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
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See Table B attached for a definition of EBITDA with a reconciliation of net earnings to EBITDA.
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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.
Contact Information:
(514) 877-4299, ext. 2234
www.newlook.ca