Announces First Quarter 2013 Financial Results Announces First Quarter 2013 Financial Results

  *Reports First Quarter Record Net Sales of $54.9 million, up 17%
  *Contact lens sales increased 12% to $41.0 million from same period last
  *Glasses sales increased 35% to $13.9 million from same period last year
  *U.S. glasses sales and units increased 95% from same period last year

VANCOUVER, British Columbia, March 11, 2013 (GLOBE NEWSWIRE) -- Coastal
Contacts Inc. ("" or "the Company") (Nasdaq:COA) (TSX:COA), the
leading online provider of eyewear, today reported financial results for the
first fiscal quarter ended January 31, 2013.

Total sales for the first quarter increased 17% to $54.9 million. Net loss
totaled $3.4 million, or $0.12 per basic and diluted share. Non-IFRS adjusted
EBITDA for the quarter totaled ($1.8 million). For the fiscal quarter ended
January 31, 2013, net cash used in operating activities was $2.7 million.

"The first quarter was a solid start to the year for us with strength across
both product categories and growth in all of our segmented regions. We
continue to build on sequential growth in our early stage glasses business. A
year ago we launched a plan to accelerate growth in the United States and our
plan is on track. As expected, our financial results reflect the cost of these
investments. We have experienced an increase in the number of returning
glasses customers which reaffirms our overall strategy. The first quarter of
2013 has been an excellent start to the year and we look forward to reporting
continued highlights as the year unfolds," said Roger Hardy, Founder and Chief
Executive Officer.

First Quarter 2013 Financial Highlights

  *Sales totaled $54.9 million, a 17% year-over-year increase.
  *Gross profit was $22.7 million or 41% of sales.
  *Adjusted EBITDA was ($1.8 million) compared with $1 million during the
    same period in 2012.
  *Cash and equivalents of $14.6 million compared with $19.2 million at
    October 31, 2012.

Contact Lens Business

  *Sales totaled $41.0 million, 12% year-over-year increase.
  *Gross profit was $16.3 million or 40% of sales.
  *Adjusted EBITDA for the contact lens category was 11% during the period.

Glasses Business

  *Sales totaled $13.9 million, 35% year-over-year increase.
  *Gross profit was $6.4 million or 46% of sales.

First Quarter 2013 Operating Metrics

  *Orders totaled 601,167, an 18% increase year-over-year.
  *Average order size was $91.32 compared to $92.19 in the same period in

Contact Lens Business

  *Over 70% of our contact lens revenues and orders were derived from repeat
  *Orders totaled 362,130, a 7% increase year-over-year.
  *Average order size was $113.28 compared to $107.58 in the same period in
  *In-house brand, Splash™ products comprised 5% of contact lens
    units during the period.

Glasses Business

  *Orders totaled 239,037, a 42% increase year-over-year.
  *Average order size was $58.04 compared to $61.05 in the same period in
  *Frames shipped were 277,159 compared to 195,513 in the same period in
  *Private brand label frames represented 70% of frames shipped during the

Recent Operating Highlights

  *U.S. glasses sales and units increased 95% compared to the same period in
  *Significant improvements in our Net Promoter Scores ("NPS") across all
    regions and product categories. In particular, ratings for glasses
    customers in the U.S. increased to 77%.
  *Ranked #3 in the Internet Retailer Social 300 for our innovative use of
    social media.
  *Successful product placement of our new Derek Cardigan™ "Grammar
    Collection" glasses frames in two highly ranked music videos, Alicia Keys,
    "Brand New Me" and Flo Rida, "I Cry".
  *Signed a multi-year licensing agreement with the widely recognized
    actress, Alyssa Milano to develop a line of eyeglasses and sunglasses
    called "Touch by Alyssa".

