New Look Vision Group Inc. Reports Strong Record Results for the Third Quarter of Fiscal 2020

Revenues rose to $86.9 million, up 16.8% y-o-y
Comparable store sales up 13.5% y-o-y
Adjusted EBITDA up 140.8% and on a per diluted share basis up by 141.3% y-o-y 
Launched new websites and iPhone applications as part of the omnichannel strategy featuring online booking capability, virtual optician appointment and bespoke frame orders
Continued integration of new technology to further elevate safety in stores and clinics in light of COVID-19MONTREAL, Nov. 05, 2020 (GLOBE NEWSWIRE) — New Look Vision Group Inc. (“New Look Vision” or the “Company”) (TSX: BCI), a leader in the Canadian retail optical industry with stores across Canada and in Florida, 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. This press release should be read in conjunction with the Company’s management discussion and analysis (the “MD&A”) and interim consolidated financial statements for the third quarter of 2020, which are available on the Company’s website at www.newlookvision.ca/investors and have been posted on SEDAR at www.sedar.com.Q3 2020 Financial and Operational HighlightsRevenues 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.Net earnings attributed to shareholders was $14.3 million, increasing by 196.5% year-over-year.Adjusted net earnings attributed to shareholders increased by 133.5% to $16.2 million or $1.03 on a per diluted share basis.Cash flows related to operating activities reached $34.5 million, increasing by $21.1 million or 156.1% and increased 155.8% on a per diluted share basis to $2.20 year-over-year.Net debt was $154.1 million compared to $176.6 million from the quarter-over-quarter.Strong cash position at quarter end of $70.0 million and remaining availability on credit lines of $51.2 million.The Company actively continued to pursue its significant pipeline of acquisition opportunities in Canada and the United States.Year-to-date Financial and Operating ResultsIt should be noted that the Company has adopted IFRS 16 Leases effective Q1 2020. The Company has applied a modified retrospective approach; the operating results of previous fiscal periods have not been restated. Occupancy costs previously recorded as operating expenses are now recorded through depreciation of right-of-use assets and interest expenses on lease liabilities.Year-to-date revenues was $182.3 million, which represent decreases of 18.6% from last year. Adjusted EBITDA attributed to shareholders^(a) was $51.3 million, which represents an increase of 23.4% from last year.The increase in the number of stores in the last twelve months reflects the acquisition of 19 stores net of 6 planned closures and the sale of one clinic.Net earnings attributed to shareholders were $1.6 million or $0.10 per diluted share, compared to $13.7 million last year or $0.88 per diluted share.Adjusted net earnings attributed to shareholders^(a) decreased to $7.9 million, a decrease of $10.3 million, as compared to last year. Adjusted net earnings attributed to shareholders^(a) reached $0.50 per diluted share, down 57.3% from $1.17 in 2019.Cash flows related to operating activities reached $53.5 million, a increase of 47.5% as compared to last year and increased 47.4% on a per diluted share basis to $3.42.Actions in response to COVID-19COVID-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 eyecare, 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 CompleteGradual store reopenings 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.Strong Balance Sheet Supported by New Financing ArrangementsIn Q2 2020, the Company successfully secured an additional $73.9 million in bank and subordinated debt financing to strengthen its balance sheet and boost liquidity for both working capital and acquisition and development purposes. As at September 26, 2020, as a result, it had $70.0 million of cash on hand and undrawn credit and subordinated debt facilities of $51.2 million.New Look Vision continues to carefully manage its cash flow and expenditures by proactively implementing back-to-basic measures including optimizing cash burn, reducing expenses, postponing CAPEX, temporarily suspending the dividend, and reducing executive pay.President & CEO’s commentsAntoine 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, eyecare and eyewear products and services as well as our ability to evolve ahead of market trends to drive long-term shareholder value.”Status of DividendThe Board of Directors suspended the regular quarterly dividend and the corresponding dividend reinvestment plan until further notice, effective March 