MONTRÉAL, Nov. 07, 2019 (GLOBE NEWSWIRE) -- New Look Vision Group Inc. ("New Look Vision" or the "Company") (TSX: BCI), a leader in the Canadian retail optical industry with 378 stores across Canada, reported financial results today for the 13 and 39 week periods ended September 28, 2019 (“Q3 2019”). This press release should be read in conjunction with the Company’s management discussion and analysis (the “MD&A") and interim consolidated financial statements for the third quarter of 2019, which are available on the Company’s website at www.newlookvision.ca/investors and have been posted on SEDAR at www.sedar.com.
Q3 2019 Financial and Operational Highlights
- Revenues increased by 2.1% over last year to $74.4 million.
- Comparable store sales orders(a) were up by 1.6% compared to the third quarter of last year, marking the 21st consecutive quarter of comparable store sales growth.
- Adjusted EBITDA attributed to shareholders(a) reached $14.4 million, an increase of 3.3% over last year and 3.4% on a per diluted share basis to $0.92.
- Net earnings attributed to shareholders remained flat at $0.31 on a per diluted share basis.
- Adjusted net earnings attributed to shareholders(a) increased to $6.9 million and on a per diluted share reached $0.44, an increase of 4.8% over the same quarter last year. The increase was driven by improved EBITDA(a).
- Cash flows related to operating activities reached $13.5 million, an increase of 42.3% over last year and increased 41.0% on a per diluted share basis to $0.86.
- The long-term debt was reduced by $5.1 million in the third quarter of 2019 through voluntary and contractual repayments, improving the net debt to adjusted EBITDA attributed to shareholders(a) ratio to 2.56, compared to 2.88 in the same period last year.
- The quarterly dividend payment to shareholders of $0.15 per share was maintained.
Year-to-date Financial and Operating Results
- Year-to-date revenues and adjusted EBITDA attributed to shareholders(a) reached a record $223.9 million and $41.6 million respectively, which represent increases of 1.8% and 2.1% respectively over last year. Comparable store sales orders(a) year-to-date were up 1.9% over last year.
- The increase in the number of stores year-to-date reflects the acquisition of ten stores net of five scheduled store closures.
- Net earnings attributed to shareholders were $13.7 million or $0.88 per diluted share, compared to $11.1 million last year or $0.71 per diluted share.
- Adjusted net earnings attributed to shareholders(a) increased to $18.2 million, $0.6 million over last year. Adjusted net earnings attributed to shareholders(a) reached $1.17 per diluted share, up 3.5% from $1.13 in 2018.
- Cash flows related to operating activities reached $36.3 million, an increase of 32.5% over last year and increased 32.6% on a per diluted share basis to $2.32.
President & CEO's comments
Antoine Amiel, the President and CEO of New Look Vision, stated that: "The second half of the year is off to a solid start, as New Look Vision delivered its 21st consecutive quarter of comparable store sales growth, improved earnings and healthy cash flows. We continue to focus on achieving operational synergies and to explore profitable growth opportunities in the consolidating Canadian retail optical sector".
Dividend Approval
On November 7, 2019, the Board of Directors of New Look Vision declared a dividend of $0.15 per common share. The quarterly cash dividend will be paid on December 31, 2019 to the shareholders of record as of December 20, 2019. 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.
As of October 31, 2019, New Look Vision had 15,644,819 Class A common shares issued and outstanding.
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 and comprehensive income
- Table C - Reconciliation of net earnings to adjusted EBITDA and adjusted EBITDA attributed to shareholders
- Table D - Reconciliation of net earnings attributed to shareholders to adjusted net earnings attributed to shareholders
- Table E - Reconciliation of free cash flow and adjusted cash flows related to operating activities
a) EBITDA, adjusted EBITDA, adjusted EBITDA attributed to shareholders, adjusted net earnings, free cash flow, adjusted cash flows related to operating activities and comparable store sales orders are not recognized measures under IFRS and may not be comparable to similar measures used by other entities.
