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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Birks Group Inc | AMEX:BGI | AMEX | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.13 | 4.63% | 2.94 | 2.95 | 2.78 | 2.78 | 9,157 | 00:30:12 |
MONTREAL, Nov. 16, 2018 /CNW Telbec/ - Birks Group Inc. (the "Company" or "Birks Group") (NYSE American: BGI), today reported its financial results for the twenty-six week period ended September 29, 2018.
Financial Highlights
All figures presented herein are in Canadian dollars.
The first half of fiscal 2019 was the continuation of a transformational period during which the Company continued to invest considerably in both short-term and long-term growth initiatives as part of its five-year strategic plan intended to put the Company on a clear path to value creation for its stakeholders. During the twenty-six week period ended September 29, 2018, the Company reported an increase in net sales of $3.6 million.
Jean-Christophe Bédos, President and Chief Executive Officer of Birks Group, commented: "As announced in July of this year, the Company continues to focus on the execution of our five-year strategic plan and its key initiatives. The results of the first-half of fiscal 2019, as expected, are reflective of this fact as we continue to invest in the core growth areas we have identified. We are pleased with the sales growth experienced during the period, especially the performance of the underlying retail business, which benefited from the impact of the fully renovated Montreal Flagship store. This is a promising sign of things to come as we continue the renovation of our Vancouver Flagship location and the major remodeling of our Toronto Flagship location, which is expected to be completed in the fourth quarter of fiscal 2019. We remain confident that the execution of our strategic initiatives will lead to long-term value creation."
Financial overview for the twenty-six week period ended September 29, 2018:
About Birks Group Inc.
Birks Group is a leading designer of fine jewelry, timepieces and gifts and operator of luxury jewelry stores in Canada. The Company operates 26 stores under the Birks brand in most major metropolitan markets in Canada, one retail location in Calgary under the Brinkhaus brand and two retail locations in Vancouver under the Graff and Patek Philippe brands. Birks Collections are available at Mappin & Webb and Goldsmiths in the United Kingdom in addition to several jewelry retailers across North America. Birks was founded in 1879 and has become Canada's premier retailer and designer of fine jewelry, timepieces and gifts. Additional information can be found on Birks' web site, www.birks.com.
Change in Reporting Currency
The Company changed its reporting currency from U.S. dollars ($USD) to Canadian dollars ($CAD) for the period commencing April 1, 2018. The Company ceased using the U.S. dollar as its reporting currency in order to better reflect the fact that subsequent to the Company's divestiture of its former wholly-owned subsidiary, Mayor's Jewelers, Inc., on October 23, 2017, its business is primarily conducted in Canada, and a substantial portion of its revenues, expenses, assets and liabilities are denominated in $CAD.
Non-GAAP Measures
The Company reports information in accordance with U.S Generally Accepted Accounting Principles ("U.S GAAP"). The Company's performance is monitored and evaluated using various sales and earnings measures that are adjusted to include or exclude amounts from the most directly comparable GAAP measure ("non-GAAP measures"). The Company presents such non-GAAP measures in reporting its financial results to investors and other external stakeholders to provide them with useful complimentary information which will allow them to evaluate the Company's operating results using the same financial measures and metrics used by the Company in evaluating performance. The Company does not, nor does it suggest that investors and other external stakeholders should, consider non-GAAP measures in isolation from, or as a substitute for, financial information prepared in accordance with U.S GAAP. These non-GAAP measures may not be comparable to similarly-titled measures presented by other companies.
Total operating expenses from continuing operations and operating loss from continuing operations
The Company evaluates its operating earnings performance using financial measures which exclude expenses associated with operational restructuring plans. The Company believes that such measures provide useful supplemental information with which to assess the Company's results relative to the corresponding period in the prior fiscal year and can result in a more meaningful comparison of the Company's performance between the periods presented. The tables below reconcile total operating expenses from continuing operations and operating loss from continuing operations from GAAP to non-GAAP for the periods presented.
