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Coastal.com Announces First Quarter 2013 Financial Results

  • 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.

Contact Lens Business

  • 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.

Glasses Business

  • Sales totaled $13.9 million, 35% year-over-year increase.
  • Gross profit was $6.4 million or 46% of sales.

First Quarter 2013 Operating Metrics

  • 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.

Glasses Business

  • 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
(CAD $000's)
  January 31, October 31,
  2013 2012
     
ASSETS    
Current assets    
Cash and cash equivalents  $ 14,628  $ 19,153
Trade and other receivables  8,312  6,681
Inventories  26,619  25,435
Prepaid expenses  2,601  2,250
Total current assets  52,160  53,519
Non-current assets    
Property, equipment and leasehold improvements  9,957  9,887
Intangible assets  12,073  11,376
Goodwill   8,637  8,322
Total non-current assets  30,667  29,585
TOTAL ASSETS  $ 82,827  $ 83,104
     
LIABILITIES AND EQUITY    
Current liabilities    
Trade and other payables  $ 45,616  $ 40,144
Provisions  1,480  1,284
Income taxes payable  801  839
Finance lease obligations, current  116  101
Term loan  3,111  3,300
Credit facilities, current  --   1,715
Other current liabilities  404  3,210
Total current liabilities  51,528  50,593
Non-current liabilities    
Other long-term liabilities  246  270
Finance lease obligations  529  457
Credit facilities  1,011  -- 
Deferred tax liabilities  3,067  2,905
Total non-current liabilities  4,853  3,632
Total liabilities  56,381  54,225
     
Shareholders' equity    
Share capital  42,677  42,501
Share-based payments reserve  3,387  3,395
Accumulated other comprehensive income (loss)  637  (137)
Deficit  (20,255)  (16,880)
Total shareholders' equity  26,446  28,879
TOTAL LIABILITIES AND EQUITY  $ 82,827  $ 83,104
 
 
COASTAL CONTACTS INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(CAD $000's)
 
For the three months ended January 31 2013 2012
     
Sales  $ 54,898  $ 46,849
Cost of sales  32,163  27,833
Gross profit  22,735  19,016
     
Fulfillment  5,311  4,153
Selling and marketing  14,671  10,114
General and administration  5,449  4,692
Results from operating activities  (2,696)  57
     
Financing costs   424  191
     
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

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. 

Stock quotes in this article: COA 

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