New Look Eyewear Inc. Announces Record Results for the Fourth Quarter and the Year Ended December 29, 2012 and Announces Its Quarterly Dividend

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MONTREAL, QUEBEC--(Marketwire - Mar 8, 2013) - New Look Eyewear Inc. (BCI.TO) ("New Look") announced today the results for the fourth quarter and the year ended December 29, 2012. The highlights are the following:

  Fourth Quarter (unaudited)   Year  
  2012   2011   2012   2011  
  13 weeks   14 weeks   52 weeks   53 weeks  
Revenues $20,888   $22,096   $82,296   $80,190  
  Variance (5.5 %)     2.6 %    
  Comparable stores variance (7.9 %)     (1.7 %)    
EBITDA(a) $4,959   $3,893   $15,343   $13,280  
  Variance 27.4 %     15.5 %    
  % of revenues 23.7 % 17.6 % 18.6 % 16.6 %
Net earnings attributable to shareholders $2,160   $1,813   $6,478   $6,024  
  Variance 19.1 %     7.5 %    
Net earnings per share                
  Diluted $0.21   $0.18   $0.63   $0.59  
Cash flows from operating activities, before changes in working capital items $4,603   $3,639   $14,769   $13,009  
  Per share (diluted) $0.44   $0.36   $1.43   $1.28  
Cash dividend per share $0.15   $0.15   $0.60   $0.60  

Fourth quarter

Although revenues for the fourth quarter, including those from the comparable stores, were lower than the fourth quarter of last year, EBITDA(a) and net earnings were at a record high for the quarter with respective increases of 27.4% and 19.1%, which resulted in an increase in net earnings per share to $0.21 from $0.18. Cash flows from operating activities, before changes in non-cash working capital, were also a record high at $0.44 per share compared to $0.36 last year. The decrease in revenues is mainly attributable to the shorter duration of the quarter in 2012 compared to 2011: 13 weeks instead of 14. EBITDA was much better in the 2012 quarter due to a general decrease in operating expenses and favourable year-end adjustments.

Fiscal year

Revenues for 2012 increased by 2.6% compared to last year although the fiscal year had 52 weeks compared to 53 last year. The increase is attributable to the addition of seven stores over the last two years. The shorter duration of the fiscal year contributed in the decrease of 1.7% in revenues from comparable stores. The company''s performance was driven by an increase in the number of units sold through an expansion of the store network. EBITDA was a record high for the year with an increase of 15.5%. Net earnings were up 7.5%, which resulted in an increase in net earnings per share to $0.63 versus $0.59 last year.

President''s comments

Martial Gagné, the President of New Look commented: "The focus during 2012 was on operating efficiency after many years of rapid growth. As a result, while revenues increased moderately by 2.6% to in excess of $82 million, EBITDA increased by 15.5% to exceed $15 million".

Dividend declared

Following the approval of the results of the year 2012, the Board of Directors of New Look approved the payment of a dividend of $0.15 per Class A common shares payable on March 31st, 2013 to the shareholders of record as of March 21st, 2013. 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

  1. See Table B attached for a definition of EBITDA with a reconciliation of net earnings to EBITDA.

As of February 28, 2013, New Look had 10,399,032 Class A 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.

For additional information please see our Web site www.newlook.ca.

NEW LOOK EYEWEAR INC.  
Consolidated Statement of Earnings  
For the quarters and the year ended  
December 29, 2012 and December 31, 2011  
   
In thousands of Canadian dollars, except per share amounts  
  Fourth Quarter (unaudited)   Year  
  2012   2011   2012 2011  
  13 weeks   14 weeks   52 weeks 53 weeks  
  $   $   $ $  
Revenues 20,888   22,096   82,296 80,190  
Materials consumed, net of changes in inventory 4,205   4,595   18,254 17,895  
Employee remuneration expense 6,479   6,978   25,533 24,945  
Other operating expenses 5,262   6,662   23,412 24,114  
Earnings before depreciation, amortization, impairment of non-financial assets and financial expenses 4,942   3,860   15,097 13,236  
Depreciation, amortization and impairment of non-financial assets 1,430   1,350   4,960 4,313  
Financial expenses 136   89   432 366  
Earnings before income taxes 3,376   2,421   9,705 8,557  
Income taxes              
  Current 237   (50 ) 231 (30 )
  Deferred 983   660   2,978 2,542  
Total income taxes 1,220   610   3,209 2,512  
Net earnings and comprehensive income 2,156   1,811   6,496 6,045  
Net earnings and comprehensive income attributed to:              
  Non-controlling interest (4 ) (2 ) 18 21  
  Shareholders of New Look 2,160   1,813   6,478 6,024  
  2,156   1,811   6,496 6,045  
Net earnings per share              
  Basic 0.21   0.18   0.64 0.60  
  Diluted 0.21   0.18   0.63 0.59  
                 
                 
                 
NEW LOOK EYEWEAR INC.  
Reconciliation of Net Earnings and EBITDA  
For the quarters and the year ended  
December 29, 2012 and December 31, 2011  
   
In thousands of Canadian dollars  
  Fourth Quarter (unaudited)   Year  
  2012   2011   2012   2011  
  13 weeks   14 weeks   52 weeks   53 weeks  
  $   $   $   $  
Net earnings 2,156   1,811   6,496   6,045  
Depreciation, amortization and impairment of non-financial assets 1,430   1,350   4,960   4,313  
Financial expenses 136   89   432   366  
Equity-based compensation 33   35   216   114  
Net loss (gain) from changes in fair value of foreign exchange contracts (16 ) (2 ) 30   (70 )
Income taxes 1,220   610   3,209   2,512  
EBITDA 4,959   3,893   15,343   13,280  
  Variance in $ 1,066       2,063      
  Variance in % 27.4 %     15.5 %    
  % of revenues 23.7 % 17.6 % 18.6 % 16.6 %

EBITDA refers to consolidated earnings before financial expenses, income taxes, depreciation, amortization and impairment of non-financial assets. It excludes any gain or loss from changes in fair value of foreign exchange contracts, and equity-based compensation. EBITDA is not a recognized measure under IFRS and may not be comparable to similar measures used by other entities. The Company believes that EBITDA is a useful financial metric as it assists in determining the ability to generate cash from operations. Investors should be cautioned that EBITDA should not be construed as an alternative to net earnings or cash flows as determined under IFRS.

Contact:
Lise Melanson
(514) 877-4299, ext. 2234

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