New Look Eyewear Inc.
TSX : BCI

New Look Eyewear Inc.

November 07, 2011 16:06 ET

New Look Eyewear Inc. Releases Third Quarter Results and Announces its Quarterly Dividend and the Opening of its 67th Store

MONTREAL, QUÉBEC--(Marketwire - Nov. 7, 2011) - New Look Eyewear Inc. (TSX:BCI) ("New Look"), announced today that revenues for the third quarter of 2011 reached $19.5 million, an increase of 17.8% over the corresponding quarter of last year. Revenues from comparable stores increased by 13.2%. EBITDA(1) for the third quarter was $2.6 million, an increase of 18% over last year. Net earnings for the quarter were $1.0 million ($0.10 per share) compared to adjusted(2) net earnings of $0.9 million ($0.08 per share) last year. Third quarter operating cash flows, before changes in non-cash working capital items, amounted to $0.26 per share compared to $0.21 per share last year.

After 39 weeks, revenues were $58.1 million, an increase of 13.3% over the corresponding period of last year. Revenues from comparable stores increased by 10.6%. EBITDA for the same period reached $9.4 million, an increase of 42% over last year. Net earnings for the year-to-date period were $4.2 million ($0.42 per share) while adjusted net earnings for the corresponding period of 2010 were $2.4 million ($0.23 per share). Year-to-date operating cash flows, before changes in non-cash working capital items, amounted to $0.93 per share compared to $0.57 per share last year.

Martial Gagné, the President of New Look commented: "We are very pleased with the results of the quarter and the year to-date and the progression we have made over last year. Consumers are responding well to our products and services. Optometrists and other professionals working in our stores are very supportive of our initiatives and all our employees are devoting their efforts to enhancing customer experience. At the same time, we are also focusing on our growth for the future and today announce the opening of our 67th store in Cap-de-la-Madeleine, Québec."

Following the approval of the results of the third quarter, the Board of Directors approved the payment of dividends totalling $0.15 per share payable on December 30th, 2011 to the shareholders of record as of December 19th, 2011. One dividend, representing $0.1468, 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 September 24, 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.

NEW LOOK EYEWEAR INC.
Consolidated Earnings
For the 13-week and 39-week periods ended September 24, 2011 and September 25, 2010

Unaudited - In thousands of Canadian dollars, except per share or unit amounts

13 weeks 39 weeks
Sept 24, 2011 Sept 25, 2010 Sept 24, 2011 Sept 25, 2010
$ $ $ $
Revenues 19,516 16,569 58,094 51,264
Materials consumed, net of changes in inventory 4,810 4,106 13,400 12,374
Employee remuneration expense 5,922 5,190 17,967 15,969
Other operating expenses 6,116 5,056 17,351 16,364
16,848 14,352 48,718 44,707
Earnings before the following items 2,668 2,217 9,376 6,557
Depreciation and amortization 1,007 995 2,963 2,800
Financial expenses, net of interest revenues 87 105 277 274
Cost of conversion to a corporation 853
1,094 1,100 3,240 3,927
Earnings before income taxes 1,574 1,117 6,136 2,630
Income taxes
Current 37 20 6
Deferred 529 463 1,882 1,156
Adjustment related to corporate conversion (8,285 )
566 463 1,902 (7,123 )
Net earnings and comprehensive income 1,008 654 4,234 9,753
Net earnings and comprehensive income attributed to:
Non-controlling interest 8 7 23 22
Shareholders of New Look or unitholders of the Fund 1,000 647 4,211 9,731
1,008 654 4,234 9,753
Net earnings per share or unit
Basic and diluted 0.10 0.06 0.42 0.97
NEW LOOK EYEWEAR INC.
Reconciliation of Net Earning and EBITDA
For the 13-week and 39-week periods ended September 24, 2011 and September 25, 2010

Unaudited - In thousands of Canadian dollars

13 weeks 39 weeks
Sept 24, 2011 Sept 25, 2010 Sept 24, 2011 Sept 25, 2010
$ $ $ $
Net earnings 1,008 654 4,234 9,753
Depreciation and amortization 1,007 995 2,963 2,800
Financial expenses, net of interest revenues 87 105 277 274
Equity-based compensation 30 25 79 72
Net gains on foreign exchange (57 ) (68 ) (15 )
Cost of conversion to a corporation 853
Income taxes 566 463 1,902 (7,123 )
EBITDA 2,641 2,242 9,387 6,614
Variance in $ 399 2,773
Variance in % 18 % 42 %
% of revenues 13.5 % 13.5 % 16.2 % 12.9 %

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), equity-based compensation, and the cost of conversion to a corporation. This definition is not a recognized measure under IFRS and is therefore unlikely to 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.

NEW LOOK EYEWEAR INC.
Reconciliation of Net Earnings and Adjusted Net Earnings
For the 13-week and 39-week periods ended September 24, 2011 and September 25, 2010

Unaudited - In thousands of Canadian dollars, except amounts per share or unit

13 weeks 39 weeks
Sept 24, 2011 Sept 25, 2010 Sept 24, 2011 Sept 25, 2010
$ $ $ $
Net earnings attributed to shareholders or unitholders 1,000 647 4,211 9,731
Adjustment of income tax related to corporate conversion (8,285 )
Write-off of income tax asset arising from the corporate conversion 207 207
Cost of conversion to a corporation, net of tax 699
Adjusted net earnings attributable to shareholders or unitholders 1,000 854 4,211 2,352
Variance in $ 146 1,859
Variance in % 17 % 79 %
% of revenues 5.1 % 5.2 % 7.2 % 4.6 %
Net earnings per share or unit
Basic and diluted 0.10 0.06 0.42 0.97
Adjusted net earnings per share or unit
Basic and diluted 0.10 0.08 0.42 0.23

Adjusted net earnings calculated above is not a recognized measure under IFRS 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 operations of the Company.

Contact Information

  • For additional information:
    www.newlook.ca

    For enquiries:
    Lise Melanson
    (514) 877-4299, ext. 2234