Earnings out earlier than expected. Cash up to $3,622,996.
Nice US contribution. I'm still analysing. Any comments?
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Monday August 9, 10:58 am Eastern Time
Company Press Release
Gimbel Vision Reports Increased Second Quarter Revenues and Net Earnings
CALGARY, ALBERTA--
Highlights
- Strong growth in procedure volumes, 22 percent increase over 1999 first quarter volumes, 56 percent increase over prior year second quarter volumes, 58 percent increase
over volumes achieved in the first six months of the prior year.
- Second quarter revenues increase 19 percent over first quarter.
- Second quarter EBITDA increases 44 percent over first quarter.
- 1999 second quarter net earnings increase 6 percent over first quarter net earnings and 49 percent over 1998 second quarter net earnings.
REFRACTIVE PROCEDURE VOLUMES
For the second fiscal quarter ended June 30, 1999, refractive procedure volumes for Gimbel Vision International Inc. (the ``Company') amounted to 6,427, a 56 percent
increase over the second fiscal quarter ended June 30, 1998, and a 22 percent increase over the procedures performed in the first fiscal quarter ended March 31, 1999. The
Company's North American centres performed 5,043 procedures in the 1999 second quarter, a 57 percent increase over the same period in the prior year and a 30 percent
increase over first fiscal quarter ended March 31, 1999. Procedures performed in the 1999 second quarter at centres outside North America totaled 1,384, a 51 percent
increase over the prior year second quarter, and a 5 percent increase over first fiscal quarter ended March 31, 1999.
Refractive procedure volumes for the first six months of fiscal 1999 were 11,693 which represents a 58 percent increase over the corresponding period in the prior year.
Procedure volumes in the first six months of 1999 from the Company's North American based centres increased 55 percent over the prior year to 8,912. Centres based
outside North America performed 2,781 procedures in the first six months of the fiscal year, a 64 percent increase over the prior year.
CONSOLIDATED FINANCIAL RESULTS
Consolidated revenues for the three months ended June 30, 1999 were $5.8 million, representing a 4 percent increase over the prior year and a 19 percent increase over the
first quarter of 1999. The increase in 1999 second quarter over first quarter revenues was predominantly due to increasing revenues from the Canadian market segment.
Canadian segment revenues increased by 39 percent in response to action taken by the Company given intense price competition in the first quarter of 1999.
For the six months ended June 30, 1999, consolidated revenues were $10.7 million versus $10.8 million for the same period in the prior year. Although current year procedure
volumes have increased significantly over the first three and six month periods of the prior year, revenues over the first six month periods of each year remained essentially
unchanged. This is a result of the price compression that took place in the Canadian market at the beginning of the current year, and the exclusion of Australian based revenues
from current year results with the divestiture of that investment occurring in the latter half of 1998.
Earnings from continuing operations before interest, taxes and depreciation (``EBITDA') for the three months ended June 30, 1999 were unchanged from the same period in
the prior year at $1.2 million, and 44 percent above EBITDA of $816,066 generated in the first quarter of 1999. For the six months ended June 30, 1999 EBITDA was $2.0
million as compared to $2.4 million for the corresponding period in the prior year.
Net earnings for the three months ended June 30, 1999 were $250,310, a 49 percent increase over net earnings of $168,460 for the corresponding period in 1998, and a 6
percent increase over net earnings of $235,565 for the first quarter of 1999. For the six months ended June 30, 1999 net earnings were $485,875, a 16 percent increase when
compared to net earnings of $419,782 in the corresponding period of the prior year.
On a geographic segment basis, for the three and six month periods ended June 30, 1999 Canadian operations generated a profit of $169,462 and $368,384 as compared to
$345,938 and $946,086 in the prior year. The decrease in the Canadian market segment's profits was due to the price compression that took place at the beginning of the
1999 fiscal year. Operations based in the United States generated a profit of $94,579 and $248,421 in the respective three and six month periods ended June 30, 1999 which
is a significant increase over the $1,463 profit and $125,454 loss generated during the corresponding periods in the prior year. Operations in Brazil continue to generate losses
in the current year.
