Gimbel Vision nine-month results
Gimbel Vision International Inc GBV
Shares issued 23,451,105 Nov 1 close $1.05
Tue 2 Nov 99 News Release
Mr. Don Baird reports
Highlights
Refractive procedure volumes for the three and nine month periods ended
Sept. 30, 1999, increased 41 per cent and 50 per cent over prior year
procedure volumes.
Earnings per share from continuing operations for the three and nine month
periods ended Sept. 30, 1999, were two cents and four cents respectively.
The company signed two agreements, one to establish a centre in Winnipeg,
Manitoba, and one to acquire a controlling interest in a new refractive
vision correction centre in Albany county, New York. Both of these centres
will be operational by the first quarter of 2000.
As a further commitment to developing its North American operations, the
company also announced that it has retained the services of an independent
financial and strategic advisory firm to assist in identifying potential
business combinations.
Refractive procedure volumes for the third quarter ended Sept. 30, 1999,
were 6,016, a 41-per-cent increase over the third quarter ended Sept. 30,
1998. The company's North American centres completed 4,557 procedures in
the third quarter of this year, a 39-per-cent increase over the same period
in the prior year. Refractive procedures performed at centres outside North
America totalled 1,459 in the third quarter of 1999, a 49-per-cent increase
over the prior year third quarter.
For the nine months ended Sept. 30, 1999, refractive procedure volumes
totalled 17,709, a 50-per-cent increase over the corresponding period in
1998. North American procedure volumes for the nine months ended Sept. 30,
1999, increased 49 per cent over the prior year nine month period to
13,469, while procedure volumes from centres outside North America
increased 59 per cent to 4,240.
Consolidated financial results
Consolidated revenues for the three months ended Sept. 30, 1999, were
$5.6-million as compared with $5.3-million in the prior year third quarter.
Consolidated revenues for the nine months ended Sept. 30, 1999, amounted to
$16.3-million as compared with $16.1-million for the similar period in the
prior year. Quarterly and year-to-date increases in revenue from operations
based in the United States were offset by lower revenues from Canadian
operations due to price restructuring that took place in the Canadian
market segment during first quarter of 1999.
Earnings from continuing operations before interest, taxes and depreciation
for the three and nine months ended Sept. 30, 1999, were $1.1-million and
$3.1-million respectively versus $1.6-million and $4.0-million in 1998.
Net earnings for the three months ended Sept. 30, 1999, were $463,412
compared with a net loss of $415,709 for the same period in the prior year.
For the nine months ended Sept. 30, 1999, and 1998, net earnings amounted
to $949,287 and $4,073 respectively.
On a geographic basis, for the three and nine months ended Sept. 30, 1999,
the Canadian market segment generated a profit from continuing operations
of $569,603 and $937,987 respectively as compared with $158,865 and
$1.3-million in the prior year. Canadian profits from continuing operations
from the 1999 third quarter exceeded that of the 1998 third quarter due to
a reduced tax expense in the current year third quarter and a loss on asset
disposals and write-off of investments in the prior year third quarter.
Sept. 30, 1999, year-to-date Canadian profit from continuing operations was
below that of the prior year predominantly due to price compression that
took place in the Canadian market at the beginning of the 1999 fiscal year.
Operations based in the United States generated a loss of $62,085 and a
profit of $186,336 in the respective three and nine month periods ended
Sept. 30, 1999, as compared with profits of $177,949 and $52,495 in the
corresponding periods of 1998. A loss was incurred from U.S. operations in
the three months ended Sept. 30, 1999, due to increased operating expenses
during that period. Operations in Brazil have generated losses during the
three and nine months periods ended Sept. 30, 1999, and 1998.
Earnings per share from continuing operations for the three and nine month
periods ended Sept. 30, 1999, were two cents and four cents respectively
and for the three and nine month periods ended Sept. 30, 1998, were one
cent and four cents respectively.
Cash at the end of the nine month period ended Sept. 30, 1999, and 1998 was
$4.7-million and $3.6-million respectively.
The company is committed to profitably developing the North American
segment of its operations. On Sept. 13, 1999, the company announced that it
has signed an agreement to establish a centre in Winnipeg, Man., and on
Oct. 22, 1999, announced that it has acquired a controlling interest in a
new refractive vision correction centre in Albany county, New York. Both of
these centres will be operational by the first quarter of 2000. In addition
to establishing new centres with exceptional practitioners, on Sept. 15,
1999, the company also announced that it has retained the services of an
independent financial and strategic advisory firm to assist in identifying
potential business combinations.
CONSOLIDATED STATEMENT OF EARNINGS
Three months ended Sept. 30
1999 1998
Revenues
Facility fees $5,582,488 $5,273,036
Expenses
Operating 4,385,228 3,333,881
Interest on
long-term
obligations 113,143 117,139
Depreciation and
amortization 470,104 382,788
---------- ----------
4,968,475 3,833,808
Earnings from
continuing
operations
before under-
noted items 614,013 1,439,228
(Loss) on
disposal of
capital assets - (60,867)
(Loss) on write-
down of
investment - (225,820)
Equity in
earnings of
associated
company 18,671 15,996
---------- ----------
Earnings from
continuing
operations
before income
taxes and non-
controlling
interest 632,684 1,168,537
Tax provision 79,781 836,500
---------- ----------
Earnings from
continuing
operations
before non-
controlling
interest 552,903 332,037
Non-controlling
interest (89,491) (50,003)
---------- ----------
Earnings from
continuing
operations 463,412 282,034
(Loss) from
discontinued
operations,
net of income
taxes - (697,743)
---------- ----------
Net earnings $463,412 $(415,709)
========== ==========
Earnings from
continuing
operations
per share 2 cents 1 cent
Net earnings
per share 2 cents (2 cents)
CONSOLIDATED STATEMENT OF EARNINGS
Nine months ended Sept. 30
1999 1998
Revenues
Facility fees $16,293,525 $16,102,420
Expenses
Operating 12,761,463 11,871,354
Interest on
long-term
obligations 370,575 393,462
Depreciation and
amortization 1,399,682 1,367,473
---------- ----------
14,531,720 13,632,289
Earnings from
continuing
operations
before under-
noted items 1,761,805 2,470,131
(Loss) on
disposal of
capital assets - (159,333)
(Loss) on write-
down of
investment - (225,820)
Equity in
earnings of
associated
company 71,471 59,179
---------- ----------
Earnings from
continuing
operations
before income
taxes and non-
controlling
interest 1,833,276 2,144,157
Tax provision 394,781 1,336,500
---------- ----------
Earnings from
continuing
operations
before non-
controlling
interest 1,438,495 807,657
Non-controlling
interest (489,208) 139,834
---------- ----------
Earnings from
continuing
operations 949,287 947,491
(Loss) from
discontinued
operations,
net of income
taxes - (943,418)
---------- ----------
Net earnings $949,287 $4,073
========== ==========
Earnings from
continuing
operations
per share 4 cents 4 cents
Net earnings
per share 4 cents -
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