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
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
Cloud Expo, Inc. has announced today that Andi Mann and Aruna Ravichandran have been named Co-Chairs of @DevOpsSummit at Cloud Expo Silicon Valley which will take place Oct. 31-Nov. 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. "DevOps is at the intersection of technology and business-optimizing tools, organizations and processes to bring measurable improvements in productivity and profitability," said Aruna Ravichandran, vice president, DevOps product and solutions marketing...
Digital transformation is changing the face of business. The IDC predicts that enterprises will commit to a massive new scale of digital transformation, to stake out leadership positions in the "digital transformation economy." Accordingly, attendees at the upcoming Cloud Expo | @ThingsExpo at the Santa Clara Convention Center in Santa Clara, CA, Oct 31-Nov 2, will find fresh new content in a new track called Enterprise Cloud & Digital Transformation.
Most technology leaders, contemporary and from the hardware era, are reshaping their businesses to do software. They hope to capture value from emerging technologies such as IoT, SDN, and AI. Ultimately, irrespective of the vertical, it is about deriving value from independent software applications participating in an ecosystem as one comprehensive solution. In his session at @ThingsExpo, Kausik Sridhar, founder and CTO of Pulzze Systems, will discuss how given the magnitude of today's applicati...
Smart cities have the potential to change our lives at so many levels for citizens: less pollution, reduced parking obstacles, better health, education and more energy savings. Real-time data streaming and the Internet of Things (IoT) possess the power to turn this vision into a reality. However, most organizations today are building their data infrastructure to focus solely on addressing immediate business needs vs. a platform capable of quickly adapting emerging technologies to address future ...
SYS-CON Events announced today that mruby Forum will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. mruby is the lightweight implementation of the Ruby language. We introduce mruby and the mruby IoT framework that enhances development productivity. For more information, visit http://forum.mruby.org/.
The dynamic nature of the cloud means that change is a constant when it comes to modern cloud-based infrastructure. Delivering modern applications to end users, therefore, is a constantly shifting challenge. Delivery automation helps IT Ops teams ensure that apps are providing an optimal end user experience over hybrid-cloud and multi-cloud environments, no matter what the current state of the infrastructure is. To employ a delivery automation strategy that reflects your business rules, making r...
SYS-CON Events announced today that NetApp has been named “Bronze Sponsor” of SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. NetApp is the data authority for hybrid cloud. NetApp provides a full range of hybrid cloud data services that simplify management of applications and data across cloud and on-premises environments to accelerate digital transformation. Together with their partners, NetApp emp...
In his general session at 21st Cloud Expo, Greg Dumas, Calligo’s Vice President and G.M. of US operations, will go over the new Global Data Protection Regulation and how Calligo can help business stay compliant in digitally globalized world. Greg Dumas is Calligo's Vice President and G.M. of US operations. Calligo is an established service provider that provides an innovative platform for trusted cloud solutions. Calligo’s customers are typically most concerned about GDPR compliance, applicatio...
In a recent survey, Sumo Logic surveyed 1,500 customers who employ cloud services such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP). According to the survey, a quarter of the respondents have already deployed Docker containers and nearly as many (23 percent) are employing the AWS Lambda serverless computing framework. It’s clear: serverless is here to stay. The adoption does come with some needed changes, within both application development and operations. Tha...
Enterprises are adopting Kubernetes to accelerate the development and the delivery of cloud-native applications. However, sharing a Kubernetes cluster between members of the same team can be challenging. And, sharing clusters across multiple teams is even harder. Kubernetes offers several constructs to help implement segmentation and isolation. However, these primitives can be complex to understand and apply. As a result, it’s becoming common for enterprises to end up with several clusters. Thi...
Data scientists must access high-performance computing resources across a wide-area network. To achieve cloud-based HPC visualization, researchers must transfer datasets and visualization results efficiently. HPC clusters now compute GPU-accelerated visualization in the cloud cluster. To efficiently display results remotely, a high-performance, low-latency protocol transfers the display from the cluster to a remote desktop. Further, tools to easily mount remote datasets and efficiently transfer...
Though cloud is the future of enterprise computing, a smooth transition of legacy applications and systems is critical for seamless business operations. IT professionals are eager to start leveraging the cost, scale and other benefits of cloud, but with massive investments already in place in existing infrastructure and a number of compliance and resource hurdles, it can be challenging to move to a cloud-based infrastructure.
SYS-CON Events announced today that Avere Systems, a leading provider of enterprise storage for the hybrid cloud, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Avere delivers a more modern architectural approach to storage that doesn't require the overprovisioning of storage capacity to achieve performance, overspending on expensive storage media for inactive data or the overbui...
Containers are rapidly finding their way into enterprise data centers, but change is difficult. How do enterprises transform their architecture with technologies like containers without losing the reliable components of their current solutions? In his session at @DevOpsSummit at 21st Cloud Expo, Tony Campbell, Director, Educational Services at CoreOS, will explore the challenges organizations are facing today as they move to containers and go over how Kubernetes applications can deploy with lega...