Welcome!

News Feed Item

Unilens Vision Inc. Reports Operating Results for Second Quarter of FY2014

Royalty Income Increases for First Time in Six Quarters

LARGO, FL -- (Marketwired) -- 02/14/14 -- Unilens Vision Inc. (OTCQB: UVIC), which develops, licenses, manufactures, distributes and markets specialty contact lenses, today reported its operating results for the second quarter and first half of FY2014.

Highlights of Quarter Ended December 31, 2013

  • Total product sales increased slightly to $1,430,042, compared with $1,429,475 in the second quarter of FY2013. Disposable lens sales increased 1.0%, while sales in the custom soft lens category increased 8.4% when compared with the prior-year period.
  • Royalty income increased, for the first time in six quarters, by 0.7% to $586,660, versus $582,574 in the second quarter of FY2013.
  • Operating expenses increased 2.5% to $723,898, versus $705,952 a year earlier, primarily due to higher administrative costs resulting from expense timing differences.
  • Interest expense doubled to $58,226, compared with $29,086 a year earlier, due to higher debt levels associated with the repurchase of 618,522 shares of the Company's common stock in early October 2013.
  • Operating income declined 8.0% relative to the corresponding quarter in FY2013.
  • Diluted earnings per share increased 9.1% to $0.12, versus $0.11 in the prior-year quarter, reflecting a 25.0% reduction in the weighted average number of shares outstanding due to the stock repurchase in October 2013.
  • In late October 2013, Bausch + Lomb announced the U.S. launch of its PureVision2® for Presbyopia multifocal lens, which features a next-generation multifocal design licensed from Unilens Vision.
  • The Company paid its 29th consecutive quarterly cash dividend, in the amount of $0.045 per share. The annualized cash dividend of $0.18 per share provides a current yield of 3.4% based on a closing share price of $5.25 on February 13, 2014.

Management Comments

"We are very encouraged by certain 'leading indicators' that suggest we are approaching a turnaround in our financial performance and a resumption in revenue and earnings growth," stated Michael Pecora, the Company's Chief Executive Officer. "In particular, we are pleased to report that royalty income increased during the second quarter, for the first time in the past six quarters. In addition, our branded lens sales increased for the third consecutive quarter, following an extended period of lower sales during the past several years. We attribute this encouraging trend to incremental growth of our new C-Vue® HydraVUE™ Multifocal disposable lenses, along with continued growth in the popularity of our C-Vue® Advanced HydraVUE™ line of completely customizable silicone hydrogel contact lenses for monthly replacement."

"We continue our work on new technological improvements that have the potential to generate future incremental licensing income and/or product sales," continued Pecora. "The demand for effective multi-focal vision-correction products that can address the challenges of presbyopia should continue to increase well into the next decade with the aging of America's 'baby boom' generation, and our goal is to enhance shareholder value by capturing a larger share of this market."

"In early October 2013, we repurchased 618,522, or approximately 26% of the Company's total common shares outstanding, from the Company's largest outside shareholder, at an aggregate purchase price of approximately $3.1 million, or $4.97 per share. This transaction was accretive to earnings per share in the most recent quarter, and we believe it reflects our commitment to the enhancement of long-term shareholder value. We funded the repurchase through a $3.3 million expansion and modification of our existing term loan with Hancock Bank. The term loan bank facility will be amortized over a longer seven-year period and bears interest at a floating rate of 30-day LIBOR plus 3.5%. The elimination of cash dividend payments on the repurchased shares, which were returned to the treasury, when combined with a seven-year principal amortization schedule, should allow Unilens to service the expanded debt facility without limiting our ability to fund new growth initiatives."

Second Quarter Results

For the three months ended December 31, 2013, total revenue including royalty income was largely unchanged at $2,016,702, compared with total revenue of $2,012,049 in the second quarter of FY2013. Total product sales increased slightly to $1,430,042 in the most recent quarter, versus $1,429,475 in the corresponding period of the previous fiscal year. Sales in the disposable lens category increased 1.0%, primarily due to sales of the Company's new silicone hydrogel disposable C-VUE HydraVUE Multifocal lenses, which were introduced to the market in February 2013. The continued popularity of the Company's C-Vue® Advanced HydraVUE™ line of completely customizable silicone hydrogel contact lenses for monthly replacement allowed total sales of custom soft lenses to increase 8.4% in the second quarter of FY2014 relative to year-earlier levels.

