VISN Sight Resource Corporation Reports Profit for First Quarter 2002 After 9 Consecutive Quarters of Losses
CINCINNATI, May 9, 2002 (BW HealthWire) -- SIGHT RESOURCE CORPORATION
(OTC:VISN), a leading provider of primary eye care products, services, and
managed vision care programs, today announced financial results for its first
quarter ended March 30, 2002.
Revenue for the first quarter of 2002 was $15.3 million, with same store sales
down slightly by -0.7% compared to the first quarter of last year. Sales in the
first quarter of 2001 were $16.1 million, including $0.7 million in sales from
closed stores. The Company operated 116 vision centers as of March 30, 2002
compared to 122 vision centers as of March 31, 2001.
EBITDA (earnings before interest, taxes, depreciation and amortization) for the
first quarter of 2002 was up 25% compared to the first quarter of last year, at
$1.1 million compared to $0.9 million. Net income was $426,000 in the first
quarter of 2002 compared to a net loss of $305,000 in the first quarter of 2001.
This $731,000 change in profit for the first quarter of 2002 compared to 2001
was due to $470,000 in operations changes and $261,000 in accounting changes as
detailed below.
The Company adopted SFAS No. 142 (Statement 142), "Goodwill and Other Intangible
Assets," as of December 30, 2001. Based on preliminary independent third party
enterprise valuations of each of the Company's operating units, the Company does
not expect to recognize any impairment of its goodwill and intangible assets
upon adoption of SFAS No. 142. Further, under the Statement 142's new
guidelines, the Company ceased amortization of its goodwill, which favorably
impacts the first quarter of 2002 by $261,000 compared to the prior year first
quarter.
Commenting on the first quarter of 2002, Carene Kunkler, President and Chief
Executive Officer, stated, "We continue to make good progress and are pleased
with our first profitable quarter since the third quarter of 1999. Our gross
margins increased to 71.4% compared with the prior year period of 69.4% and the
fourth quarter 2001 of 70.0%. This improvement in gross margins was largely due
to our product and distribution changes. Further, our cost control measures at
the Selling General and Administrative level, excluding goodwill amortization
charges, showed about a $600,000 improvement."
Chairman of the Board, E. Dean Butler, added, "Despite a soft U.S. optical sales
market in the first quarter, we are quite encouraged by the progress our new
leadership team has made in such a short amount of time."
Sight Resource Corporation is one of the country's leading providers of primary
eye care products and services including managed vision care programs, operating
116 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 an 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 29,
2001, as amended, filed with the Securities and Exchange Commission.
Sight Resource Corporation
Consolidated Statement of Income
For Three Months Ended March 30, 2002 and March 31, 2001
Amounts in Thousands
(Unaudited)
Three Months Ended March
-------------------------
2002 2001
---- ----
Net revenue $ 15,276 $ 16,059
Cost of revenue 4,367 4,918
----------- -----------
Gross profit 10,909 11,141
Selling, general & administrative
expenses 10,290 11,189
----------- -----------
Income (loss) from operations 619 (48)
Interest income (expense), net (189) (236)
----------- -----------
Income (loss) before taxes 430 (284)
Income tax expense 4 21
----------- -----------
Net income (loss) 426 (305)
----------- -----------
Dividends on Preferred Shares 127 --
----------- -----------
Net income (loss) attributable
to common shareholders $ 299 $ (305)
----------- -----------
Basic and diluted income (loss)
per common share outstanding $ 0.01 $ (0.03)
----------- -----------
Weighted average number of
common shares outstanding - Basic 29,960,540 9,260,000
----------- -----------
Weighted average number of
common shares outstanding - Diluted 31,558,000 9,260,000
----------- -----------
EBITDA $ 1,085 $ 866
----------- -----------
CONTACT: Sight Resource Corporation
Carene Kunkler, 513/527-9770
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KEYWORD: OHIO
INDUSTRY KEYWORD: MEDICAL
RETAIL
EARNINGS
SOURCE:
Sight
Resource
Corporation
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