Welcome!

News Feed Item

New Look Eyewear Inc. Announces Record Revenues for the First Quarter of 2014 and its Quarterly Dividend

MONTREAL, QUEBEC -- (Marketwired) -- 05/07/14 -- New Look Eyewear Inc. (TSX: BCI) ("New Look") today announced record revenues of $31.8 million for the first quarter ended March 29, 2014, an increase of 57% over last year, while EBITDA(1) reached $5 million, an increase of 63% over last year. These increases are principally attributable to the addition of Vogue's 65 stores last December. The acquisition of two independent practices, the opening of three stores, and the conclusion of two business arrangements with affiliates, all in 2013, also contributed to the increase in revenues and EBITDA. Comparable store(2) sales orders were up 0.7% year over year.

Net earnings attributable to shareholders decreased by $305,000 to $1 million, as a consequence of additional depreciation, amortization, equity-based compensation, and financial expenses related to the Vogue acquisition including an expense of $282,000 as change in fair value of an interest rate swap. As a consequence of this and also the issuance of 2.2 million shares in 2013 to finance the acquisition, net earnings per share(3) decreased from $0.12 to $0.08. First quarter operating cash flows (before changes in working capital) increased substantially to $4.8 million, or $0.37 per share (3) compared to $0.28 last year.

More details on the financial performance of the first quarter are available in the attachments.

Martial Gagne, the President of New Look, commented: "We are pleased with the first quarter results achieved in spite of very adverse weather conditions. During the quarter, we completed the new layout of our manufacturing and distribution premises in St. Laurent, Quebec doubling our processing capacities thereby positioning the company for further growth. The addition of Vogue Optical creates a dynamic environment where both management teams are working at identifying areas of improvement for the overall operations and profitability."

Antoine Amiel, the Vice-Chairman of New Look, stated that: "During the first quarter, Vogue's integration progressed according to plans with sharing of best practices and leveraging of the combined entities' purchasing power. New Look opened a new store in Chambly (QC) to bring the group's total to 141. We expect other development initiatives to materialize in the coming quarters as we endeavour to grow profitably in our existing markets and in the rest of Canada.

Following the approval of the results of the first quarter of 2014 and taking into account the solid cash inflows from operations in the quarter, the Board of Directors of New Look approved the payment of a dividend of $0.15 per Class A common shares payable on June 30th, 2014 to the shareholders of record as of June 20th, 2014. The dividend qualifies as "eligible dividend", i.e. a dividend entitling shareholders who are Canadian resident individuals to a higher dividend tax credit.

For the first time, shareholders residing in Canada will be allowed to elect to re-invest their cash dividends into New Look shares, without any brokerage commissions, fees and transaction costs through the dividend reinvestment plan announced a month ago. 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 only has to make the election through his or her broker.

Subsequent to the end of the quarter, the Company received a proposal letter from the taxation authorities proposing to challenge certain tax attributes of its conversion from a trust to a corporation in March 2010. The Company is confident of the soundness of its position and will strongly defend its position during the administrative process as well as before the courts, if necessary. The eventual determination of these matters could take several years or more, and is not expected to impact the Company's operations and current development plans.

Attachments


--  Table A - Highlights
--  Table B - Consolidated statement of earnings (unaudited)
--  Table C - Reconciliation of net earnings to EBITDA

(1)  See Table C attached for a definition of EBITDA with a reconciliation
     of net earnings to EBITDA.
(2)  Comparable stores are those opened before 2013 by New Look and Vogue
     Optical
(3)  All per share amounts are calculated on a diluted basis.

As of April 30, 2014, New Look had 12,690,414 Class A common shares issued and outstanding. New Look is a leader in the eye care industry in Eastern Canada having a network of 141 corporate stores mainly under the New Look and Vogue Optical banners and laboratory facilities using state-of-the-art technologies.

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. 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 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'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 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.newlook.ca.