Royalty income from Bausch + Lomb increased 0.7% to $586,660 in the quarter ended December 31, 2013, compared with $582,574 in the prior-year quarter. This represented the first year-over-year increase in quarterly royalty income in the past year and a half.

Gross profit margins declined to 35.7% of product sales during the second quarter of FY2014, versus 37.1% in the second quarter of FY2013. The decrease was primarily due to one-time manufacturing repair costs, partially offset by changes in product mix and manufacturing improvements introduced a year earlier.

Operating expenses increased 2.5% to $723,898 in the most recent quarter, compared with $705,952 in the year-earlier period. Administrative expenses increased due to the timing of tax accounting fees that were paid in the second quarter of FY2014, whereas such fees were paid in the third quarter of the previous fiscal year. Modest increases in consulting and legal fees were offset by lower rental expense. Lower sales and marketing expenses were partially offset by a modest increase in research and development costs.

Net non-operating expenses increased 101% to $55,307, versus $27,560 a year earlier, primarily due to higher debt levels associated with the repurchase of 618,522 shares of the Company's common stock in early October 2013.

Pretax income decreased 15.9% to $318,649 in the three months ended December 31, 2013, compared with $378,841 in the corresponding period of the previous fiscal year. The Company reported an 18.3% reduction in net income, which totaled $207,419 in the second quarter of FY2014, versus $253,935 in the prior-year period. Diluted earnings per share increased 9.1% to $0.12 in the three months ended December 31, 2013, compared with $0.11 in the three months ended December 31, 2012. The weighted average number of common shares outstanding decreased 25.0% to 1,777,724 in the most recent quarter, versus 2,369,354 in the prior-year quarter. The decline in outstanding shares resulted from the above-noted share repurchase in October 2013.

Six-Month Results

For the six months ended December 31, 2013, total revenue including royalty income rose 0.6% to $4,075,521, compared with total revenue of $4,050,660 in the first half of FY2013. Total product sales increased 2.4% to $3,009,247 in the first half of FY2014, versus $2,939,129 in the corresponding period of the previous fiscal year. Sales in the disposable lens category increased 1.7%, while sales of custom soft lenses rose 10.6%, in the six months ended December 31, 2013, relative to year-earlier levels.

Royalty income from Bausch + Lomb declined 4.1% to $1,066,274 in the first half of FY2014, compared with $1,111,531 a year earlier. First quarter royalty income declined 9.3% while second quarter royalty income increased 0.7%, respectively, when compared with prior-year periods.

Gross profit margins declined to 37.2% of product sales during the first half of FY2014, versus 39.1% in the first half of FY2013. The decrease was primarily due to one-time manufacturing repair costs in the most recent quarter, partially offset by changes in product mix and manufacturing improvements introduced a year earlier.

Operating expenses increased 2.6% to $1,479,379 in the most recent six-month period, compared with $1,442,589 in the year-earlier period. Administrative expenses increased due to the timing of tax accounting fees that were paid in the second quarter of FY2014, whereas such fees were paid in the third quarter of the previous fiscal year. Modest increases in consulting and legal fees were offset by lower rental expense. Higher research and development costs were partially offset by lower sales and marketing expenses.

Net non-operating expenses increased 36.9% to $78,018, versus $56,987 a year earlier, primarily due to higher debt levels associated with the above mentioned repurchase of common stock in early October 2013.

Pretax income decreased 17.4% to $628,257 in the six months ended December 31, 2013, compared with $760,622 in the corresponding period of the previous fiscal year. The Company reported an 17.1% reduction in net income, which totaled $421,980 in the first half of FY2014, versus $508,939 in the prior-year period. Diluted earnings per share decreased 4.8% to $0.20 in the six months ended December 31, 2013, compared with $0.21 in the six months ended December 31, 2012. The weighted average number of common shares outstanding decreased 12.5% to 2,073,539 in the first half of FY2014, versus 2,369,354 in the first half of FY2013. The decline in outstanding shares resulted from the share repurchase in October 2013.

Cash Dividends

The Company recently declared its 30th consecutive quarterly cash dividend, which will be paid on February 28, 2014 to shareholders of record on February 14, 2014. The $0.045 per share quarterly cash dividends provide an annualized current yield of 3.4% to Unilens shareholders based upon a common stock price of $5.25 per share at the close of stock market trading on February 13, 2014.

