MONTREAL, QUEBEC – Vision New Look Inc. (“Vision New Look”) announced today its financial results for the first quarter ended April 1 , 2017 and Than its quarterly dividend.
First Quarter Results
Vision New Look reported record sales of $ 51.0 million and adjusted EBITDA (1) of $ 7.9 million for the first quarter ended April 1 , 2017, representing increases of 14.5% and 8 , 3% respectively compared to last year. These increases primarily reflect the net addition of 20 stores in the last 12 months as well as comparable store sales growth. Comparable store sales increased 1.9% over last year.
Adjusted net income attributable to equity holders of adjusted net income to eliminate the impact of acquisition-related expenses and stock-based compensation was $ 2.4 million or $ 0.17 per share (2) , Compared to $ 2.2 million, or $ 0.16 per share, last year. For the quarter, adjusted net earnings per share increased by 6.3% (on a fully diluted basis) compared to the first quarter of 2016. Net income attributable to shareholders was $ 1.3 million compared to $ 1.8 million Last year. This decrease was primarily due to higher acquisition-related expenses and stock-based compensation. When these expenses are added to net income, there is an improvement in adjusted net income
Cash flows from operating activities before taxes paid and changes in working capital items were $ 7.1 million or $ 0.51 per share (2) in the first quarter of 2017 compared to To $ 6.7 million, or $ 0.49 per share, last year. Income tax paid in the first quarter of 2017 was $ 1.7 million compared to $ 2.7 million in 2016.
Further details on the financial performance of the first quarter ended April 1 , 2017 are available in the notes.
Comments from the President
Antoine Amiel, President of Vision New Look, said: “The year is on a positive note, as indicated by the first quarter’s operating and financial results. We had strong growth in sales, same store sales, adjusted EBITDA and cash flow. The low percentage of adjusted EBITDA is mainly due to higher operating costs resulting from hiring staff and building the infrastructure needed to support future growth. During the quarter, we acquired six new stores in Toronto, Vancouver and New Brunswick, remaining true to our expansion mission across the country. “
Approval of dividends
Following approval of the results for the first quarter of 2017, the Board of Directors of Vision New Look approved the payment of a dividend of $ 0.15 per Class A common share payable on June 30, 2017 to shareholders June 22, 2017. The dividend was designated as a “specified dividend”, a dividend entitling individuals resident in Canada to a more favorable dividend tax credit.
Shareholders resident in Canada may elect to reinvest their cash dividends in common shares of Vision New Look without payment of commission or service or brokerage fees through the Dividend Reinvestment Plan. Until further notice, these will be new shares issued at a price equal to 95% of the weighted average price during the five business days preceding the date of payment of a dividend. Any shareholder wishing to avail himself of this opportunity has only to apply to his broker.
Table A – Highlights
Table B – Consolidated Statements of Net Income
Table C – Reconciliation of Net Income and Adjusted EBITDA
Table D – Reconciliation of Net Income to Adjusted Net Income
Table E – Reconciliation of cash flows before taxes paid and changes in working capital and cash flows from operating activities.
1) EBITDA, adjusted EBITDA, adjusted net income and cash flows from operating activities before taxes paid and changes in working capital are not standardized measures under IFRS and can not be compared with measures Used by other companies. Refer to Tables C and D below for the reconciliation of net earnings to these measures. Refer to Table E for reconciliation of cash flows.
2) The per share amounts are calculated on a diluted basis.
As at April 30, 2017, Vision New Look had 13,591,079 Class A common shares issued and outstanding. Vision New Look is a leader in optical products and services in Eastern Canada, operating a network of 227 branches, primarily under the New Look eyewear, Vogue Optical and Greiche & Scaff banners, and fine labs Edge of technology. Tax information regarding shareholder payments is available at www.newlookvision.ca under the Investors section .
All statements in this news release other than those relating to historical facts are forward-looking statements, including, without limitation, statements regarding future financial condition, business strategy, projected costs, and Plans and objectives of Vision New Look or Vision New Look. Readers can identify many of these statements by paying attention to the terms “believes”, “believes”, “expects”, “expects”, “intends”, ” Similar terms, as well as their negative form, and the use of future or conditional verbs. There can be no assurance that the plans, intentions or expectations on which the forward-looking statements are based will materialize. Forward-looking statements involve risks, uncertainties and assumptions. While Vision New Look management believes that the expectations expressed in these forward-looking statements are reasonable, there can be no assurance that they will prove to be fair. Factors that could affect future results and cause actual results to differ materially from those expressed in the forward-looking statements contained herein include pending or proposed changes to legislation and regulations, Competition from established competitors and new entrants, technological advances, interest rate fluctuations, general economic conditions, acceptance and demand for new products and services, and fluctuations in operating results, As well as other risks outlined in Vision New Look’s current annual information form available at www.sedar.com . The forward-looking statements contained in this press release are made as of the date hereof and Vision New Look undertakes no obligation to publicly update these forward-looking statements to reflect new information or developments, The law requires it.
Source: Vision Group New Look Inc.