Reconciliation of non-GAAP measures | 26 Weeks Ended September 29, 2018 | ||||
GAAP | Restructuring | Non-GAAP | |||
CAD ($'000) | |||||
Total operating expenses – from continuing operations | 34,868 | (498) | 34,370 | ||
as a % of net sales from continuing operations | 50.7% | 50.0% | |||
Operating loss – from continuing operations | (8,495) | 498 | (7,997) | ||
as a % of net sales from continuing operations | (12.4)% | (11.7)% | |||
Reconciliation of non-GAAP measures | 26 Weeks Ended September 23, 2017* | ||||
GAAP | Restructuring | Non-GAAP | |||
($'000) | |||||
Total operating expenses – from continuing operations | 31,964 | - | 31,964 | ||
as a % of net sales from continuing operations | 49.1% | 49.1% | |||
Operating loss – from continuing operations | (7,349) | - | (7,349) | ||
as a % of net sales from continuing operations | (11.3)% | (11.3)% |
(a) | Expenses associated with the Company's operational restructuring plan |
(*) | The Company has changed its reporting currency from U.S dollars ("USD") to Canadian dollars ("CAD") for the period commencing April 1, 2018. Prior periods' comparative financial information has been recast as if the Company always used CAD as its reporting currency (see note 1 to the accompanying notes to the financial statements in the Company's Form 6-K for the 26-week period ended September 29, 2018) |
Forward Looking Statements
This press release contains certain "forward-looking" statements concerning the Company's performance and strategies, including that the Company continues to invest considerably in both short-term and long-term growth initiatives as part of its five-year strategic plan intended to put the Company on a clear path to value creation for its stakeholders; that the Company continues to focus on the execution of its five-year strategic plan and its key initiatives; that the recent renovation of the Montreal Flagship location is a promising sign of things to come as the Company continues the renovation of its Vancouver Flagship location and the major remodeling of its Toronto Flagship location; that the major remodeling of the Company's Toronto Flagship location is expected to be completed in the fourth quarter of fiscal 2019; and that the execution of the Company's strategic initiatives will lead to long-term value creation. Given such statements include various risks and uncertainties, actual results might differ materially from those projected in the forward-looking statements and no assurance can be given that we will meet the results projected in the forward looking statements. These risks and uncertainties include, but are not limited to the following: (i) economic, political and market conditions, including the economies of Canada and the U.S., which could adversely affect the Company's business, operating results or financial condition, including its revenue and profitability, through the impact of changes in the real estate markets, changes in the equity markets and decreases in consumer confidence and the related changes in consumer spending patterns, the impact on store traffic, tourism and sales; (ii) the impact of fluctuations in foreign exchange rates, increases in commodity prices and borrowing costs and their related impact on the Company's costs and expenses; (iii) the Company's ability to maintain and obtain sufficient sources of liquidity to fund its operations, to achieve planned sales, gross margin and net income, to keep costs low, to implement its business strategy, maintain relationships with its primary vendors, to mitigate fluctuations in the availability and prices of the Company's merchandise, to compete with other jewelers, to succeed in its marketing initiatives, and to have a successful customer service program; and (iv) the Company's ability to execute its strategic vision. Information concerning factors that could cause actual results to differ materially are set forth under the captions "Risk Factors" and "Operating and Financial Review and Prospects" and elsewhere in the Company's Annual Report on Form 20-F filed with the Securities and Exchange Commission on July 3, 2018 and subsequent filings with the Securities and Exchange Commission. The Company undertakes no obligation to update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this statement or to reflect the occurrence of unanticipated events, except as required by law.
