Coastal.com Announces First Quarter 2014 Financial Results
VANCOUVER, British Columbia, March 14, 2014 (GLOBE NEWSWIRE) -- Coastal
Contacts Inc. ("Coastal.com" or "the Company") (Nasdaq:COA) (TSX:COA), the
leading global manufacturer and digital retailer of high-quality glasses and
contact lenses, reported financial results for the first fiscal quarter ended
January 31, 2014.
Total sales in the first quarter were $52.1 million compared to $54.9 million
in the same year-ago quarter. Gross profit was $22.6 million, or 43% of sales,
compared to $22.7 million, or 41% of sales, in the same period in 2013.
Non-IFRS adjusted EBITDA for the first quarter totaled a loss of $3.3 million
compared to a loss of $1.8 million in the year-ago quarter.
Net loss totaled $4.2 million, or $(0.13) per basic and diluted share,
compared to a net loss of $3.4 million, or $(0.12) per basic and diluted
share, in the first quarter of 2013.
On February 27, 2014, Coastal entered into an Acquisition Agreement with
Essilor International SA under which Essilor will acquire all of the issued
and outstanding common shares of Coastal by way of a statutory plan of
arrangement. Pursuant to the arrangement, each share of Coastal will be
exchanged for cash consideration of $12.45. The arrangement is subject to
customary closing conditions, including approval by shareholders, court
approval and regulatory approval.
The 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, 2013 and accompanying notes and Management's
Discussion and Analysis which may be viewed on SEDAR at www.sedar.com and
EDGAR at http://www.sec.gov/edgar/searchedgar/webusers.htm.
Coastal.com's risks and uncertainties are discussed in detail in the Company's
Annual Information Form dated January 21, 2014, which is also available on
SEDAR and EDGAR.
Adjusted EBITDA as referenced in this news release is a Non-IFRS measure and
is defined as earnings (loss) before interest, taxes, depreciation and
amortization, share-based compensation, and foreign exchange loss. See
"Supplemental Non-IFRS Measures" herein.
Supplemental Non-IFRS Measures
Coastal.com reports its results in accordance with IFRS, however, it presents
Adjusted EBITDA 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, foreign exchange, depreciation and amortization, and
share-based payments expense.
Coastal.com is a leading manufacturer and online retailer of eyewear products
offered through a family of world class websites. Established in 2000, the
Coastal.com family of brands offers an extensive, in stock selection of
prescription eyewear, contact lenses and sunglasses. Coastal.com's vision is
to make the process simple, either on-line or at one of our retail showrooms,
so our customers can see everything life has to offer. For more information
about Coastal.com, please visit www.coastal.com.
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:
Coastal.com's perceptions of the contact lens and eyeglasses industry or
market and anticipated trends in that market in any of the countries in which
Coastal.com does business; Coastal.com's anticipated ability to procure
products and supplies, or the terms under which it may procure its products
and supplies; Coastal.com'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; Coastal.com's ability to increase production;
Coastal.com's capital expenditure plans; the results of further investments in
Coastal.com's retail brands; Coastal.com's relationships with suppliers;
Coastal.com'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; Coastal.com's perceptions
regarding volatility in and impact of foreign currency exchange rates; the
effect of the current economic climate on Coastal.com's business and consumer
behavior; and Coastal.com'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
Coastal.com'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 Coastal.com's expectations
regarding forward-looking information and statements contained within this
News Release include, among others: that Coastal.com will maintain its
position in the markets it operates in and expand into other markets in a
favourable manner; that Coastal.com 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 Coastal.com will be
able to generate and maintain sufficient cash flows to support its operations;
that Coastal.com 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 Coastal.com 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 Coastal.com's control, that could cause Coastal.com'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; Coastal.com'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 Coastal.com
will not be successful in defending against litigation; dependence on the
Internet; and the other risks detailed in Coastal.com'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 Coastal.com expressly disclaims any intent or obligation
to update such forward-looking information or statements, unless Coastal.com
specifically states otherwise or as required by applicable law.
For a complete discussion of the assumptions, risks and uncertainties related
to Coastal.com's business, you are encouraged to review Coastal.com's filings
with the Canadian securities regulatory authorities filed on SEDAR at
CONTACT: Terry Vanderkruyk
Chief Corporate Development Officer
Liolios Group Inc.
Scott Liolios or Cody Slach
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