New Look Vision Group Inc.
TSX : BCI

New Look Vision Group Inc.

November 13, 2017 23:28 ET

New Look Vision Group Inc. Announces Record Third Quarter Revenues for 2017 and its Quarterly Dividend

MONTRÉAL, QUÉBEC--(Marketwired - Nov. 13, 2017) - New Look Vision Group Inc. (TSX:BCI) ("New Look Vision"), announced today its financial results for the third quarter ended September 30, 2017 and its quarterly dividend.

Third quarter results

New Look Vision reported record revenues of $55.2 million and adjusted EBITDA(1) of $10.8 million for the third quarter ended September 30, 2017, representing increases of 12.8% and 35.6% respectively over last year. The revenue increase was mainly due to the net addition of 19 stores in the last twelve months as well as same store sales growth of 0.9% over last year. This revenue growth as well as significant improvement in operating expense ratios resulted in the strong adjusted EBITDA performance.

Adjusted net earnings attributed to shareholders(1) (defined as net earnings adjusted to remove the impact of acquisition-related costs, equity-based compensation, and other non-comparable costs) for the third quarter were up significantly at $4.1 million compared to $2.8 million in 2016. Adjusted net earnings per share for the quarter compared to the third quarter of 2016 were up at $0.29 per share(2). Net earnings attributed to shareholders were $3.4 million, compared to $2.1 million last year, the increase being mainly due to higher revenues, controlled expense growth, and lower equity-based compensation.

When adjusted for acquisition-related costs and other non-comparable costs, adjusted cash flows from operating activities(1) were $10.7 million or $0.77 per share(2), an increase of $2.8 million, or 35% over last year. Cash flows from operating activities before income taxes paid and changes in working capital items(1) were $9.9 million or $0.71 per share(2) in the third quarter of 2017, up significantly from $7.7 million or $0.56 per share last year. Income tax instalments paid in the third quarter of 2017 were $1.3 million compared to $1.4 million for 2016.

More details on the financial performance of the third quarter ended September 30, 2017 are available in the attachments.

Year-to-date results

Year-to-date revenues and adjusted EBITDA reached a record of $161.6 million and $29.6 million respectively, which represent increases of 12.2% and 15.6% respectively over last year. Net earnings attributed to shareholders were $7.3 million ($0.52 per share)(2) compared to $8.0 million last year ($0.58 per share). Net earnings adjusted to remove the impact of acquisition-related costs, equity-based compensation, and other non-comparable costs were $11.1 million, or $1.4 million over last year. Adjusted net earnings per share (diluted) increased to $0.80, up 14.3% from $0.70 in 2016. Comparable store sales year-to-date were up 2.5% over last year.

Adjusted cash flows from operating activities were $29.3 million or $2.10 per share(2), an increase of $4 million, or 15.8% over last year. Cash flow from operating activities before income taxes paid and changes in working capital were $26.1 million or $1.87 per share (2) in the year-to-date period compared to $24.2 million or $1.75 per share last year, the increase being mainly attributable to increased EBITDA. In the first three quarters of 2017, New Look Vision made total tax payments of $3.7 million compared to $5.6 million in 2016, including prior period adjustments and current year instalments.

President's comments

Antoine Amiel, the President of New Look Vision, stated that: "I am pleased to report that Q3 was a strong quarter of revenue and earnings growth, resulting from a continued comparable store and new store sales growth, a strong focus on improving operating expense ratios and from generating synergies from recent acquisitions. Subsequent to quarter's end, we announced the completion of the acquisition of Iris The Visual Group, strengthening our leadership position across Canada with a network of 378 stores."

Dividend approval

Following the approval of the results of the third quarter of 2017, 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, 2017 to the shareholders of record as of December 22, 2017. 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 and Adjusted Cash Flows from Operating Activities

