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