The amount and frequency of future dividends will depend upon earnings, cash flow, and other aspects of the Company's business as determined and declared by the Board of Directors.

About Unilens Vision Inc. - "The Independent Eye Care Professionals' Contact Lens Company"

Established in 1989, Unilens Vision Inc., through its wholly-owned subsidiary Unilens Corp., USA, located in Largo, Florida and its wholly-owned subsidiary Unilens Vision Sciences Inc. develops, licenses, manufactures, distributes and markets contact lenses primarily under the C-Vue® brand directly to Independent Eye Care Professionals. Additional information on the Company may be accessed on the Internet at www.unilens.com. The Company's common stock is listed on the OTCQB under the symbol "UVIC."

Forward-Looking Statements

The information contained in this news release, other than historical information, consists of forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those described in such statements. For a discussion of certain factors that could cause actual results to differ materially from those described in the forward-looking statements, please refer to the Company's most recent filings with the SEC.


                            UNILENS VISION INC.
                        SECOND QUARTER - FISCAL 2014
                CONDENSED CONSOLIDATED FINANCIAL INFORMATION
                       (All figures in U.S. Dollars)

   RESULTS OF OPERATIONS
                               Three Months Ended       Six Months Ended
                             ---------------------   ----------------------
                              December    December    December     December
                              31, 2013    31, 2012    31, 2013     31, 2012
                             ---------   ---------   ----------   ---------
Revenues:
 Sales                      $1,430,042  $1,429,475  $ 3,009,247  $2,939,129
 Royalty income                586,660     582,574    1,066,274   1,111,531
                             ---------   ---------   ----------   ---------
Total revenues               2,016,702   2,012,049    4,075,521   4,050,660
                             ---------   ---------   ----------   ---------
 Operating costs and
  expenses:
  Cost of sales                918,848     899,696    1,889,867   1,790,462
  Expenses                     723,898     705,952    1,479,379   1,442,589
                             ---------   ---------   ----------   ---------
 Total operating costs and
  expenses                   1,642,746   1,605,648    3,369,246   3,233,051
                             ---------   ---------   ----------   ---------
 Operating income              373,956     406,401      706,275     817,609
                             ---------   ---------   ----------   ---------
 Other non-operating items:
  Other income                   2,919       1,526        6,771       3,156
  Interest expense             (58,226)    (29,086)     (84,789)    (60,143)
                             ---------   ---------   ----------   ---------
Total other non-operating
 items                         (55,307)    (27,560)     (78,018)    (56,987)
                             ---------   ---------   ----------   ---------
Income before income tax
 expense                       318,649     378,841      628,257     760,622
 Income tax expense            111,230     124,906      206,277     251,683
                             ---------   ---------   ----------   ---------
 Net income for the period  $  207,419  $  253,935  $   421,980  $  508,939
=========================== ==========  ==========  ===========  ==========
 Net income per common
  share:
  Basic                     $     0.12  $     0.11  $      0.20  $     0.21
  Diluted                   $     0.12  $     0.11  $      0.20  $     0.21
 Weighted average shares
  outstanding                1,777,724   2,369,354    2,073,539   2,369,354
=========================== ==========  ==========  ===========  ==========
CASH FLOWS
 Provided (used) by:
  Operating activities                              $   464,198  $  628,302
  Investing activities                                  (82,163)    (92,644)
  Financing activities                                 (491,408)   (644,683)
                                                     ----------   ---------
 Decrease in cash                                   $  (109,373) $ (109,025)
                                                    ===========  ==========

BALANCE SHEET
                                          June 30,    December     December
                                            2013      31, 2013     31, 2012
                                         ---------   ----------   ---------
  Cash and cash equivalents             $  140,182  $    30,809  $  265,952
  Total assets                           4,108,007    3,948,749   3,740,393
  Current liabilities                    2,184,841    2,103,008   1,748,912
  Total liabilities                      4,590,369    7,352,609   4,333,199
  Stockholders' deficit                 $ (482,362) $(3,403,860) $ (592,806)
                                        ==========  ===========  ==========


For more information, please contact:

Leonard F. Barker
CFO
Unilens Vision Inc.
(727) 544-2531
[email protected]

or


RJ Falkner & Company, Inc.
Investor Relations Counsel
(800) 377-9893
[email protected]

