Groupe Bikini Village inc.
TSX : GBV

Groupe Bikini Village inc.

December 09, 2010 14:31 ET

Solid Sales and Reduced Losses for Groupe Bikini Village inc. in its 2010 Third Quarter

SAINTE-JULIE, QUEBEC--(Marketwire - Dec. 9, 2010) - Groupe Bikini Village inc. (TSX:GBV) ("Groupe Bikini Village" or the "Company") today reported that, for the second year running, it achieved solid sales in its third quarter of the fiscal year, a quarter traditionally marked by a seasonal slowdown in business volumes. The Company's third quarter 2010 sales performance nearly matched the high standard it had set last year.

2010 third quarter results

Net sales for the third quarter which ended October 30, 2010 were $6.5 million compared to $6.7 million in the corresponding quarter of the previous year. Comparable sales, which compares the sales from the same number of stores year over year, increased by 2% for the quarter.

The Company was able to stem operating loss (EBITDA(1)) for the third quarter at $1.5 million, down $0.4 million from the $1.9 million operating loss (EBITDA(1)) in the same period in 2009, by tightly managing inventories, focusing on full-price selling, and controlling costs. "While the third quarter traditionally presents a challenge due to the seasonal nature of the swimwear business, said President and CEO Yves Simard, Groupe Bikini Village's third quarter results over the last two years demonstrate the effectiveness of these strategies.".

For the quarter ended October 30, 2010, the Company's net loss was $1.5 million (($0.81) per share(i), basic and diluted), as compared to net loss of $1.8 million (($1.34) per share(i), basic and diluted) for the same quarter in the previous year.

Results for the first nine months of 2010

Net sales for the nine-month period ended October 30, 2010 were $30.8 million, up from $28 million in the corresponding period of the previous year. Mr. Simard attributes the Company's increased level of sales at the three-quarter mark in the year largely to its efficient and dynamic inventory management strategy, which has allowed the Company to focus on full-price selling and to fully benefit from the improved weather conditions its markets enjoyed in the second quarter of 2010. Comparable sales, which compares the sales from the same number of stores year-over-year, increased by 11.2% in the first nine months of 2010 over the first nine months of 2009. 

Groupe Bikini Village delivered positive EBITDA(1) of $1 million in the nine-month period ended October 30, 2010 compared to negative EBITDA(1) of $1.3 million for the comparable nine-month period in the previous year. "The $2.3 million increase in operating income in the three first quarters of 2010 is the direct result of our strategy to tightly manage inventories and control costs – all of which led to a stronger overall gross margin, better store contributions and a reduction in our overhead expenses," Simard said.

For the nine-month period ended on October 30, 2010, net loss totalled $521,000 (($0.37) per share(i) basic and diluted), as compared to net loss of $2.3 million (($1.69) per share(i), basic and diluted) in the same period of 2009.

Outlook (2)

"The reduction in the Company's loss in the third quarter is solid evidence that the restructuring efforts we have undertaken over the last three years have been appropriate – and are working. The disciplined approach Groupe Bikini Village initiated three years ago has made the Company more competitive, and we are confident and enthusiastic as we look ahead. This approach will remain central to our activities in the months to come, as we continue to focus on sales and profitability," said Simard.

"Groupe Bikini Village enters the last quarter of 2010 with a good inventory situation and a strong cash position, due to the improved balance sheet that resulted from both our improved year-to-date performance, and our successful rights offering and private placement," he said.

"In the final quarter of 2010 and beyond, we look forward to leveraging these strengths – and the flexibility they allow us to show – to further our efforts in building shareholder value," said Simard. "Whether we do it by creating our own opportunities or by considering other strategic alternatives that may arise, building on our momentum – and on the value we deliver for our investors – will be our central focus."

Groupe Bikini Village inc.'s full third 2010 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 in styles to suit every figure. Headquartered in Sainte-Julie, Quebec, Groupe Bikini Village inc. operates 60 stores and employs approximately 470 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

(i) 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 nine-month period ended October 30, 2010, dated December 9, 2010, entitled "Non-GAAP Financial Measures". It is available on SEDAR at www.sedar.com.

(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 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 AND COMPREHENSIVE LOSS  
(in thousands of dollars except per share amounts)  
(unautited)  
  Three months ended   Nine months ended  
  October 30, 2010   October 31, 2009   October 30, 2010   October 31, 2009  
                 
Operating revenue $ 6,527   $ 6,658   $ 30,785   $ 27,980  
                 
Cost of goods sold, operating and administrative expenses 8,025   8,543   29,781   29,285  
                 
                 
Operating earnings (loss)- EBITDA(1) (1,498 ) (1,885 ) 1,004   (1,305 )
                 
Interest 155   192   505   581  
                 
Amortization 365   392   1,128   1,177  
                 
Loss before income taxes (2,018 ) (2,469 ) (629 ) (3,063 )
                 
Income taxes recovery (540 ) (675 ) (108 ) (790 )
                 
                 
  NET LOSS AND COMPREHENSIVE LOSS $ (1,478 ) $ (1,794 ) $ (521 ) $ (2,273 )
                 
                 
                 
LOSS PER SHARE (i) , basic and diluted (0.81 ) (1.34 ) (0.37 ) (1.69 )
                 
                 
                 
Weighted average number of outstanding shares (i) , basic and diluted 1,819,280   1,341,425   1,396,211   1,341,425  
                 

Contact Information

  • Groupe Bikini Village inc.
    Yves Simard
    President and Chief Executive Officer
    450-449-1310 ext 4797
    ysimard@bikinivillage.com