BIRKS GROUP INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED
(In thousands)
26 weeks ended | 26 weeks ended | |||||
Net sales | $ | 68,728 | $ | 65,071 | ||
Cost of sales | 42,355 | 39,020 | ||||
Gross profit | 26,373 | 26,051 | ||||
Selling, general and administrative expenses | 32,471 | 30,330 | ||||
Restructuring charges | 498 | - | ||||
Depreciation and amortization | 1,899 | 1,634 | ||||
Total operating expenses | 34,868 | 31,964 | ||||
Operating (loss) income | (8,495) | (5,913) | ||||
Interest and other financial costs | 1,866 | 1,436 | ||||
(Loss) income from continuing operations | (10,361) | (7,349) | ||||
Income taxes (benefits) | - | - | ||||
Net (loss) income from continuing operations | (10,361) | (7,349) | ||||
(Loss) income from discontinued operations, net of tax | (444) | 1,802 | ||||
Net loss | (10,805) | (5,547) | ||||
Weighted average common shares outstanding | ||||||
Basic | 17,961 | 17,961 | ||||
Diluted | 17,961 | 17,961 | ||||
Net loss per common share | ||||||
Basic | $ | (0.60) | $ | (0.31) | ||
Diluted | $ | (0.60) | $ | (0.31) | ||
Net loss from continuing operations per common share | ||||||
Basic | $ | (0.58) | $ | (0.41) | ||
Diluted | $ | (0.58) | $ | (0.41) |
(*) | The Company has changed its reporting currency from U.S dollars ("USD") to Canadian dollars ("CAD") for the period commencing April 1, 2018. Prior periods' comparative financial information has been recast as if the Company always used CAD as its reporting currency (see note 1 to the accompanying notes to the financial statements in the Company's Form 6-K for the 26-week period ended September 29, 2018) |
BIRKS GROUP INC.
CONDENSED CONSOLIDATED BALANCE SHEETS – UNAUDITED
(In thousands)
As of | |||||||
September 29, 2018 | March 31, 2018* | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 1,224 | $ | 1,005 | |||
Accounts receivable and other receivables | 3,989 | 6,210 | |||||
Inventories | 88,618 | 84,827 | |||||
Prepaid expenses and other current assets | 3,379 | 4,929 | |||||
Total current assets | 97,210 | 96,971 | |||||
Property and equipment | 24,060 | 19,426 | |||||
Long-term receivables | 926 | — | |||||
Intangible assets and other assets | 5,888 | 3,878 | |||||
Total non-current assets | 30,874 | 23,304 | |||||
Total assets | $ | 128,084 | $ | 120,275 | |||
Liabilities and Stockholders' Equity | |||||||
Current liabilities: | |||||||
Bank indebtedness | $ | 43,603 | $ | 36,925 | |||
Accounts payable | 27,161 | 26,364 | |||||
Accrued liabilities | 8,630 | 7,496 | |||||
Current portion of long-term debt | 3,349 | 3,372 | |||||
Total current liabilities | 82,743 | 74,157 | |||||
Long-term debt | 14,480 | 4,838 | |||||
Other long-term liabilities | 9,138 | 8,803 | |||||
Total long-term liabilities | 23,618 | 13,641 | |||||
Stockholders' equity: | |||||||
Class A common stock – no par value, unlimited shares authorized, issued and outstanding 10,242,911 | 35,593 | 35,593 | |||||
Class B common stock – no par value, unlimited shares authorized, issued and outstanding 7,717,970 | 57,755 | 57,755 | |||||
Preferred stock – no par value, Unlimited shares authorized, none issued | — | — | |||||
Additional paid-in capital | 19,099 | 19,042 | |||||
Accumulated deficit | (90,592) | (79,787) | |||||
Accumulated other comprehensive income (loss) | (132) | (126) | |||||
Total stockholders' equity | 21,723 | 32,477 | |||||
Total liabilities and stockholders' equity | $ | 128,084 | $ | 120,275 |
(*) | The Company has changed its reporting currency from U.S dollars ("USD") to Canadian dollars ("CAD") for the period commencing April 1, 2018. Prior periods' comparative financial information has been recast as if the Company always used CAD as its reporting currency (see note 1 to the accompanying notes to the financial statements in the Company's Form 6-K for the 26-week period ended September 29, 2018) |
SOURCE Birks Group Inc.
Copyright 2018 Canada NewsWire
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