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Friday May 5, 7:01 am Eastern Time
Company Press Release
Sight Resource Reports 2000 First Quarter Results
HOLLISTON, Mass.--(BUSINESS WIRE)--May 5, 2000--SIGHT RESOURCE CORPORATION (NASDAQ:VISN - news), a leading provider of primary eye care products, services and managed vision care programs, today announced results for the first quarter ended March 25, 2000.
Revenue for the first quarter of 2000 increased 11% to $17.5 million compared to $15.8 million for the first quarter of 1999. EBITDA (earnings before interest, taxes, depreciation and amortization) for the first quarter of 2000 was $0.9 million compared to $1.3 million for the first quarter of 1999. The net loss in the first quarter was $287,000 or ($0.03) per diluted share versus net income of $173,000 or $0.02 per diluted share in the first quarter of 1999. First quarter 2000 results include the operations of Kent Optical, acquired effective April 1, 1999. Comparable store sales in the first quarter were down 1.7% versus last year. The Company operated 130 vision centers as of March 25, 2000 compared to 100 vision centers as of March 27, 1999.
Two items had an adverse impact on sales in the first quarter. Sales in the New England business were less than last year by approximately $550,000 due in large part to the difficulties experienced by the Company's largest managed care plan customer in New England. However, strong sales in the other components of Cambridge Eye Doctors' business offset almost 50% of this sales loss. Also, sales in Sight Resource's laser vision correction business were less than last year by $500,000 due to the termination of the Company-owned laser operations in New England, offset somewhat by the initial procedure volumes in laser vision correction operations stemming from Sight Resource's partnership with Laser Vision Centers Inc.
Commenting on the first quarter, Bill Sullivan, President and Chief Executive Officer, stated, ``Excluding the events outlined above, the optical business performed at higher levels in the first quarter, reflecting the initiatives we instituted in the fourth quarter last year and early this year. The lab consolidation provided the expected savings in the first quarter. SG&A expenses in the first quarter, excluding the Kent acquisition, were up only 2.1% compared to last year, exhibiting good cost control and down 2.9% sequentially from reducing costs on an increased sales base.
``EBITDA at $0.9 million provides adequate principal and interest coverage for the quarter. We concluded discussions with our senior lender with covenants being waived for 1999, our loan agreement revised to a maturity date of March 31, 2001, and new covenants for 2000 being established. While sales are still sluggish, we are being aggressive in reducing costs, and at the same time, pursuing sales growth in managed care, industrial safety accounts, corporate plans and laser vision correction.''
Sight Resource Corporation is one of the country's leading providers of primary eye care products and services including managed vision care programs, operating 130 primary eye care centers in the U.S. The Company provides a full range of eyewear, contact lenses, prescription and non-prescription sun wear, and a complete line of accessories through an integrated network of opticians, optometrists, and ophthalmologists, affiliated with its primary eye care chains: Cambridge Eye Doctors in Massachusetts and New Hampshire, E.B. Brown Opticians in Ohio and Pennsylvania, Eyeglass Emporium in Indiana, Kent Optical in Michigan, Shawnee Optical in Pennsylvania and Ohio, Vision Plaza in Louisiana and Mississippi, and Vision World in Rhode Island.
``Safe Harbor'' Statement under the Private Securities Litigation Reform Act of 1995: Statements contained in this news release which are not historical fact and are forward-looking statements based upon management's current expectations that are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by forward-looking statements. These risks and additional factors affecting the Company's business are described in the Company's Form 10-K for the fiscal year ended December 25, 1999, filed with the Securities and Exchange Commission.
Sight Resource Corporation and Subsidiaries
Selected Financial Information
(In thousands, except per share data)
Three Months Ended
March 25, 2000 March 27, 1999
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Net revenue $17,519 $15,764
Cost of revenue 5,402 5,013
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Gross profit 12,117 10,751
Selling, general and administrative
expense 12,168 10,194
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Profit (Loss) from operations (51) 557
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Interest income 12 42
Interest expense (223) (82)
Write off of deferred
financing cost 0 (323)
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Total other income (expense) (211) (363)
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Profit (loss) before income tax (262) 194
Income tax expense 25 21
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Net income (loss) ($287) $173
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Basic and Diluted Earnings (loss)
per share ($0.03) $0.02
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Number of shares used to compute
Basic 9,226 9,061
Diluted 9,226 10,564
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EBITDA $888 $1,334
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Contact:
Company Contact:
Sight Resource Corporation, Holliston
William T. Sullivan
President & CEO
508/429-6916
or
Investor Relations:
Lippert/Heilshorn Associates, New York
Lisa D. Lettieri
Vice President
212/838-3777 or lisa@lhai.com
www.lhai.com |
