New Look Eyewear Inc.
TSX : BCI

New Look Eyewear Inc.

November 05, 2012 18:00 ET

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

MONTRÉAL, QUÉBEC--(Marketwire - Nov. 5, 2012) - New Look Eyewear Inc. (TSX:BCI) ("New Look") announced today that revenues for the third quarter of 2012 reached $20.0 million, an increase of 2.6% over the corresponding quarter of last year. Revenues from comparable stores increased by 0.3%. EBITDA(1) for the third quarter was $3.4 million, an increase of $0.7 million or 27.0% from last year. Net earnings for the quarter were $1.2 million ($0.12 per share(2)) compared to $1.0 million ($0.10 per share) for the third quarter last year. Third quarter operating cash flows, before changes in non-cash working capital items, amounted to $0.32 per share compared to $0.26 per share last year.

On a year-to-date basis, revenues were $61.4 million, an increase of 5.7% over the first three quarters of last year. Revenues from comparable stores increased by 0.6%. EBITDA for the same period reached $10.4 million, an increase of $1.0 million or 10.6% over last year. Net earnings for the year-to-date period were $4.3 million ($0.42 per share) compared to $4.2 million ($0.42 per share) last year. Year-to-date operating cash flows, before changes in non-cash working capital items, amounted to $0.99 per share compared to $0.92 per share last year.

Martial Gagné, the President of New Look commented: "We are satisfied with the financial results and operating performance for the third quarter and the year to date given the very competitive environment. New Look has improved its revenues and profitability by providing high quality products and services, competitive promotional activities, and effective expense control. We have made two acquisitions since the beginning of the year and are actively seeking to expand our store network through other acquisitions".

Following the approval of the results of the third quarter, the Board of Directors of New Look approved today the payment of dividends totalling $0.15 per Class A common shares payable on December 31st, 2012 to the shareholders of record as of December 17th, 2012. One dividend, representing $0.1445, 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.

As of September 29, 2012, New Look had 10,301,732 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.

NEW LOOK EYEWEAR INC.
Consolidated Statement of Earnings
For the quarters and the year-to-date periods
ended September 29, 2012 and September 24, 2011

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

13 weeks 39 weeks
Sept 29, 2012 Sept 24, 2011 Sept 29, 2012 Sept 24, 2011
$ $ $ $
Revenues 20,032 19,516 61,408 58,094
Materials consumed, net of changes in inventory 4,788 4,929 14,049 13,299
Employee remuneration expense 6,134 5,922 19,054 17,967
Other operating expenses 5,857 5,997 18,150 17,452
16,779 16,848 51,253 48,718
Earnings before the following items 3,253 2,668 10,155 9,376
Depreciation, amortization and impairment of non-financial assets 1,165 1,007 3,530 2,963
Financial expenses 127 87 296 277
1,292 1,094 3,826 3,240
Earnings before income taxes 1,961 1,574 6,329 6,136
Income taxes
Current 37 (6 ) 20
Deferred 760 529 1,995 1,882
760 566 1,989 1,902
Net earnings and comprehensive income 1,201 1,008 4,340 4,234
Net earnings and comprehensive income attributed to:
Non-controlling interest 7 8 22 23
Shareholders of New Look 1,194 1,000 4,318 4,211
1,201 1,008 4,340 4,234
Net earnings per share
Basic 0.12 0.10 0.43 0.42
Diluted 0.12 0.10 0.42 0.42
NEW LOOK EYEWEAR INC.
Reconciliation of Net Earnings and EBITDA
For the quarters and the year-to-date periods
ended September 29, 2012 and September 24, 2011

Unaudited - In thousands of Canadian dollars

13 weeks 39 weeks
Sept 29, 2012 Sept 24, 2011 Sept 29, 2012 Sept 24, 2011
$ $ $ $
Net earnings 1,201 1,008 4,340 4,234
Depreciation, amortization and impairment of non-financial assets 1,165 1,007 3,530 2,963
Financial expenses 127 87 296 277
Equity-based compensation 79 30 183 79
Net loss (gain) from changes in fair value of foreign exchange contracts 29 (52 ) 46 (66 )
Income taxes 760 566 1,989 1,902
EBITDA 3,361 2,646 10,384 9,389
Variance in $ 715 995
Variance in % 27.0 % 10.6 %
% of revenues 16.8 % 13.5 % 16.9 % 16.2 %

EBITDA refers to consolidated earnings before financial expenses, 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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