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New Look Vision Group Inc. Reports the 19th Consecutive Quarter of Comparable Store Sales Growth

MONTRÉAL, May 09, 2019 (GLOBE NEWSWIRE) -- New Look Vision Group Inc. ("New Look Vision" or the "Company") (BCI.TO), a leader in the Canadian retail optical industry with 379 stores across Canada, reported financial results today for the 13 weeks ended March 30, 2019 (“Q1 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 Q1 2019, which are available on the Company’s website at www.newlookvision.ca/investors and have been posted on SEDAR at www.sedar.com.

Q1 2019 Financial and Operational Highlights

  • Revenues increased by 2.4% over last year to $71.5 million.

  • Comparable store sales orders were up by 2.6%, compared to the first quarter of last year, marking the 19th consecutive quarter of comparable store sales growth.

  • Adjusted EBITDA reached $11.6 million, an increase of 2.3% over last year and increased 1.4% on a per diluted share basis to $0.74.

  • Net earnings attributable to shareholders reached $2.1 million, compared to $2.2 million last year, the decrease being mainly attributable to higher financial expenses, caused principally by a significant change in the fair value of an interest rate swap, partially offset by higher EBITDA. Net earnings on a per diluted share basis were $0.13, compared to $0.14 last year, a decrease of 7.1%.

  • Adjusted net earnings attributed to shareholders (defined as net earnings adjusted to remove the impact of amortization of acquired intangibles, acquisition-related costs, equity-based compensation and other non-comparable costs) were $3.9 million, compared to $4.3 million for the same quarter last year. Adjusted net earnings per diluted share were $0.25, a decrease of 7.4% over the same quarter last year. The decrease was principally caused by a significant change in the fair value of an interest rate swap, partially offset by higher EBITDA.

  • Adjusted cash flows from operating activities were $11.2 million, an increase of 4.4% over last year and an increase of 4.3% on a per diluted share basis to $0.72.

  • The long-term debt was reduced by $10.5 million in the first quarter of 2019 through voluntary and contractual repayments, improving the net debt to adjusted EBITDA ratio to 2.63, compared to 3.44 in the same period last year.

  • The financial performance of the Group allowed it to maintain its quarterly payments of dividends to shareholders of $0.15 per share.

President & CEO's comments

Antoine Amiel, the President and CEO of New Look Vision, stated that: "In Q1 2019, New Look Vision Group delivered its 19th consecutive quarter of comparable store sales growth and record free cash flow. The prior year's debt deleveraging momentum carried into the first quarter of this year, positioning the company to resume consolidating the fragmented Canadian retail optical market, with eight stores acquired since the beginning of the year."

Dividend Approval

On May 9, 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 June 28, 2019 to the shareholders of record as of June 26, 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 April 30, 2019, New Look Vision had 15,597,094 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
  • Table C - Reconciliation of net earnings to adjusted EBITDA and adjusted EBITDA attributed to shareholders
  • Table D - Reconciliation of net earnings to adjusted net earnings
  • Table E - Reconciliation of free cash flows and adjusted cash flows from operating activities

EBITDA, adjusted EBITDA, adjusted EBITDA attributed to shareholders, adjusted net earnings, free cash flow 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.

____________________

About New Look Vision Group Inc. New Look Vision is a leader in the eye care industry in Canada with a network of 379 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. 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. For enquiries, please contact Lise Melanson (514) 877-4119.



TABLE A
NEW LOOK VISION GROUP INC.
Highlights
for the periods ended March 30, 2019 and March 31, 2018
 
