New Look Vision Group Inc.
TSX : BCI

New Look Vision Group Inc.

August 06, 2015 21:46 ET

New Look Vision Group Inc. Announces Record High Results for the Second Quarter of 2015 and Its Quarterly Dividend

MONTRÉAL, QUÉBEC--(Marketwired - Aug. 6, 2015) - New Look Vision Group Inc. (TSX:BCI) ("New Look Vision"), formerly New Look Eyewear Inc., announced today record high results for the second quarter ended June 27, 2015 and its quarterly dividend.

Second quarter results

New Look Vision reported revenues of $46.8 million and an adjusted EBITDA(1) of $10.1 million for the second quarter ended June 27, 2015 representing increases of 33.2% and 21.7% respectively over last year. The increases were due to strong same store sales growth across all banners, as well as the addition of the Greiche & Scaff stores acquired last October. Comparable store sales orders(2) for the quarter increased by 6.1% over last year.

Net earnings attributed to shareholders of $4.4 million for the quarter were up 42.4% from last year. This is in line with the EBITDA increase following the improved same store sales growth and the Greiche & Scaff acquisition and reflects additional depreciation, amortization and financial expenses recorded in 2015 compared to last year. In spite of these additional expenses and the issuance of shares, mainly pursuant to the financing of Greiche & Scaff acquisition, net earnings per share(2) for the second quarter increased by 33% to $0.32 from $0.24 last year. Net earnings per share(3) adjusted to remove the impact of acquisition-related costs increased to $0.33 from $0.27.

Cash flows from operating activities (before changes in working capital) reached $9.0 million or $0.65 per share(3) in the second quarter of 2015 compared to $7.6 million or $0.59 per share last year.

Year-to-date results

Year-to-date revenues and adjusted EBITDA reached $88.6 million and $16.8 million respectively, which represent increases of 32.3% and 26.0% respectively over last year. Net earnings attributed to shareholders of $6.0 million were up 47.4% from last year. Net earnings per share (3) increased to $0.44 from $0.31 last year, despite additional depreciation, amortization and financial expenses. Net earnings per share (3) adjusted to remove the impact of acquisition-related costs increased to $0.46 from $0.34 last year. Same store sales orders year-to-date were up 6.0% over last year.

Cash flows from operating activities (before changes in working capital) increased significantly to $15.1 million or $1.09 per share(3) from $12.5 million or $0.96 per share last year.

More details on the financial performance of the second quarter and the year-to-date period are available in the attachments.

President's comments

Antoine Amiel, the President of New Look Vision, stated that: "Q2 was another strong and record quarter in revenues and profitability, evidence of the ongoing success of the company's focus on operations and aggressive growth strategy. We continue to closely monitor developments in the consolidation of the Canadian retail optical industry."

Dividend approval

Following the approval of the results of the second quarter of 2015 and taking into account the solid cash inflows from operations in the quarter, the Board of Directors of New Look Vision approved the payment of dividends totalling of $0.15 per Class A common shares payable on September 30th, 2015 to the shareholders of record as of September 23, 2015. One dividend, in the amount of $0.129 has been designated as an "eligible dividend", that is a dividend entitling shareholders who are Canadian resident individuals to a higher dividend tax credit.

Through the dividend reinvestment plan implemented in 2014, shareholders residing in Canada may elect to re-invest their cash dividends into New Look Vision shares, without incurring brokerage commissions, fees and transaction costs. Until any further announcement, shares will be issued from treasury at 95% of the weighted average trading price for the five days preceding the dividend payment date. Any shareholder wishing to benefit from this opportunity may do so through his or her broker.

Attachments

  • Table A - Highlights
  • Table B - Consolidated Statement of Earnings
  • Table C - Reconciliation of Net Earnings to Adjusted EBITDA
  • Table D - Reconciliation of Net Earnings to Adjusted Net Earnings
1) EBITDA, Adjusted EBITDA and adjusted net earnings are not recognized measures under IFRS and may not be comparable to similar measures used by other entities. See Table C and Table D attached for a reconciliation of net earnings to these measures.
2) Refer to footnote a) in Table A for the definition of comparable stores and how management measures comparable store performance.
3) Per share amounts are expressed on a diluted basis.