  1. EBITDA, Adjusted EBITDA, Adjusted net earnings, Cash flows from operating activities before income taxes paid and changes in working capital items, and Adjusted cash flows from operating activities 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 October 31, 2017, New Look Vision had 15,439,260 Class A common shares issued and outstanding. New Look Vision is a leader in the eye care industry in Canada having a network of 378 stores mainly under the New Look Eyewear, Vogue Optical, Greiche & Scaff and Iris 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 periods ended September 30, 2017 and September 24, 2016
In thousands of Canadian dollars, except per share amounts
13 weeks 39 weeks
Sept. 30, 2017 Sept. 24, 2016 Sept. 30, 2017 Sept. 24, 2016
Revenues $ 55,210 $ 48,951 $ 161,642 $ 144,047
Variance 12.8 % 12.2 %
Variance in comparable store sales orders(a) 0.9 % 2.5 %
Adjusted EBITDA(b) $ 10,804 $ 7,965 $ 29,589 $ 25,607
Variance 35.6 % 15.6 %
% of revenues 19.6 % 16.3 % 18.3 % 17.8 %
Per share (basic) $ 0.79 $ 0.59 $ 2.17 $ 1.89
Variance 33.9 % 14.8 %
Per share (diluted) $ 0.77 $ 0.58 $ 2.13 $ 1.85
Variance 32.8 % 15.1 %
Net earnings attributed to shareholders $ 3,392 $ 2,053 $ 7,301 $ 7,986
Variance 65.2 % (8.6 )%
Net earnings per share
Basic $ 0.25 $ 0.15 $ 0.54 $ 0.59
Variance 66.7 % (8.5 %)
Diluted $ 0.24 $ 0.15 $ 0.52 $ 0.58
Variance 60.0 % (10.3 %)
Adjusted net earnings attributed to shareholders(b) $ 4,096 $ 2,832 $ 11,095 $ 9,688
Variance 44.6 % 14.5 %
Per share (basic) $ 0.30 $ 0.21 $ 0.81 $ 0.72
Variance 42.9 % 12.5 %
Per share (diluted) $ 0.29 $ 0.20 $ 0.80 $ 0.70
Variance 45.0 % 14.3 %
Cash flows from operating activities, before income taxes paid and changes in working capital items(b) $ 9,891 $ 7,688 $ 26,096 $ 24,192
Per share (basic) $ 0.72 $ 0.57 $ 1.91 $ 1.79
Variance 26.3 % 6.7 %
Per share (diluted) $ 0.71 $ 0.56 $ 1.87 $ 1.75
Variance 26.8 % 6.9 %
Adjusted cash flows from operating activities(b) $ 10,699 $ 7,923 $ 29,267 $ 25,267
Per share (basic) $ 0.78 $ 0.58 $ 2.15 $ 1.87
Variance 34.5 % 15.0 %
Per share (diluted) $ 0.77 $ 0.57 $ 2.10 $ 1.83
Variance 35.1 % 14.8 %
Capital expenditures(c) $ 5,527 $ 3,490 $ 20,542 $ 30,020
Net debt increase in the period(d) $ 137 $ 183 $ 8,705 $ 20,282
Cash dividend per share(e) $ 0.15 $ 0.15 $ 0.45 $ 0.45
Total dividends(e) $ 2,073 $ 2,016 $ 6,152 $ 6,092
At end of period
Number of stores(f) 231 212
  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, cash flows from operating activities before income taxes paid and changes in working capital items, and adjusted cash flows from operating activities 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 the last twelve months reflects the acquisition of 20 stores, described in Note 7 to the financial statements, as well as four scheduled closures and three store openings.
TABLE B
NEW LOOK VISION GROUP INC.
Consolidated Statement of Earnings
for the periods ended September 30, 2017 and September 24, 2016
In thousands of Canadian dollars, except per share amounts
13 weeks 39 weeks
Sept. 30, 2017 Sept. 24, 2016 Sept. 30, 2017 Sept. 24, 2016
$ $ $ $
Revenues 55,210 48,951 161,642 144,047
Materials consumed 12,602 11,693 36,402 32,513
Employee remuneration expenses 17,746 16,548 54,179 48,087
Other operating expenses 15,171 13,540 45,951 39,864
Earnings before depreciation, amortization, loss on disposal and financial expenses 9,691 7,170 25,110 23,583
Depreciation, amortization and loss on disposal 3,461 2,898 9,874 8,570
Financial expenses, net of interest revenue 1,385 1,030 3,673 2,960
Earnings before income taxes 4,845 3,242 11,563 12,053
Income taxes
Current 1,808 945 5,034 3,812
Deferred (367 ) 242 (831 ) 205
Total income taxes 1,441 1,187 4,203 4,017
Net earnings and comprehensive income 3,404 2,055 7,360 8,036
Net earnings and comprehensive income attributed to:
Non-controlling interest 12 2 59 50
Shareholders of New Look Vision 3,392 2,053 7,301 7,986
3,404 2,055 7,360 8,036
Net earnings per share
Basic 0.25 0.15 0.54 0.59
Diluted 0.24 0.15 0.52 0.58
TABLE C
NEW LOOK VISION GROUP INC.
Reconciliation of Net Earnings to Adjusted EBITDA
for the periods ended September 30, 2017 and September 24, 2016
In thousands of Canadian dollars, except per share amounts
13 weeks 39 weeks
Sept. 30, 2017 Sept. 24, 2016 Sept. 30, 2017 Sept. 24, 2016
$ $ $ $
Net earnings 3,404 2,055 7,360 8,036
Depreciation, amortization and loss on disposal 3,461 2,898 9,874 8,570
Financial expenses, net of interest revenue 1,385 1,030 3,673 2,960
Income taxes 1,441 1,187 4,203 4,017
EBITDA(a) 9,691 7,170 25,110 23,583
Equity-based compensation 233 607 1,110 916
Net loss from changes in fair value of foreign exchange contracts 72 (47 ) 198 33
Acquisition-related costs 808 235 2,866 1,075
Other non-comparable costs(b) - 305 -
Adjusted EBITDA(a) 10,804 7,965 29,589 25,607
Variance in $ 2,839 3,982
Variance in % 35.6 % 15.6 %
% of revenues 19.6 % 16.3 % 18.3 % 17.8 %
Per share (basic) 0.79 0.59 2.17 1.89
Per share (diluted) 0.77 0.58 2.13 1.85
  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.

