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Coastal Reports Record Revenue Of $196 Million In Fiscal 2012

Stocks in this article: COA

VANCOUVER, British Columbia, Dec. 19, 2012 (GLOBE NEWSWIRE) -- Coastal Contacts Inc. ("Coastal" or "the Company") (Nasdaq:COA) (TSX:COA) (Stockholm:COA), the largest online retailer of vision care products in the world, announced today its financial results for the fourth quarter and fiscal year ended October 31, 2012.

For the year ended October 31, 2012:

  • Total eyeglasses sales increased 22% to $48 million from $39 million during the same period in 2011.
  • Sales increased by $13.4 million or 7% to $196.1 million from $182.7 million during the same period in 2011.
  • Total contact lens sales increased 3% to $148.2 million from $143.5 million during the same period in 2011.
  • Gross profit increased 11% to $84.5 million and as a percentage of sales, gross margin increased to 43% compared with 42% during the same period in 2011.
  • Adjusted EBITDA* was $1.4 million compared with $0.7 million during the same period in 2011.
  • Cash and equivalents of $19.2 million compared with $16.9 million at the end of the same period in 2011.

* Adjusted EBITDA is a non-IFRS measure that does not have a standardized meaning prescribed by IFRS and is therefore unlikely to be comparable to similar measures presented by other companies. Refer to table for a reconciliation of net earnings to Adjusted EBITDA.

The Company noted the following operating highlights for 2012:

  • Total order volume was approximately 2.3 million orders in fiscal 2012. 
  • Customer base grew to 4.3 million vision corrected customers.
  • Eyeglasses shipments grew to 987,000 pairs, an increase of 27% over 2011.
  • Splashâ„¢, Coastal's proprietary contact lens brand, comprised 6% of contact lens unit sales during the period.
  • Exclusive designer eyeglasses frames accounted for 72% of overall eyeglasses sales.

For the fourth quarter ended October 31, 2012:

  • Total eyeglasses sales increased 27% to $13.8 million from $10.9 million during the same period in 2011.
  • Sales increased to $50.7 million from $48.7 million during the same period of 2011.
  • Gross profit increased 18% to $23.3 million and as a percentage of sales, gross margin increased to 46% compared with 40% during the same period in 2011.
  • Adjusted EBITDA was a loss of $0.4 million compared with $0.1 million during the same period in 2011.
  • Net loss for the period was $2.6 million compared with $1.5 million during the same period in 2011.
  • Eyeglasses sales into the United States market increased by 100% when compared with the same period in 2011.

Mr. Roger Hardy, Coastal's founder and CEO, commented, "Coastal is changing the way the world buys eyewear and doing it in a way that serves customers the way they want to be served. We continually survey our customers to gain current feedback on how we are doing using Net Promoter Score (NPS) methodology.   We believe our ratings are well ahead of traditional eyewear retailers and we are convinced this difference will continue to propel the shift from traditional eyewear channels to Coastal. We are well positioned to benefit from this emerging change in consumer habits.

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