New Look Eyewear Inc.
TSX : BCI

New Look Eyewear Inc.

November 12, 2013 16:00 ET

New Look Eyewear Inc. Announces its Results for the Third Quarter of 2013 and its Quarterly Dividend

MONTRÉAL, QUÉBEC--(Marketwired - Nov. 12, 2013) - New Look Eyewear Inc. (TSX:BCI) ("New Look") announced today that revenues for the third quarter ended September 28, 2013 reached $21.1 million, an increase of 5.4% over the corresponding period of last year. This increase was due to the addition of both new and acquired stores over the past twelve months, while comparable store sales were down marginally from the comparable quarter last year. EBITDA(1) for the third quarter was $3.1 million, compared to $3.4 million, a decline of $262,000 from the comparable quarter last year. Consequently, net earnings attributable to shareholders for the quarter were $1,111,000 ($0.10 per share(2)) compared to $1,194,000 last year ($0.12 per share(2)). Third quarter operating cash flows (before changes in working capital items) amounted to $3.0 million compared to $3.3 million last year.

On a year-to-date basis, revenues increased by 6.5% to $65.4 million compared to $61.4 million last year, 2.4% being attributable to comparable stores. EBITDA benefited from this performance reaching $11.2 million, a 7.8% increase from last year. Net earnings attributable to shareholders were up 18.8%, which resulted in an increase in net earnings per share to $0.49 versus $0.42 last year.

In 2013 year-to-date, the company has increased its network by four additional stores operating under the New Look banner, and concluded affiliations with two independent optical clinics, bringing its total network to 76 locations.

More details on the financial performance of the third quarter and the year-to-date period are available in the attachments.

Martial Gagné, the President of New Look, commented: "We recorded a solid quarter with revenues of $21.1 million. While comparable same store sales for the quarter declined marginally, this was not surprising following the strong comparable store performance in the previous quarter of 2013. We also posted a strong EBITDA performance in Q3 2013. While down somewhat from the comparable quarter last year, it was impacted by one-time only or new expenses with respect to acquisitions and strategic developments. Also last year's results for the third quarter included a $333,000 one-time gain. Year-to-date revenues and profitability are on track and we expect to achieve positive results in revenues and EBITDA for the full twelve-month period."

Antoine Amiel, the Vice-Chairman of New Look, stated that: "Year-to-date, the Company has added four new locations under the New Look banner and successfully launched a new business initiative to affiliate with and invest in independent optical clinics carrying on business in market segments and markets not best served by New Look. This resulted in the addition of one clinic in Ontario and one in Québec. In addition, there are a number of interesting strategic developments in the Canadian optical industry which the Company is closely monitoring."

Following the approval of the results of the third quarter of 2013 and taking into account the year-to-date performance, the Board of Directors of New Look approved the payment of a dividend of $0.15 per Class A common shares payable on December 31st, 2013 to the shareholders of record as of December 19th, 2013. The dividend qualifies as "eligible dividend", i.e. a dividend entitling shareholders who are Canadian resident individuals to a higher dividend tax credit.

Attachments

  • Table A - Highlights
  • Table B - Consolidated statement of earnings (unaudited)
  • Table C - Reconciliation of net earnings to EBITDA
(1) See Table C attached for a definition of EBITDA with a reconciliation of net earnings to EBITDA.
(2) All per share amounts are calculated on a diluted basis.

As of September 29, 2013, New Look had 10,461,489 Class A common shares issued and outstanding. New Look is a leader in the eye care industry in Eastern Canada having a network of 74 corporate stores under the New Look banner, two affiliated clinics and a laboratory using state-of-the-art technologies.

This press release may contain forward-looking statements that reflect the current views and / or expectations of New Look 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.

