MONTREAL, March 19, 2020 (GLOBE NEWSWIRE) -- New Look Vision Group Inc. ("New Look Vision" or the "Company") (TSX: BCI), a leader in the Canadian retail optical industry with 394 stores across Canada and Florida, reported financial results today for the 13 and 52 week periods ended December 28, 2019 (“Q4 2019”). This press release should be read in conjunction with the Company’s management discussion and analysis (the “MD&A") and consolidated financial statements for fiscal 2019, which are available on the Company’s website at www.newlookvision.ca/investors and have been posted on SEDAR at www.sedar.com.
Q4 2019 Financial and Operational Highlights
- Revenues increased by 3.9% over last year to reach a record $73.9 million.
- Comparable store sales orders(a) were up by 3.6% compared to the fourth quarter of last year, marking the 22nd consecutive quarter of comparable store sales growth.
- Adjusted EBITDA attributed to shareholders(a) reached $14.3 million, an increase of 3.7% over last year and 3.4% on a per diluted share basis to $0.91. The increase is principally due to improved performance from existing stores and improved employee productivity that lead to lower remuneration expenses.
- Net earnings attributed to shareholders reached $5.0 million, compared to $3.1 million last year, the increase being attributable to higher EBITDA(a) and lower financial expenses. Net earnings on a per diluted share basis were $0.32 compared to $0.20 last year, an increase of 60.0%.
2019 Financial and Operating Results
- Annual revenues increased by 2.3% to reach a record $297.9 million, resulting mainly from comparable store sales growth as well as from newly acquired stores, offset by revenue from scheduled store closures.
- Comparable store sales orders(a) were up by 2.3% compared to last year.
- Adjusted EBITDA attributed to shareholders(a) reached $55.9 million, an increase of $1.4 million or 2.5% over last year and increased 2.3% on a per diluted share basis to $3.57.
- Net earnings attributed to shareholders were $18.8 million, an increase of 32.1% over last year. This increase is driven by higher EBITDA, lower financial expenses and depreciation. Net earnings per diluted share increased 31.9% to $1.20.
- Adjusted net earnings attributed to shareholders(a) increased by 13.5% to $26.1 million or 13.6% on a per diluted share basis. The increase is mainly attributable to a higher adjusted EBITDA(a).
- Cash flows related to operating activities reached $43.6 million, an increase of $8.8 million or 25.4% over last year and increased 25.1% on a per diluted share basis to $2.79.
- The Company invested $8.9 million in Bespoke Eyewear and the technical component that underpins the omnichannel strategy.
- The total debt was reduced by $9.8 million through voluntary and contractual repayments, improving the net debt to adjusted EBITDA attributed to shareholders(a) ratio to 2.60, compared to 2.76 last year.
Actions in response to COVID-19
New Look Vision has initiated partial or full store closures across its network in response to COVID-19. Preventing the virus’ spread, protecting professionals, employees and clients while maintaining a minimum access to vision care and products are the key factors driving these decisions. The Company established an emergency pay program to supplement unemployment insurance for the employees placed on temporary leave.
In view of the current uncertainty driven by reduced store capacity and regulatory restrictions, the Board of Directors has elected to suspend the regular quarterly dividend and the corresponding dividend reinvestment plan for Q4 2019.
The Company believes it is well positioned to withstand the current disruption given its efficient operations and strong balance sheet. New Look Vision continues to diligently control its cost structure while actively monitoring market conditions.
President & CEO's comments
Antoine Amiel, the President and CEO of New Look Vision, stated that: "New Look Vision had a strong fourth quarter capping a strong FY2019. This was the 22nd consecutive quarter of same store sales growth. 2019 saw an increased pace of comparable store sales growth, increased profitability and store network expansion notably in the USA. Those results materialized into further deleveraging of our balance sheet giving the Company a solid footing to withstand the COVID-19 disruption and uncertainty.
New Look Vision responded swiftly to the onset of COVID-19. We have reduced our store network capacity to participate in the collective effort to stem the pandemic’s spread and to protect our teams and customers, while keeping open a minimum access to vision care and products for those in need. We have implemented a supplemental pay program for our employees placed on temporary leave. We have downsized our cost structure and taken cash conservation measures. We are actively monitoring the situation and will adjust our stance proactively. While our stores and manufacturing activities are reduced, our development initiatives are on-going to continue building a competitive advantage.
Our thoughts are with those most affected by the current crisis".
Dividend Approval
The Company's Board of Directors has suspended the regular quarterly dividend and the corresponding dividend reinvestment plan until further notice, effective immediately.
