Revenues rose to
Comparable store sales up 13.5% y-o-y
Adjusted EBITDA up 140.8% and on a per diluted share basis up by 141.3% y-o-y
Launched new websites and iPhone applications as part of the omnichannel strategy featuring online booking capability, virtual optician appointment and bespoke frame orders
Continued integration of new technology to further elevate safety in stores and clinics in light of COVID-19
Q3 2020 Financial and Operational Highlights
- Revenues increased significantly by 16.8% to
$86.9 million year-over-year driven primarily by comparable store sales growth as well as from newly acquired stores, offset by revenue from scheduled store closures and from COVID-19 headwinds. - Comparable store sales were up 13.5% as a result of Q2 closure pent up demand and enhanced store operating procedures.
- Adjusted EBITDA attributed to shareholders was
$34.7 million , increasing by$20.3 million or 140.8% from last year and increased 141.3% on a per diluted share basis to$2.22 . - Net earnings attributed to shareholders was
$14 .3 million, increasing by 196.5% year-over-year. - Adjusted net earnings attributed to shareholders increased by 133.5% to
$16.2 million or$1.03 on a per diluted share basis. - Cash flows related to operating activities reached
$34.5 million , increasing by$21.1 million or 156.1% and increased 155.8% on a per diluted share basis to$2.20 year-over-year. - Net debt was
$154.1 million compared to$176.6 million from the quarter-over-quarter. - Strong cash position at quarter end of
$70.0 million and remaining availability on credit lines of$51.2 million . - The Company actively continued to pursue its significant pipeline of acquisition opportunities in
Canada andthe United States .
Year-to-date Financial and Operating Results
It should be noted that the Company has adopted IFRS 16 Leases effective Q1 2020. The Company has applied a modified retrospective approach; the operating results of previous fiscal periods have not been restated. Occupancy costs previously recorded as operating expenses are now recorded through depreciation of right-of-use assets and interest expenses on lease liabilities.
- Year-to-date revenues was
$182.3 million , which represent decreases of 18.6% from last year. Adjusted EBITDA attributed to shareholders(a) was$51.3 million , which represents an increase of 23.4% from last year. - The increase in the number of stores in the last twelve months reflects the acquisition of 19 stores net of 6 planned closures and the sale of one clinic.
- Net earnings attributed to shareholders were
$1.6 million or$0.10 per diluted share, compared to$13.7 million last year or$0.88 per diluted share. - Adjusted net earnings attributed to shareholders(a) decreased to
$7.9 million , a decrease of$10.3 million , as compared to last year. Adjusted net earnings attributed to shareholders(a) reached$0.50 per diluted share, down 57.3% from$1.17 in 2019. - Cash flows related to operating activities reached
$53.5 million , a increase of 47.5% as compared to last year and increased 47.4% on a per diluted share basis to$3.42 .