About New Look Vision Group Inc. New Look Vision is a leader in the eye care industry in Canada with a network of 378 stores operating 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. Forward-looking statements are subject to risks, uncertainties and assumptions. Although management of New Look Vision believes that the plans, intentions or expectations represented in such forward-looking statements are reasonable, there can be no assurance that they 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 website at www.newlookvision.ca. For enquiries, please contact Lise Melanson (514) 877-4119.
| TABLE A | ||||||||
| NEW LOOK VISION GROUP INC. | ||||||||
| Highlights | ||||||||
| for the periods ended September 28, 2019 and September 29, 2018 | ||||||||
| In thousands of Canadian dollars, except per share amounts | ||||||||
| 13 weeks | 39 weeks | |||||||
| Sept. 28, 2019 | Sept. 29, 2018 | Sept. 28, 2019 | Sept. 29, 2018 | |||||
| Revenues | $74,417 | $72,871 | $223,936 | $219,892 | ||||
| Variance % | 2.1 | % | 1.8 | % | ||||
| Variance in comparable store sales orders(a)(b) | 1.6 | % | 1.9 | % | ||||
| Adjusted EBITDA attributed to shareholders(b) | $14,429 | $13,970 | $41,580 | $40,708 | ||||
| Variance % | 3.3 | % | 2.1 | % | ||||
| % of revenues | 19.4 | % | 19.2 | % | 18.6 | % | 18.5 | % |
| Per share (diluted) | $0.92 | $0.89 | $2.66 | $2.61 | ||||
| Variance % | 3.4 | % | 1.9 | % | ||||
| Net earnings attributed to shareholders | $4,825 | $4,855 | $13,715 | $11,085 | ||||
| Variance % | (0.6 | %) | 23.7 | % | ||||
| % of revenues | 6.5 | % | 6.7 | % | 6.1 | % | 5.0 | % |
| Net earnings per share | ||||||||
| Per share (diluted) | $0.31 | $0.31 | $0.88 | $0.71 | ||||
| Variance % | — | % | 23.9 | % | ||||
| Adjusted net earnings attributed to shareholders(b) | $6,927 | $6,580 | $18,215 | $17,602 | ||||
| Variance % | 5.3 | % | 3.5 | % | ||||
| % of revenues | 9.3 | % | 9.0 | % | 8.1 | % | 8.0 | % |
| Per share (diluted) | $0.44 | $0.42 | $1.17 | $1.13 | ||||
| Variance % | 4.8 | % | 3.5 | % | ||||
| Cash flows related to operating activities | $13,472 | $9,465 | $36,264 | $27,363 | ||||
| Variance % | 42.3 | % | 32.5 | % | ||||
| Per share (diluted) | $0.86 | $0.61 | $2.32 | $1.75 | ||||
| Variance % | 41.0 | % | 32.6 | % | ||||
| Free cash flow(b)(c) | $11,129 | $8,452 | $29,928 | $20,150 | ||||
| Variance % | 31.7 | % | 48.5 | % | ||||
| Per share (diluted) | $0.71 | $0.54 | $1.91 | $1.29 | ||||
| Variance % | 31.5 | % | 48.1 | % | ||||
| Total debt | $150,469 | $159,235 | ||||||
| Net debt / Adjusted EBITDA attributed to shareholders(b)(d) | 2.56 | 2.88 | ||||||
| Cash dividend per share(e) | $0.15 | $0.15 | $0.45 | $0.45 | ||||
| Number of stores(f) | 378 | 373 | ||||||
| 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, however management measures the comparable store performance on the basis of sales orders, whether delivered or not. |
| b) | Adjusted EBITDA attributed to shareholders, adjusted net earnings attributed to shareholders, free cash flow and comparable store sales orders 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) | Free cash flow is defined as cash flows related to operating activities, less acquisitions of property, plant and equipment. |
| d) | Net debt is defined as total debt less cash. Adjusted EBITDA attributed to shareholders represents the amount over the last four rolling quarters. |
| 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 the last twelve months reflects the acquisition of ten stores net of five closures. |
