This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration. Need a new registration confirmation email? Click here
Reports First Quarter Record Net Sales of $54.9 million, up 17%
Contact lens sales increased 12% to $41.0 million from same period last year
Glasses sales increased 35% to $13.9 million from same period last year
U.S. glasses sales and units increased 95% from same period last year
VANCOUVER, British Columbia, March 11, 2013 (GLOBE NEWSWIRE) -- Coastal Contacts Inc. ("Coastal.com" or "the Company") (Nasdaq:COA) (TSX:COA), the leading online provider of eyewear, today reported financial results for the first fiscal quarter ended January 31, 2013.
Total sales for the first quarter increased 17% to $54.9 million. Net loss totaled $3.4 million, or $0.12 per basic and diluted share. Non-IFRS adjusted EBITDA for the quarter totaled ($1.8 million). For the fiscal quarter ended January 31, 2013, net cash used in operating activities was $2.7 million.
"The first quarter was a solid start to the year for us with strength across both product categories and growth in all of our segmented regions. We continue to build on sequential growth in our early stage glasses business. A year ago we launched a plan to accelerate growth in the United States and our plan is on track. As expected, our financial results reflect the cost of these investments. We have experienced an increase in the number of returning glasses customers which reaffirms our overall strategy. The first quarter of 2013 has been an excellent start to the year and we look forward to reporting continued highlights as the year unfolds," said Roger Hardy, Founder and Chief Executive Officer.
First Quarter 2013 Financial Highlights
Sales totaled $54.9 million, a 17% year-over-year increase.
Gross profit was $22.7 million or 41% of sales.
Adjusted EBITDA was ($1.8 million) compared with $1 million during the same period in 2012.
Cash and equivalents of $14.6 million compared with $19.2 million at October 31, 2012.
Orders totaled 601,167, an 18% increase year-over-year.
Average order size was $91.32 compared to $92.19 in the same period in 2012.
Contact Lens Business
Over 70% of our contact lens revenues and orders were derived from repeat customers.
Orders totaled 362,130, a 7% increase year-over-year.
Average order size was $113.28 compared to $107.58 in the same period in 2012.
In-house Coastal.com brand, Splash™ products comprised 5% of contact lens units during the period.
Orders totaled 239,037, a 42% increase year-over-year.
Average order size was $58.04 compared to $61.05 in the same period in 2012.
Frames shipped were 277,159 compared to 195,513 in the same period in 2012.
Private brand label frames represented 70% of frames shipped during the quarter.
Recent Operating Highlights
U.S. glasses sales and units increased 95% compared to the same period in 2012.
Significant improvements in our Net Promoter Scores ("NPS") across all regions and product categories. In particular, ratings for glasses customers in the U.S. increased to 77%.
Ranked #3 in the Internet Retailer Social 300 for our innovative use of social media.
Successful product placement of our new Derek Cardigan™ "Grammar Collection" glasses frames in two highly ranked music videos, Alicia Keys, " Brand New Me" and Flo Rida, " I Cry".
Signed a multi-year licensing agreement with the widely recognized actress, Alyssa Milano to develop a line of eyeglasses and sunglasses called " Touch by Alyssa".
COASTAL CONTACTS INC.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
Cash and cash equivalents
Trade and other receivables
Total current assets
Property, equipment and leasehold improvements
Total non-current assets
LIABILITIES AND EQUITY
Trade and other payables
Income taxes payable
Finance lease obligations, current
Credit facilities, current
Other current liabilities
Total current liabilities
Other long-term liabilities
Finance lease obligations
Deferred tax liabilities
Total non-current liabilities
Share-based payments reserve
Accumulated other comprehensive income (loss)
Total shareholders' equity
TOTAL LIABILITIES AND EQUITY
COASTAL CONTACTS INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
For the three months ended January 31
Cost of sales
Selling and marketing
General and administration
Results from operating activities
Loss before income taxes
Income tax expense - current
Income tax expense (recovery) - deferred
Net income tax expense
Net loss for the period
Other comprehensive income (loss)
Foreign currency translation differences
Comprehensive loss for the period
Basic and diluted loss per share
Weighted average number of common shares outstanding - basic and diluted
Coastal.com will host a conference call to review the financial results and Company operations on Monday, March 11, 2013 at 1:30 p.m. Pacific time. Participating in the call will be Roger Hardy, founder and CEO, Gary Collins, President and Nick Bozikis, CFO.