New Look Eyewear Inc.
TSX : BCI

New Look Eyewear Inc.

July 26, 2012 16:00 ET

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

MONTRÉAL, QUÉBEC--(Marketwire - July 26, 2012) - New Look Eyewear Inc. (TSX:BCI) ("New Look") announced today that revenues for the second quarter of 2012 reached $21.3 million, an increase of 9.3% over the corresponding quarter of last year. Revenues from comparable stores increased by 1.9%. EBITDA(1) for the second quarter was $3.9 million, an increase of $0.6 million from last year. Net earnings for the quarter were $1.95 million ($0.19 per share (2)) compared to $1.6 million ($0.16 per share) for the second quarter last year. Second quarter operating cash flows, before changes in non-cash working capital items, amounted to $0.38 per share compared to $0.35 per share last year.

On a year-to-date basis, revenues were $41.4 million, an increase of 7.3% over the first two quarters of last year. Revenues from comparable stores increased by 0.6%. EBITDA for the same period reached $7 million, an increase of 3.2% over last year. Net earnings for the year-to-date period were slightly down at $3.1 million ($0.31 per share) from $3.2 million ($0.32 per share) last year due to additional depreciation and amortization expense this year. Year-to-date operating cash flows, before changes in non-cash working capital items, were the same as last year at $0.67 per share.

Martial Gagné, the President of New Look commented: "We are satisfied with the results of the quarter and for the year to-date. We continue to successfully and profitably increase our market share in Québec and the Ottawa region".

Following the approval of the results of the second quarter, the Board of Directors of New Look approved today the payment of a dividend of $0.15 per Class A common shares payable on September 30th, 2012 to the shareholders of record as of September 19th, 2012. 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) All per share amounts are calculated on a diluted basis.

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 30, 2012, New Look had 10,161,732 Class A 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.

For additional information please see our web site www.newlook.ca.

NEW LOOK EYEWEAR INC.
Consolidated Statement of Earnings
For the quarters ended June 30, 2012 and June 25, 2011
Unaudited - In thousands of Canadian dollars, except per share amounts
13 weeks 26 weeks
June 30, 2012 June 25, 2011 June 30, 2012 June 25, 2011
$ $ $ $
Revenues 21,268 19,461 41,376 38,578
Materials consumed, net of changes in inventory 4,775 4,359 9,261 8,370
Employee remuneration expense 6,567 6,119 12,920 12,045
Other operating expenses 5,993 5,615 12,293 11,455
17,335 16,093 34,474 31,870
Earnings before the following items 3,933 3,368 6,902 6,708
Depreciation and amortization 1,167 993 2,365 1,956
Financial expenses 87 72 169 190
1,254 1,065 2,534 2,146
Earnings before income taxes 2,679 2,303 4,368 4,562
Income taxes
Current (6 ) 2 (6 ) (17 )
Deferred 723 681 1,235 1,353
718 683 1,229 1,336
Net earnings and comprehensive income 1,961 1,620 3,139 3,226
Net earnings and comprehensive income attributed to:
Non-controlling interest 8 7 15 15
Shareholders of New Look 1,953 1,613 3,124 3,211
1,961 1,620 3,139 3,226
Net earnings per share
Basic and diluted 0.19 0.16 0.31 0.32
NEW LOOK EYEWEAR INC.
Reconciliation of net earning and EBITDA
For the quarters ended June 30, 2012 and June 25, 2011
Unaudited - In thousands of Canadian dollars
13 weeks 26 weeks
June 30, 2012 June 25, 2011 June 30, 2012 June 25, 2011
$ $ $ $
Net earnings 1,961 1,620 3,139 3,226
Depreciation and amortization 1,167 993 2,365 1,956
Financial expenses 87 72 169 190
Equity-based compensation 80 33 104 49
Net loss from changes in fair value of foreign exchange contracts (15 ) (22 ) 17 (14 )
Income taxes 718 683 1,229 1,336
EBITDA 3,998 3,379 7,023 6,743
Variance in $ 619 280
Variance in % 18.3% 4.2%
% of revenues 18.8% 17.4% 17.0% 17.5%

EBITDA refers to consolidated earnings before financial expenses, income taxes, depreciation and amortization. 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.

Contact Information

  • New Look Eyewear Inc.
    Lise Melanson
    (514) 877-4299, ext. 2234
    www.newlook.ca