MONTREAL, QUEBEC--(Marketwire - June 3, 2011) - New Look Eyewear Inc. (TSX:BCI) ("New Look"), announced today that revenues for the first quarter of 2011 reached $19.1 million, an increase of 10.4% over the corresponding quarter of last year. Revenues from comparable stores increased by 7.7%. EBITDA(1) for the first quarter reached $3.4 million, an increase of 33% over last year. Net earnings for the quarter were $1.6 million ($0.16 per share) while adjusted (2) net earnings for the first quarter of 2010 were $1.1 million ($0.11 per share). First quarter operating cash flows, before changes in non-cash working capital items, amount to $0.32 per share in comparison of $0.19 per share last year.
Martial Gagné, the President of New Look commented: "We ended the year 2010 on a very positive note and we continued this momentum during the first quarter of 2011. We are benefiting from the numerous actions and initiatives commenced in previous years. Our customers recognize the quality of our services and products while they continue to respond favourably to our offerings. Based on the current activity in our stores, we expect to have a strong second quarter".
Following the approval of the results of the first quarter, the Board of Directors of New Look approved today the payment of a dividend of $0.15 payable on June 30th, 2011 to the shareholders of record as of June 21st, 2011. The dividend qualifies as "eligible dividend", i.e. a dividend entitling shareholders who are Canadian resident individuals to a higher dividend tax credit.
SEE TABLE A ATTACHED: CONSOLIDATED STATEMENT OF EARNINGS
- See Table B attached for a definition of EBITDA with a reconciliation of net earnings to EBITDA.
- See Table C attached for the reconciliation of net earnings to adjusted net earnings.
On March 2, 2010, Benvest New Look Income Fund (formerly TSX: BCI.UN) was converted into a corporation named New Look Eyewear Inc. (TSX:BCI) . As of April 30, 2011, New Look had 10,054,732 common shares issued and outstanding. New Look is a leader in the eye care industry in Eastern Canada operating a network of corporate stores and a laboratory using state-of-the-art technologies.
This press release may contain forward-looking statements that reflect the current views and / or expectations of New Look with respect to its performance, business, and future events. Such statements are subject to a number of risks, uncertainties, and assumptions. Actual results and events may vary.
| NEW LOOK EYEWEAR INC. | ||||||
| Consolidated Statement of Earnings | ||||||
| For the quarters ended March 26, 2011 and March 27, 2010 | ||||||
| Unaudited - In thousands of Canadian dollars, except per share or unit amounts | ||||||
| March 26, 2011 | March 27, 2010 | |||||
| $ | $ | |||||
| Revenues | 19,117 | 17,312 | ||||
| Materials consumed, net of changes in inventory | 3,903 | 3,856 | ||||
| Employee benefits expense | 5,926 | 5,432 | ||||
| Other operating expenses | 5,948 | 5,514 | ||||
| 15,777 | 14,802 | |||||
| Earnings before the following items | 3,340 | 2,510 | ||||
| Depreciation and amortization | (963 | ) | (821 | ) | ||
| Financial expenses, net of interest revenues | (118 | ) | (77 | ) | ||
| Cost of conversion to a corporation | (757 | ) | ||||
| Earnings before income taxes | 2,259 | 855 | ||||
| Income taxes | ||||||
| Current (recovery) | (19 | ) | 1 | |||
| Deferred | 672 | 379 | ||||
| Adjustment related to corporate conversion | (8,285 | ) | ||||
| 653 | (7,905 | ) | ||||
| Net earnings and comprehensive income | 1,606 | 8,760 | ||||
| Net earnings and comprehensive income attributed to: | ||||||
| Non-controlling interest | 8 | 7 | ||||
| Shareholders of New Look or unitholders of the Fund | 1,598 | 8,753 | ||||
| 1,606 | 8,760 | |||||
| Net earnings per share or unit | ||||||
| Basic and diluted | 0.16 | 0.87 | ||||
| Cash flows from operating activities before change in non-cash working capital | ||||||
| Per share or unit (basic and diluted) | 0.32 | 0.19 | ||||
| NEW LOOK EYEWEAR INC. | |||||
| Reconciliation of net earning and EBITDA | |||||
| For the quarters ended March 26, 2011 and March 27, 2010 | |||||
| Unaudited - In thousands of Canadian dollars | |||||
| 2011 | 2010 | ||||
| $ | $ | ||||
| Net earnings | 1,606 | 8,760 | |||
| Depreciation and amortization | 963 | 821 | |||
| Financial expenses, net of interest revenues | 118 | 77 | |||
| Equity-based compensation | 16 | 7 | |||
| Net loss on foreign exchange | 9 | 7 | |||
| Cost of conversion to a corporation | 757 | ||||
| Income taxes | 653 | (7,905 | ) | ||
| EBITDA | 3,365 | 2,524 | |||
| Variance in $ | 841 | ||||
| Variance in % | 33.3 | % | |||
| % of revenues | 17.6 | % | 14.6 | % | |
| New Look defines EBITDA as earnings before financial expenses, net of interest revenues, income taxes, depreciation and amortization. It also excludes any gain or loss on foreign currency translation (except if related to cost of materials), gains and losses related to former portfolio investments, equity-based compensation, and the cost of conversion to a corporation. This definition is not a recognized measure under IFRS or former Canadian GAAP (generally accepted accounting principles) and may not be comparable to similar measures used by other entities. New Look believes that EBITDA is a useful measure financial metric as it assists in determining the ability to generate cash from operations. |
| NEW LOOK EYEWEAR INC. | |||||||
| Reconciliation of Net Earnings and Adjusted Net Earnings | |||||||
| For the Quarters ended March 26, 2011 and March 27, 2010 | |||||||
| Unaudited - In thousands of Canadian dollars, except amounts per share or unit. | |||||||
| 2011 | 2010 | ||||||
| $ | $ | ||||||
| Net earnings attributed to shareholders or unitholders | 1,598 | 8,753 | |||||
| Adjustment of income tax related to corporate conversion | (8,285 | ) | |||||
| Cost of conversion to a corporation, net of tax | 643 | ||||||
| Adjusted net earnings | 1,598 | 1,111 | |||||
| Variance in $ | 487 | ||||||
| Variance in % | 43.8 | % | |||||
| % of revenues | 8.4 | % | 6.4 | % | |||
| Net earnings per share or unit | |||||||
| Basic and diluted | 0.16 | 0.87 | |||||
| Adjusted net earnings per share or unit | |||||||
| Basic and diluted | 0.16 | 0.11 | |||||
| Adjusted net earnings calculated above is a non-GAAP (generally accepted accounting principle) financial measure that does not have any standardized meaning and is therefore unlikely to be comparable to similar measures presented by other entities. New Look believes that it currently provides useful information as the adjustment of income tax related to the corporate conversion and the cost of conversion to a corporation, net of tax, are not representative of on-going performance of the company. |
Contact Information:
(514) 877-4299, ext. 2234
www.newlook.ca