Actions in response to COVID-19
COVID-19 has drastically altered the way optical retailers operate on both brick and mortar and ecommerce levels. As consumers increasingly move online, New Look Vision’s investments in omnichannel experience and anticipation of the evolving consumer journey complements and enhances their physical retail presence. This approach increases accessibility to differentiated, customized and precise eyecare, while ensuring safety for consumers across
Phased Network Re-Opening Complete
Gradual store reopenings started on
Strong Balance Sheet Supported by New Financing Arrangements
In Q2 2020, the Company successfully secured an additional
President & CEO's comments
Status of Dividend
The Board of Directors suspended the regular quarterly dividend and the corresponding dividend reinvestment plan until further notice, effective
The decision to declare a dividend is made quarterly when the financial statements for a quarter or a financial year are made available to the Board of Directors. Although there is no guarantee that a dividend will be declared in the future,
As at
Attachments
- Table A - Highlights
- Table B - Impact of IFRS 16
- Table C - Consolidated Statement of Earnings
- Table D - Reconciliation of Net Earnings to Adjusted EBITDA and Adjusted EBITDA Attributed to Shareholders
- Table E - Reconciliation of Net Earnings Attributed to Shareholders to Adjusted Net Earnings Attributed to Shareholders
- Table F - 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, adjusted net earnings attributed to shareholders, free cash flow and adjusted cash flows related to operating activities 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
13 weeks | 39 weeks | |||||
Revenues | $86,886 | $86,886 | $74,417 | $182,343 | $182,343 | $223,936 |
Variance % | 16.8 % | 16.8 % | (18.6 %) | (18.6 %) | ||
Variance in comparable store sales orders(a)(b) | 13.5 % | 13.5 % | 1.6 % | — | — | 1.9 % |
Adjusted EBITDA attributed to shareholders(b) | $34,742 | $28,989 | $14,429 | $51,326 | $34,105 | $41,580 |
Variance % | 140.8 % | 100.9 % | 23.4 % | (18.0 %) | ||
% of revenues | 40.0 % | 33.4 % | 19.4 % | 28.1 % | 18.7 % | 18.6 % |
Per share (diluted) | ||||||
Variance % | 141.3 % | 101.1 % | 23.3 % | (18.0 %) | ||
Net earnings attributed to shareholders | $14,306 | $14,852 | $4,825 | $1,609 | $3,209 | $13,715 |
Variance % | 196.5 % | 207.8 % | (88.3 %) | (76.6 %) | ||
% of revenues | 16.5 % | 17.1 % | 6.5 % | 0.9 % | 1.8 % | 6.1 % |
Net earnings per share | ||||||
Per share (diluted) | ||||||
Variance % | 193.5 % | 206.5 % | (88.6 %) | (77.3 %) | ||
Adjusted net earnings attributed to shareholders(b) | $16,175 | $16,721 | $6,927 | $7,903 | $9,503 | $18,215 |
Variance % | 133.5 % | 141.4 % | (56.6 %) | (47.8 %) | ||
% of revenues | 18.6 % | 19.2 % | 9.3 % | 4.3 % | 5.2 % | 8.1 % |
Per share (diluted) | ||||||
Variance % | 134.1 % | 143.2 % | (57.3 %) | (47.9 %) | ||
Cash flows related to operating activities | $34,502 | $28,479 | $13,472 | $53,484 | $41,396 | $36,264 |
Variance % | 156.1 % | 111.4 % | 47.5 % | 14.2 % | ||
Per share (diluted) | ||||||
Variance % | 155.8 % | 111.6 % | 47.4 % | 13.8 % | ||
Free cash flow(b)(c) | $31,860 | $25,837 | $11,129 | $46,248 | $34,160 | $29,928 |
Variance % | 186.3 % | 132.2 % | 54.5 % | 14.1 % | ||
Per share (diluted) | ||||||
Variance % | 185.9 % | 132.4 % | 54.5 % | 14.1 % | ||
Total debt(d) | $224,141 | $224,141 | $150,469 | |||
Net debt / Adjusted EBITDA attributed to shareholders(b)(e) | 2.35 | 2.64 | 2.54 | |||
Cash dividend per share(f) | — | — | — | — | ||
Number of stores(g) | 390 | 390 | 378 |
a) | Comparable stores are stores which have been operating for at least 12 months. Due to the exceptional circumstances during the year, whereby the majority of the Company's stores were closed between |
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 Table D and Table E for the reconciliations of these measures to net earnings, and to Table F for the reconciliation of cash flows. |
c) | Free cash flow is defined as cash flows related to operating activities, less acquisitions of property, plant and equipment. |
d) | Total debt is defined as long-term debt and instalments whereas but excludes lease liabilities under IFRS 16. |
e) | Net debt is defined as total debt less cash. Adjusted EBITDA attributed to shareholders represents the amount over the last four rolling quarters. |
f) | The amounts of dividends shown in the table above refer to amounts declared in the periods. |
g) | The increase in the number of stores in the last twelve months reflects the acquisition of 19 stores net of 6 planned closures and the sale of one clinic. |
TABLE B
Impact of IFRS 16
for the periods ended
In thousands of Canadian dollars, except per share amounts
The Company has adopted IFRS 16 Leases effective Q1 2020. This standard replaces IAS 17 Leases. The Company has applied a modified retrospective approach; the operating results of previous fiscal periods have not been restated. The adoption of this standard has impacted the Company’s financial results in 2020. Certain occupancy-related expenses previously recorded under the caption other operating expenses are now recorded as depreciation and interest expense.