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Digital transformation has increased the pace of business creating a productivity divide between the technology haves and have nots. Managing financial information on spreadsheets and piecing together insight from numerous disconnected systems is no longer an option. Rapid market changes and aggressive competition are motivating business leaders to reevaluate legacy technology investments in search of modern technologies to achieve greater agility, reduced costs and organizational efficiencies. ...
In this presentation, you will learn first hand what works and what doesn't while architecting and deploying OpenStack. Some of the topics will include:- best practices for creating repeatable deployments of OpenStack- multi-site considerations- how to customize OpenStack to integrate with your existing systems and security best practices.
As organizations shift towards IT-as-a-service models, the need for managing and protecting data residing across physical, virtual, and now cloud environments grows with it. Commvault can ensure protection, access and E-Discovery of your data – whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise. In his general session at 18th Cloud Expo, Randy De Meno, Chief Technologist - Windows Products and Microsoft Part...
"With Digital Experience Monitoring what used to be a simple visit to a web page has exploded into app on phones, data from social media feeds, competitive benchmarking - these are all components that are only available because of some type of digital asset," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at DevOps Summit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, discussed how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team at D...
It is ironic, but perhaps not unexpected, that many organizations who want the benefits of using an Agile approach to deliver software use a waterfall approach to adopting Agile practices: they form plans, they set milestones, and they measure progress by how many teams they have engaged. Old habits die hard, but like most waterfall software projects, most waterfall-style Agile adoption efforts fail to produce the results desired. The problem is that to get the results they want, they have to ch...
Personalization has long been the holy grail of marketing. Simply stated, communicate the most relevant offer to the right person and you will increase sales. To achieve this, you must understand the individual. Consequently, digital marketers developed many ways to gather and leverage customer information to deliver targeted experiences. In his session at @ThingsExpo, Lou Casal, Founder and Principal Consultant at Practicala, discussed how the Internet of Things (IoT) has accelerated our abilit...
For far too long technology teams have lived in siloes. Not only physical siloes, but cultural siloes pushed by competing objectives. This includes informational siloes where business users require one set of data and tech teams require different data. DevOps intends to bridge these gaps to make tech driven operations more aligned and efficient.
Organizations planning enterprise data center consolidation and modernization projects are faced with a challenging, costly reality. Requirements to deploy modern, cloud-native applications simultaneously with traditional client/server applications are almost impossible to achieve with hardware-centric enterprise infrastructure. Compute and network infrastructure are fast moving down a software-defined path, but storage has been a laggard. Until now.
Without a clear strategy for cost control and an architecture designed with cloud services in mind, costs and operational performance can quickly get out of control. To avoid multiple architectural redesigns requires extensive thought and planning. Boundary (now part of BMC) launched a new public-facing multi-tenant high resolution monitoring service on Amazon AWS two years ago, facing challenges and learning best practices in the early days of the new service.
HyperConvergence came to market with the objective of being simple, flexible and to help drive down operating expenses. It reduced the footprint by bundling the compute/storage/network into one box. This brought a new set of challenges as the HyperConverged vendors are very focused on their own proprietary building blocks. If you want to scale in a certain way, let's say you identified a need for more storage and want to add a device that is not sold by the HyperConverged vendor, forget about it...
Digital Transformation is much more than a buzzword. The radical shift to digital mechanisms for almost every process is evident across all industries and verticals. This is often especially true in financial services, where the legacy environment is many times unable to keep up with the rapidly shifting demands of the consumer. The constant pressure to provide complete, omnichannel delivery of customer-facing solutions to meet both regulatory and customer demands is putting enormous pressure on...
The best way to leverage your CloudEXPO | DXWorldEXPO presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering CloudEXPO | DXWorldEXPO will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at CloudEXPO. Product announcements during our show provide your company with the most reach through our targeted audienc...
JETRO showcased Japan Digital Transformation Pavilion at SYS-CON's 21st International Cloud Expo® at the Santa Clara Convention Center in Santa Clara, CA. The Japan External Trade Organization (JETRO) is a non-profit organization that provides business support services to companies expanding to Japan. With the support of JETRO's dedicated staff, clients can incorporate their business; receive visa, immigration, and HR support; find dedicated office space; identify local government subsidies; get...
@DevOpsSummit at Cloud Expo, taking place November 12-13 in New York City, NY, is co-located with 22nd international CloudEXPO | first international DXWorldEXPO and will feature technical sessions from a rock star conference faculty and the leading industry players in the world.