(CAD $000's)
                                              January 31, October 31,
                                              2013        2012
Current assets                                            
Cash and cash equivalents                      $14,628   $19,153
Trade and other receivables                    8,312      6,681
Inventories                                    26,619     25,435
Prepaid expenses                               2,601      2,250
Total current assets                           52,160     53,519
Non-current assets                                        
Property, equipment and leasehold improvements 9,957      9,887
Intangible assets                              12,073     11,376
Goodwill                                      8,637      8,322
Total non-current assets                       30,667     29,585
TOTAL ASSETS                                   $82,827   $83,104
LIABILITIES AND EQUITY                                    
Current liabilities                                       
Trade and other payables                       $45,616   $40,144
Provisions                                     1,480      1,284
Income taxes payable                           801        839
Finance lease obligations, current             116        101
Term loan                                      3,111      3,300
Credit facilities, current                     --        1,715
Other current liabilities                      404        3,210
Total current liabilities                      51,528     50,593
Non-current liabilities                                   
Other long-term liabilities                    246        270
Finance lease obligations                      529        457
Credit facilities                              1,011      --
Deferred tax liabilities                       3,067      2,905
Total non-current liabilities                  4,853      3,632
Total liabilities                              56,381     54,225
Shareholders' equity                                      
Share capital                                  42,677     42,501
Share-based payments reserve                   3,387      3,395
Accumulated other comprehensive income (loss)  637        (137)
Deficit                                        (20,255)   (16,880)
Total shareholders' equity                     26,446     28,879
TOTAL LIABILITIES AND EQUITY                   $82,827   $83,104

(CAD $000's)

For the three months ended January 31                  2013        2012
Sales                                                  $54,898   $46,849
Cost of sales                                          32,163     27,833
Gross profit                                           22,735     19,016
Fulfillment                                            5,311      4,153
Selling and marketing                                  14,671     10,114
General and administration                             5,449      4,692
Results from operating activities                      (2,696)    57
Financing costs                                       424        191
Loss before income taxes                               (3,120)    (134)
Income tax expense - current                           217        329
Income tax expense (recovery) - deferred               38         (267)
Net income tax expense                                 255        62
Net loss for the period                                (3,375)    (196)
Other comprehensive income (loss)                                 
Foreign currency translation differences               774        (746)
Comprehensive loss for the period                      $(2,601)  $(942)
Basic and diluted loss per share                       $(0.12)   $0.00
Weighted average number of common sharesoutstanding - 28,616,460 28,133,503
basic and diluted will host a conference call to review the financial results and
Company operations on Monday, March 11, 2013 at 1:30 p.m. Pacific time.
Participating in the call will be Roger Hardy, founder and CEO, Gary Collins,
President and Nick Bozikis, CFO.

To attend the call, participants may dial:

North American Toll Free 1-888-892-3255

A replay of the call will be available for 7 days. To access the replay
listeners may dial:

Local/International 1-800-937-6305
Passcode            775415

To listen live and view the presentation via your PC log into:

The following selected financial information is qualified in its entirety by,
and should be read in conjunction with our audited consolidated financial
statements for the fiscal year ended October 31, 2012 and accompanying notes
and Management's Discussion and Analysis which may be viewed on SEDAR at and EDGAR at's risks and uncertainties are discussed in detail in the Company's
Annual Information Form dated December 19, 2012 which is also available on

Adjusted EBITDA as referenced in this news release is a Non-IFRS measure and
is defined as earnings before interest, taxes, depreciation and amortization,
share based compensation, listing and financing costs and restructuring
charges. See "Supplemental Non-IFRS Measures" herein.

The following table provides a reconciliation of net earnings to adjusted

                             For the three months ended January 31
($000's)                      2013                2012
Net (loss)                    (3,375)             (196)
Depreciation and Amortization 879                 656
Interest expense , net        121                 121
Income tax expense (recovery) 256                 62
Share-based compensation      52                  312
Foreign exchangeloss         303                 70
Management change costs       --                  --
Adjusted EBITDA               (1,764)             1,025

Supplemental Non-IFRS Measures reports its results in accordance with IFRS, however, it presents
Adjusted EBITDA and the number of orders shipped in our filings because the
Company believes our investors use these figures to make investment decisions
about us.

Adjusted EBITDA is a non-IFRS measure that does not have any standardized
meaning prescribed by IFRS and is therefore unlikely to be comparable to
similar measures presented by other companies. Adjusted EBITDA should be
considered in addition to, and not as a substitute for, net earnings, cash
flows and other measures of financial performance and liquidity reported in
accordance with IFRS.

Adjusted EBITDA is a measure we believe is useful in assessing performance and
highlighting trends on an overall basis. Adjusted EBITDA differs from the most
comparable IFRS measure, net earnings, primarily because it does not include
interest, income taxes, amortization, restructuring cost and share-based
compensation expense.

New orders, reorders, shipped orders and active customers are non-IFRS
measures that do not have a standardized meaning prescribed by IFRS and are
therefore unlikely to be comparable to similar measures presented by other
companies.New orders are orders shipped to new customers, net of
returns.Reorders are orders shipped to returning customers, net of
returns.Active customers are customers who have placed an order with us in
the last 24 months.

