Benvest New Look Income Fund
TSX : BCI.UN

Benvest New Look Income Fund

November 10, 2005 11:28 ET

Benvest New Look Announces its Results for the Quarter Ended September 30, 2005

MONTREAL, QUEBEC--(CCNMatthews - Nov. 10, 2005) - Benvest New Look Income Fund (TSX:BCI.UN) (the "Fund"), which became active on May 1, 2005, today announced its interim results for the quarter and the five-month period ended September 30, 2005.

Revenues for the quarter grew to $11.2 million and for the five-month period to $ 18.0 million, increases of 3.9% and 5.6% over corresponding periods of last year.

Earnings before amortization, financial expenses, income taxes and non-controlling interest ("EBITDA") were $1,749,000 for the quarter and $2,462,000 for the five-month period compared with $1,759,000 and $2,298,000 for the corresponding periods of last year. The increase in store contribution was offset by an increase in marketing and administrative expenses reflecting management's decision to support business growth strategies.

Financial expenses were $661,000 for the quarter and $835,000 for the five-month period compared with $119,000 and $257,000 for the corresponding periods of last year. The variations are mainly due to unrealized foreign exchange losses, in 2005, arising from long-term US denominated monetary assets not related to the core business. Amortization increased by $179,000 for the quarter and by $275,000 for the five-month period, thus reflecting the addition of stores and equipment since the end of September 2004.

The overall result is that net earnings for the quarter and the five-month period amounted to $554,000 and $835,000 (or $0.057 and 0,086 per unit) compared with $831,000 and $929,000 (or $0.089 and $0.099 per share) for the corresponding periods of last year.

The operating subsidiary, New Look Eyewear Inc. ("New Look"), continues to focus on its strategy for increasing its market share through opening new stores, updating existing ones and through acquisition.

On May 1, 2005, Benvest Capital Inc. was converted into an income trust named the Benvest New Look Income Fund, the purpose of which is to hold securities of New Look. New Look is a leading enterprise in the eye care industry in Eastern Canada, with growth opportunities based on demographic trends and the consolidation of the industry in Canada. As of September 30, 2005, 5,424,335 units of the Fund were issued and outstanding and listed for trading on the TSX. In addition, 4,196,864 exchangeable shares of New Look are also issued and outstanding. As of September 30, 2005, these shares, which are not listed or freely tradable, are exchangeable on a one-for-one basis into units of the Fund after May 1st, 2006.

This press release may contain certain forward-looking statements that reflect the current views and / or expectations of Benvest New Look Income Fund with respect to its performance, business, and future events. Such statements are subject to a number of risks, uncertainties, and assumptions. Actual results and events may vary.

Contact Information

  • Benvest New Look Income Fund
    Lise Melanson
    (514) 877-4299, ext. 2234