This change has resulted in a reduction to Other operating expenses with a corresponding increase in EBITDA when compared to the same metrics under IAS 17. Depreciation and financial expenses have increased as a result of the application of the standard.
The impact of IFRS 16 on the key metrics in the third quarter and year-to-date period ended
13 weeks | 39 weeks | |||||||||
2020 | Impact of IFRS 16 | 2019 | Change (excl. IFRS 16) | 2020 | Impact of IFRS 16 | 2019 | Change (excl. IFRS 16) | |||
$ | $ | $ | $ | $ | $ | $ | $ | $ | $ | |
Adjusted EBITDA attributed to shareholders(a) | ( | |||||||||
% of revenues | 40.0 % | 6.6 % | 33.4 % | 19.4 % | 14.0 % | 28.1 % | 9.4 % | 18.7 % | 18.6 % | 0.1 % |
Per share (diluted) | ( | |||||||||
Net earnings attributed to shareholders | ( | ( | ( | |||||||
% of revenues | 16.5 % | (0.6 %) | 17.1 % | 6.5 % | 10.6 % | 0.9 % | (0.9 %) | 1.8 % | 6.1 % | (4.3 %) |
Per share (diluted) | ( | ( | ( | |||||||
Adjusted net earnings attributed to shareholders(a) | ( | ( | ( | |||||||
% of revenues | 18.6 % | (0.6 %) | 19.2 % | 9.3 % | 9.9 % | 4.3 % | (0.9 %) | 5.2 % | 8.1 % | (2.9 %) |
Per share (diluted) | ( | ( | ( | |||||||
Cash flows related to operating activities | ||||||||||
Per share (diluted) | ||||||||||
Free cash flow(a) | ||||||||||
Per share (diluted) |
a) | Adjusted EBITDA attributed to shareholders, adjusted net earnings attributed to shareholders and free cash flow are not recognized measures under IFRS and may not be comparable to similar measures used by other entities. Refer to Table D and Table E for the reconciliations of these measures to net earnings, and to Table F for the reconciliation of cash flows. |
TABLE C
Consolidated Statement of Earnings
for the periods ended
In thousands of Canadian dollars, except per share amounts
13 weeks | 39 weeks | |||
$ | $ | $ | $ | |
Revenues | 86,886 | 74,417 | 182,343 | 223,936 |
Materials consumed | 19,576 | 16,920 | 43,689 | 49,666 |
Employee remuneration expenses | 21,061 | 24,864 | 52,943 | 75,693 |
Other operating expenses | 12,810 | 19,646 | 38,619 | 59,784 |
Earnings before depreciation, amortization, loss on disposal, financial expenses, and income from investments in joint ventures and associates | 33,439 | 12,987 | 47,092 | 38,793 |
Depreciation, amortization and loss on disposal | 10,058 | 4,478 | 29,343 | 13,342 |
Financial expenses, net of interest revenue | 4,813 | 1,750 | 16,617 | 7,285 |
Earnings before income from investments in joint ventures and associates and income taxes | 18,568 | 6,759 | 1,132 | 18,166 |
Income from investments in joint ventures and associates | 905 | 459 | 1,218 | 1,517 |
Earnings before income taxes | 19,473 | 7,218 | 2,350 | 19,683 |
Income taxes | ||||
Current | 4,262 | 2,034 | 2,407 | 5,150 |
Deferred | 503 | 7 | (1,935) | 122 |
Total income taxes | 4,765 | 2,041 | 472 | 5,272 |
