full 2010 annual report, as well as previous shareholder reports and other information of interest to investors, is available on SEDAR at, and on the Corporation's website at

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 in styles to suit every figure. Headquartered in Sainte-Julie, Quebec, Groupe Bikini Village inc. operates 60 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


* After taking into account the 1 for 125 stock consolidation which took effect on September 30, 2010.

1 The term EBITDA (earnings before interest, taxes, amortization, 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 for the year ended January 29, 2011, dated April 21, 2011, 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 dollars except per share amounts)
Three months endedYear ended
January 29, 2011January 30, 2010January 29, 2011January 30, 2010
Operating revenue$ 13,836$ 13,042$ 44,622$ 41,022
Cost of goods sold, operating and administrative expenses11,86611,25141,64740,535
Operating earnings - EBITDA11,9701,7912,975487
Earnings (loss) before income taxes1,3371,194708(1,869)
Income taxes (recovery)398398290(392)
Weighted average number of outstanding shares *
* After taking into account the 1 for 125 stock consolidation which took effect on September 30, 2010.

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