  2. Other non-comparable costs include one-time expenses connected with personnel transition costs and related matters.
TABLE D
NEW LOOK VISION GROUP INC.
Reconciliation of Net Earnings to Adjusted Net Earnings
for the periods ended September 30, 2017 and September 24, 2016
In thousands of Canadian dollars, except per share amounts
13 weeks 39 weeks
Sept. 30, 2017 Sept. 24, 2016 Sept. 30, 2017 Sept. 24, 2016
$ $ $ $
Net earnings attributed to shareholders 3,392 2,053 7,301 7,986
Acquisition-related costs 808 235 2,866 1,075
Equity-based compensation 233 607 1,110 916
Other non-comparable costs - 305
Related income taxes (337 ) (63 ) (487 ) (289 )
Adjusted net earnings attributed to shareholders(a) 4,096 2,832 11,095 9,688
Variance in $ 1,264 1,407
Variance in % 44.6 % 14.5 %
% of revenues 7.4 % 5.8 % 6.9 % 6.7 %
Per share amount
Basic 0.30 0.21 0.81 0.72
Diluted 0.29 0.20 0.80 0.70
  1. Adjusted net earnings attributed to shareholders 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-related costs, equity-based compensation, and other non-comparable 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 and Adjusted Cash Flows from Operating Activities
for the periods ended September 30, 2017 and September 24, 2016
In thousands of Canadian dollars, except per share amounts
13 weeks 39 weeks
Sept. 30, 2017 Sept. 24, 2016 Sept. 30, 2017 Sept. 24, 2016
$ $ $ $
Earnings before income taxes 4,845 3,242 11,563 12,053
Adjustments:
Depreciation, amortization and loss on disposal 3,461 2,898 9,874 8,570
Amortization of deferred lease inducements and variation of deferred rent (40 ) (90 ) (143 ) (320 )
Equity-based compensation expense 233 607 1,110 916
Other 7 1 19 13
Financial expenses 1,396 1,039 3,703 2,988
Interest revenue (11 ) (9 ) (30 ) (28 )
Cash flows from operating activities, before income taxes paid and changes in working capital items 9,891 7,688 26,096 24,192
Income taxes paid (1,326 ) (1,381 ) (3,707 ) (5,621 )
Cash flows from operating activities, before changes in working capital items 8,565 6,307 22,389 18,571
Changes in working capital items 1,485 (185 ) 353 (1,779 )
Cash flows from operating activities 10,050 6,122 22,742 16,792
13 weeks 39 weeks
Sept. 30, 2017 Sept. 24, 2016 Sept. 30, 2017 Sept. 24, 2016
$ $ $ $
Cash flows from operating activities 10,050 6,122 22,742 16,792
Income taxes paid 1,326 1,381 3,707 5,621
Changes in working capital items (1,485 ) 185 (353 ) 1,779
Acquisition-related costs 808 235 2,866 1,075
Other non-comparable costs 305
Adjusted cash flows from operating activities(a) 10,699 7,923 29,267 25,267
  1. Adjusted cash flows from operating activities 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 operating cash flows excluding acquisition-related costs and other non-comparable costs, which may vary significantly from quarter to quarter. Investors should be cautioned that adjusted cash flows from operating activities should not be considered as an alternative to cash flows from operating activities as determined under IFRS.

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