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SAINTE-JULIE, QUEBEC--(Marketwire -12/07/11)- Groupe Bikini Village inc. (TSX: GBV.TO - News) ("Groupe Bikini Village" or the "Corporation") today reported the results of its third quarter of 2011. During the quarter, the Corporation reduced its traditional seasonal loss by delivering sales consistent with its performance in the same quarter a year earlier, while operating a smaller number of stores.
2011 third quarter results
Net sales for the third quarter, which ended October 29, 2011 were $6.6 million compared to $6.5 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 3.1% for the quarter.
The Company's operating loss (EBITDA(1)) for the third quarter at $1,495,000, was reduced from its $1,565,000 operating loss (EBITDA(1)) in the same period in 2010, due to a reduction in operating expenses offset negatively by a slight decrease in the marginal contribution. The reduction in operating expenses was mostly related to reduced occupancy costs following the closure of underperforming stores.
For the quarter ended October 29, 2011, the Company's net loss was $1,465,000 compared to net loss of $1,538,000 for the same quarter in the previous year.
The Corporation's activities are seasonal, and merchandise sales are generally higher in the second and fourth quarters. As a result, the operating loss for the quarter ended October 29, 2011 is not necessarily indicative of the operating results for a full year.
Results for the first nine months of 2011
Net sales for the nine-month period ended October 29, 2011 were $30.1 million, down from $30.8 million in the corresponding period of the previous year. Comparable sales were 0.4% lower in the first nine months of 2011 than they were in the first nine months of 2010.
Groupe Bikini Village delivered EBITDA(1) of $432,000 in the nine-month period ended October 29, 2011 compared to EBITDA(1) of $957,000 in the comparable nine-month period in the previous year. The underlying reason for the negative variance in EBITDA(1) for the first nine months of 2011 compared to 2010 is a decrease in sales volume (principally in the second quarter) due to the late arrival of summer weather conditions and targeted promotional activities.
For the nine-month period ended on October 29, 2011, net loss totalled $928,000 compared to net loss of $566,000 in the same period of 2010.
Since the first quarter of 2011, Groupe Bikini Village has reported 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.
"Operating in a challenging retail environment, Groupe Bikini Village worked diligently to preserve its positions in both inventory and cash throughout the third quarter of 2011, and to limit the operational loss characteristic of the third quarter," said Yves Simard, President and CEO of Groupe Bikini Village inc. "Recognizing the continuing difficult market conditions forecast for the months and quarters ahead, we will continue to apply our prudent and proven strategies, paying close attention to performance at all levels of the Corporation."
"Our disciplined management approach allows Groupe Bikini Village to enter its fourth quarter with the financial resources and the flexibility we need to perform. The resources we have invested to strengthen our retail offering over the last few years have given us an excellent platform from which to reinforce our competitive position - and we will continue to do that, as we work to increase our earnings. As we look for further opportunities to improve shareholder value, we will continue to explore strategic prospects that arise, and to create opportunities of our own," Mr. Simard said.
Groupe Bikini Village inc.'s full third quarter 2011 report, as well as previous shareholder reports and other information of interest to investors, are available on SEDAR at www.sedar.com, and on the Corporation's website at www.bikinivillage.com.
Groupe Bikini Village, 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 operates 58 stores and employs approximately 450 people; its securities trade on the Toronto Stock Exchange under the stock symbol GBV. For more information about the Corporation, please visit our website at www.bikinivillage.com.