Earnings per share from continuing operations were unchanged from the prior year at $0.01 and $0.02 per share for the respective three and six month periods ended June 30,
1999.
The Company's cash position at the end of the six month periods ended June 30, 1999 and 1998 was $3.6 million and $2.4 million respectively.
The Company continues to focus its resources on developing the North American segment of its operations. Management is committed to establishing three to five new centres
by year end. Possible alternatives to expand the Company's market share and increase the number of centres it operates are continually being sought. These alternatives may
include partnering with exceptional practitioners, business combinations or other strategic alternatives.
Effective June 18, 1999 the Company began trading on the Toronto Stock Exchange under the symbol ``GBV'. This listing will provide the Company with increased visibility
in the market and additional access to capital resources.
Gimbel Vision International Inc. is a public company that owns or is partnered with vision correction surgery centres across North and South America and Asia. To date, the
Company's surgeons have performed over 47,000 refractive eye surgeries. Gimbel Vision's shares are listed on the Toronto and Alberta Stock Exchanges and trade under the
symbol ``GBV.'
GIMBEL VISION INTERNATIONAL INC.
Consolidated Balance Sheets
June 30, 1999 and 1998
(Unaudited)
--------------------------------------------------------------
1999 1998
(Restated)
--------------------------------------------------------------
Assets
Current assets:
Cash $ 3,622,996 $ 2,636,340
Accounts receivable 1,282,060 2,187,126
Inventory 303,770 1,038,923
Prepaid expenses 227,523 171,479
--------------------------------------------------------------
5,436,349 6,033,868
Investment 335,293 326,510
Deferred development costs 76,731 245,556
Deferred income taxes 354,226 -
Capital assets 7,435,043 9,758,585
Goodwill 283,760 487,936
--------------------------------------------------------------
$ 13,921,402 $ 16,852,455
--------------------------------------------------------------
--------------------------------------------------------------
Liabilities and Shareholders' Equity
Current liabilities:
Bank indebtedness $ - $ 252,693
Accounts payable and accrued
liabilities 2,255,584 4,348,212
Income taxes payable 666,840 500,000
Current portion of obligations
under capital lease 1,029,970 1,489,328
Current portion of long-term debt 309,751 136,886
--------------------------------------------------------------
4,262,145 6,727,119
Obligations under capital lease 2,330,819 3,707,073
Long-term debt 1,142,997 599,374
Non-controlling interest 517,433 257,805
Shareholders' equity:
Capital stock 3,628,105 3,480,054
Cumulative translation adjustment (95,707) 13,858
Retained earnings 2,135,610 2,067,172
--------------------------------------------------------------
5,668,008 5,561,084
--------------------------------------------------------------
$ 13,921,402 $ 16,852,455
--------------------------------------------------------------
--------------------------------------------------------------
GIMBEL VISION INTERNATIONAL INC.
Consolidated Statements of Earnings and Retained Earnings
(Unaudited)
--------------------------------------------------------------
Three months Six months
ended June 30 ended June 30
1999 1998 1999 1998
(Restated) (Restated)
--------------------------------------------------------------
Revenues:
Facility fees $5,812,689 $5,571,995 $10,711,037 $10,829,384
Expenses:
Operating 4,494,771 4,496,242 8,376,235 8,537,473
Interest on long
term obligations 127,296 142,810 257,432 276,323
Depreciation and
amortization 449,213 548,637 929,578 984,685
--------------------------------------------------------------
5,071,280 5,187,689 9,563,245 9,798,481
--------------------------------------------------------------
Earnings from continuing
operations before
undernoted items 741,409 384,306 1,147,792 1,030,903
Loss on disposal of
capital assets - - - (98,466)
Equity in earnings
of associated
company 26,400 43,183 52,800 43,183
--------------------------------------------------------------
Earnings from continuing
operations before
income taxes and
non-controlling
interest 767,809 427,489 1,200,592 975,620
Tax provision 345,000 310,000 315,000 500,000
--------------------------------------------------------------
Earnings from continuing
operations before
non-controlling
interest 422,809 117,489 885,592 475,620
Non-controlling
interest (172,499) 119,364 (399,717) 189,837
--------------------------------------------------------------
Earnings from
continuing
operations 250,310 236,853 485,875 665,457
Loss from discontinued
operations, net of
income taxes - (68,393) - (245,675)
--------------------------------------------------------------
Net earnings 250,310 168,460 485,875 419,782
Retained earnings,
beginning of
period 1,885,300 1,898,712 1,649,735 1,647,390
--------------------------------------------------------------
Retained earnings,
end of period $ 2,135,610 $2,067,172 $2,135,610 $2,067,172
--------------------------------------------------------------
--------------------------------------------------------------
Earnings from continuing operations per common share:
Basic $ 0.01 $ 0.01 $ 0.02 $ 0.02
Fully diluted $ 0.01 $ 0.01 $ 0.02 $ 0.02
--------------------------------------------------------------
--------------------------------------------------------------
Net earnings per
common share $ 0.01 $ 0.01 $ 0.02 $ 0.02
--------------------------------------------------------------
--------------------------------------------------------------
GIMBEL VISION INTERNATIONAL INC.