About is one of the largest online retailers of vision care products in
the world. empowers customers to easily browse, try on and buy
eyewear—saving time, money and sanity. With every pair of qualifying frames
purchased, donates a pair to someone in need through its Change
the View project. Founded in 2000, designs, produces and
distributes the largest selection of glasses and contact lenses on the
Internet, including a unique combination of designer glasses, contact lenses,
sunglasses, and vision care accessories. serves customers in more
than 150 countries through the Coastal Contacts family of websites including:,,,,,,,,,

Cautionary Note Regarding Forward-Looking Statements

All statements made in the News Release which are not current statements or
historical facts constitute "forward-looking information" within the meaning
of applicable Canadian securities laws and "forward-looking statements" as
defined in Section 27A of the United States Securities Act of 1933, Section
21E of the United States Securities Exchange Act of 1934, the Private
Securities Litigation Reform Act of 1995, or in releases made by the United
States Securities and Exchange Commission, all as may be amended from time to
time, and the words "may", "would", "could", "will", "intend", "plan",
"anticipate", "believe", "estimate", "expect", "goal", "target", "should",
"likely", "potential", "continue", "project", "forecast", "prospects", and
similar expressions typically are used to identify forward-looking information
and statements.Examples of such forward-looking information and statements
within this News Release include information and statements relating to:'s perceptions of the contact lens and eyeglasses industry or
market and anticipated trends in that market in any of the countries in which does business;'s anticipated ability to procure
products and supplies, or the terms under which it may procure its products
and supplies;'s anticipated business operations, inventory levels,
ability to handle specific order and call volumes, ability to fill and ship
orders in a timely manner, ability to achieve greater marketing efficiency or
similar statements;'s ability to increase production;'s capital expenditure plans; the results of further investments in's retail brands;'s relationships with suppliers;'s anticipated results of operations, including but not limited to
anticipated sales, revenues, earnings, tax benefits or similar matters; the
effects of seasonality; sufficiency of cash flows;'s perceptions
regarding volatility in and impact of foreign currency exchange rates; the
effect of the current economic climate on's business and consumer
behavior; and's ability to address challenges and opportunities
resulting from current economic conditions.

Forward-looking information and statements are based on the then-current
expectations, beliefs, assumptions, estimates and forecasts about's business and the industry and markets in which it
operates.Forward-looking information and statements are not guarantees of
future performance and involve risks, uncertainties and assumptions which are
difficult to predict.Assumptions underlying's expectations
regarding forward-looking information and statements contained within this
News Release include, among others: that will maintain its
position in the markets it operates in and expand into other markets in a
favourable manner; that will have sufficient capital to continue
making investments in advertising, inventory, property, equipment and
leasehold improvements as well as personnel to support its business and new
product lines, including its eyeglasses business; that will be
able to generate and maintain sufficient cash flows to support its operations;
that will be successful in complying with industry regulatory
requirements in British Columbia and other jurisdictions in which it operates;
that Coastal will be able to establish and/or maintain necessary relationships
with suppliers; and that will retain key personnel.The foregoing
list of assumptions is not exhaustive.

You are cautioned that forward-looking information and statements are subject
to a number of known and unknown risks, uncertainties and other factors, many
of which are beyond's control, that could cause's
actual future results or performance to be materially different from those
that are disclosed in or implied by the forward-looking information.These
factors include, but are not limited to changes in the market; potential
downturns in economic conditions; consumer credit risk;'s ability
to implement its business strategies; competition from traditional and online
retailers; limited suppliers; limited availability of inventory; disruption in
Coastal's distribution facilities; mergers and acquisitions; foreign currency
exchange rate fluctuations; regulatory requirements; demand for contact
lenses, eyeglasses and related vision care products; the risk that
will not be successful in defending against litigation; dependence on the
Internet; and the other risks detailed in's filings with the
Canadian securities regulatory authorities.

You should not place undue reliance on forward-looking information and
statements which are qualified in their entirety by this cautionary note.

Forward-looking information and statements in this news release are made as of
the date hereof and expressly disclaims any intent or obligation
to update such forward-looking information or statements, unless
specifically states otherwise or as required by applicable law.

For a complete discussion of the assumptions, risks and uncertainties related
to's business, you are encouraged to review's filings
with the Canadian securities regulatory authorities filed on SEDAR at

CONTACT: Terry Vanderkruyk
         Vice President, Corporate Development
         Coastal Contacts Inc.
         Liolios Group Inc.
         Scott Liolios or Cody Slach
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