New Look Vision Group Inc.
TSX : BCI

New Look Vision Group Inc.

November 04, 2016 22:23 ET

New Look Vision Group Inc. Announces Record Third Quarter Results for the Period Ended September 24, 2016 and Its Quarterly Dividend

MONTRÉAL, QUÉBEC--(Marketwired - Nov. 4, 2016) - New Look Vision Group Inc. (TSX:BCI) ("New Look Vision"), announced today its financial results for the third quarter ended September 24, 2016 and its quarterly dividend.

Third quarter results

New Look Vision reported record revenues of $49.0 million and adjusted EBITDA(1) of $8.0 million for the third quarter ended September 24, 2016, representing increases of 18.3% and 12.5% respectively over last year. The increases were mainly due to the net addition of 20 stores in the last twelve months as well as same store sales growth of 9.1% over last year.

Net earnings attributed to shareholders for the third quarter were $2.1 million (or $0.15 per share(2)) compared to a loss of ($0.6) million last year (or ($0.05) per share), the increase being due to lower financial expenses and lower income tax expense, in addition to the strong sales and operating performance. Adjusted net earnings attributed to shareholders(1) for the third quarter, that is net earnings adjusted to remove the impact of acquisition-related costs were $0.16(2) per share compared to $0.16 for last year.

Cash flow from operating activities before income taxes paid and changes in working capital items was $7.7 million or $0.56 per share(2) in the third quarter of 2016 compared to $6.8 million or $0.50 per share last year. Income tax instalments paid in the third quarter of 2016 were $1.4 million compared to $1.1 million for 2015.

Year-to-date results

Year-to-date revenues and adjusted EBITDA reached a record $144.0 million and $25.6 million respectively, which represent increases of 10.9% and 7.3% respectively over last year. Net earnings attributed to shareholders were $8.0 million ($0.58 per share)(2) compared to $5.4 million last year ($0.39 per share). Net earnings adjusted to remove the impact of acquisition-related costs were $8.8 million, or $0.30 million over last year. Adjusted net earnings per share (2) increased to $0.63 from $0.62 last year, despite additional depreciation and amortization and additional shares issued over the last four quarters. Same store sales year-to-date were up 4.0% over last year.

Cash flow from operating activities before income taxes paid and changes in working capital was $24.2 million or $1.75 per share in the year-to-date period compared to $23.1 million or $1.68 per share last year. In the first nine months of 2016, New Look Vision made total tax payments of $5.6 million compared to $2.4 million last year, including prior period adjustments and current year instalments.

More detail on the financial performance of the third quarter and the year-to-date period ended September 24, 2016 is available in the attachments.

President's comments

Antoine Amiel, the President of New Look Vision, stated that: "Propelled by a strong comparable store sales performance, as well as by the ongoing integration of recently acquired locations, in Q3 the Company achieved a very positive financial and operating performance with revenues and profitability hitting record levels for this reporting period. We also continue to aggressively monitor acquisition opportunities arising from the ongoing consolidation of the Canadian retail optical industry and, subsequent to quarter end, announced that the company had entered into an agreement to acquire a local chain in British Columbia, Canada's third largest market. This follows the February 9, 2016 acquisition of a chain of 15 stores in Southwestern Ontario, operating under the iVision banner."

Dividend approval

Following the approval of the results of the third quarter of 2016 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 December 31, 2016 to the shareholders of record as of December 22, 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, 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
  • Table E - Reconciliation of Cash Flows from Operating Activities, Before Income Taxes Paid and Changes in Working Capital Items
  1. EBITDA, Adjusted EBITDA, Adjusted net earnings and Cash flows from operating activities before income taxes paid and changes in working capital items 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. See Table E for reconciliation of cash flows.
  2. Per share amounts are expressed on a diluted basis.

As of September 30, 2016, New Look Vision had 13,564,878 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 212 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.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.