As of February 29, 2020, New Look Vision had 15,660,199 Class A common shares issued and outstanding.
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 394 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 December 28, 2019, December 29, 2018 and December 30, 2017
In thousands of Canadian dollars, except per share amounts
| 2019 | 2018 | 2019 | 2018 | 2017 | |||||||||||
| 13 weeks | 13 weeks | 52 weeks | 52 weeks | 52 weeks | |||||||||||
| Revenues | $ | 73,929 | $ | 71,140 | $ | 297,865 | $ | 291,032 | $ | 229,151 | |||||
| Variance % | 3.9 | % | 2.3 | % | |||||||||||
| Variance in comparable store sales orders(a)(b) | 3.6 | % | 0.8 | % | 2.3 | % | 1.3 | % | |||||||
| Adjusted EBITDA attributed to shareholders(b) | $ | 14,271 | $ | 13,760 | $ | 55,851 | $ | 54,468 | $ | 41,980 | |||||
| Variance % | 3.7 | % | 2.5 | % | 29.7 | % | |||||||||
| % of revenues | 19.3 | % | 19.3 | % | 18.8 | % | 18.7 | % | 18.3 | % | |||||
| Per share (diluted) | $ | 0.91 | $ | 0.88 | $ | 3.57 | $ | 3.49 | $ | 2.95 | |||||
| Variance % | 3.4 | % | 2.3 | % | 18.3 | % | |||||||||
| Net earnings attributed to shareholders | $ | 5,039 | $ | 3,108 | $ | 18,754 | $ | 14,193 | $ | 10,060 | |||||
| Variance % | 62.1 | % | 32.1 | % | 41.1 | % | |||||||||
| % of revenues | 6.8 | % | 4.4 | % | 6.3 | % | 4.9 | % | 4.4 | % | |||||
| Net earnings per share | |||||||||||||||
| Per share (diluted) | $ | 0.32 | $ | 0.20 | $ | 1.20 | $ | 0.91 | $ | 0.71 | |||||
| Variance % | 60.0 | % | 31.9 | % | 28.2 | % | |||||||||
| Adjusted net earnings attributed to shareholders(b) | $ | 7,865 | $ | 5,371 | $ | 26,080 | $ | 22,973 | $ | 18,106 | |||||
| Variance % | 46.4 | % | 13.5 | % | 26.9 | % | |||||||||
| % of revenues | 10.6 | % | 7.5 | % | 8.8 | % | 7.9 | % | 7.9 | % | |||||
| Per share (diluted) | $ | 0.50 | $ | 0.34 | $ | 1.67 | $ | 1.47 | $ | 1.27 | |||||
| Variance % | 47.1 | % | 13.6 | % | 15.7 | % | |||||||||
| Cash flows related to operating activities | $ | 7,343 | $ | 7,423 | $ | 43,607 | $ | 34,786 | $ | 32,013 | |||||
| Variance % | (1.1 | %) | 25.4 | % | 8.7 | % | |||||||||
| Per share (diluted) | $ | 0.47 | $ | 0.48 | $ | 2.79 | $ | 2.23 | $ | 2.25 | |||||
| Variance % | (2.1 | %) | 25.1 | % | (0.9 | )% | |||||||||
| Free cash flow(b)(c) | $ | 3,829 | $ | 5,842 | $ | 33,757 | $ | 25,992 | $ | 21,929 | |||||
| Variance % | (34.5 | %) | 29.9 | % | 18.5 | % | |||||||||
| Per share (diluted) | $ | 0.24 | $ | 0.37 | $ | 2.16 | $ | 1.66 | $ | 1.54 | |||||
| Variance % | (35.1 | %) | 30.1 | % | 7.8 | % | |||||||||
| Total debt | $ | 150,973 | $ | 160,737 | $ | 173,278 | |||||||||
| Net debt / Adjusted EBITDA attributed to shareholders(b)(d) | 2.60 | 2.76 | 3.80 | ||||||||||||
| Cash dividend per share(e) | $ | 0.15 | $ | 0.15 | $ | 0.60 | $ | 0.60 | $ | 0.60 | |||||
| Number of stores(f) | 378 | 373 | 379 | ||||||||||||
| 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 tables C, D and E for the definitions and reconciliations. |
| 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 years ended December 28, 2019 and December 29, 2018
In thousands of Canadian dollars, except per share amounts
| 2019 | 2018 | 2019 | 2018 | |||||
| 13 weeks | 13 weeks | 52 weeks | 52 weeks | |||||
| $ | $ | $ | $ | |||||
| Revenues | 73,929 | 71,140 | 297,865 | 291,032 | ||||
| Materials consumed | 15,598 | 14,879 | 65,264 | 63,882 | ||||
| Employee remuneration expenses | 25,836 | 25,044 | 101,529 | 99,058 | ||||
| Other operating expenses | 20,805 | 18,847 | 80,589 | 79,506 | ||||
