New Look Vision Group reports the results for the second quarter and the year-to-date period ended July 1, 2017, their quarterly dividend and comments on the outlook of the business.
The second quarter was a solid quarter with respect to revenue growth from both comparable and recently acquired stores. The quarter ended successfully as New Look Vision entered into a definitive agreement to acquire all of the issued and outstanding shares of IRIS, The Visual Group. The acquisition is expected to close on or about October 1, 2017.
Second quarter results
New Look Vision reported record revenues of $55.4 million and adjusted EBITDA of $10.9 million for the second quarter ended July 1, 2017, representing increases of 9.7% and 5.2% respectively over last year. The increases were mainly due to the net addition of 15 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, equity-based compensation, and other non-comparable costs, for the second quarter were flat at $4.6 million compared to last year.
Adjusted net earnings per share for the quarter compared to the second quarter of 2016 were also flat at $0.33 per share. Net earnings attributed to shareholders were $2.6 million, compared to $4.1 million last year, the decrease being mainly due to higher acquisition costs, equity-based compensation, and other non-comparable costs.
Cash flow from operating activities before income taxes paid and changes in working capital items was $9.1 million or $0.66 per share in the second quarter of 2017, down from $9.8 million or $0.71 per share last year. However, when adjusted for acquisition related costs and other non-comparable costs, adjusted cash flows from operating activities are $10.8 million or $0.78 per share, an increase of $499 thousand, or 4.9% over last year. Income tax instalments paid in the second quarter of 2017 were $0.7 million compared to $1.5 million for 2016.
Year-to-date results
Year-to-date revenues and adjusted EBITDA reached a record of $106.4 million and $18.8 million respectively, which represent increases of 11.9% and 6.5% respectively over last year. Net earnings attributed to shareholders were $3.9 million ($0.28 per share) compared to $5.9 million last year ($0.43 per share). Net earnings adjusted to remove the impact of acquisition-related costs, equity-based compensation, and other non-comparable costs were $7.0 million, or $143 thousand over last year. Adjusted net earnings per share (diluted) remained flat at $0.50 in comparison to last year, despite additional depreciation and amortization and additional shares issued since the beginning of the second quarter of 2016. Comparable store sales year-to-date were up 3.3% over last year.
Cash flow from operating activities before income taxes paid and changes in working capital were $16.2 million or $1.17 per share in the year-to-date period compared to $16.5 million or $1.19 per share last year, the decrease being mainly attributable to increased acquisition-related costs and other non-comparable costs. Whereas, adjusted cash flows from operating activities were $18.6 million or $1.34 per share, an increase of $1.2 million, or 7.1% over last year. In the first six months of 2017, New Look Vision made total tax payments of $2.4 million compared to $4.2 million in 2016, including prior period adjustments and current year instalments.
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