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
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.
President & CEO's comments
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
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.
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
For additional information please see our website at www.newlookvision.ca. For enquiries, please contact
TABLE A
Highlights
for the periods ended
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
Consolidated Statement of Earnings and Comprehensive Income
for the years ended
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 | 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
Reconciliation of Net Earnings to Adjusted EBITDA and Adjusted EBITDA Attributed to Shareholders
for the periods ended
In thousands of Canadian dollars, except per share amounts
13 weeks | 52 weeks | |||||||
$ | $ | $ | $ | |||||
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
13 weeks | 52 weeks | |||||||
$ | $ | $ | $ | |||||
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. |
b) | Equity-based compensation represents the fair value of |
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
Reconciliation of Net Earnings Attributed to Shareholders to Adjusted Net Earnings Attributed to Shareholders
for the periods ended
In thousands of Canadian dollars, except per share amounts
13 weeks | 52 weeks | |||||||
$ | $ | $ | $ | |||||
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.
TABLE E
Reconciliation of Free Cash Flow and Adjusted Cash Flows Related to Operating Activities
for the periods ended
In thousands of Canadian dollars, except per share amounts
13 weeks | 52 weeks | |||||||
$ | $ | $ | $ | |||||
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 | ||||||||
$ | $ | $ | $ | ||||||
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.
Adjusted cash flows related to operating activities
13 weeks | 52 weeks | |||||||
$ | $ | $ | $ | |||||
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.
Source:
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