Consolidated Statements of Changes in Financial Position
(Unaudited)
--------------------------------------------------------------
Three months Six months
ended June 30 ended June 30
1999 1998 1999 1998
(Restated) (Restated)
--------------------------------------------------------------
Cash provided by (used in):
Operations:
Earnings from
continuing
operations $ 250,310 $ 236,853 $ 485,875 $ 665,457
Items not
involving cash:
Depreciation and
amortization 449,213 548,637 929,578 984,685
Loss on disposal
of capital assets - - - 98,466
Deferred income
taxes - - (290,000) -
Equity in earnings
of associated
company (26,400) (43,183) (52,800) (43,183)
Non-controlling
interest 172,846 (119,364) 399,717 (189,837)
--------------------------------------------------------------
845,969 622,943 1,472,370 1,515,588
Changes in non-cash
operating working
capital relating
to continuing
operations 192,981 1,107,077 (682,956) 761,220
--------------------------------------------------------------
Cash provided by
continuing
operations 1,038,950 1,730,020 789,414 2,276,808
Cash used in
discontinued
operations - (73,096) - (213,160)
--------------------------------------------------------------
1,038,950 1,656,924 789,414 2,063,648
Financing:
Payment of
distributions to
non-controlling
interest - - (255,220) -
Investment by
minority
shareholders - 377,915 - 377,915
Increase in capital
lease obligations - (5,619) - 1,174,600
Proceeds on
issuance of
share capital 148,050 3,742 148,050 1,541,685
Proceeds of
long-term debt - 4,092 - 359,617
Repayments of
capital lease
obligations (270,318) (346,712) (521,768) (1,122,963)
Repayment of
long-term debt (37,758) (30,934) (135,097) (55,354)
--------------------------------------------------------------
(160,026) 2,484 (764,035) 2,275,500
Investments:
Acquisition of
businesses
(net of cash) (3,647) 64,200 (16,637) (129,831)
Deferred development
costs (2,191) 30,008 (5,011) -
Additions to
capital assets (233,747)(2,215,200) (249,981) (3,689,829)
Proceeds on
disposal of
capital assets 29,847 - 29,847 248,868
--------------------------------------------------------------
(209,738)(2,120,992) (241,782) (3,570,792)
Effect of currency
translation
adjustments on
cash flow (21,545) (4,548) (37,845) (4,548)
--------------------------------------------------------------
(Decrease) increase
in cash position 647,641 (466,132) (254,248) 763,808
Cash position,
beginning
of period 2,975,355 2,849,779 3,877,244 1,619,839
--------------------------------------------------------------
Cash position,
end of period $ 3,622,996 $2,383,647 $3,622,996 $2,383,647
--------------------------------------------------------------
--------------------------------------------------------------
GIMBEL VISION INTERNATIONAL INC.
