BMTC GROUP INC. ANNOUNCES FINANCIAL RESULTS FOR THE SEMESTER ENDED JULY 31st, 2025.

Executive Summary

• BMTC Group Inc. reported financial results for the six-month period ended July 31, 2025, showing a decrease in net earnings compared to the prior year period, driven by significant variances in both its retail (Tanguay) and real estate divisions.
• Total revenues increased by 7.4% to $329.4 million, primarily due to growth in the Tanguay division, while investment property revenue from the real estate division declined sharply by 97.4%.
• The company continues its strategic diversification into real estate, including expansion of the RONA distribution center and development projects in Laval and Sainte-Thérèse, while completing a store revitalization program for its Tanguay retail network.

Key Details

• Six-Month Financial Performance (Ended July 31, 2025):
  • Revenues: $329,375,000 (up 7.4% from $306,538,000 in 2024).
  • Net Earnings: $4,104,000 (down from $20,925,000 in 2024).
  • Basic Net Earnings Per Share: $0.13 (down from $0.64 in 2024).
  • Tanguay Division Revenue: Increased by $24,403,000 (8%) to drive overall growth; comparable store sales up 8.4%.
  • Real Estate Division Revenue: Declined by $1,566,000 (97.4%).
  • Divisional Net Earnings: Tanguay reported $12,564,000 (down from $21,810,000); Real Estate reported a net loss of ($8,460,000) (vs. loss of $885,000 in 2024).
  • Adjusted Net Earnings: $4,104,000 (vs. $15,466,000 in 2024), reflecting a variation of ($11,362,000) primarily due to the absence of a $5,459,000 after-tax gain on fixed asset disposals in the prior year.
• Quarterly Financial Performance (Three Months Ended July 31, 2025):
  • Revenues: $179,251,000 (up 5.8% from $169,394,000).
  • Net Earnings: $17,037,000 (down from $19,464,000).
  • Basic Net Earnings Per Share: $0.53 (down from $0.60).
  • Tanguay Division Revenue: Increased by $11,188,000 (6.7%); comparable store sales up 6.7%.
  • Real Estate Division Revenue: Declined by $1,331,000 (97.3%).
  • Divisional Net Earnings: Tanguay reported $21,780,000 (up from $19,930,000); Real Estate reported a net loss of ($4,743,000) (vs. loss of $466,000).
• Prior Year Comparisons & Non-Recurring Items:
  • The 2024 period included an after-tax gain of $5,459,000 ($0.17 per share) from the disposal of fixed assets, including a $2,097,000 settlement from the REM expropriation case and a $3,362,000 gain from the sale of the Trois-Rivières store.
  • The 2025 period had no such gains.
• Share Repurchases:
  • 410,600 common shares were repurchased and cancelled under the normal course issuer bid.
  • Shares outstanding as of July 31, 2025: 31,951,700.
  • No options were granted during the period; 5,710,864 options remain available under the Stock Option Plan.
• Financial Position:
  • Cash and Investments: Decreased by $29,800,000, largely due to funding for the RONA distribution center expansion.
  • Working Capital: Deficit of ($1,139,000), an improvement of $11,522,000 from the previous year-end.
  • Shareholders' Equity: Decreased from $529,507,000 to $521,983,000.
  • Book Value Per Share: $16.34 (down from $16.36).
  • Dividends: $0.36 per share for the period (consistent with prior year).
• Operational Updates:
  • Tanguay Revitalization: Completed network revitalization program for $18,692,000 (under budget by $1,308,000), converting former Brault & Martineau and EconoMax stores to Tanguay.
  • RONA Distribution Center: Expansion project estimated at $7,500,000. Total commitments for extension were $28,810,000 (with $5,359,000 outstanding) and optimization costs of $20,125,000 (with $6,012,000 outstanding). Project expected to be completed by fall 2025.
  • Real Estate Projects:
    • Laval (500 boulevard Le Corbusier): Partnership with Urbania for 4 residential towers (~1,200 doors, ~$600M value). Construction delayed from June 2025 to March 2026 due to permit approvals.
    • Sainte-Thérèse (125 boul. Desjardins Est): In exploratory phase; potential developer identified. Permits expected spring 2026, construction fall 2026 if profitable.
    • Lévis Land: Purchased for $20,223,000 in April 2024; held for development or long-term investment.

Notable Quotes

• "The variation in the net loss of the real estate division is primarily attributable to the ongoing expansion and optimization work, which is temporarily increasing operating expenses. These projects are expected to be completed during the year, which should allow for a gradual return to improved financial performance for the division."
• "The variation in net earnings of the Tanguay division... is mainly attributable to the decrease in the after-tax unrealized gain on investments... as well as from the realization of an after-tax gain on the disposal of fixed assets totaling $5,459,000 during the corresponding period of 2024."
• "Management believes that this diversification [into real estate] will enhance its financial resilience, create new growth levers, and reduce its reliance on the retail sector."