19, 2020, due to the pending impact of COVID-19 on the Company’s business and liquidity. Based on Q3 2020 and ongoing results, the Company’s current intention, subject to further review at the time, is to reinstate the regular quarterly dividend in the first quarter of 2021.The decision to declare a dividend is made quarterly when the financial statements for a quarter or a financial year are made available to the Board of Directors. Although there is no guarantee that a dividend will be declared in the future, New Look Vision and its predecessor, Benvest New Look Income Fund, have regularly paid a dividend or distribution since 2005 through 2019.As at October 30, 2020, New Look Vision had 15,660,199 Class A common shares issued and outstanding.AttachmentsTable A – HighlightsTable B – Impact of IFRS 16Table C – Consolidated Statement of EarningsTable D – Reconciliation of Net Earnings to Adjusted EBITDA and Adjusted EBITDA Attributed to ShareholdersTable E – Reconciliation of Net Earnings Attributed to Shareholders to Adjusted Net Earnings Attributed to ShareholdersTable F – Reconciliation of Free Cash Flow and Adjusted Cash Flows Related to Operating Activitiesa) EBITDA, adjusted EBITDA, adjusted EBITDA attributed to shareholders, adjusted net earnings, adjusted net earnings attributed to shareholders, free cash flow and adjusted cash flows related to operating activities are not recognized measures under IFRS and may not be comparable to similar measures used by other entities.About New Look Vision Group Inc.  New Look Vision is a leader in the eye care industry in Canada with a network of 390 stores operating mainly under the New Look Eyewear, Vogue Optical, Greiche & Scaff, Iris, and Edward Beiner banners (in the US) in addition to, 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. Forward-looking statements are subject to risks, uncertainties and assumptions. Although management of New Look Vision believes that the plans, intentions or expectations represented in such forward-looking statements are reasonable, there can be no assurance that they 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 website at www.newlookvision.ca. For enquiries, please contact Lise Melanson (514) 877-4119. TABLE ANEW LOOK VISION GROUP INC.
Highlights
for the periods ended September 26, 2020 and September 28, 2019In thousands of Canadian dollars, except per share amounts   TABLE BNEW LOOK VISION GROUP INC.
Impact of IFRS 16
for the periods ended September 26, 2020 and September 28, 2019In thousands of Canadian dollars, except per share amountsThe Company has adopted IFRS 16 Leases effective Q1 2020. This standard replaces IAS 17 Leases. The Company has applied a modified retrospective approach; the operating results of previous fiscal periods have not been restated. The adoption of this standard has impacted the Company’s financial results in 2020. Certain occupancy-related expenses previously recorded under the caption other operating expenses are now recorded as depreciation and interest expense.This change has resulted in a reduction to Other operating expenses with a corresponding increase in EBITDA when compared to the same metrics under IAS 17. Depreciation and financial expenses have increased as a result of the application of the standard.The impact of IFRS 16 on the key metrics in the third quarter and year-to-date period ended September 26, 2020 is summarized in the table below:  TABLE CNEW LOOK VISION GROUP INC.
Consolidated Statement of Earnings
for the periods ended September 26, 2020 and September 28, 2019In thousands of Canadian dollars, except per share amounts 
TABLE DNEW LOOK VISION GROUP INC.
Reconciliation of Net Earnings to Adjusted EBITDA and Adjusted EBITDA Attributed to Shareholders
for the periods ended September 26, 2020 and September 28, 2019In thousands of Canadian dollars, except per share amounts The following table represents the adjusted EBITDA available to New Look Vision shareholders, which takes into consideration the investments in joint ventures and associates.    TABLE ENEW LOOK VISION GROUP INC.
Reconciliation of Net Earnings Attributed to Shareholders to Adjusted Net Earnings Attributed to Shareholders
for the periods ended September 26, 2020 and September 28, 2019In thousands of Canadian dollars, except per share amounts  TABLE FNEW LOOK VISION GROUP INC.
Reconciliation of Free Cash Flow and Adjusted Cash Flows Related to Operating Activities
for the periods ended September 26, 2020 and September 28, 2019In thousands of Canadian dollars, except per share amountsFree cash flow Adjusted cash flows related to operating activities