NEW LOOK VISION GROUP INC.
ANNOUNCES RECORD REVENUES AND NET EARNINGS
FOR 2016 AND ITS QUARTERLY DIVIDEND
Montréal, Québec, March 15th, 2017 :New Look Vision Group Inc. (TSX: BCI) (“New Look Vision”), announced today its financial results
for the fourth quarter ended December 31, 2016 and its quarterly dividend.
Fourth quarter results
New Look Vision reported record revenues of $54.5 million and adjusted EBITDA(1) of $9.8 million for the fourth quarter ended December 31,
2016, representing increases of 22.1% and 1.1% respectively over last year. The increases were mainly due to the net addition of 27 stores
in the last twelve months as well as same store sales growth of 4.6% over last year.
Adjusted net earnings attributed to shareholders, defined as net earnings adjusted to remove the impact of acquisition-related costs and
equity-based compensation, for the fourth quarter were $4.3 million (or $0.31 per share(2)) compared to $4.3 million last year (or $0.32 per
share). Adjusted net earnings per share for the quarter compared to the fourth quarter of 2015 were down 3.1% (diluted), reflecting an
increase in depreciation, amortization and loss on disposal, as well as financial expenses, net of interest revenues.
Cash flow from operating activities before income taxes paid and changes in working capital items was $9.2 million or $0.67 per share(2)
in the fourth quarter of 2016 compared to $9.0 million or $0.66 per share last year. Income tax instalments paid in the fourth quarter of
2016 were $1.6 million compared to $2.1 million for 2015.
Full year revenues and adjusted EBITDA reached a record $198.5 million and $35.4 million respectively, which represent increases of
13.7% and 5.5% respectively over last year. Same store sales for the full year were up 4.1% over last year. Net earnings attributed to
shareholders were $11.2 million ($0.81 per share)(2) compared to $9.2 million last year ($0.67 per share). Net earnings adjusted to remove
the impact of acquisition-related costs and equity-based compensation were $13.9 million, reflecting a $0.68 million increase over last
year. Adjusted net earnings per share(2) increased to $1.01 from $0.96 last year.
Cash flow from operating activities before income taxes paid and changes in working capital was $33.4 million or $2.41 per share for the
full year compared to $32.2 million or $2.34 per share last year. Throughout 2016, New Look Vision made total tax payments of $7.2 million
compared to $4.5 million last year, including prior period adjustments and current year instalments.
More details on the financial performance of the fourth quarter and the year ended December 31, 2016 are available in the attachments.
Antoine Amiel, the President of New Look Vision, stated that: "We are pleased to report that through organic growth and acquisitions,
strengthening our historic markets, as well as expanding our geographical footprint across the country, New Look Vision Group has reached
a run rate of $200 million of revenues from a network of 220 stores which we believe makes us the largest optical retailer in Canada. In
the fourth quarter revenues and comparable store sales were strong while profitability was impacted primarily by aggressive promotional
activities, affecting cost of goods sold, a 53rd week in the reporting calendar, and costs associated with building the company`s long term
business. We continue to monitor the opportunities arising from the ongoing consolidation of the Canadian retail optical industry. Subsequent
to the year-end, we acquired three retail optical stores in Toronto. We expect such acquisition activity to continue through 2017 and
Following the approval of the results of the fourth quarter of 2016 and taking into account the solid cash flows from operations in the quarter,
the Board of Directors of New Look Vision approved the payment of a dividend of $0.15 per Class A common shares payable on March 31,
2017 to the shareholders of record as of March 24, 2017. The dividend has been designated as an “eligible dividend”, that is a dividend
entitling shareholders who are Canadian resident individuals to a higher dividend tax credit.
Through the dividend reinvestment plan, shareholders residing in Canada may elect to re-invest their cash dividends into New Look Vision
shares, without incurring brokerage commissions, fees and transaction costs. 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 may do so through his or her broker.
- Table A - Highlights
- Table B - Consolidated Statement of Earnings
- Table C - Reconciliation of Net Earnings to Adjusted EBITDA
- Table D - Reconciliation of Net Earnings to Adjusted Net Earnings
- Table E - Reconciliation of Cash Flows from Operating Activities, Before Income Taxes Paid and Changes in Working Capital
1) EBITDA, Adjusted EBITDA, Adjusted net earnings and Cash flows from operating activities before income taxes paid and changes
in working capital items are not recognized measures under IFRS and may not be comparable to similar measures used by other
entities. See Table C and Table D attached for a reconciliation of net earnings to these measures. See Table E for reconciliation of
2) Per share amounts are expressed on a diluted basis.
As of February 28, 2017, New Look Vision had 13,579,077 Class A common shares issued and outstanding. New Look Vision is a leader
in the eye care industry in Eastern Canada having a network of 220 corporate stores mainly under the New Look Eyewear, Vogue Optical
and Greiche & Scaff banners and laboratory facilities using state-of-the-art technologies. Tax information regarding payments to
shareholders is available at www.newlookvision.ca in the Investors section.
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 Vision. 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 Vision 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 Vision’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 Vision 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.newlookvision.ca. For enquiries, please contact Lise Melanson (514) 877-4299, ext. 2234.