MONTRÉAL, QUÉBEC--(Marketwired - March 14, 2016) - New Look Vision Group Inc. (TSX:BCI) ("New Look Vision"), formerly New Look Eyewear Inc., announced today its financial results for the fourth quarter and the year ended December 26, 2015 and its quarterly dividend.
Fourth quarter results
New Look Vision reported record revenues of $44.6 million and an adjusted EBITDA(1) of $9.7 million for the fourth quarter ended December 26, 2015 representing increases of 9.3% and 28.8% respectively over last year. The increases were mainly due to the addition of the Greiche & Scaff stores acquired in October 2014 as well as to same store sales growth. Same store sales for the quarter increased by 4.3% over last year.
Adjusted net earnings attributed to shareholders(1) for the fourth quarter, that is net earnings adjusted to remove the impact of acquisition-related costs increased by 53.1% which resulted in a per share amount of $0.30(2) compared to $0.21 last year. Without the adjustments, net earnings per share for the fourth quarter were $0.27 compared to $0.15 last year. These figures reflect the improvement in EBITDA and additional depreciation and amortization, along with a decrease in financial expenses.
Cash flows from operating activities (before changes in working capital) were $6.95 million or $0.50 per share(2) in the fourth quarter of 2015 compared to $6.48 million or $0.47 per share last year. The cash flow situation improved despite payments of current income taxes of $2.1 million in the fourth quarter of 2015 compared to $70,000 last year.
Annual results
Year-to-date revenues and adjusted EBITDA reached $174.6 million and $33.5 million respectively, which represent increases of 24.5% and 24.0% respectively over last year. Net earnings attributed to shareholders of $9.2 million ($0.67 per share)(2) were up compared to $7.8 million last year ($0.59 per share). However, net earnings adjusted to remove the impact of a tax settlement announced in the previous quarter, acquisition-related costs and restructuring costs attained $12.6 million, that is $3.2 million over last year. Adjusted net earnings per share (2) increased to $0.92 from $0.72 last year, despite additional depreciation, amortization and financial expenses and additional shares issued over the last four quarters. Same store sales orders year-to-date were up 4.8% over last year.
Cash flows from operating activities (before changes in working capital) increased to $27.7 million or $2.01 per share from $24.3 million or $1.83 per share last year. The cash flow situation improved despite payments of current income taxes of $4.5 million compared to $81,000 last year.
More detail on the financial performance of the fourth quarter and the financial year are available in the attachments.
President's comments
Antoine Amiel, the President of New Look Vision, stated that: "We are pleased to report a strong operating and financial performance in the fourth quarter, resulting in record revenues and profitability for the quarter and 2015 as a whole. Revenues and adjusted EBITDA for the year reached $174.6 million and $33.5 million respectively. Same store sales were up 4.8% while cash flow from operations was very strong, reaching $27.7 million ($2.01 per share). These and other positive operating and financial factors are concrete evidence of the success of our strategic growth plan in recent years, both generic and by acquisition.
We continue to monitor the opportunities arising from the ongoing consolidation of the Canadian retail optical industry. Subsequent to year-end in this regard, we successfully completed the acquisition of a chain of fifteen locations operating principally under the iVision banner in the strategic southwestern Ontario market as well as a leading high-end boutique. We expect such activity to continue through 2016 and beyond."
Dividend approval
Following the approval of the results of the fourth 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 a dividend of $0.15 per Class A common shares payable on March 31, 2016 to the shareholders of record as of March 23, 2016. The dividend 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) | Per share amounts are expressed on a diluted basis. |
As of February 29, 2016, New Look Vision had 13,463,366 Class A common shares issued and outstanding. New Look Vision is a leader in the eye care industry in Eastern Canada having a network of 214 corporate stores mainly under the New Look Eyewear, Vogue Optical, Greiche & Scaff and iVision banners and laboratory facilities using state-of-the-art technologies. Tax information regarding payments to shareholders is available at www.newlookvision.ca in the Investors section.
All statements other than statements of historical fact contained in this press release 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.