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

TABLE A
NEW LOOK VISION GROUP INC.
Highlights
for the third quarters and 39-week periods ended September 24, 2016 and September 26, 2015
In thousands of Canadian dollars, except per share amounts
13 weeks 39 weeks
Sept. 24, 2016 Sept. 26, 2015 Sept. 24, 2016 Sept. 26, 2015
Revenues $48,951 $41,379 $144,047 $129,941
Variance 18.3 % 10.9 %
Variance in comparable store sales orders(a) 9.1 % 4 %
Adjusted EBITDA(b) $7,965 $7,079 $25,607 $23,861
Variance 12.5 % 7.3 %
% of revenues 16.3 % 17.1 % 17.8 % 18.4 %
Per share (diluted) $0.58 $0.51 $1.85 $1.73
Variance 13.7 % 6.9 %
Net earnings (loss) attributed to shareholders $2,053 $(641 ) $7,986 $5,402
Variance 420.3 % 47.8 %
Net earnings (loss) per share
Basic $0.15 ($0.05 ) $0.59 $0.40
Diluted $0.15 ($0.05 ) $0.58 $0.39
Variance 400.0 % 48.7 %
Adjusted net earnings attributed to shareholders(b) $2,225 $2,178 $8,772 $8,473
Variance 2.2 % 3.5 %
Per share (diluted) $0.16 $0.16 $0.63 $0.62
Variance - % 1.6 %
Cash flows from operating activities, before income taxes paid and changes in working capital items(b) $7,688 $6,831 $24,192 $23,111
Per share (diluted) $0.56 $0.50 $1.75 $1.68
Variance 12.0 % 4.2 %
Capital expenditures(c) $3,458 $1,945 $30,028 $5,659
Net debt increase (decrease) in the period(d) $183 ($2,339 ) $20,282 ($9,789 )
Cash dividend per share(e) $0.15 $0.15 $0.45 $0.45
Total dividends(e) $2,016 $2,011 $6,092 $6,023
At end of period
Number of stores(f) 212 192
  1. 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, regardless of delivery.
  2. EBITDA, adjusted EBITDA, adjusted net earnings and cash flows from operating activities before income taxes paid and changes in working capital items 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. Also, refer to Table E for reconciliation of cash flows.
  3. Capital expenditures include amounts financed through debt assumptions, balances of purchase price, issuance of shares and non-controlling interests.
  4. Net debt refers to the total of the long-term debt, including the short-term portion and borrowings under the revolving facility, and dividends payable, in excess of cash.
  5. The amounts of dividends shown in the table above refer to amounts declared in the periods.
  6. The increase in the number of stores in 2016 reflects the acquisition of 22 stores, described in Note 7 to the financial statements, as well as four scheduled closures and two store openings.
TABLE B
NEW LOOK VISION GROUP INC.
Consolidated Statement of Earnings
for the third quarters and 39-week periods ended September 24, 2016 and September 26, 2015
In thousands of Canadian dollars, except per share amounts
13 weeks 39 weeks
Sept. 24, 2016 Sept. 26, 2015 Sept. 24, 2016 Sept. 26, 2015
$ $ $ $
Revenues 48,951 41,379 144,047 129,941
Materials consumed 11,693 9,001 32,513 28,086
Employee remuneration expenses 16,548 13,806 48,087 43,000
Other operating expenses 13,540 11,727 39,864 35,877
Earnings before depreciation, amortization, loss on disposal and financial expenses 7,170 6,845 23,583 22,978
Depreciation, amortization and loss on disposal 2,898 2,823 8,570 8,251
Financial expenses, net of interest revenues 1,030 1,262 2,960 3,500
Earnings before income taxes 3,242 2,760 12,053 11,227
Income taxes
Current 945 3,570 3,812 5,402
Deferred 242 (187 ) 205 365
Total income taxes 1,187 3,383 4,017 5,767
Net earnings (loss) and comprehensive income (loss) 2,055 (623 ) 8,036 5,460
Net earnings (loss) and comprehensive income (loss) attributed to:
Non-controlling interest 2 18 50 58
Shareholders of New Look Vision 2,053 (641 ) 7,986 5,402
2,055 (623 ) 8,036 5,460
Net earnings (loss) per share
Basic 0.15 (0.05 ) 0.59 0.40
Diluted 0.15 (0.05 ) 0.58 0.39
TABLE C
NEW LOOK VISION GROUP INC.
Reconciliation of Net Earnings (Loss) to Adjusted EBITDA
for the third quarters and the 39-week periods ended September 24, 2016 and September 26, 2015
In thousands of Canadian dollars, except per share amounts
13 weeks 39 weeks
Sept. 24, 2016 Sept. 26, 2015 Sept. 24, 2016 Sept. 26, 2015
$ $ $ $
Net earnings (loss) 2,055 (623 ) 8,036 5,460
Depreciation, amortization and loss on disposal 2,898 2,823 8,570 8,251
Financial expenses, net of interest revenues 1,030 1,262 2,960 3,500
Income taxes 1,187 3,383 4,017 5,767
EBITDA(a) 7,170 6,845 23,583 22,978
Equity-based compensation 607 102 916 449
Net loss (gain) from changes in fair value of foreign exchange contracts (47 ) 62 33 19
Acquisition-related costs 235 70 1,075 415
Adjusted EBITDA(a) 7,965 7,079 25,607 23,861
Variance in $ 886 1,746
Variance in % 12.5 % 7.3 %
% of revenues 16.3 % 17.1 % 17.8 % 18.4 %
Per share (diluted) 0.58 0.51 1.85 1.73
  1. 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 considered as an alternative to net earnings or cash flows as determined under IFRS.
TABLE D
NEW LOOK VISION GROUP INC.
Reconciliation of Net Earnings (Loss) to Adjusted Net Earnings
for the third quarters and the 39-week periods ended September 24, 2016 and September 26, 2015
In thousands of Canadian dollars, except per share amounts
13 weeks 39 weeks
Sept. 24, 2016 Sept. 26, 2015 Sept. 24, 2016 Sept. 26, 2015
$ $ $ $
Net earnings (loss) attributed to shareholders 2,053 (641 ) 7,986 5,402
Net expenses related to an income tax settlement 2,768 2,768
Acquisition-related costs 235 70 1,075 415
Related income taxes (63 ) (19 ) (289 ) (112 )
Adjusted net earnings attributed to shareholders(a) 2,225 2,178 8,772 8,473
Variance in $ 47 299
Variance in % 2.2 % 3.5 %
% of revenues 4.5 % 5.3 % 6.1 % 6.5 %
Per share amount
Diluted 0.16 0.16 0.63 0.62
  1. 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 considered as an alternative to net earnings as determined under IFRS.
TABLE E
NEW LOOK VISION GROUP INC.
Reconciliation of Cash Flows from Operating Activities, Before Income Taxes Paid and Changes in Working Capital Items to Cash Flows from Operating Activities
for the third quarters and the 39-week periods ended September 24, 2016 and September 26, 2015
In thousands of Canadian dollars, except per share amounts
13 weeks 39 weeks
Sept. 24, 2016 Sept. 26, 2015 Sept. 24, 2016 Sept. 26, 2015
$ $ $ $
Earnings before income taxes 3,242 2,760 12,053 11,227
Adjustments:
Depreciation, amortization and loss on disposal 2,898 2,823 8,570 8,251
Amortization of deferred lease inducements and variation of deferred rent (90 ) (101 ) (320 ) (312 )
Equity-based compensation expense 607 102 916 449
Other 1 (15 ) 13 (4 )
Financial expenses 1,039 1,270 2,988 3,544
Interest revenue (9 ) (8 ) (28 ) (44 )
Cash flows from operating activities, before income taxes paid and changes in working capital items 7,688 6,831 24,192 23,111
Income taxes paid (1,381 ) (1,146 ) (5,621 ) (2,384 )
Cash flows from operating activities, before changes in working capital items 6,307 5,685 18,571 20,727
Changes in working capital items (185 ) 357 (1,779 ) 494
Cash flows from operating activities 6,122 6,042 16,792 21,221

Contact Information

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