New Look Vision Group Inc. Announces Second Quarter Results for the Period Ended June 25, 2016 and Its Quarterly Dividend
Marketwired
MONTREAL, QUEBEC--(Marketwired - Aug 5, 2016) - New Look Vision Group Inc. (BCI.TO) ("New Look Vision"), announced today its financial results for the second quarter ended June 25, 2016 and its quarterly dividend.
Second quarter results
New Look Vision reported record revenues of $50.5 million and adjusted EBITDA(1) of $10.4 million for the second quarter ended June 25, 2016, representing increases of 8.0% and 2.9% 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 1.8% over last year.
Net earnings attributed to shareholders for the second quarter were $4.1 million (or $0.30 per share(2)) compared to $4.4 million last year (or $0.32 per share), the decrease being due to additional depreciation, amortization and financial expenses arising from acquisitions, and income tax adjustments for prior years. Adjusted net earnings attributed to shareholders(1) for the second quarter, that is net earnings adjusted to remove the impact of acquisition-related costs were $0.32(2) per share compared to $0.33 for last year. Income tax adjustments for prior years represented $196,000.
Cash flow from operating activities before income taxes paid and changes in working capital items was $9.8 million or $0.71 per share(2) in the second quarter of 2016 compared to $9.6 million or $0.70 per share last year. Income tax instalments paid in the second quarter of 2016 were $1.5 million compared to $0.7 million for 2015.
Year-to-date results
Year-to-date revenues and adjusted EBITDA reached a record $95.1 million and $17.6 million respectively, which represent increases of 7.4% and 5.1% respectively over last year. Net earnings attributed to shareholders were $5.9 million ($0.43 per share)(2) compared to $6.0 million last year ($0.44 per share). Net earnings adjusted to remove the impact of acquisition-related costs were $6.5 million, or $0.25 million over last year. Adjusted net earnings per share (2) increased to $0.47 from $0.46 last year, despite additional depreciation and amortization and additional shares issued over the last four quarters. Same store sales orders year-to-date were up 1.5% over last year.
Cash flow from operating activities before income taxes paid and changes in working capital was $16.5 million or $1.19 per share in the year-to-date period compared to $16.3 million or $1.18 per share last year. In the first six months of 2016, New Look Vision made total tax payments of $4.2 million compared to $1.2 million last year, including prior period adjustments and current year instalments.
More detail on the financial performance of the second quarter and the year-to-date period ended June 25, 2016 is available in the attachments.
President's comments
Antoine Amiel, the President of New Look Vision, stated that: "Q2 was a solid quarter of revenue and profitable growth as we focused on operations and the integration of the various acquisitions completed in recent years. We continue to aggressively monitor opportunities arising from the ongoing consolidation of the Canadian retail optical industry and hope to successfully expand our footprint across the country."
Dividend approval
Following the approval of the results of the second 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 September 30, 2016 to the shareholders of record as of September 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, 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 June 30, 2016, New Look Vision had 13,552,593 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 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 the second quarters and 26-week periods ended June 25, 2016 and June 27, 2015
In thousands of Canadian dollars, except per share amounts
13 weeks
26 weeks
June 25, 2016
June 27, 2015
June 25, 2016
June 27, 2015
Revenues
$50,506
$46,777
$95,096
$88,562
Variance
8.0
%
7.4
%
Variance in comparable store sales orders(a)
1.8
%
1.5
%
Adjusted EBITDA(b)
$10,372
$10,080
$17,642
$16,782
Variance
2.9
%
5.1
%
% of revenues
20.5
%
21.5
%
18.6
%
18.9
%
Per share (diluted)
$0.75
$0.73
$1.28
$1.22
Variance
2.7
%
4.9
%
Net earnings attributed to shareholders
$4,093
$4,412
$5,933
$6,043
Variance
(7.2
)%
(1.8
)%
Net earnings per share
Basic
$0.30
$0.33
$0.44
$0.45
Diluted
$0.30
$0.32
$0.43
$0.44
Variance
(6.3
)%
(2.3
)%
Adjusted net earnings attributed to shareholders(b)
$4,461
$4,542
$6,547
$6,295
Variance
(1.8
)%
4.0
%
Per share (diluted)
$0.32
$0.33
$0.47
$0.46
Variance
(3.0
)%
2.2
%
Cash flows from operating activities, before income taxes paid and changes in working capital items(b)
$9,779
$9,645
$16,504
$16,280
Per share (diluted)
$0.71
$0.70
$1.19
$1.18
Variance
1.4
%
0.8
%
Capital expenditures(c)
$7,629
$2,159
$26,537
$3,788
Net debt increase (decrease) in the period(d)
$2,606
($5,048
)
$20,099
($7,450
)
Cash dividend per share(e)
$0.15
$0.15
$0.30
$0.30
Total dividends(e)
$2,048
$2,010
$4,076
$4,012
At end of period
Number of stores(f)
212
192
(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, regardless of delivery.