TABLE A


                            NEW LOOK EYEWEAR INC.
                                 Highlights
       for the 13-week periods ended March 29, 2014 and March 30, 2013

      Unaudited - In thousands of Canadian dollars, except per share amounts
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                             2014      2013
----------------------------------------------------------------------------
Revenues                                                  $31,810   $20,298
  Variance                                                     57%
EBITDA                                                     $5,034    $3,084
  Variance                                                     63%
  % of revenues                                              15.8%     15.2%
Net earnings attributed to shareholders                    $1,003    $1,308
  Variance                                                  (23.3%)
Net earnings per share
  Basic                                                     $0.08     $0.13
  Diluted                                                   $0.08     $0.12
Cash flows from operating activities, before changes in
 working capital items                                     $4,828    $2,990
  Per share (diluted)                                       $0.37     $0.28
Cash dividend per share                                     $0.15     $0.15
Variance in comparable stores sales orders(a)                 0.7%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(a) Comparable stores are those opened before 2013 by New Look or Vogue
    Optical.

TABLE B


                            NEW LOOK EYEWEAR INC.
                     Consolidated Statement of Earnings
       for the 13-week periods ended March 29, 2014 and March 30, 2013

      Unaudited - In thousands of Canadian dollars, except per share amounts
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                              2014      2013

----------------------------------------------------------------------------
Revenues                                                    31,810    20,298
----------------------------------------------------------------------------
Materials consumed, net of changes in inventory              6,947     4,404
Employee remuneration expense                               11,227     6,418
Other operating expenses                                     8,732     6,447
----------------------------------------------------------------------------
Earnings before depreciation, amortization, impairment
 of non-financial assets and financial expenses              4,904     3,029
----------------------------------------------------------------------------
Depreciation, amortization and impairment of non-
 financial assets                                            2,112     1,087
Financial expenses                                           1,261        90
----------------------------------------------------------------------------
Earnings before income taxes                                 1,531     1,852
----------------------------------------------------------------------------
Income taxes
  Current                                                       18
  Deferred                                                     484       537
----------------------------------------------------------------------------
Total income taxes                                             502       537
----------------------------------------------------------------------------
Net earnings and comprehensive income                        1,029     1,315
----------------------------------------------------------------------------
Net earnings and comprehensive income attributed to:
  Non-controlling interest                                      26         7
  Shareholders of New Look                                   1,003     1,308
----------------------------------------------------------------------------
                                                             1,029     1,315
----------------------------------------------------------------------------
Net earnings per share
  Basic                                                       0.08      0.13
  Diluted                                                     0.08      0.12
----------------------------------------------------------------------------
----------------------------------------------------------------------------

TABLE C


                            NEW LOOK EYEWEAR INC.
                  Reconciliation of net earnings to EBITDA
       for the 13-week periods ended March 29, 2014 and March 30, 2013

                                Unaudited - In thousands of Canadian dollars
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                             2014      2013
                                                                $         $
----------------------------------------------------------------------------
Net earnings attributed to shareholders                     1,029     1,315
Depreciation and amortization                               2,112     1,087
Financial expenses                                          1,261        90
Equity-based compensation                                     146        25
Net loss (gain) from changes in fair value of foreign
 exchange contracts                                           (16)       30
Income taxes                                                  502       537
----------------------------------------------------------------------------
EBITDA                                                      5,034     3,084
----------------------------------------------------------------------------
  Variance in $                                             1,950
  Variance in %                                                63%
  % of revenues                                              15.8%     15.2%
----------------------------------------------------------------------------
----------------------------------------------------------------------------

EBITDA refers to consolidated earnings before financial expenses, net of interest revenues, 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.

