SOURCE: Unilens Vision, Inc.

February 14, 2013 08:28 ET

Unilens Vision Reports Second Quarter Operating Results

Custom Soft Lens Sales Increase 11% From Prior-Year Levels

LARGO, FL--(Marketwire - Feb 14, 2013) - Unilens Vision Inc. (OTCQB: UVIC) (TSX VENTURE: UVI), which develops, licenses, manufactures, distributes and markets specialty contact lenses, today reported its operating results for the second quarter and first half of FY2013.

Second Quarter Highlights:

  • Product sales decrease 2.1% to approximately $1.4 million
  • Custom soft lens sales rise 11.0% from prior-year levels
  • Royalty income declines 10.9% vs. second quarter of FY2012
  • Operating expenses decrease 0.9% relative to year-earlier quarter
  • Company earns $254,000, or $0.11 per diluted share
  • Interest expense declines 58.2% due to lower borrowings and prior-year refinancing
  • Company pays 25th consecutive quarterly cash dividend at $0.18 per share annualized rate 
  • Current cash dividend provides shareholders with 5.8% annualized yield

"While competitor product offerings, along with a sluggish economy, have continued to curtail our growth in recent quarters, we remain optimistic that the launch of our new silicone hydrogel multifocal lens utilizing our patented technology, which is scheduled for a national roll-out over the next several months, coupled with favorable market demographics, will propel the Company's revenue growth on a longer-term basis," noted Michael Pecora, Chief Executive Officer of Unilens Vision Inc. "Sales of our custom lens products should continue to play an important role in our long-term growth strategy, primarily due to continued healthy demand for our C-VUE Advanced® HydraVUE™ line of completely customizable silicone hydrogel contact lenses for monthly replacement."

"We have worked diligently to contain costs, and the success of these efforts was evident in a 0.9% reduction in operating expenses during the most recent quarter, when compared with the prior-year period," continued Pecora. "Furthermore, a number of improvements to our manufacturing processes during the past few quarters have allowed us to maintain gross profit margins consistent with year-earlier levels. As a result, our pretax profit margin improved slightly, to 18.8% of revenue in the second quarter of Fiscal 2013, when compared with a pretax margin of 18.7% in the first quarter of the fiscal year."

For the three months ended December 31, 2012 (Q2 of FY2013), total revenue including royalty income decreased 4.8% to $2,012,049, compared with total revenue of $2,113,305 in the second quarter of FY2012. Total product sales declined 2.1% to $1,429,475 in the most recent quarter, versus $1,459,411 in the prior-year quarter. While sales in the disposable lens category decreased 7.6%, sales of custom soft lenses increased 11.0% when compared with the corresponding period of FY2012, due primarily to continued strong demand for the Company's new C-VUE Advanced® HydraVUE™ line of fully customizable silicone hydrogel contact lenses for monthly replacement, which was launched in January 2011. 

Royalty income from Bausch & Lomb declined 10.9% to $582,574 in the most recent quarter, compared with $653,894 in the three months ended December 31, 2011. 

Gross profit margins were relatively unchanged at 37.1% of product sales during the second quarter of FY2013, versus 37.2% in the second quarter of FY2012. 

Operating expenses decreased 0.9% to $705,952 in the three months ended December 31, 2012, compared with $712,280 in the three months ended December 31, 2011, as modestly higher administrative expenses were more than offset by modest declines in sales and marketing expenses and research and development costs.

Net non-operating expenses declined 60.2% to $27,560, versus $69,273 a year earlier, primarily due to a 58.2% reduction in interest expense resulting from lower debt levels and the debt refinancing in May 2012.

Pretax income decreased 8.7% to $378,841 in the quarter ended December 31, 2012, compared with $414,861 in the year-earlier quarter. The Company reported a 9.8% reduction in net income, which totaled $253,935 in the second quarter of FY2013, versus $281,626 in the second quarter of FY2012. Diluted earnings per share declined to $0.11 in the most recent quarter, compared with $0.12 in the prior-year quarter.

For the six months ended December 31, 2012 (First Half of FY2013), total revenue including royalty income decreased 6.3% to $4,050,660, compared with total revenue of $4,321,035 in the first half of FY2012. Total product sales declined 3.2% to $2,939,129 in the first half of FY2013, versus $3,035,941 in the prior-year period. Sales in the disposable lens category decreased 8.2%, while sales of custom soft lenses increased 13.3%, relative to year-earlier levels. 

Royalty income from Bausch & Lomb declined 13.5% to $1,111,531 in the most recent six-month period, compared with $1,285,094 in the six months ended December 31, 2011. 

Gross profit margins were relatively flat at 39.1% of product sales during the first half of FY2013, versus 39.2% in the first half of FY2012. 

Operating expenses increased 0.3% to $1,442,589 in the six months ended December 31, 2012, compared with $1,437,745 in the six months ended December 31, 2011, as modestly higher administrative expenses and sales and marketing expenses were partially offset by slightly lower research and development costs.