Net earnings | 14,708 | 5,177 | 1,878 | 14,411 |
Net earnings attributed to: | ||||
Non-controlling interest | 402 | 352 | 269 | 696 |
Shareholders of | 14,306 | 4,825 | 1,609 | 13,715 |
14,708 | 5,177 | 1,878 | 14,411 | |
Net earnings (loss) per share | ||||
Basic | 0.91 | 0.31 | 0.10 | 0.88 |
Diluted | 0.91 | 0.31 | 0.10 | 0.88 |
TABLE D
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 | 39 weeks | |||||
2020 | 2019 | 2020 | 2019 | |||
$ | $ | $ | $ | $ | $ | |
Net earnings | 14,708 | 15,266 | 5,177 | 1,878 | 3,517 | 14,411 |
Depreciation, amortization and loss on disposal | 10,058 | 5,113 | 4,478 | 29,343 | 14,655 | 13,342 |
Financial expenses, net of interest revenue | 4,813 | 3,348 | 1,750 | 16,617 | 12,218 | 7,285 |
Income taxes | 4,765 | 4,963 | 2,041 | 472 | 1,085 | 5,272 |
EBITDA(a) | 34,344 | 28,690 | 13,446 | 48,310 | 31,475 | 40,310 |
Equity-based compensation(b) | 128 | 128 | 126 | 400 | 400 | 609 |
Net loss from changes in fair value of foreign exchange contracts | — | — | (16) | — | — | (4) |
Acquisition-related costs(c) | 278 | 278 | 353 | 1,138 | 1,138 | 1,100 |
Other non-comparable items(d) | 228 | 228 | 678 | 1,346 | 1,346 | (276) |
Adjusted EBITDA(a) | 34,978 | 29,324 | 14,587 | 51,194 | 34,359 | 41,739 |
Variance in $ | 20,391 | 14,737 | 9,455 | (7,380) | ||
Variance in % | 139.8% | 101.0% | 22.7% | (17.7%) | ||
% of revenues | 40.3% | 33.7% | 19.6% | 28.1% | 18.8% | 18.6% |
Per share (basic) | 2.23 | 1.87 | 0.93 | 3.27 | 2.19 | 2.67 |
Per share (diluted) | 2.23 | 1.87 | 0.93 | 3.27 | 2.19 | 2.67 |
The following table represents the adjusted EBITDA available to
13 weeks | 26 weeks | |||||
2020 | (excl. IFRS 16) | 2019 | 2020 | (excl. IFRS 16) | 2019 | |
$ | $ | $ | $ | $ | $ | |
Adjusted EBITDA(a) | 34,978 | 29,324 | 14,587 | 51,194 | 34,359 | 41,739 |
Income from investments in joint ventures and associates | (905) | (929) | (459) | (1,218) | (1,311) | (1,517) |
EBITDA from investments in joint ventures and associates | 1,619 | 1,414 | 788 | 3,000 | 2,323 | 2,682 |
EBITDA attributed to non-controlling interest | (950) | (820) | (487) | (1,650) | (1,266) | (1,324) |
Adjusted EBITDA attributed to shareholders(a) | 34,742 | 28,989 | 14,429 | 51,326 | 34,105 | 41,580 |
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 restructuring and transition related matters. |
TABLE E
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 | 39 weeks | |||||
2020 | (excl. IFRS 16) | 2019 | 2020 | (excl. IFRS 16) | 2019 | |
$ | $ | $ | $ | $ | $ | |
Net earnings attributed to shareholders | 14,306 | 14,852 | 4,825 | 1,609 | 3,209 | 13,715 |
Amortization of acquired intangibles | 1,834 | 1,834 | 1,651 | 5,270 | 5,270 | 4,912 |
Acquisition-related costs | 278 | 278 | 353 | 1,138 | 1,138 | 1,100 |
Equity-based compensation | 128 | 128 | 126 | 400 | 400 | 609 |
Other non-comparable items | 228 | 228 | 678 | 1,346 | 1,346 | (276) |