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

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
Increasing IoT connectivity is forcing enterprises to find elegant solutions to organize and visualize all incoming data from these connected devices with re-configurable dashboard widgets to effectively allow rapid decision-making for everything from immediate actions in tactical situations to strategic analysis and reporting. In his session at 18th Cloud Expo, Shikhir Singh, Senior Developer Relations Manager at Sencha, will discuss how to create HTML5 dashboards that interact with IoT devic...
Struggling to keep up with increasing application demand? Learn how Platform as a Service (PaaS) can streamline application development processes and make resource management easy.
Up until last year, enterprises that were looking into cloud services usually undertook a long-term pilot with one of the large cloud providers, running test and dev workloads in the cloud. With cloud’s transition to mainstream adoption in 2015, and with enterprises migrating more and more workloads into the cloud and in between public and private environments, the single-provider approach must be revisited. In his session at 18th Cloud Expo, Yoav Mor, multi-cloud solution evangelist at Cloudy...
In his session at 18th Cloud Expo, Sagi Brody, Chief Technology Officer at Webair Internet Development Inc., will focus on real world deployments of DDoS mitigation strategies in every layer of the network. He will give an overview of methods to prevent these attacks and best practices on how to provide protection in complex cloud platforms. He will also outline what we have found in our experience managing and running thousands of Linux and Unix managed service platforms and what specifically c...
In his session at @ThingsExpo, Chris Klein, CEO and Co-founder of Rachio, will discuss next generation communities that are using IoT to create more sustainable, intelligent communities. One example is Sterling Ranch, a 10,000 home development that – with the help of Siemens – will integrate IoT technology into the community to provide residents with energy and water savings as well as intelligent security. Everything from stop lights to sprinkler systems to building infrastructures will run ef...
Artificial Intelligence has the potential to massively disrupt IoT. In his session at 18th Cloud Expo, AJ Abdallat, CEO of Beyond AI, will discuss what the five main drivers are in Artificial Intelligence that could shape the future of the Internet of Things. AJ Abdallat is CEO of Beyond AI. He has over 20 years of management experience in the fields of artificial intelligence, sensors, instruments, devices and software for telecommunications, life sciences, environmental monitoring, process...
The demand for organizations to expand their infrastructure to multiple IT environments like the cloud, on-premise, mobile, bring your own device (BYOD) and the Internet of Things (IoT) continues to grow. As this hybrid infrastructure increases, the challenge to monitor the security of these systems increases in volume and complexity. In his session at 18th Cloud Expo, Stephen Coty, Chief Security Evangelist at Alert Logic, will show how properly configured and managed security architecture can...
We’ve worked with dozens of early adopters across numerous industries and will debunk common misperceptions, which starts with understanding that many of the connected products we’ll use over the next 5 years are already products, they’re just not yet connected. With an IoT product, time-in-market provides much more essential feedback than ever before. Innovation comes from what you do with the data that the connected product provides in order to enhance the customer experience and optimize busi...
Unless you don’t use the internet, don’t live in California, or haven’t been paying attention to the recent news… you should be aware that self-driving cars are on their way to becoming a reality. I have seen them – they are real. If you believe in the future reality of self-driving cars, then continue reading on. If you don’t believe in the future possibilities, then I am not sure what to do to convince you other than discuss the very real changes that will roll out with the consumer producti...
A critical component of any IoT project is the back-end systems that capture data from remote IoT devices and structure it in a way to answer useful questions. Traditional data warehouse and analytical systems are mature technologies that can be used to handle large data sets, but they are not well suited to many IoT-scale products and the need for real-time insights. At Fuze, we have developed a backend platform as part of our mobility-oriented cloud service that uses Big Data-based approache...
See storage differently! Storage performance problems have only gotten worse and harder to solve as applications have become largely virtualized and moved to a cloud-based infrastructure. Storage performance in a virtualized environment is not just about IOPS, it is about how well that potential performance is guaranteed to individual VMs for these apps as the number of VMs keep going up real time. In his session at 18th Cloud Expo, Dhiraj Sehgal, in product and marketing at Tintri, will discu...
The increasing popularity of the Internet of Things necessitates that our physical and cognitive relationship with wearable technology will change rapidly in the near future. This advent means logging has become a thing of the past. Before, it was on us to track our own data, but now that data is automatically available. What does this mean for mHealth and the "connected" body? In her session at @ThingsExpo, Lisa Calkins, CEO and co-founder of Amadeus Consulting, will discuss the impact of wea...
Many private cloud projects were built to deliver self-service access to development and test resources. While those clouds delivered faster access to resources, they lacked visibility, control and security needed for production deployments. In their session at 18th Cloud Expo, Steve Anderson, Product Manager at BMC Software, and Rick Lefort, Principal Technical Marketing Consultant at BMC Software, will discuss how a cloud designed for production operations not only helps accelerate developer...
SYS-CON Events announced today that Enzu, a leading provider of cloud hosting solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive advantage. By offering a suite of proven hosting and management services, Enzu wants companies to foc...
As the rapid adoption of containers continues, companies are finding that they lack the operational tools to understand the behavior of applications deployed in these containers, and how to identify issues in their application infrastructure. For example, how are multiple containers within an application impacting each other’s performance? If an application’s service is degraded, which container is to blame? In the case of an application outage, what was the root cause of the outage?