Net non-operating expenses declined 59.0% to $56,987, versus $139,037 a year earlier, primarily due to a 57.1% reduction in interest expense resulting from lower debt levels and the debt refinancing in May 2012.

Pretax income decreased 15.2% to $760,622 in the six months ended December 31, 2012, compared with $897,297 in the corresponding period of the previous fiscal year. The Company reported a 15.9% reduction in net income, which totaled $508,939 in the first half of FY2013, versus $605,080 in the prior-year period. Diluted earnings per share declined to $0.21 in the six months ended December 31, 2012, compared with $0.26 in the six months ended December 31, 2011.

The Company paid its 25th consecutive quarterly cash dividend in November 2012 and recently declared its 26th quarterly cash dividend of $0.045 per share, which will be paid February 22, 2013 to shareholders of record February 12, 2013. The cash dividend provides an annualized current yield of 5.8% to Unilens shareholders based upon a recent common stock price of $3.10 per share.

The amount and frequency of future dividends will depend upon earnings, cash flow, and other aspects of the Company's business as determined and declared by the Board of Directors. 

About Unilens Vision Inc. - "The Independent Eye Care Professionals' Contact Lens Company"

Established in 1989, Unilens Vision Inc., through its wholly owned subsidiary Unilens Corp., USA, located in Largo, Florida, and its wholly owned subsidiary Unilens Vision Sciences Inc., develops, licenses, manufactures, distributes and markets contact lenses primarily under the C-Vue® brand directly to Independent Eye Care Professionals. Additional information on the Company may be accessed on the Internet at www.unilens.com. The Company's common stock is listed on the OTCQB under the symbol "UVIC" and on the Canadian TSX Venture Exchange under the symbol "UVI".

The information contained in this news release, other than historical information, consists of forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those described in such statements. For a discussion of certain factors that could cause actual results to differ materially from those described in the forward-looking statements, please refer to the Company's most recent filings with the SEC and the TSX Venture Exchange. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

(Financial Highlights Follow)

   
UNILENS VISION INC.  
SECOND QUARTER - FISCAL 2013  
CONDENSED CONSOLIDATED FINANCIAL INFORMATION  
(All figures in U.S. Dollars)  
   
RESULTS OF OPERATIONS                        
    Three Months Ended     Six Months Ended  
    December 31, 2012     December 31, 2011     December 31, 2012     December 31, 2011  
  Revenues:                                
    Sales   $ 1,429,475     $ 1,459,411     $ 2,939,129     $ 3,035,941  
    Royalty income     582,574       653,894       1,111,531       1,285,094  
  Total revenues     2,012,049       2,113,305       4,050,660       4,321,035  
  Operating costs and expenses:                                
    Cost of sales     899,696       916,891       1,790,462       1,846,956  
    Expenses     705,952       712,280       1,442,589       1,437,745  
  Total operating costs and expenses     1,605,648       1,629,171       3,233,051       3,284,701  
  Operating income     406,401       484,134       817,609       1,036,334  
  Other non-operating items:                                
    Other income     1,526       278       3,156       1,308  
    Interest expense     (29,086 )     (69,551 )     (60,143 )     (140,345 )
  Total other non-operating items     (27,560 )     (69,273 )     (56,987 )     (139,037 )
  Income before income tax expense     378,841       414,861       760,622       897,297  
  Income tax expense     124,906       133,235       251,683       292,217  
  Net income for the period   $ 253,935     $ 281,626     $ 508,939     $ 605,080  
  Net income per common share:                                
    Basic   $ 0.11     $ 0.12     $ 0.21     $ 0.26  
    Diluted   $ 0.11     $ 0.12     $ 0.21     $ 0.26  
  Weighted average shares outstanding     2,369,354       2,369,354       2,369,354       2,369,354  
                                 
CASH FLOWS                                
  Provided (used) by:                                
    Operating activities                   $ 628,302     $ 940,424  
    Investing activities                     (92,644 )     (389,158 )
    Financing activities                     (644,683 )     (957,526 )
  Decrease in cash                   $ (109,025 )   $ (406,260 )
                                 
BALANCE SHEET                                
            June 30, 2012     December 31, 2012     December 31, 2011  
  Cash and cash equivalents           $ 374,977     $ 265,952     $ 195,100  
  Total assets             3,824,344       3,740,393       3,904,579  
  Current liabilities             1,772,583       1,748,912       1,675,479  
  Total liabilities             4,712,847       4,333,199       5,150,786  
  Stockholders' deficit           $ (888,503 )   $ (592,806 )   $ (1,246,207 )
                                   

Contact Information

  • For more information, please contact:

    Leonard F. Barker
    CFO
    Unilens Vision Inc.
    (727) 544-2531
    len.barker@unilens.com

    or

    RJ Falkner & Company, Inc.
    Investor Relations Counsel
    (800) 377-9893
    info@rjfalkner.com