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February 10, 1999
VISTA EYECARE, INC.
REPORTS FOURTH QUARTER AND FULL-YEAR RESULTS
LAWRENCEVILLE, Georgia –– Vista Eyecare, Inc. (NASDAQ: VSTA), today announced results
for the fourth quarter and for the fiscal year ended January 2, 1999. Net sales for the fourth
quarter increased 40 percent to $72.2 million over net sales of $51.6 million reported for the
same quarter a year ago. Operating income in the core business (before giving effect to the
Frame-n-Lens and New West Eyeworks businesses acquired in July 1998 and October 1998,
respectively), increased 21 percent to $1.4 million from $1.1 million for the fourth quarter of
1997. After giving effect to the acquisitions, the company reported an operating loss of $1.2
million in the quarter, versus operating income of $1.1 million in the fourth quarter of 1997. The
company reported a net loss of $3.0 million, or a loss of $0.14 per share, for the fourth quarter
ended January 2, 1999, compared with net income of $441,000, or $0.02 per share, reported for
the same period a year ago. Comparable domestic store sales, excluding the Frame-n-Lens and
New West Eyeworks operations, increased by 1.5 percent.
Management noted that the net loss in the fourth quarter was primarily attributable to interest
costs on the debt offering completed in October 1998, the proceeds of which were utilized to
complete the acquisition of New West Eyeworks and to refinance existing debt. On a longer
term basis, the company expects to offset the increase in interest costs through cost savings
resulting from the integration of the acquired Frame-n-Lens and New West Eyeworks
operations; more specifically, savings from the consolidation of laboratory operations, the
elimination of redundant administrative costs, and savings associated with greater purchasing
power.
For the fiscal year ended January 2, 1999, net sales increased by 31 percent to $245.3 million
over net sales of $186.4 million reported for the twelve-month period ended January 3, 1998.
Operating income in the core business, before giving effect to the Frame-n-Lens and New West
Eyeworks acquisitions, increased to $13.1 million, a 21 percent increase over operating income
of $10.8 million in the comparable period a year ago. Including the effect of the acquisitions,
operating income in 1998 was $11.0 million versus $10.8 million in 1997. Consistent with fourth
quarter results, the company reported a decline in net income for 1998 versus 1997, which was
due primarily to higher interest costs. Net income for the twelve-month period was $3.4 million,
or $0.16 per share, compared with net income of $5.6 million, or $0.27 per share, reported for
the fiscal year ended January 3, 1998. Comparable domestic store sales for the full year,
excluding the Frame-n-Lens and New West Eyeworks operations, increased by 3 percent. |
