VISN EARNINGS. FUTURE LOOKS GOOD!
Tuesday March 30, 7:00 am Eastern Time
Company Press Release
Sight Resource Reports 1998 Results
HOLLISTON, Mass.--(BW HealthWire)--March 30, 1999--Sight Resource Corporation (NASDAQ:VISN - news), a leading provider of primary eye care services and managed vision care programs, today reported operating results for its fourth quarter and fiscal year ended December 1998.
For the fiscal year the Company reported revenue of $54,971,000, up 23% from last year's $44,576,000. The gains in revenue reflect the April 1, 1998 acquisition of Eyeglass Emporium and the July 1, 1997 acquisition of Vision Plaza. The Company reported a net loss of $985,000, or 11 cents per basic and diluted share, compared to a net loss of $3,957,000, or 46 cents per basic and diluted share, for the prior year. The $985,000 net loss for the fiscal year ended December 1998 included charges of $276,000 associated with changes in senior management occurring in 1998, a $417,000 provision for charges associated with inefficiencies in prior accounts receivable systems and procedures and an increase of $270,000 for accounts receivable allowances. The $3,957,000 net loss for the prior year included a $1,953,000 dividend to holders of Series B Convertible Preferred Stock, a $400,000 charge for the write-off of software associated with the Company's point-of-sale system and a provision of $110,000 for store closings.
EBITDA (earnings before interest, taxes, depreciation and amortization) for the fiscal year ended December 1998 was $1,698,000, compared with $188,000 for the prior year.
For the fourth quarter ended December 1998, the Company reported revenue of $12,594,000, an increase of 10% over revenue of $11,435,000 for the prior year period. The Company reported a net loss of $1,218,000, or 14 cents per basic and diluted share, compared to a net loss of $3,443,000, or 40 cents per basic and diluted share (includes the $1,953,000 dividend to holders of Series B convertible preferred stock), for the prior year period.
William T. Sullivan, President and Chief Executive Officer of Sight Resource Corporation, stated, ''The past year was one of renewal as well as change and growth for Sight Resource. Our operating performance improved dramatically, as indicated by the $1,677,000 reduction in our operating loss compared to the prior year. More important, we laid the groundwork for stronger results in 1999.
''Our improved point-of-sale system has already yielded significant benefits in our two New England chains and will be fully implemented in all of our existing chains this year. With perpetual inventory, electronic billing, better pricing controls and other helpful features, this state-of-the-art system will help us achieve higher productivity and integrate new acquisitions into our corporate framework more rapidly. It will also enable us to be an effective participant in the managed care area.
''I believe our realigned management team is among the best in the retail optical industry, and brings the necessary commitment to the task in front of us. Each member is focused on the need to drive sales higher, streamline our cost structure and improve profitability. I am confident that we are moving in the right direction, as we seek to capture a larger share of the consolidating retail optical industry.''
Sight Resource provides a complete range of primary eye care products and services through its primary eye care centers, managed care programs, laser vision correction centers and integrated networks of opticians, optometrists and ophthalmologists. The Company's wholly-owned subsidiaries include Cambridge Eye Doctors in Massachusetts and New Hampshire, E.B. Brown Opticians in Ohio and Pennsylvania, Eyeglass Emporium in Indiana, Shawnee Optical in Ohio and Pennsylvania, 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 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 1998 filed with the Securities and Exchange Commission.
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Sight Resource Corporation and Subsidiaries
Selected Financial Information
(In thousands, except per share data)
Three Month Period Twelve Month Period
Ended December Ended December
1998 1997 1998 1997
Net revenue $ 12,594 $ 11,435 $ 54,971 $ 44,576
Cost of revenue 4,291 4,038 18,991 16,096
Gross margin 8,303 7,397 35,980 28,480
Selling, general and
administrative expense 9,565 8,601 37,036 30,703
P.O.S software write-down -- 400 -- 400
Store closings expense -- 110 -- 110
Total operating expenses 9,565 9,111 37,036 31,213
Profit (loss)
from operations (1,262) (1,714) (1,056) (2,733)
Net interest income/(expense) (38) (15) (17) 16
Gain on sale of assets 89 264 158 738
Total other income 51 249 141 754
Loss before income
tax expense (1,211) (1,465) (915) (1,979)
Income tax expense 7 25 70 25
Net income (loss) $ (1,218) $ (1,490) $ (985) $ (2,004)
Dividends on redeemable
convertible preferred stock -- (1,953) -- (1,953)
Net income (loss) attributable
to common shareholders (1,218) (3,443) (985) (3,957)
Earnings (loss) per share $ (0.14) $ (0.40) $ (0.11) $ (0.46)
Weighted Avg. Number of
Common Shares Outstanding 8,906 8,756 8,867 8,669
EBITDA $ (519) $ (735) $ 1,698 $ 188
Contact:
Sight Resource Corporation
Nils Bonde-Henriksen, 508/429-6916 ext. 111 |
