New Look Vision Group Inc. reported financial results today for the 13 and 52 weeks ended December 30, 2017 (“Q4 2017” and “fiscal 2017”). This press release should be read in conjunction with the Company’s management discussion and analysis (the “MD&A”) and consolidated financial statements for fiscal 2017, which are available on the Company’s website at www.newlookvision.ca/investors and have been posted on SEDAR at www.sedar.com.
Q4 2017 Financial and Operational Highlights
Revenues reached $67.5 million and adjusted EBITDA reached $12.5 million for Q4 2017, representing increases of 23.9% and 28.3% respectively over last year. The revenue increase was mainly due to the net addition of 159 stores to the network in the last twelve months as well as same store sales growth of 2.8% over last year.
This revenue growth, along with improvement in the materials consumed ratio, resulted in the strong adjusted EBITDA performance. As a percentage of revenues, adjusted EBITDA in the fourth quarter increased 70 basis points to 18.6%. Depreciation and amortization expenses increased as a result of the acquisition of IRIS and capital investments made on the Company’s stores and laboratories.
When adjusted for acquisition-related costs and other non-comparable costs, adjusted cash flows from operating activities were $12.2 million or $0.80 per share, an increase of $2.4 million, or 25.1% over last year.
On October 24, 2017, the Company acquired Iris, The Visual Group (Iris), with 147 stores. Results of this acquisition, for 10 weeks, are included in the results for the fourth quarter and year end for Fiscal 2017.
Year-to-date Financial and Operating Results
Year-to-date revenues and adjusted EBITDA reached a record of $229.2 million and $42.1 million respectively, which represent increases of 15.4% and 19.1% respectively over fiscal 2016.
Adjusted net earnings attributed to shareholders, which is net earnings adjusted to remove the impact of depreciation, acquisition-related costs, equity-based compensation, and other non-comparable costs were $25.4 million, or $3.0 million over last year. Adjusted net earnings per share (diluted) increased to $1.78, up 9.9% from $1.62 in 2016. Comparable store sales year-to-date were up 2.6% over last year.
Antoine Amiel, the President and CEO of New Look Vision, stated that: “With the Q4 results, the 2017 year ended on a very strong note for the group. This and other positive operating and financial factors throughout the year as a whole are concrete evidence of the success of our strategic growth plan in recent years, both organically and by acquisition, as well as our ability to generate synergies across our expanding network.
In the fourth quarter, we completed the acquisition of Iris with its 147 locations which gives us a strong optometric based platform to build from in this sector of the consolidating Canadian retail optical industry. We look forward to working with their management team,partners and franchisees in the coming years.
Subsequent to quarter end, we welcomed on board Tania M. Clarke, as Senior Vice President and Chief Financial Officer.”
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