MONTRÉAL, QUÉBEC–(Marketwired – March 15, 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.

Annual results

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.

President’s comments

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 53^rd 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 beyond.”

Dividend approval

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.

Attachments

• 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 Items

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 cash flows.
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.

1. Comparable stores are stores which have been operating for at least 12 months. Revenues are recognized at time of delivery of goods to customers, but management measures the comparable store performance on the basis of sales orders, regardless of delivery.
2. 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. Refer to Table C and Table D for a reconciliation of these measures to net earnings. Also, refer to Table E for reconciliation of cash flows.
3. Capital expenditures include amounts financed through debt assumptions, balances of purchase price, issuance of shares and non-controlling interests.
4. Net debt refers to the total of the long-term debt, including the short-term portion and borrowings under the revolving facility, and dividends payable, in excess of cash.
5. The amounts of dividends shown in the table above refer to amounts declared in the periods.
6. The increase in the number of stores in 2016 reflects the acquisition of 32 stores, described in Note 7 to the financial statements, as well as six scheduled closures and one store openings.

1. EBITDA and adjusted EBITDA are not recognized measures under IFRS and may not be comparable to similar measures used by other entities. New Look Vision believes that EBITDA and adjusted EBITDA are useful financial metrics as they assist in determining the ability to generate cash from operations. Investors should be cautioned that EBITDA and adjusted EBITDA should not be considered as an alternative to net earnings or cash flows as determined under IFRS.

1. Adjusted net earnings are not a recognized measure under IFRS and may not be comparable to similar measures used by other entities. New Look Vision believes that this disclosure provides useful information as it allows the comparison of net results excluding acquisition and development costs, which may vary significantly from quarter to quarter. Investors should be cautioned that adjusted net earnings should not be considered as an alternative to net earnings as determined under IFRS.