New Look Eyewear Inc.
TSX : BCI

New Look Eyewear Inc.

July 27, 2011 17:40 ET

New Look Eyewear Inc. Releases Second Quarter Results and Announces its Quarterly Dividend

MONTREAL, QUÉBEC--(Marketwire - July 27, 2011) - New Look Eyewear Inc. (TSX:BCI) ("New Look"), announced today that revenues for the second quarter of 2011 reached $19.5 million, an increase of 12.0% over the corresponding quarter of last year. Revenues from comparable stores increased by 10.2%. EBITDA(1) for the second quarter reached $3.4 million, an increase of 83% over last year. Net earnings for the quarter were $1.6 million ($0.16 per share) compared to adjusted(2) net earnings of $0.4 million ($0.04 per share) last year. Second quarter operating cash flows, before changes in non-cash working capital items, amounted to $0.35 per share in comparison of $0.18 per share last year.

After 26 weeks, revenues reached $38.6 million, an increase of 11.2% over the corresponding period of last year. Revenues from comparable stores increased by 8.7%. EBITDA for the same period reached $6.7 million, an increase of 54% over last year. Net earnings for the year-to-date period were $3.2 million ($0.32 per share) while adjusted net earnings for the corresponding period of 2010 were $1.5 million ($0.15 per share). Year-to-date operating cash flows, before changes in non-cash working capital items, amounted to $0.67 per share in comparison of $0.35 per share last year.

Martial Gagné, the President of New Look commented: "We are very satisfied with the performance of our operations for the first half of 2011. There was an increased level of activity in the stores and in the laboratory during the second quarter as we faced a rising demand for our services and products. Our team faced the challenges with enthusiasm and we thank our customers for their confidence. We have opened three new stores since the beginning of the year and are actively seeking to make additional acquisitions".

Following the approval of the results of the second quarter, the Board of Directors approved the payment of a dividend of $0.15 per share payable on September 30th, 2011 to the shareholders of record as of September 21st, 2011. The dividend qualifies as «eligible dividend», i.e. a dividend entitling shareholders who are Canadian resident individuals to a higher dividend tax credit.

SEE TABLE A ATTACHED: CONSOLIDATED STATEMENT OF EARNINGS

  1. See Table B attached for a definition of EBITDA with a reconciliation of net earnings to EBITDA.

  2. See Table C attached for the reconciliation of net earnings to adjusted net earnings.

On March 2, 2010, Benvest New Look Income Fund (formerly TSX:BCI.UN) was converted into a corporation named New Look Eyewear Inc. (TSX:BCI). As of June 25, 2011, New Look had 10,097, 732 common shares issued and outstanding. New Look is a leader in the eye care industry in Eastern Canada operating a network of corporate stores 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.
Consolidated Earnings
For the 13-week and 26-week periods ended June 25, 2011 and June 26, 2010
Unaudited - In thousands of Canadian dollars, except per share or unit amounts
13 weeks 26 weeks
June 25, 2011 June 26, 2010 June 25, 2011 June 26, 2010
$ $ $ $
Revenues 19,461 17,383 38,578 34,695
Materials consumed, net of changes in inventory 4,687 4,412 8,590 8,268
Employee remuneration expense 6,119 5,347 12,045 10,779
Other operating expenses 5,287 5,794 11,235 11,308
16,093 15,553 31,870 30,355
Earnings before the following items 3,368 1,830 6,708 4,340
Depreciation and amortization 993 984 1,956 1,805
Financial expenses, net of interest revenues 72 92 190 169
Cost of conversion to a corporation 96 853
1,065 1,172 2,146 2,827
Earnings before income taxes 2,303 658 4,562 1,513
Income taxes
Current (recovery) 2 5 (17 ) 6
Deferred 681 314 1,353 693
Adjustment related to corporate conversion (8,285 )
683 319 1,336 (7,586 )
Net earnings and comprehensive income 1,620 339 3,226 9,099
Net earnings and comprehensive income attributed to:
Non-controlling interest 7 8 15 15
Shareholders of New Look or unitholders of the Fund 1,613 331 3,211 9,084
1,620 339 3,226 9,099
Net earnings per share or unit
Basic and diluted 0.16 0.03 0.32 0.90
Table B
NEW LOOK EYEWEAR INC.
Reconciliation of Net Earning and EBITDA
For the 13-week and 26-week periods ended June 25, 2011 and June 26, 2010
Unaudited - In thousands of Canadian dollars
13 weeks 26 weeks
June 25, 2011 June 26, 2010 June 25, 2011 June 26, 2010
$ $ $ $
Net earnings 1,620 339 3,226 9,099
Depreciation and amortization 993 984 1,956 1,805
Financial expenses, net of interest revenues 72 92 190 169
Equity-based compensation 33 40 49 47
Net loss (gain) on foreign exchange (20 ) (22 ) (11 ) (15 )
Cost of conversion to a corporation 96 853
Income taxes 683 319 1,336 (7,586 )
EBITDA 3,381 1,848 6,746 4,372
Variance in $ 1,533 2,374
Variance in % 83 % 54 %
% of revenues 17.4 % 10.6 % 17.5 % 12.6 %

New Look defines EBITDA as earnings before financial expenses, net of interest revenues, income taxes, depreciation and amortization. It also excludes any gain or loss on foreign currency translation (except if related to cost of materials), gains and losses related to former portfolio investments, equity-based compensation, and the cost of conversion to a corporation. This definition is not a recognized measure under IFRS or former Canadian GAAP (generally accepted accounting principles) and may not be comparable to similar measures used by other entities. New Look believes that EBITDA is a useful measure financial metric as it assists in determining the ability to generate cash from operations.

Table C
NEW LOOK EYEWEAR INC.
Reconciliation of Net Earnings and Adjusted Net Earnings
For the 13-week and 26-week periods ended June 25, 2011 and June 26, 2010
Unaudited - In thousands of Canadian dollars, except amounts per share or unit
13 weeks 26 weeks
June 25, 2011 June 26, 2010 June 25, 2011 June 26, 2010
$ $ $ $
Net earnings attributed to shareholders or unitholders 1,613 331 3,211 9,084
Adjustment of income tax related to corporate conversion (8,285 )
Cost of conversion to a corporation, net of tax 74 699
Adjusted net earnings attributable to shareholders or unitholders 1,613 405 3,211 1,498
Variance in $ 1,208 1,713
Variance in % 298 % 114 %
% of revenues 8.3 % 2.3 % 8.3 % 4.3 %
Net earnings per share or unit
Basic and diluted 0.16 0.03 0.32 0.90
Adjusted net earnings per share or unit
Basic and diluted 0.16 0.04 0.32 0.15

Adjusted net earnings calculated above is a non-GAAP (generally accepted accounting principle) financial measure that does not have any standardized meaning and is therefore unlikely to be comparable to similar measures presented by other entities. New Look believes that it currently provides useful information as the adjustment of income tax related to the corporate conversion and the cost of conversion to a corporation, net of tax, are not representative of on-going performance of the company.

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