New Look Vision Reports Record Results for the Third Quarter of 2018
New Look Vision Group Inc. reported financial results today for the 13 and 39 week periods ended September 29, 2018 (“Q3 2018”).
Q3 2018 Financial and Operational Highlights:
- Revenues increased by 32.0% over last year to $72.9 million. This results mainly from the impact of the acquisition of Iris, as well as comparable store sales growth.
- Comparable store sales orders were up by 0.2%, compared to the third quarter of last year. This marks the 17th consecutive quarter of comparable store sales growth.
- Adjusted EBITDA reached $13.9 million, an increase of 28.6% over last year and increased 15.6% on a per share (diluted) basis to $0.89.
- Adjusted cash flows from operating activities were $13.6 million, an increase of 27.1% over last year and an increase of 13.0% on a per share (diluted) basis to $0.87.
- Net earnings attributable to shareholders reached $4.9 million, compared to $3.4 million last year, the increase being attributable to higher EBITDA, offset partially by higher depreciation, financial expenses, and income taxes. Net earnings on a per share (diluted) basis were $0.31, compared to $0.24 last year, an increase of 29.2%.
- Adjusted net earnings attributed to shareholders (defined as net earnings adjusted to remove the impact of acquisition-related costs, equity-based compensation and other non-comparable costs) were $8.8 million, compared to $6.6 million for the same quarter last year. Adjusted net earnings per share (diluted) were $0.56, an increase of 19.1% over the same quarter last year.
- The financial performance of the Group allowed it to maintain its quarterly payments of dividends to shareholders of $0.15 per share.
- The long-term debt was reduced by $5.7 million through voluntary and contractual repayments, improving the net debt to adjusted EBITDA ratio.
During the third quarter, the Company increased its interest swap coverage to ensure protection against the potential volatility in macro economic indicators. On September 30, 2018 the Company renegotiated certain terms on its credit facilities.
Year-to-date Financial and Operating Results:
- Year-to-date revenues and adjusted EBITDA reached a record $219.9 million and $40.6 million respectively, which represent increases of 36.0% and 37.0% respectively over last year. Comparable store sales year-to-date were up 1.4% over last year.
- Adjusted cash flows from operating activities were $38.9 million or $2.49 per diluted share, an increase of $9.7 million, or 33.0% over last year.
- Net earnings attributed to shareholders were $11.1 million ($0.71 per diluted share) compared to $7.3 million last year ($0.52 per diluted share).
- Adjusted net earnings attributed to shareholders, which is net earnings adjusted to remove the impact of depreciation, acquisition related costs, equity-based compensation, and other non-comparable costs were $25.0 million, or $6.8 million over last year. Adjusted net earnings attributed to shareholders increased to $1.60 per diluted share, up 23.1% from $1.30 in 2017.
- Free cash flow reached $20.2 million, a 46.3% increase over last year, principally due to increased EBITDA, offset by higher taxes paid.
- The long-term debt was reduced by $14.0 million through voluntary and contractual repayments, improving the net debt to adjusted EBITDA ratio.
Antoine Amiel, the President and CEO of New Look Vision, stated that: “The third quarter was a solid quarter with positive financial and operating results as we continued to build the New Look Vision Group platform for future growth both organically and by acquisition, in the consolidating Canadian eyewear market. The Group continues to execute its strategic growth plan generating synergies as well as maintaining focus on deleveraging efforts”.
For the full press release and report, click HERE.