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.