- 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.
- Sales totaled $41.0 million, 12% year-over-year increase.
- Gross profit was $16.3 million or 40% of sales.
- Adjusted EBITDA for the contact lens category was 11% during the period.
- Sales totaled $13.9 million, 35% year-over-year increase.
- Gross profit was $6.4 million or 46% of sales.
- 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.
- 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 $61.05 in the same period in 2012.
- Frames shipped were 277,159 compared to 195,513 in the same period in 2012.
- Private brand label frames represented 70% of frames shipped during the quarter.
- U.S. glasses sales and units increased 95% compared to the same period in 2012.
- Significant improvements in our Net Promoter Scores ("NPS") across all regions and product categories. In particular, ratings for glasses customers in the U.S. increased to 77%.
- Ranked #3 in the Internet Retailer Social 300 for our innovative use of social media.
- Successful product placement of our new Derek Cardigan™ "Grammar Collection" glasses frames in two highly ranked music videos, Alicia Keys, " Brand New Me" and Flo Rida, " I Cry".
- Signed a multi-year licensing agreement with the widely recognized actress, Alyssa Milano to develop a line of eyeglasses and sunglasses called " Touch by Alyssa".
|COASTAL CONTACTS INC.|
|CONSOLIDATED STATEMENTS OF FINANCIAL POSITION|
|January 31,||October 31,|
|Cash and cash equivalents||$ 14,628||$ 19,153|
|Trade and other receivables||8,312||6,681|
|Total current assets||52,160||53,519|
|Property, equipment and leasehold improvements||9,957||9,887|
|Total non-current assets||30,667||29,585|
|TOTAL ASSETS||$ 82,827||$ 83,104|
|LIABILITIES AND EQUITY|
|Trade and other payables||$ 45,616||$ 40,144|
|Income taxes payable||801||839|
|Finance lease obligations, current||116||101|
|Credit facilities, current||--||1,715|
|Other current liabilities||404||3,210|
|Total current liabilities||51,528||50,593|
|Other long-term liabilities||246||270|
|Finance lease obligations||529||457|
|Deferred tax liabilities||3,067||2,905|
|Total non-current liabilities||4,853||3,632|
|Share-based payments reserve||3,387||3,395|
|Accumulated other comprehensive income (loss)||637||(137)|
|Total shareholders' equity||26,446||28,879|
|TOTAL LIABILITIES AND EQUITY||$ 82,827||$ 83,104|
|COASTAL CONTACTS INC.|
|CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS|
|For the three months ended January 31||2013||2012|
|Sales||$ 54,898||$ 46,849|
|Cost of sales||32,163||27,833|
|Selling and marketing||14,671||10,114|
|General and administration||5,449||4,692|
|Results from operating activities||(2,696)||57|
|Loss before income taxes||(3,120)||(134)|
|Income tax expense - current||217||329|
|Income tax expense (recovery) - deferred||38||(267)|
|Net income tax expense||255||62|
|Net loss for the period||(3,375)||(196)|
|Other comprehensive income (loss)|
|Foreign currency translation differences||774||(746)|
|Comprehensive loss for the period||$ (2,601)||$ (942)|
|Basic and diluted loss per share||$ (0.12)||$ 0.00|
|Weighted average number of common shares outstanding - basic and diluted||28,616,460||28,133,503|