Segmented Information
Three months ended June 30, 1999 and 1998
1999 United Austra-
Canada States Brazil Asia lia Total
Revenue 3,234,255 2,147,495 430,939 - - 5,812,689
Earnings
before the
undernoted
items 686,398 532,533 125,387 - - 1,344,319
Depreciation
and amor-
tization (241,691) (136,873) (70,650) - - (449,213)
Interest
expense (45,245) (82,051) - - - (127,296)
Non-controlling
interest - (104,030) (68,469) - - (172,499)
Income tax
expense (230,000) (115,000) - - - (345,000)
----------------------------------------------------
Segment
profit
(loss) 169,462 94,579 (13,732) - - 250,310
----------------------------------------------------
----------------------------------------------------
----------------------------------------------------
Segment
assets 9,415,101 3,233,661 836,592 436,048 - 13,921,402
-----------------------------------------------------
-----------------------------------------------------
1998 United Austra-
Canada States Brazil Asia lia Total
----------------------------------------------------
Revenue 3,464,817 1,042,286 300,173 - 764,719 5,571,995
Earnings
(loss)
before the
undernoted
items 954,468 241,854 (46,459) - (99,320)1,050,543
Depreciation
and amor-
tization (256,296) (156,348) (53,734) - (82,259)(548,637)
Interest
expense (42,234) (71,708) - - (28,868)(142,810)
Loss on
capital
asset
disposal - - - - - -
Non-controlling
interest - (12,335) 87,405 - 44,294 119,364
Income tax
expense (310,000) - - - - (310,000)
----------------------------------------------------
Segment
profit
(loss) 345,938 1,463 (12,788) - (166,153) 168,460
----------------------------------------------------
----------------------------------------------------
----------------------------------------------------
Segment
assets
10,500,220 2,509,051 1,191,959 848,464 1,802,761 16,852,455
-----------------------------------------------------------
-----------------------------------------------------------
GIMBEL VISION INTERNATIONAL INC.
Segmented Information
Six months ended June 30, 1999 and 1998
1999 United Austra-
Canada States Brazil Asia lia Total
----------------------------------------------------
Revenue 5,565,224 4,259,824 885,989 - - 10,711,037
Earnings
before the
undernoted
items 1,049,530 1,208,492 129,580 - - 2,387,602
Depreciation
and amorti-
zation (487,396) (300,969) (141,213) - - (929,578)
Interest
expense (93,750) (163,682) - - - (257,432)
Non-controlling
interest - (280,419) (119,297) - - (399,717)
Income tax
expense (100,000) (215,000) - - - (315,000)
-----------------------------------------------------
Segment
profit
(loss) 368,384 248,421 (130,931) - - 485,875
-----------------------------------------------------
-----------------------------------------------------
-----------------------------------------------------
Segment
assets 9,415,101 3,233,661 836,592 436,048 - 13,921,402
------------------------------------------------------
------------------------------------------------------
1998 United Austra-
Canada States Brazil Asia lia Total
----------------------------------------------------
Revenue 6,295,608 1,671,237 762,316 - 2,100,223 10,829,384
Earnings
(loss)
before the
undernoted
items 2,004,043 357,803 (337,902) - 65,475 2,089,419
Depreciation
and amorti-
zation (477,164) (260,747) (59,282) - (187,492) (984,685)
Interest
expense (80,793) (118,662) - - (76,868) (276,323)
Loss on
capital
asset
disposal - (98,466) - - - (98,466)
Non-controlling
interest - (5,382) 148,689 - 46,530 189,837
Income tax
expense (500,000) - - - - (500,000)
-----------------------------------------------------
Segment
profit
(loss) 946,086 (125,454) (248,495) - (152,355) 419,782
-----------------------------------------------------
-----------------------------------------------------
-----------------------------------------------------
Segment
assets
10,500,220 2,509,051 1,191,959 848,464 1,802,761 16,852,455
-----------------------------------------------------------
-----------------------------------------------------------
Contact:
Gimbel Vision International Inc.
Don Baird
Chief Financial Officer
(403) 202-3336
or
Gimbel Vision International Inc.
Diane Phillips
Investor Relations
(403) 202-3323
gimbelvision.com |
