Thursday April 22, 10:45 am Eastern Time
Company Press Release
SOURCE: Vista Eyecare, Inc.
Vista Eyecare Reports Record Sales And Operating Income
LAWRENCEVILLE, Ga., April 22 /PRNewswire/ -- Vista Eyecare, Inc. (Nasdaq: VSTA - news) today announced results for the first quarter ended April 3, 1999. Net sales for the quarter increased by 59 percent to $86.6 million, compared with net sales of $54.4 million for the first quarter ended April 4, 1998. Operating income increased by 62 percent to $7.1 million, compared to $4.4 million in the first quarter of 1998. Earnings before interest, taxes, depreciation and amortization (EBITDA) increased to $11.9 million, a 66 percent improvement over 1998. The Company reported net income of $1.5 million, or $0.07 per share, in the first quarter of 1999, versus $2.5 million, or $0.12 per share, in the first quarter of the prior year. Comparable domestic store sales, excluding the Frame-n-Lens and New West Eyeworks operations acquired in July 1998 and October 1998, respectively, increased 2.5 percent. At the end of the first quarter 1999, the Company operated 930 vision centers, versus 445 vision centers as of the end of the first quarter 1998.
Chairman and Chief Executive Officer James W. Krause stated, ''We are pleased with the successes we have achieved year to date in both our host and free-standing businesses. We have converted all of our California and Midwest free-standing stores to the Vista Optical signage, merchandising and sales format. A substantial number of our California Vista Optical locations now have optometric coverage and our advertising campaign was initiated in full during March. Additionally, in conjunction with completing the integration process, the Company opened 15 new vision centers during the quarter.'' Barry Feld, President and Chief Operating Officer, commented, ''Despite the successes we have achieved in integrating our acquired businesses, we still have to improve the sales levels of these vision centers, particularly at the locations acquired from Frame-n-Lens. Since the beginning of the year, the unit weekly sales volume of these stores has shown improvement; however we have not been able to achieve the pace of sales improvement originally forecasted by the Company. Until we can improve sales trends, our net income may not attain the levels we expected in 1999. We now believe that our earnings for the second quarter of 1999 will be in the range of $0.06 to $0.08 per share.''
Vista Eyecare, Inc. is the nation's second largest retail optical company in terms of store count and the third largest in terms of revenues. The Company's vision centers offer a complete line of optical goods, including spectacles, contact lenses, and prescription and non-prescription sunglasses. Independent Doctors of Optometry are typically available next to store locations.
Note regarding Private Securities Litigation Reform Act: Except for historical information contained herein, this press release contains forward- looking statements that involve a number of risks and uncertainties. Actual results could differ materially from those indicated by such forward-looking statements due to a number of factors and risks described in the company's annual report on Form 10-K for 1998.
- FINANCIAL TABLES TO FOLLOW -
These condensed consolidated statements of operations should be read in conjunction with the Company's annual report on Form 10-K for 1998.
VISTA EYECARE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(000's except per share information)
(Unaudited)
Three Months Ended
April 3, April 4,
1999 1998
NET SALES $86,634 $54,408
COST OF GOODS SOLD 37,088 24,465
GROSS PROFIT 49,546 29,943
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSE 42,446 25,557
OPERATING INCOME 7,100 4,386
INTEREST, NET 4,665 277
INCOME BEFORE PROVISION
FOR INCOME TAXES 2,435 4,109
INCOME TAX PROVISION 970 1,657
NET INCOME $1,465 $ 2,452
BASIC EARNINGS PER COMMON SHARE $0.07 $0.12
DILUTED EARNINGS PER
COMMON SHARE $0.07 $0.12
CONDENSED CONSOLIDATED BALANCE SHEETS
(000's)
(Unaudited)
April 3, January 2,
1999 1999
Assets
CURRENT ASSETS $53,909 $51,776
NET PROPERTY AND EQUIPMENT 57,870 58,043
OTHER ASSETS AND DEFERRED COSTS 9,973 9,953
DEFERRED INCOME TAX ASSET --- 385
GOODWILL AND OTHER INTANGIBLE
ASSETS 107,856 108,940
$229,608 $229,097
Liabilities and Shareholders'
Equity
CURRENT LIABILITIES $48,205 $47,568
SENIOR NOTES 123,642 123,609
REVOLVING CREDIT FACILITY 4,500 6,000
OTHER LONG-TERM DEBT AND
CAPITAL LEASE OBLIGATIONS 6,700 7,223
DEFERRED INCOME TAX LIABILITY 372 ---
TOTAL SHAREHOLDERS' EQUITY 46,189 44,697
$229,608 $229,097
These condensed statements of operations and consolidated balance sheets should be read in conjunction with the Company's annual report on Form 10-K for 1998 and quarterly report on Form 10-Q for the first quarter of 1999.
SOURCE: Vista Eyecare, Inc.
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