New Look Vision Group reported financial results today for the 13 and 39 week periods ended September 26, 2020 (“Q3 2020”) and provided updates on actions in response to COVID-19, store re-openings, and new financing arrangements.
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.
• The Company actively continued to pursue its significant pipeline of acquisition opportunities in Canada and the United States.
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 eye care, while ensuring safety for consumers across Canada. Our central lens processing facility pivoted to begin producing safety eyewear for use in health care facilities.
Phased Network Re-Opening Complete
Gradual store re-openings started on May 4th in line with local and professional regulations, with all of New Look Vision’s entire store network open for business by the end of the second quarter. In advance of reopening its stores, the Company issued stringent health and safety procedures, undertook extensive training in the form of in-store rehearsals and is providing each location with prescribed personal protection equipment.
President & CEO’s comments
Antoine Amiel, the President and CEO of New Look Vision, stated that: “New Look Vision overcame ongoing market headwinds to deliver an exceptional set of third quarter results, largely driven by the phased reopening of our stores from mid-May as restrictions lifted. Revenues and comparable store sales rose 16.8% and 13.5% year-over-year respectively, which in combination with careful cost management are driving positive momentum, highlighted by EBITDA doubling year-over-year. Additionally, net debt decreased by $22.5 million compared to Q2. Complementary to our physical locations, our newly launched websites and iPhone applications deliver customer convenience and diversifies our revenue streams as part of our omnichannel strategy. Additionally, we continue to actively pursue our significant pipeline of acquisition opportunities in Canada and the United States. While ongoing mandated restrictive measures and their potential impacts on New Look Vision’s performance are difficult to predict, we’re looking to the future with an optimistic outlook, driven by the resiliency of our high quality, essential, eye care and eyewear products and services as well as our ability to evolve ahead of market trends to drive long-term shareholder value.”
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