Coastal Contacts Inc. ("Coastal" or "the Company") (TSX:COA) (Stockholm:COA) today announced its financial results for the second fiscal quarter, period ended April 30, 2010.
Coastal noted the following financial highlights for the second fiscal quarter of 2010:
- Sales increased $4 million or 12% and set a quarterly record of $37.3 million as compared to $33.3 million in the second fiscal quarter of 2009. Sales increased 19% excluding the impact of foreign exchange rate fluctuations.
- Total order volume exceeded 384,000 orders, an increase of 18% over the comparative period in 2009.
- Acquired 104,000 new customers in the quarter.
- Sales of eyeglasses grew to $4.7 million (net of returns and cancellations) an increase of 136% over the same period in 2009.
- Sales in Canada grew 43% during the six months ended April 30, 2010.
- Sales in the United States grew 32% during the six months ended April 30, 2010 and 55% when excluding the effects of foreign exchange rate fluctuations.
- Advertising expense declined to 11% of sales as compared to 13% of sales in the same period in 2009.
- At April 30, 2010 Coastal had $9.9 million in cash and cash equivalents and no debt.
Sales for the second fiscal quarter increased 12% and set a quarterly record of $37.3 million compared to $33.3 million in 2009. Exclusive of foreign exchange fluctuations sales grew 19% during the quarter compared to the same period in 2009. Adjusted EBITDA for the second fiscal quarter was $1.5 million which is an 8% improvement over the same period in 2009. Net earnings for the second fiscal quarter was $0.4 million or $0.01 per share compared to $0.5 million or $0.01 per share in fiscal 2009.
Mr. Roger Hardy, Coastal's President and CEO, commented, "Coastal continues to demonstrate organic growth in the contact lens category in key markets around the world, particularly in Canada and the United States. Our commitment to providing the highest level of customer service is resulting in a growing number of repeat orders and is increasing the life time value of our customer database. The eyeglasses category is experiencing rapid growth, again mainly in North America, and given the overall size of the global market, we believe has the potential to eventually become a larger business than Coastal's contact lens business.
In approximately two years we have built a significant eyeglasses business that culminated in over 60,000 pairs of eyeglasses being shipped during the quarter and $4.7 million in sales, predominantly in North America. This quarter's operating results are consistent with the financial model we used to establish our $20 million eyeglasses sales goal this year. We are significantly expanding the capacity of our North American eyeglasses facility to address consumer demand."
Coastal noted the following operational highlights during the second fiscal quarter 2010:
- Coastal reported that the Ministry of Health in British Columbia modernized the regulations regarding the ability of consumers to purchase contact lenses and eyeglasses on the Internet, making vision care products more affordable and accessible.
- Coastal secured a $5 million revolving line of credit from the Bank of America, bringing the total cash accessible from existing credit facilities to $8.5 million, none of which had been drawn at April 30, 2010.