| TABLE B | |||||
| NEW LOOK VISION GROUP INC. | |||||
| Consolidated Statement of Earnings and Comprehensive Income | |||||
| for the periods ended September 28, 2019 and September 29, 2018 | |||||
| In thousands of Canadian dollars, except per share amounts | |||||
| 13 weeks | 39 weeks | ||||
| Sept. 28, 2019 | Sept. 29, 2018 | Sept. 28, 2019 | Sept. 29, 2018 | ||
| $ | $ | $ | $ | ||
| Revenues | 74,417 | 72,871 | 223,936 | 219,892 | |
| Materials consumed | 16,920 | 16,583 | 49,666 | 49,003 | |
| Employee remuneration expenses | 24,864 | 23,693 | 75,693 | 74,014 | |
| Other operating expenses | 19,646 | 19,499 | 59,784 | 60,659 | |
| Earnings before depreciation, amortization, loss on disposal, financial expenses, and income from investments in joint ventures and associates | 12,987 | 13,096 | 38,793 | 36,216 | |
| Depreciation, amortization and loss on disposal | 4,478 | 4,758 | 13,342 | 15,421 | |
| Financial expenses, net of interest revenue | 1,750 | 2,150 | 7,285 | 6,235 | |
| Earnings before income from investments in joint ventures and associates and income taxes | 6,759 | 6,188 | 18,166 | 14,560 | |
| Income from investments in joint ventures and associates | 459 | 288 | 1,517 | 1,423 | |
| Earnings before income taxes | 7,218 | 6,476 | 19,683 | 15,983 | |
| Income taxes | |||||
| Current | 2,034 | 1,494 | 5,150 | 4,679 | |
| Deferred | 7 | 89 | 122 | (34 | ) |
| Total income taxes | 2,041 | 1,583 | 5,272 | 4,645 | |
| Net earnings and comprehensive income | 5,177 | 4,893 | 14,411 | 11,338 | |
| Net earnings and comprehensive income attributed to: | |||||
| Non-controlling interest | 352 | 38 | 696 | 253 | |
| Shareholders of New Look Vision | 4,825 | 4,855 | 13,715 | 11,085 | |
| 5,177 | 4,893 | 14,411 | 11,338 | ||
| Net earnings per share | |||||
| Basic | 0.31 | 0.31 | 0.88 | 0.71 | |
| Diluted | 0.31 | 0.31 | 0.88 | 0.71 | |
| TABLE C | ||||||||
| NEW LOOK VISION GROUP INC. | ||||||||
| Reconciliation of Net Earnings to Adjusted EBITDA and Adjusted EBITDA Attributed to Shareholders | ||||||||
| for the periods ended September 28, 2019 and September 29, 2018 | ||||||||
| In thousands of Canadian dollars, except per share amounts | ||||||||
| 13 weeks | 39 weeks | |||||||
| Sept. 28, 2019 | Sept. 29, 2018 | Sept. 28, 2019 | Sept. 29, 2018 | |||||
| $ | $ | $ | $ | |||||
| Net earnings | 5,177 | 4,893 | 14,411 | 11,338 | ||||
| Depreciation, amortization and loss on disposal | 4,478 | 4,758 | 13,342 | 15,421 | ||||
| Financial expenses, net of interest revenue | 1,750 | 2,150 | 7,285 | 6,235 | ||||
| Income taxes | 2,041 | 1,583 | 5,272 | 4,645 | ||||
| EBITDA(a) | 13,446 | 13,384 | 40,310 | 37,639 | ||||
| Equity-based compensation(b) | 126 | 189 | 609 | 835 | ||||
| Net loss (gain) from changes in fair value of foreign exchange contracts | (16 | ) | — | (4 | ) | (42 | ) | |
| Acquisition-related costs(c) | 353 | 150 | 1,100 | 1,330 | ||||
| Other non-comparable items(d) | 678 | 175 | (276 | ) | 788 | |||
| Adjusted EBITDA(a) | 14,587 | 13,898 | 41,739 | 40,550 | ||||
| Variance in $ | 689 | 1,189 | ||||||
| Variance in % | 5.0 | % | 2.9 | % | ||||
| % of revenues | 19.6 | % | 19.1 | % | 18.6 | % | 18.4 | % |
| Per share (basic) | 0.93 | 0.89 | 2.67 | 2.61 | ||||
| Per share (diluted) | 0.93 | 0.89 | 2.67 | 2.60 | ||||
The following table represents the adjusted EBITDA available to New Look Vision shareholders, which takes into consideration the investments in joint ventures and associates.