Related income taxes | (599) | (599) | (706) | (1,860) | (1,860) | (1,845) |
Adjusted net earnings attributed to shareholders(a) | 16,175 | 16,721 | 6,927 | 7,903 | 9,503 | 18,215 |
Variance in $ | 9,248 | 9,794 | (10,312) | (8,712) | ||
Variance in % | 133.5 % | 141.4 % | (56.6 %) | (47.8 %) | ||
% of revenues | 18.6 % | 19.2 % | 9.3 % | 4.3 % | 5.2 % | 8.1 % |
Per share amount | ||||||
Basic | 1.03 | 1.07 | 0.44 | 0.50 | 0.61 | 1.17 |
Diluted | 1.03 | 1.07 | 0.44 | 0.50 | 0.61 | 1.17 |
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 F
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 | 39 weeks | |||||
2020 | (excl. IFRS 16) | 2019 | 2020 | (excl. IFRS 16) | 2019 | |
$ | $ | $ | $ | $ | $ | |
Earnings before income taxes | 19,473 | 20,229 | 7,218 | 2,350 | 4,602 | 19,683 |
Adjustments: | ||||||
Depreciation, amortization and loss on disposal | 10,058 | 5,113 | 4,478 | 29,343 | 14,655 | 13,342 |
Equity-based compensation | 128 | 128 | 126 | 400 | 400 | 609 |
Financial expenses | 4,952 | 3,487 | 1,881 | 17,025 | 12,626 | 7,577 |
Interest revenue | (139) | (139) | (131) | (408) | (408) | (292) |
Other | 62 | 62 | (123) | (952) | (952) | (208) |
Income from investments in joint ventures and associates | (905) | (929) | (459) | (1,218) | (1,311) | (1,517) |
Income taxes received (paid) | (376) | (376) | (1,103) | (1,460) | (1,460) | (3,848) |
Cash flows related to operating activities, before changes in working capital items | 33,253 | 27,575 | 11,887 | 45,080 | 28,152 | 35,346 |
Changes in working capital items | 1,249 | 904 | 1,585 | 8,404 | 13,244 | 918 |
Cash flows related to operating activities | 34,502 | 28,479 | 13,472 | 53,484 | 41,396 | 36,264 |
Free cash flow
13 weeks | 39 weeks | |||||
2020 | 2019 | 2020 | (excl. IFRS 16) | 2019 | ||
$ | $ | $ | $ | $ | $ | |
Cash flows related to operating activities | 34,502 | 28,479 | 13,472 | 53,484 | 41,396 | 36,264 |
Acquisitions of property, plant and equipment | (2,642) | (2,642) | (2,343) | (7,236) | (7,236) | (6,336) |
Free cash flow(a) | 31,860 | 25,837 | 11,129 | 46,248 | 34,160 | 29,928 |
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 | 39 weeks | |||||
2020 | (excl. IFRS 16) | 2019 | 2020 | (excl. IFRS 16) | 2019 | |
$ | $ | $ | $ | $ | $ | |
Cash flows related to operating activities | 34,502 | 28,479 | 13,472 | 53,484 | 41,396 | 36,264 |
Income taxes paid | 376 | 376 | 1,103 | 1,460 | 1,460 | 3,848 |
Changes in working capital items | (1,249) | (904) | (1,585) | (8,404) | (13,244) | (918) |
Acquisition-related costs | 278 | 278 | 353 | 1,138 | 1,138 | 1,100 |
Other non-comparable items | 228 | 228 | 678 | 1,346 | 1,346 | (276) |
Adjusted cash flows related to operating activities(a) | 34,135 | 28,457 | 14,021 | 49,024 | 32,096 | 40,018 |
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:
2020 GlobeNewswire, Inc., source