| Earnings before depreciation, amortization, loss on disposal, financial expenses, and income from investments in joint ventures and associates | 11,690 | 12,370 | 50,483 | 48,586 | ||||
| Depreciation, amortization and loss on disposal | 4,657 | 4,557 | 17,999 | 19,978 | ||||
| Financial expenses, net of interest revenue | 1,434 | 3,485 | 8,719 | 9,720 | ||||
| Earnings before income from investments in joint ventures and associates and income taxes | 5,599 | 4,328 | 23,765 | 18,888 | ||||
| Income from investments in joint ventures and associates | 1,116 | 426 | 2,633 | 1,849 | ||||
| Earnings before income taxes | 6,715 | 4,754 | 26,398 | 20,737 | ||||
| Income taxes | ||||||||
| Current | 958 | 1,366 | 6,108 | 6,045 | ||||
| Deferred | 770 | 332 | 892 | 298 | ||||
| Total income taxes | 1,728 | 1,698 | 7,000 | 6,343 | ||||
| Net earnings and comprehensive income | 4,987 | 3,056 | 19,398 | 14,394 | ||||
| Net earnings and comprehensive income attributed to: | ||||||||
| Non-controlling interest | (52 | ) | (52 | ) | 644 | 201 | ||
| Shareholders of New Look Vision | 5,039 | 3,108 | 18,754 | 14,193 | ||||
| 4,987 | 3,056 | 19,398 | 14,394 | |||||
| Net earnings per share | ||||||||
| Basic | 0.32 | 0.20 | 1.20 | 0.91 | ||||
| Diluted | 0.32 | 0.20 | 1.20 | 0.91 | ||||
TABLE C
NEW LOOK VISION GROUP INC.
Reconciliation of Net Earnings to Adjusted EBITDA and Adjusted EBITDA Attributed to Shareholders
for the periods ended December 28, 2019 and December 29, 2018
In thousands of Canadian dollars, except per share amounts
| 13 weeks | 52 weeks | |||||||
| December 28, 2019 | December 29, 2018 | December 28, 2019 | December 29, 2018 | |||||
| $ | $ | $ | $ | |||||
| Net earnings | 4,987 | 3,056 | 19,398 | 14,394 | ||||
| Depreciation, amortization and loss on disposal | 4,657 | 4,557 | 17,999 | 19,978 | ||||
| Financial expenses, net of interest revenue | 1,434 | 3,485 | 8,719 | 9,720 | ||||
| Income taxes | 1,728 | 1,698 | 7,000 | 6,343 | ||||
| EBITDA(a) | 12,806 | 12,796 | 53,116 | 50,435 | ||||
| Equity-based compensation(b) | 122 | 217 | 731 | 1,052 | ||||
| Net gain from changes in fair value of foreign exchange contracts | — | — | (4 | ) | (42 | ) | ||
| Acquisition-related costs(c) | 648 | 68 | 1,748 | 1,398 | ||||
| Other non-comparable items(d) | 1,243 | 489 | 967 | 1,277 | ||||
| Adjusted EBITDA(a) | 14,819 | 13,570 | 56,558 | 54,120 | ||||
| Variance in $ | 1,249 | 2,438 | ||||||
| Variance in % | 9.2 | % | 4.5 | % | ||||
| % of revenues | 20.0 | % | 19.1 | % | 19.0 | % | 18.6 | % |
| Per share (basic) | 0.95 | 0.87 | 3.62 | 3.49 | ||||
| Per share (diluted) | 0.95 | 0.87 | 3.61 | 3.47 | ||||
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 | 52 weeks | |||||||
| December 28, 2019 | December 29, 2018 | December 28, 2019 | December 29, 2018 | |||||
| $ | $ | $ | $ | |||||
| Adjusted EBITDA(a) | 14,819 | 13,570 | 56,558 | 54,120 | ||||
| Income from investments in joint ventures and associates | (1,116 | ) | (426 | ) | (2,633 | ) | (1,849 | ) |
| EBITDA from investments in joint ventures and associates | 930 | 760 | 3,612 | 3,425 | ||||
| EBITDA attributed to non-controlling interest | (362 | ) | (144 | ) | (1,686 | ) | (1,228 | ) |
| Adjusted EBITDA attributed to shareholders(a) | 14,271 | 13,760 | 55,851 | 54,468 | ||||
| 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 composed of wages and professional fees specifically incurred in the business acquisition process, whether an acquisition is completed or not. |
| 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 December 28, 2019 and December 29, 2018