| 13 weeks | 39 weeks | |||||||
| Sept. 28, 2019 | Sept. 29, 2018 | Sept. 28, 2019 | Sept. 29, 2018 | |||||
| $ | $ | $ | $ | |||||
| Adjusted EBITDA(a) | 14,587 | 13,898 | 41,739 | 40,550 | ||||
| Income from investments in joint ventures and associates | (459 | ) | (288 | ) | (1,517 | ) | (1,423 | ) |
| EBITDA from investments in joint ventures and associates | 788 | 678 | 2,682 | 2,665 | ||||
| EBITDA attributed to non-controlling interest | (487 | ) | (318 | ) | (1,324 | ) | (1,084 | ) |
| Adjusted EBITDA attributed to shareholders(a) | 14,429 | 13,970 | 41,580 | 40,708 | ||||
| a) | EBITDA, adjusted EBITDA and adjusted EBITDA attributed to shareholders are not recognized measures under IFRS and may not be comparable to similar measures used by other entities. New Look Vision believes that EBITDA, adjusted EBITDA and adjusted EBITDA attributed to shareholders are useful financial metrics as they assist in determining the ability to generate cash from operations. Investors should be cautioned that EBITDA, adjusted EBITDA and adjusted EBITDA attributed to shareholders should not be considered as an alternative to net earnings or cash flows as determined under IFRS. |
| b) | Equity-based compensation represents the fair value of New Look Vision stock options vested in the period. |
| c) | Acquisition-related costs are mainly comprised of legal and other fees related to the business acquisitions, whether completed or in progress. |
| d) | Other non-comparable items include one-time expenses (income) connected with personnel costs related to acquisition, restructuring and transition related matters. |
| TABLE D | ||||||||
| NEW LOOK VISION GROUP INC. | ||||||||
| Reconciliation of Net Earnings Attributed to Shareholders to Adjusted Net Earnings Attributed to Shareholders | ||||||||
| for the periods ended September 28, 2019 and September 29, 2018 | ||||||||
| In thousands of Canadian dollars, except per share amounts | ||||||||
| 13 weeks | 39 weeks | |||||||
| Sept. 28, 2019 | Sept. 29, 2018 | Sept. 28, 2019 | Sept. 29, 2018 | |||||
| $ | $ | $ | $ | |||||
| Net earnings attributed to shareholders | 4,825 | 4,855 | 13,715 | 11,085 | ||||
| Amortization of acquired intangibles | 1,651 | 1,762 | 4,912 | 5,415 | ||||
| Acquisition-related costs | 353 | 150 | 1,100 | 1,330 | ||||
| Equity-based compensation | 126 | 189 | 609 | 835 | ||||
| Other non-comparable items | 678 | 175 | (276 | ) | 788 | |||
| Related income taxes | (706 | ) | (551 | ) | (1,845 | ) | (1,851 | ) |
| Adjusted net earnings attributed to shareholders(a) | 6,927 | 6,580 | 18,215 | 17,602 | ||||
| Variance in $ | 347 | 613 | ||||||
| Variance in % | 5.3 | % | 3.5 | % | ||||
| % of revenues | 9.3 | % | 9.0 | % | 8.1 | % | 8.0 | % |
| Per share amount | ||||||||
| Basic | 0.44 | 0.42 | 1.17 | 1.13 | ||||
| Diluted | 0.44 | 0.42 | 1.17 | 1.13 | ||||
a) 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 amortization of acquired intangibles, acquisition-related costs, equity-based compensation, and other non-comparable items 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 Free Cash Flow and Adjusted Cash Flows Related to Operating Activities | ||||||||