(b)
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.
(c)
Capital expenditures include amounts financed through debt assumptions, balances of purchase price, issuance of shares and non-controlling interests.
(d)
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.
(e)
The amounts of dividends shown in the table above refer to amounts declared in the periods.
(f)
The increase in the number of stores in 2016 reflects the acquisition of 21 stores, described in Note 7 to the financial statements, as well as two scheduled closures and one store opening.
TABLE B
NEW LOOK VISION GROUP INC.
Consolidated Statement of Earnings
for the second quarters and 26-week periods ended June 25, 2016 and June 27, 2015
In thousands of Canadian dollars, except per share amounts
13 weeks
26 weeks
June 25, 2016
June 27, 2015
June 25, 2016
June 27, 2015
$
$
$
$
Revenues
50,506
46,777
95,096
88,562
Materials consumed
11,129
10,082
20,820
19,085
Employee remuneration expenses
16,204
14,798
31,539
29,194
Other operating expenses
13,443
12,313
26,324
24,150
Earnings before depreciation, amortization, loss on disposal and financial expenses
9,730
9,584
16,413
16,133
Depreciation, amortization and loss on disposal
2,873
2,707
5,672
5,428
Financial expenses, net of interest revenues
983
774
1,930
2,238
Earnings before income taxes
5,874
6,103
8,811
8,467
Income taxes
Current
1,739
1,450
2,867
1,832
Deferred
19
220
(37
)
552
Total income taxes
1,758
1,670
2,830
2,384
Net earnings and comprehensive income
4,116
4,433
5,981
6,083
Net earnings and comprehensive income attributed to:
Non-controlling interest
23
21
48
40
Shareholders of New Look Vision
4,093
4,412
5,933
6,043
4,116
4,433
5,981
6,083
Net earnings per share
Basic
0.30
0.33
0.44
0.45
Diluted
0.30
0.32
0.43
0.44
TABLE C
NEW LOOK VISION GROUP INC.
Reconciliation of Net Earnings to Adjusted EBITDA
for the second quarters and the 26-week periods ended June 25, 2016 and June 27, 2015
In thousands of Canadian dollars, except per share amounts
13 weeks
26 weeks
June 25, 2016
June 27, 2015
June 25, 2016
June 27, 2015
$
$
$
$
Net earnings
4,116
4,433
5,981
6,083
Depreciation, amortization and loss on disposal
2,873
2,707
5,672
5,428
Financial expenses, net of interest revenues
983
774
1,930
2,238
Income taxes
1,758
1,670
2,830
2,384
EBITDA(a)
9,730
9,584
16,413
16,133
Equity-based compensation
149
149
309
347
Net loss (gain) from changes in fair value of foreign exchange contracts
(10
)
169
80
(43
)
Acquisition-related costs
503
178
840
345
Adjusted EBITDA(a)
10,372
10,080
17,642
16,782
Variance in $
292
860
Variance in %
2.9
%
5.1
%
% of revenues
20.5
%
21.5
%
18.6
%
18.9
%
Per share (diluted)
0.75
0.73
1.28
1.22
(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 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 to Adjusted Net Earnings
for the second quarters and the 26-week periods ended June 25, 2016 and June 27, 2015
In thousands of Canadian dollars, except per share amounts
13 weeks
26 weeks
June 25, 2016
June 27, 2015
June 25, 2016
June 27, 2015
$
$
$
$
Net earnings attributed to shareholders
4,093
4,412
5,933
6,043
Acquisition-related costs
503
178
840
345
Related income taxes
(135
)
(48
)
(226
)
(93
)
Adjusted net earnings attributed to shareholders (a)
4,461
4,542
6,547
6,295
Variance in $
(81
)
252
Variance in %
(1.8
)%
4.0
%
% of revenues
8.8
%
9.7
%
6.9
%
7.1
%
Per share amount
Diluted
0.32
0.33
0.47
0.46
(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 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 second quarters and the 26-week periods ended June 25, 2016 and June 27, 2015
In thousands of Canadian dollars, except per share amounts
13 weeks
26 weeks
June 25, 2016
June 27, 2015
June 25, 2016
June 27, 2015
$
$
$
$
Earnings before income taxes
5,874
6,103
8,811
8,467
Items not affecting cash:
Depreciation, amortization and loss on disposal
2,873
2,707
5,672
5,428
Amortization of deferred lease inducements and variation of deferred rent
(113
)
(92
)
(230
)
(211
)
Equity-based compensation expense
149
149
309
347
Other non-cash expenses and revenues
13
4
12
11
Financial expenses
992
794
1,949
2,274
Interest revenue
(9
)
(20
)
(19
)
(36
)
Cash flows from operating activities, before income taxes paid and changes in working capital items
9,779
9,645
16,504
16,280
Income taxes paid
(1,522
)
(678
)
(4,240
)
(1,238
)
Cash flows from operating activities, before changes in working capital items