In thousands of Canadian dollars, except per share amounts
    2019     2018  
Revenues $ 71,466   $ 69,777  
Variance %   2.4 %      
Variance in comparable store sales orders(a)   2.6 %   1.8 %
Adjusted EBITDA(b) $ 11,605   $ 11,345  
Variance %   2.3 %      
% of revenues   16.2 %   16.3 %
Per share (diluted) $ 0.74   $ 0.73  
Variance %   1.4 %      
Adjusted EBITDA attributed to shareholders(b) $ 11,882   $ 11,471  
Variance %   3.6 %      
% of revenues   16.6 %   16.4 %
Per share (diluted) $ 0.76   $ 0.73  
Variance %   4.1 %      
Net earnings attributed to shareholders $ 2,070   $ 2,227  
Variance %   (7.0 %)      
% of revenues   2.9 %   3.2 %
Net earnings per share            
Per share (diluted) $ 0.13   $ 0.14  
Variance %   (7.1 %)      
Adjusted net earnings attributed to shareholders(b) $ 3,918   $ 4,287  
Variance %   (8.6 %)      
% of revenues   5.5 %   6.1 %
Per share (diluted) $ 0.25   $ 0.27  
Variance %   (7.4 %)      
Free cash flow(b)(c) $ 10,267   $ 4,719  
Variance %   117.6 %      
Per share (diluted) $ 0.66   $ 0.30  
Variance %   120.0 %      
Adjusted cash flows from operating activities(b)(d) $ 11,207   $ 10,736  
Variance %   4.4 %      
Per share (diluted) $ 0.72   $ 0.69  
Variance %   4.3 %      
Total debt(e) $ 149,668   $ 168,852  
Net debt(e)(f) / Adjusted EBITDA attributed to shareholders(b)   2.63     3.44  
Cash dividend per share(g) $ 0.15   $ 0.15  
Number of stores(h)   373     376  
  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, however management measures the comparable store performance on the basis of sales orders, whether delivered or not.
  2. Adjusted EBITDA, adjusted EBITDA attributed to shareholders, adjusted net earnings attributed to shareholders, free cash flow 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 the sections EBITDA and adjusted EBITDA, net earnings and adjusted net earnings, and operating activities for the definitions and reconciliations.
  3. Free cash flow is defined as cash flows related to operating activities, less acquisitions of property, plant and equipment. Free cash flow increased in the quarter as a result of the timing of working capital items, lower capital investments, and lower income taxes paid.
  4. Adjusted cash flows from operating activities are defined as cash flows related to operating activities before income taxes paid, changes in working capital items, acquisition-related costs, and other non-comparable costs.
  5. Combined contractual and voluntary long-term debt repayments were $10.5 million in the first quarter of 2019.
  6. Net debt is defined as total debt less cash. Adjusted EBITDA attributed to shareholders represents the amount over the last four rolling quarters.
  7. The amounts of dividends shown in the table above refer to amounts declared in the periods.
  8. The decrease in the number of stores in the last twelve months reflects the acquisition of two stores, one store opening and six closures.



TABLE B
NEW LOOK VISION GROUP INC.
Consolidated Statement of Earnings
for the periods ended March 30, 2019 and March 31, 2018
 
In thousands of Canadian dollars, except per share amounts
  2019   2018  
  $   $  
Revenues 71,466   69,777  
Materials consumed 15,652   14,992  
Employee remuneration expenses 24,773   24,716  
Other operating expenses 20,500   19,906  
Earnings before depreciation, amortization, loss on disposal, financial expenses, and income from investments in joint ventures and associates 10,541   10,163  
Depreciation, amortization and loss on disposal 4,420   5,378  
Financial expenses, net of interest revenue 3,238   1,805  
Earnings before income from investments in joint ventures and associates and income taxes 2,883   2,980  
Income from investments in joint ventures and associates 329   459  
Earnings before income taxes 3,212   3,439  
Income taxes    
Current 1,055   1,230  
Deferred (28 ) (89 )
Total income taxes 1,027   1,141  
Net earnings and comprehensive income 2,185   2,298  
Net earnings and comprehensive income attributed to:    
Non-controlling interest 115   71  
Shareholders of New Look Vision 2,070   2,227  
  2,185   2,298  
     
Net earnings per share    
Basic 0.13   0.14  
Diluted 0.13   0.14  

 

 