TABLE A
| NEW LOOK VISION GROUP INC. |
| Highlights |
| for the fourth quarter and the year ended December 26, 2015 |
| with comparable figures for 2014 and 2013 |
In thousands of Canadian dollars, except per share amounts
| Fourth Quarter | Year | ||||||||||
| 2015 | 2014 | 2015 | 2014 | 2013 | |||||||
| Revenues | $44,614 | $40,809 | $174,555 | $140,245 | $90,971 | ||||||
| Variance | 9.3 | % | 24.5 | % | 54.2 | % | |||||
| Variance in comparable store sales orders(a) | 4.3 | % | 4.4 | % | 4.8 | % | 1.7 | % | 3.7 | % | |
| Adjusted EBITDA(b) | $9,665 | $7,501 | $33,526 | $27,030 | $15,780 | ||||||
| Variance | 28.8 | % | 24.0 | % | 71.3 | % | |||||
| % of revenues | 21.7 | % | 18.4 | % | 19.2 | % | 19.3 | % | 17.3 | % | |
| Per share (diluted) | $0.70 | $0.55 | $2.44 | $2.05 | $1.47 | ||||||
| Variance | 27.3 | % | 19.0 | % | 39.5 | % | |||||
| Net earnings attributed to shareholders(c) | $3,755 | $2,023 | $9,157 | $7,774 | $6,240 | ||||||
| Variance | 85.6 | % | 17.8 | % | 24.6 | % | |||||
| Net earnings per share(c) | |||||||||||
| Basic | $0.28 | $0.16 | $0.68 | $0.61 | $0.59 | ||||||
| Diluted | $0.27 | $0.15 | $0.67 | $0.59 | $0.58 | ||||||
| Variance | 80.0 | % | 13.6 | % | 1.7 | % | |||||
| Adjusted net earnings attributed to shareholders(b) | $4,167 | $2,722 | $12,640 | $9,433 | |||||||
| Variance | 53.1 | % | 34.0 | % | 34.3 | % | |||||
| Per share (diluted) | $0.30 | $0.21 | $0.92 | $0.72 | $0.67 | ||||||
| Variance | 42.9 | % | 27.8 | % | 7.5 | % | |||||
| Cash flows from operating activities, before changes in working capital items (d) | $6,954 | $6,476 | $27,725 | $24,258 | $14,518 | ||||||
| Per share (diluted) | $0.50 | $0.47 | $2.01 | $1.83 | $1.34 | ||||||
| Variance | 6.4 | % | 9.8 | % | 36.6 | % | |||||
| Capital expenditures(e) | $3,863 | $21,814 | $9,748 | $25,201 | $89,352 | ||||||
| Net debt increase (decrease) in the period(f) | ($2,530 | ) | $10,693 | ($12,319 | ) | $2,920 | $54,274 | ||||
| Cash dividend per share | $0.15 | $0.15 | $0.60 | $0.60 | $0.60 | ||||||
| Total dividends(g) | $2,014 | $1,993 | $8,037 | $7,704 | $6,586 | ||||||
| At end of period | |||||||||||
| Total assets(h) | 161,959 | 161,312 | 134,581 | ||||||||
| Non-current liabilities(i) | 64,198 | 68,624 | 59,343 | ||||||||
| Net debt(f) | 53,224 | 65,543 | 62,623 | ||||||||
| Number of stores(j) | 193 | 192 | 140 | ||||||||
| a) | Comparable stores are stores which have been operating for at least 12 months. 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.Comparable stores are stores which have been operating for at least 12 months. 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) | 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. Refer to Table C and Table D for a reconciliation of these measures to net earnings. |
| c) | One-time expenses totaling $2,827,000 were recorded in 2015 in relation to a tax settlement described in the section Income Taxes. Consequently, net earnings attributable to shareholders and net earnings per share for the year ended December 26, 2015 are reflective of this amount. |
| d) | Cash flows from operating activities before changes in working capital and payments of tax related to the tax settlement were $29,458,000. |
| e) | Capital expenditures include amounts financed through debt assumptions, balances of purchase price, issuance of shares and non-controlling interests. |
| f) | Net debt refers to the total of the long-term debt, including the short-term portion, the short-term bank indebtedness and dividends payable, in excess of cash. |
| g) | The amounts of dividends shown in the table above refer to amounts declared in the periods. |
| h) | The increase in total assets in 2014 compared to 2013 is mainly attributable to the acquisition of the assets of Greiche & Scaff. |
| i) | Non-current liabilities are comprised of the long-term portion of the long-term debt, deferred lease inducements, investment tax credits and rent, and deferred tax liabilities. |
| j) | The increase in the number of stores in 2014 is principally due to the acquisition of the Greiche & Scaff business in October 2014. |
TABLE B