As of June 30, 2015, New Look Vision had 13,407,008 Class A common shares issued and outstanding. New Look Vision is a leader in the eye care industry in Eastern Canada comprised of a network of 192 corporate stores mainly under the New Look Eyewear, Vogue Optical and Greiche & Scaff banners and laboratory facilities using state-of-the-art technologies. Tax information regarding payments to shareholders is available at www.newlook.ca in the Investors section.

All statements other than statements of historical fact contained in this MD&A are forward-looking statements, including, without limitation, statements regarding the future financial position, business strategy, projected costs and plans and objectives of, or involving New Look Vision. Readers can identify many of these statements by looking for words such as "believe", "expects", "will", "intends", "projects", "anticipates", "estimates", "plans", "may", "would" or similar words or the negative thereof. There can be no assurance that the plans, intentions or expectations upon which these forward-looking statements are based will be achieved. Forward-looking statements are subject to risks, uncertainties and assumptions. Although management of New Look Vision believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. Some of the factors which could affect future results and could cause results to differ materially from those expressed in the forward-looking statements contained herein include: pending and proposed legislative or regulatory developments, competition from established competitors and new market entrants, technological change, interest rate fluctuations, general economic conditions, acceptance and demand for new products and services, and fluctuations in operating results, as well as other risks included in New Look Vision's current Annual Information Form (AIF) which can be found at www.sedar.com. The forward-looking statements included in this press release are made as of the date hereof, and New Look Vision undertakes no obligation to publicly update such forward-looking statements to reflect new information, subsequent events or otherwise, except as provided by law.

