New Look Announces Record First Quarter Revenues
New Look Vision reported record revenues of $51.0 million and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $7.9 million for the first quarter ended April 1, 2017, representing increases of 14.5% and 8.3% respectively over last year. The increases were mainly due to the net addition of 20 stores in the last twelve months as well as same store sales growth of 1.9% 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 first quarter were $2.4 million (or $0.17 per share) compared to $2.2 million last year (or $0.16 per share). Adjusted net earnings per share for the quarter compared to the first quarter of 2016 were up 6.3% (diluted). Net earnings attributed to shareholders were $1.3 million, compared to $1.8 million last year, the decrease being mainly due to higher acquisition costs and equity-based compensation. When these expenses are added back to net earnings, adjusted net earnings show an improvement of $200 thousand.
Cash flow from operating activities before income taxes paid and changes in working capital items was $7.1 million or $0.51 per share in the first quarter of 2017 compared to $6.7 million or $0.49 per share last year. Income tax instalments paid in the first quarter of 2017 were $1.7 million compared to $2.7 million for 2016.
Antoine Amiel, the President of New Look Vision, stated that: “The year is off to a positive start as evidenced by Q1 operating and financial results. Revenues, same store sales, adjusted EBITDA and cash flows showed solid growth. The Adjusted EBITDA percentage was lower than historical levels due principally to higher operating expenses as the company builds the staff and infrastructure necessary to facilitate future growth. During the quarter, the company acquired six additional stores in Toronto, Vancouver and New Brunswick pursuant to its mission to expand its footprint across the country.”
Following the approval of the results of the first quarter of 2017, the Board of Directors of New Look Vision approved the payment of a dividend of $0.15 per Class A common shares payable on June 30, 2017 to the shareholders of record as of June 22, 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.
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