CEO of Groupe Bikini enthusiastic for the future
Groupe Bikini Village inc 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.
"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."
"GroupeBikini 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