Coastal Reports Record Q3, 2012 Revenue Of $50.3 Million

It is an exciting time at Coastal and we look forward to reporting continued progress in the coming quarters."

Key financial metrics for the third quarter of 2012 compared to the same period in 2011:

• Gross profit was $21.4 million or 43% of sales, compared to $21.1 million or 43% of sales
• Fulfillment expenses remained constant at 10% of sales
• Selling and Marketing expenses decreased to $12.2 million or 24% of sales compared with $12.6 or 25% of sales
• General and Administration expenses were $5.2 million or 10% of sales compared with $5.2 or 11% of sales
• Adjusted EBITDA was ($0.1) million, compared to ($0.4) million
• Loss for the period was $1.9 million or $0.07 per share, compared to a loss of $1.5 million or $0.06 per share (earnings per share for the period were calculated based on the number of outstanding shares after the one new for two old share consolidation that was effected September 5, 2012)
• Non-cash share-based compensation remained steady at $0.2 million for the quarter
• Cash and cash equivalents of $15.4 million at the end of the quarter

Subsequent to the end of the third fiscal quarter, Coastal announced a share consolidation effective September 5, 2012.   The consolidation was made on the basis of two pre-consolidation common shares for each one post-consolidation common share. Shareholders of the Company authorized the Consolidation at the Company's Annual and Special Meeting of Shareholders held on April 20, 2012. Company shares trade under the symbol "COA" and new CUSIP number 19044R207.

The Consolidation reduces the number of outstanding common shares of the Company from approximately 56.7 million to approximately 28.4 million.

COASTAL CONTACTS INC.
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (unaudited)
(Stated in Thousands of Canadian Dollars)
	July 31,	October 31,
	2012	2011
ASSETS
Current assets
Cash and cash equivalents	$ 15,403	$ 16,864
Trade and other receivables	8,059	6,013
Inventory	21,510	26,228
Prepaid expenses	3,391	3,125
Income tax receivable	--	79
Total current assets	48,363	52,309
Non-current assets
Deferred tax asset	85	97
Property, equipment and leasehold improvements	8,844	8,960
Intangible assets	10,928	10,882
Goodwill	8,177	8,518
Total non-current assets	28,034	28,457
TOTAL ASSETS	$ 76,397	$ 80,766
LIABILITIES AND EQUITY
Current liabilities
Trade and other payables	$ 33,107	$ 36,098
Provisions	1,063	1,057
Income taxes payable	519	--
Finance lease obligation	2,252	2,646
Operating line of credit	3,799	--
Other current liabilities	252	280
Total current liabilities	40,992	40,081
Non-current liabilities
Other long-term liabilities	723	859
Finance lease obligation	490	1,911
Long-term operating line of credit	--	1,500
Deferred tax liability	2,992	3,306
Total non-current liabilities	4,205	7,576
Total liabilities	45,197	47,657
Equity
Share capital
Authorized:
Unlimited common shares without par value
Unlimited Class A preferred shares without par value
Issued and outstanding:
28,355,745 common shares [2011- 28,110,579]	41,368	40,667
Share-based payments reserve	3,468	2,934
Accumulated other comprehensive earnings (loss)	(473)	372
Deficit	(13,163)	(10,864)
Total Equity	31,200	33,109
TOTAL LIABILITIES AND EQUITY	$ 76,397	$ 80,766

 

COASTAL CONTACTS INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (unaudited)
(Stated in Thousands of Canadian Dollars, except per share amounts)
	Three months ended July 31		Nine months ended July 31
Notes	2012	2011	2012	2011
Sales	$ 50,324	$ 49,589	$ 145,385	$ 134,036
Cost of sales	28,898	28,482	84,130	77,291
Gross profit	21,426	21,107	61,255	56,745
Fulfillment	5,090	4,666	13,964	13,066
Selling and marketing	12,180	12,582	33,483	31,978
General and administration	5,227	5,221	14,919	15,757
Results from operating activities	(1,071)	(1,362)	(1,111)	(4,056)
Financing costs (income)	848	(261)	917	(119)
Loss before income taxes	(1,919)	(1,101)	(2,028)	(3,937)
Income tax expense (recovery) - current	(43)	406	527	643
Income tax recovery - deferred	(15)	(22)	(256)	(781)
Net income tax expense (recovery)	(58)	384	271	(138)
Net loss for the period	(1,861)	(1,485)	(2,299)	(3,799)
Other comprehensive loss
Foreign currency translation differences	(33)	(624)	(845)	(125)
Total comprehensive loss for the period	$ (1,894)	$ (2,109)	$ (3,144)	$ (3,924)
Basic and diluted loss per share	$ (0.07)	$ (0.06)	$ (0.08)	$ (0.14)
Weighted average number of common shares outstanding - basic and diluted	28,335,556	27,704,882	28,226,417	27,663,191

Coastal Contacts will host a conference call to review the financial results and Company operations on Thursday, September 13, 2012 at 4:30pm ET.   Participating in the call will be Roger Hardy, Founder and CEO, Gary Collins, President and Nick Bozikis, CFO. 

« First ‹ Previous 1 2 3 4 5 6 Next › Last »