In thousands of Canadian dollars, except per share amounts
| 13 weeks | 52 weeks | |||||||
| December 28, 2019 | December 29, 2018 | December 28, 2019 | December 29, 2018 | |||||
| $ | $ | $ | $ | |||||
| Net earnings attributed to shareholders | 5,039 | 3,108 | 18,754 | 14,193 | ||||
| Amortization of acquired intangibles | 1,653 | 1,658 | 6,565 | 7,073 | ||||
| Acquisition-related costs | 648 | 68 | 1,748 | 1,398 | ||||
| Equity-based compensation | 122 | 217 | 731 | 1,052 | ||||
| Other non-comparable items | 1,243 | 489 | 967 | 1,277 | ||||
| Related income taxes | (840 | ) | (169 | ) | (2,685 | ) | -2,020 | |
| Adjusted net earnings attributed to shareholders(a) | 7,865 | 5,371 | 26,080 | 22,973 | ||||
| Variance in $ | 2,494 | 3,107 | ||||||
| Variance in % | 46.4 | % | 13.5 | % | ||||
| % of revenues | 10.6 | % | 7.5 | % | 8.8 | % | 7.9 | % |
| Per share amount | ||||||||
| Basic | 0.50 | 0.35 | 1.67 | 1.48 | ||||
| Diluted | 0.50 | 0.34 | 1.67 | 1.47 | ||||
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 December 28, 2019 and December 29, 2018
In thousands of Canadian dollars, except per share amounts
| 13 weeks | 52 weeks | |||||||
| December 28, 2019 | December 29, 2018 | December 28, 2019 | December 29, 2018 | |||||
| $ | $ | $ | $ | |||||
| Earnings before income taxes | 6,715 | 4,754 | 26,398 | 20,737 | ||||
| Adjustments: | ||||||||
| Depreciation, amortization and loss on disposal | 4,657 | 4,557 | 17,999 | 19,978 | ||||
| Equity-based compensation expense | 122 | 217 | 731 | 1,052 | ||||
| Financial expenses | 1,577 | 3,570 | 9,154 | 10,015 | ||||
| Interest revenue | (143 | ) | (85 | ) | (435 | ) | (295 | ) |
| Other | 74 | 183 | (134 | ) | (59 | ) | ||
| Income from investments in joint ventures and associates | (1,116 | ) | (426 | ) | (2,633 | ) | (1,849 | ) |
| Cash flows from operating activities, before income taxes paid and changes in working capital items | 11,886 | 12,770 | 51,080 | 49,579 | ||||
| Income taxes paid | (866 | ) | (1,645 | ) | (4,714 | ) | (8,016 | ) |
| Cash flows related to operating activities, before changes in working capital items | 11,020 | 11,125 | 46,366 | 41,563 | ||||
| Changes in working capital items | (3,677 | ) | (3,702 | ) | (2,759 | ) | (6,777 | ) |
| Cash flows related to operating activities | 7,343 | 7,423 | 43,607 | 34,786 | ||||
Free cash flow
| 13 weeks | 52 weeks | ||||||||
| December 28, 2019 | December 29, 2018 | December 28, 2019 | December 29, 2018 | ||||||
| $ | $ | $ | $ | ||||||
| Cash flows related to operating activities | 7,343 | 7,423 | 43,607 | 34,786 | |||||
| Acquisitions of property, plant and equipment | (3,514 | ) | (1,581 | ) | (9,850 | ) | (8,794 | ) | |
| Free cash flow(a) | 3,829 | 5,842 | 33,757 | 25,992 | |||||
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 | 52 weeks | |||||||
| December 28, 2019 | December 29, 2018 | December 28, 2019 | December 29, 2018 | |||||
| $ | $ | $ | $ | |||||
| Cash flows related to operating activities | 7,343 | 7,423 | 43,607 | 34,786 | ||||
| Income taxes paid | 866 | 1,645 | 4,714 | 8,016 | ||||
| Changes in working capital items | 3,677 | 3,702 | 2,759 | 6,777 | ||||
| Acquisition-related costs | 648 | 68 | 1,748 | 1,398 | ||||
| Other non-comparable items | 1,243 | 489 | 967 | 1,277 | ||||
| Adjusted cash flows related to operating activities(a) | 13,777 | 13,327 | 53,795 | 52,254 | ||||
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 income taxes paid, changes in working capital items, 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.