TABLE C
NEW LOOK VISION GROUP INC.
Reconciliation of Net Earnings to Adjusted EBITDA and Adjusted EBITDA Attributed to Shareholders
for the periods ended March 30, 2019 and March 31, 2018
 
In thousands of Canadian dollars, except per share amounts
  2019   2018  
  $   $  
Net earnings 2,185   2,298  
Depreciation, amortization and loss on disposal 4,420   5,378  
Financial expenses, net of interest revenue 3,238   1,805  
Income taxes 1,027   1,141  
EBITDA(a) 10,870   10,622  
Equity-based compensation(b) 206   206  
Net loss (gain) from changes in fair value of foreign exchange contracts   (41 )
Acquisition-related costs(c) 388   558  
Other non-comparable costs(d) 141    
Adjusted EBITDA(a) 11,605   11,345  
Variance in $ 260      
Variance in % 2.3 %    
% of revenues 16.2 % 16.3 %
Per share (basic) 0.74   0.73  
Per share (diluted) 0.74   0.73  

The following table represents the adjusted EBITDA available to New Look Vision shareholders, which takes into consideration the investments in joint ventures and associates.

  2019   2018  
  $   $  
Adjusted EBITDA(a) 11,605   11,345  
Income from investments in joint ventures and associates (329 ) (459 )
EBITDA from investments in joint ventures and associates 858   931  
EBITDA attributed to non-controlling interest (252 ) (346 )
Adjusted EBITDA attributed to shareholders(a) 11,882   11,471  
  1. 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.
  2. Equity-based compensation represents the fair value of New Look Vision stock options vested in the period.
  3. Acquisition-related costs are mainly comprised of legal and other fees related to the business acquisitions, whether completed or in progress. 
  4. 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 March 30, 2019 and March 31, 2018
 
In thousands of Canadian dollars, except per share amounts
  2019   2018  
  $   $  
Net earnings attributed to shareholders 2,070   2,227  
Amortization of acquired intangibles 1,602   1,836  
Acquisition-related costs 388   558  
Equity-based compensation 206   206  
Other non-comparable costs 141    
Related income taxes (489 ) (540 )
Adjusted net earnings attributed to shareholders(a) 3,918   4,287  
Variance in $ (369 )    
Variance in % (8.6 )%    
% of revenues 5.5 % 6.1 %
Per share amount        
Basic 0.25   0.28  
Diluted 0.25   0.27  
  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 amortization of acquired intangibles, 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 Free Cash Flow and Adjusted Cash Flows from Operating Activities
for the periods ended March 30, 2019 and March 31, 2018
 
In thousands of Canadian dollars, except per share amounts
  2019   2018  
  $   $  
Earnings before income taxes 3,212   3,439  
Adjustments:    
Depreciation, amortization and loss on disposal 4,420   5,378  
Amortization of deferred lease inducements and variation of deferred rent (42 ) (50 )
Equity-based compensation expense 206   206  
Financial expenses 3,316   1,875  
Interest revenue (78 ) (70 )
Other (27 ) (141 )
  Income from investments in joint ventures and associates (329 ) (459 )
Income taxes paid (1,679 ) (2,831 )
Cash flows related to operating activities, before changes in working capital items 8,999   7,347  
Changes in working capital items 3,544   1,407  
Cash flows related to operating activities 12,543   8,754  


Free cash flow

  2019   2018  
  $   $  
Cash flows related to operating activities 12,543   8,754  
Acquisitions of property, plant and equipment (2,276 ) (4,035 )
Free cash flow(a) 10,267   4,719  
  1. 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.

Free cash flow increased in the quarter by $5.5 million due to higher cash flows from operations and a decrease in acquisitions of property, plant and equipment.


Adjusted cash flows from operating activities

  2019   2018  
  $   $  
Cash flows related to operating activities 12,543   8,754  
Income taxes paid 1,679   2,831  
Changes in working capital items (3,544 ) (1,407 )
Acquisition-related costs 388   558  
Other non-comparable costs 141    
Adjusted cash flows from operating activities(a) 11,207   10,736  
  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 related to operating activities as determined under IFRS.