TABLE A

NEW LOOK EYEWEAR INC.
Highlights
for the third quarter and the 39-week period ended September 29, 2013
with comparative figures for 2012
Unaudited - In thousands of Canadian dollars, except per share amounts
13 weeks 39 weeks
Sept 28, 2013 Sept 29, 2012 Sept 28, 2013 Sept 29, 2012
Revenues $21,110 $20,032 $65,375 $61,408
Variance 5.4 % 6.5 %
Comparable stores variance (1.7 %) 2.4 %
EBITDA(a) $3,099 $3,361 $11,193 $10,384
Variance (7.8 %) 7.8 %
% of revenues 14.7 % 16.8 % 17.1 % 16.9 %
Net earnings attributable to shareholders $1,111 $1,194 $5,128 $4,318
Variance (7.0 %) 18.8 %
Net earnings per share
Diluted $0.10 $0.12 $0.49 $0.42
Cash flows from operating activities, before changes in working capital items $3,008 $3,292 $11,012 $10,166
Variance (8.6 %) 8.3 %
Per share (diluted) $0.28 $0.32 $1.05 $0.99
Cash dividend per share $0.15 $0.15 $0.45 $0.45

TABLE B

NEW LOOK EYEWEAR INC.
Consolidated Statement of Earnings
for the periods ended September 29, 2013 and September 30, 2012
Unaudited - In thousands of Canadian dollars, except per share amounts
13 weeks 39 weeks
Sept 28, 2013 Sept 29, 2012 Sept 28, 2013 Sept 29, 2012
$ $ $ $
Revenues 21,110 20,032 65,375 61,408
Materials consumed, net of changes in inventory 4,811 4,788 14,431 14,049
Employee remuneration expense 6,518 6,134 20,030 19,054
Other operating expenses 6,743 5,857 19,837 18,150
Earnings before depreciation, amortization, impairment of non-financial assets and financial expenses 3,038 3,253 11,077 10,155
Depreciation, amortization and impairment of non-financial assets 1,326 1,165 3,540 3,530
Financial expenses 121 127 304 296
Earnings before income taxes 1,591 1,961 7,233 6,329
Income taxes
Current 29 29 (6 )
Deferred 435 760 2,041 1,995
Total income taxes 464 760 2,070 1,989
Net earnings and comprehensive income 1,127 1,201 5,163 4,340
Net earnings and comprehensive income attributed to:
Non-controlling interest 16 7 35 22
Shareholders of New Look 1,111 1,194 5,128 4,318
1,127 1,201 5,163 4,340
Net earnings per share
Basic 0.11 0.12 0.49 0.43
Diluted 0.10 0.12 0.49 0.42

TABLE C

NEW LOOK EYEWEAR INC.
Reconciliation of net earnings and EBITDA
for the periods ended September 29, 2013 and September 30, 2012
Unaudited - In thousands of Canadian dollars
13 weeks 39 weeks
Sept 28, 2013 Sept 29, 2012 Sept 28, 2013 Sept 29, 2012
$ $ $ $
Net earnings 1,127 1,201 5,163 4,340
Depreciation, amortization and impairment of non-financial assets 1,326 1,165 3,540 3,530
Financial expenses 121 127 304 296
Equity-based compensation 34 79 140 183
Net loss (gain) from changes in fair value of foreign exchange contracts 27 29 (24 ) 46
Income taxes 464 760 2,070 1,989
EBITDA 3,099 3,361 11,193 10,384
Variance in $ (262 ) 809
Variance in % (7.8 %) 7.8 %
% of revenues 14.7 % 16.8 % 17.1 % 16.9 %

EBITDA refers to consolidated earnings before financial expenses, net of interest revenues, income taxes, depreciation, amortization and impairment of non-financial assets. It excludes any gain or loss from changes in fair value of foreign exchange contracts, and equity-based compensation. EBITDA is not a recognized measure under IFRS and may not be comparable to similar measures used by other entities. The Company believes that EBITDA is a useful financial metric as it assists in determining the ability to generate cash from operations. Investors should be cautioned that EBITDA should not be construed as an alternative to net earnings or cash flows as determined under IFRS.

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