| for the periods ended September 28, 2019 and September 29, 2018 | ||||||||
| In thousands of Canadian dollars, except per share amounts | ||||||||
| 13 weeks | 39 weeks | |||||||
| Sept. 28, 2019 | Sept. 29, 2018 | Sept. 28, 2019 | Sept. 29, 2018 | |||||
| $ | $ | $ | $ | |||||
| Earnings before income taxes | 7,218 | 6,476 | 19,683 | 15,983 | ||||
| Adjustments: | ||||||||
| Depreciation, amortization and loss on disposal | 4,478 | 4,758 | 13,342 | 15,421 | ||||
| Equity-based compensation expense | 126 | 189 | 609 | 835 | ||||
| Financial expenses | 1,881 | 2,220 | 7,577 | 6,445 | ||||
| Interest revenue | (131 | ) | (70 | ) | (292 | ) | (210 | ) |
| Other | (123 | ) | (12 | ) | (208 | ) | (242 | ) |
| Income from investments in joint ventures and associates | (459 | ) | (288 | ) | (1,517 | ) | (1,423 | ) |
| Income taxes paid | (1,103 | ) | (2,246 | ) | (3,848 | ) | (6,371 | ) |
| Cash flows related to operating activities, before changes in working capital items | 11,887 | 11,027 | 35,346 | 30,438 | ||||
| Changes in working capital items | 1,585 | (1,562 | ) | 918 | (3,075 | ) | ||
| Cash flows related to operating activities | 13,472 | 9,465 | 36,264 | 27,363 | ||||
| Free cash flow | ||||||||
| 13 weeks | 39 weeks | |||||||
| Sept. 28, 2019 | Sept. 29, 2018 | Sept. 28, 2019 | Sept. 29, 2018 | |||||
| $ | $ | $ | $ | |||||
| Cash flows related to operating activities | 13,472 | 9,465 | 36,264 | 27,363 | ||||
| Acquisitions of property, plant and equipment | (2,343 | ) | (1,013 | ) | (6,336 | ) | (7,213 | ) |
| Free cash flow(a) | 11,129 | 8,452 | 29,928 | 20,150 | ||||
a) Free cash flow is 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 provides insight on operating cash flows available after considering necessary capital investments. Investors should be cautioned that free cash flow should not be considered as an alternative to cash flows related to operating activities as determined under IFRS.
| Adjusted cash flows related to operating activities | ||||||
| 13 weeks | 39 weeks | |||||
| Sept. 28, 2019 | Sept. 29, 2018 | Sept. 28, 2019 | Sept. 29, 2018 | |||
| $ | $ | $ | $ | |||
| Cash flows related to operating activities | 13,472 | 9,465 | 36,264 | 27,363 | ||
| Income taxes paid | 1,103 | 2,246 | 3,848 | 6,371 | ||
| Changes in working capital items | (1,585 | ) | 1,562 | (918 | ) | 3,075 |
| Acquisition-related costs | 353 | 150 | 1,100 | 1,330 | ||
| Other non-comparable items | 678 | 175 | (276 | ) | 788 | |
| Adjusted cash flows related to operating activities(a) | 14,021 | 13,598 | 40,018 | 38,927 | ||
a) Adjusted cash flows related to 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 items, which may vary significantly from quarter to quarter. Investors should be cautioned that adjusted cash flows related to operating activities should not be considered as an alternative to cash flows related to operating activities as determined under IFRS.