| NEW LOOK VISION GROUP INC. |
| Consolidated Statement of Earnings |
| for the quarters and the years ended December 26, 2015 and December 27, 2014 |
In thousands of Canadian dollars, except per share amounts
| Dec. 26, 2015 | Dec. 27, 2014 | 2015 | 2014 | ||||
| $ | $ | $ | $ | ||||
| Revenues | 44,614 | 40,809 | 174,555 | 140,245 | |||
| Materials consumed | 9,099 | 8,516 | 37,185 | 29,456 | |||
| Employee remuneration expenses | 14,530 | 13,834 | 57,530 | 47,046 | |||
| Other operating expenses | 12,019 | 11,911 | 47,896 | 39,352 | |||
| Earnings before depreciation, amortization, loss on disposal and financial expenses | 8,966 | 6,548 | 31,944 | 24,391 | |||
| Depreciation, amortization and loss on disposal | 2,773 | 2,524 | 11,024 | 8,999 | |||
| Financial expenses, net of interest revenues | 919 | 1,136 | 4,419 | 4,209 | |||
| Earnings before income taxes | 5,274 | 2,888 | 16,501 | 11,183 | |||
| Income taxes | |||||||
| Current (a) | 1,665 | 376 | 7,067 | 867 | |||
| Deferred | (132 | ) | 493 | 233 | 2,491 | ||
| Total income taxes | 1,533 | 869 | 7,300 | 3,358 | |||
| Net earnings and comprehensive income (a) | 3,741 | 2,019 | 9,201 | 7,825 | |||
| Net earnings and comprehensive income (net loss and comprehensive loss) attributed to: | |||||||
| Non-controlling interest | (14 | ) | (4 | ) | 44 | 51 | |
| Shareholders of New Look Vision | 3,755 | 2,023 | 9,157 | 7,774 | |||
| 3,741 | 2,019 | 9,201 | 7,825 | ||||
| Net earnings per share | |||||||
| Basic | 0.28 | 0.16 | 0.68 | 0.61 | |||
| Diluted | 0.27 | 0.15 | 0.67 | 0.59 | |||
| a) | The current income tax expense for 2015 includes an amount of $2,589,000 in relation to a tax settlement. Net earnings and comprehensive income for 2015 also reflect interest expense of $249,000 related to this tax settlement. |
TABLE C
| NEW LOOK VISION GROUP INC. |
| Reconciliation of Net Earnings to Adjusted EBITDA |
| for the quarters and the years ended December 26, 2015 and December 27, 2014 |
In thousands of Canadian dollars, except per share amounts
| Fourth Quarter | Year | ||||||||
| 2015 | 2014 | 2015 | 2014 | ||||||
| $ | $ | $ | $ | ||||||
| Net earnings | 3,741 | 2,019 | 9,201 | 7,825 | |||||
| Depreciation, amortization and loss on disposal | 2,773 | 2,524 | 11,024 | 8,999 | |||||
| Financial expenses, net of interest revenues | 919 | 1,136 | 4,419 | 4,209 | |||||
| Income taxes | 1,533 | 869 | 7,300 | 3,358 | |||||
| EBITDA | 8,966 | 6,548 | 31,944 | 24,391 | |||||
| Equity-based compensation | 178 | 65 | 627 | 422 | |||||
| Net loss (gain) from changes in fair value of foreign exchange contracts | 39 | (68 | ) | 58 | (53 | ) | |||
| Acquisition-related costs | 482 | 249 | 897 | 1,563 | |||||
| Restructuring costs | - | 707 | 707 | ||||||
| Adjusted EBITDA | 9,665 | 7,501 | 33,526 | 27,030 | |||||
| Variance in $ | 2,164 | 6,496 | |||||||
| Variance in % | 28.8 | % | 24.0 | % | |||||
| % of revenues | 21.7 | % | 18.4 | % | 19.2 | % | 19.3 | % | |
| Per share (diluted) | 0.70 | 0.55 | 2.44 | 2.05 | |||||
| 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 quarters and the years ended December 26, 2015 and December 27, 2014 |
In thousands of Canadian dollars, except per share amounts
| Fourth Quarter | Year | ||||||||
| 2015 | 2014 | 2015 | 2014 | ||||||
| $ | $ | $ | $ | ||||||
| Net earnings attributable to shareholders | 3,755 | 2,023 | 9,157 | 7,774 | |||||
| Net expenses related to a tax settlement | 59 | 2,827 | |||||||
| Acquisition-related costs | 482 | 249 | 897 | 1,563 | |||||
| Restructuring costs | 707 | 707 | |||||||
| Related income taxes | (129 | ) | (257 | ) | (241 | ) | (611 | ) | |
| Adjusted net earnings attributed to shareholders | 4,167 | 2,722 | 12,640 | 9,433 | |||||
| Variance in $ | 1,445 | 3,207 | |||||||
| Variance in % | 53.1 | % | 34.0 | % | |||||
| % of revenues | 9.3 | % | 6.7 | % | 7.2 | % | 6.8 | % | |
| Per share amount | |||||||||
| Diluted | 0.30 | 0.21 | 0.92 | 0.72 | |||||
| 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 excludingacquisition 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:
(514) 877-4299 ext. 2234
www.newlookvision.ca