Sep 13 2010
Coastal Contacts Inc. ("Coastal" or "the Company") (TSX:COA) (Stockholm:COA) today announced its financial results in Canadian dollars for the third fiscal quarter ended July 31, 2010.
Coastal noted the following highlights for the 2010 third fiscal quarter:
- Sales set a quarterly record of $39.5 million as compared to $37.5 million in the third quarter of the previous fiscal year. Sales increased 12% excluding the impact of foreign exchange rate fluctuations.
- More than 428,000 orders shipped, an increase of 16% over the same period in 2009.
- $20.8 million in cash and cash equivalents as compared with $10 million at the end of the second quarter of fiscal 2010.
- Coastal acquired 120,000 new customers in the quarter.
- Eyeglasses sales grew to $5.0 million in the quarter, an increase of 84% over the same period in fiscal 2009.
- Shipped more than 71,000 pairs of eyeglasses in the quarter.
- Sales in Canada grew 22% in the third quarter of 2010 as compared to the same period of last fiscal year, and 35% during the nine months ended July 31, 2010.
- Sales in the United States grew 24% in the third quarter of 2010 as compared to the same period of the last fiscal year, and 29% during the nine months ended July 31, 2010.
- Advertising expense declined to 12% of sales as compared to 13% of sales in the same period in fiscal 2009.
Sales for the third fiscal quarter increased 5% and set a quarterly record of $39.5 million compared to $37.5 million in 2009. Exclusive of foreign exchange fluctuations sales grew 12% during the quarter compared to the same period in 2009. Adjusted EBITDA for the third fiscal quarter was $1.4 million compared with $2.0 million during the same period in 2009. Net earnings for the third fiscal quarter was $0.5 million or $0.01 per share compared to $0.6 million or $0.01 per share in the third quarter of fiscal 2009.
Mr. Roger Hardy, Coastal's Founder and CEO, commented, "During the third quarter the Coastal team delivered record sales in what remains a challenging consumer environment. Results in the quarter were lead by strong growth in North America with healthy double digit increases in both Canada and the United States. Our markets in Europe experienced flat to single digit growth in their domestic currencies excluding the effect of foreign exchange fluctuations. We are confident that our competitive position remains strong based upon our differentiated business model and unique consumer value proposition, which allows us to provide the highest quality glasses and contact lenses direct to our customers at much lower prices and delivery time than traditional optical retailers. As we continue to gain market share in the glasses market we feel confident that our business plan is set to deliver substantially higher returns in the coming quarters."
SOURCE Coastal Contacts Inc.