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

TABLE A
NEW LOOK VISION GROUP INC.
Highlights
for the 13 and 26-week periods ended June 27, 2015 and June 28, 2014
In thousands of Canadian dollars, except per share amounts
13 weeks 26 weeks
June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014
Revenues 46,777 35,122 88,562 66,932
Variance 33.2 % 32.3 %
Variance in comparable store sales orders(a) 6.1 % 6.0 %
Adjusted EBITDA(b) $10,080 $8,282 $16,782 $13,316
Variance 21.7 % 26.0 %
% of revenues 21.5 % 23.6 % 18.9 % 19.9 %
Per share (diluted) $0.73 $0.63 $1.22 $1.02
Net earnings attributed to shareholders $4,412 $3,098 $6,043 $4,101
Variance 42.4 % 47.4 %
Net earnings per share
Basic $0.33 $0.24 $0.45 $0.32
Diluted $0.32 $0.24 $0.44 $0.31
Adjusted net earnings (b)attributed to shareholders $4,542 $3,463 $6,295 $4,466
Variance 31.2 % 41.0 %
Per share (diluted) $0.33 $0.27 $0.46 $0.34
Cash flows from operating activities, before changes in non-cash working capital $8,987 $7,633 $15,078 $12,461
Per share (diluted) $0.65 $0.59 $1.09 $0.96
Capital expenditures $2,179 $1,279 $3,866 $2,528
Net debt increase (decrease) in the period ($5,048 ) ($4,704 ) ($7,450 ) ($5,475 )
Cash dividend per share $0.15 $0.15 $0.30 $0.30
Total dividends $2,009 $1,912 $4,012 $3,830
At end of period
Number of stores 192 141
a) Comparable stores are those opened before 2014 either by New Look Eyewear, Vogue Optical or Greiche & Scaff. Revenues are recognized at time of delivery of goods to customers, but management measures the comparable store performance on the basis of sales orders, whether delivered or not.
b) Adjusted EBITDA and adjusted net earnings are not recognized measures under IFRS and may not be comparable to similar measures used by other entities. Refer to Table C and Table D for a reconciliation of these measures to net earnings.
TABLE B
NEW LOOK VISION GROUP INC.
Consolidated Statement of Earnings
for the 13 and 26-week periods ended June 27, 2015 and June 28, 2014
In thousands of Canadian dollars, except per share amounts
13 weeks 26 weeks
June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014
$ $ $ $
Revenues 46,777 35,122 88,562 66,932
Materials consumed 10,082 7,158 19,085 14,105
Employee remuneration expenses 14,798 11,123 29,194 22,350
Other operating expenses 12,313 9,266 24,150 17,998
Earnings before depreciation, amortization, loss on disposal of property, plant and equipment, and financial expenses 9,584 7,575 16,133 12,479
Depreciation, amortization and loss on disposal of property, plant and equipment 2,707 2,199 5,428 4,311
Financial expenses, net of interest revenues 774 911 2,238 2,172
Earnings before income taxes 6,103 4,465 8,467 5,996
Income taxes
Current 1,450 278 1,832 296
Deferred 220 1,075 552 1,559
Total income taxes 1,670 1,353 2,384 1,855
Net earnings and comprehensive income 4,433 3,112 6,083 4,141
Net earnings and comprehensive income attributed to:
Non-controlling interest 21 14 40 40
Shareholders of New Look 4,412 3,098 6,043 4,101
4,433 3,112 6,083 4,141
Net earnings per share
Basic 0.33 0.24 0.45 0.32
Diluted 0.32 0.24 0.44 0.31
TABLE C
NEW LOOK VISION GROUP INC.
Reconciliation of Net Earnings to Adjusted EBITDA
for the 13 and 26-week periods ended June 27, 2015 and June 28, 2014
In thousands of Canadian dollars
13 weeks 26 weeks
June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014
$ $ $ $
Net earnings 4,433 3,112 6,083 4,141
Depreciation, amortization and loss on disposal of property, plant and equipment 2,707 2,199 5,428 4,311
Financial expenses, net of interest revenues 774 911 2,238 2,172
Income taxes 1,670 1,353 2,384 1,855
EBITDA (a) 9,584 7,575 16,133 12,479
Equity-based compensation 149 143 347 289
Net loss (gain) from changes in fair value of foreign exchange contracts 169 64 (43 ) 48
Acquisition-related costs 178 500 345 500
Adjusted EBITDA(a) 10,080 8,282 16,782 13,316
Variance in $ 1,798 3,466
Variance in % 21.7 % 26.0 %
% of revenues 21.5 % 23.6 % 18.9 % 19.9 %
Per share (diluted) 0.73 0.63 1.22 1.02
a) EBITDA and adjusted EBITDA are not recognized measures under IFRS and may not be comparable to similar measures used by other entities. New Look Vision believes that EBITDA and adjusted EBITDA are useful financial metrics as they assist in determining the ability to generate cash from operations. Investors should be cautioned that EBITDA and adjusted EBITDA should not be construed as an alternative to net earnings or cash flows as determined under IFRS.
TABLE D
NEW LOOK VISION GROUP INC.
Reconciliation of Net Earnings to Adjusted Net Earnings
for the 13 and 26-week periods ended June 27, 2015 and June 28, 2014
In thousands of Canadian dollars
13 weeks 26 weeks
June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014
$ $ $ $
Net earnings attributable to shareholders 4,412 3,098 6,043 4,101
Acquisition-related costs 178 500 345 500
Related income taxes (48 ) (135 ) (93 ) (135 )
Adjusted net earnings attributable to shareholders 4,542 3,463 6,295 4,466
Variance in $ 1,079 1,829
Variance in % 31.2 % 41.0 %
% of revenues 9.7 % 9.9 % 7.1 % 6.7 %
Per share amount
Diluted 0.33 0.27 0.46 0.34
a) Adjusted net earnings are not a recognized measure under IFRS and may not be comparable to similar measures used by other entities. New Look Vision believes that this disclosure provides useful information as it allows the comparison of net results excluding acquisition and development costs, which may vary significantly from quarter to quarter. Investors should be cautioned that adjusted net earnings should not be construed as an alternative to net earnings as determined under IFRS.

Contact Information

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