U.S. Vision Announces Third Quarter Results


GLENDORA, N.J., Nov. 28, 2001 (PRIMEZONE) -- U.S. Vision, Inc. (Nasdaq:USVI) today announced financial results for the third quarter ended October 31, 2001.

Net sales for the three months ended October 31, 2001 decreased 8.5% to $34.2 million compared to $37.4 million for the same period last year. The decrease was due to the closing of 84 unproductive stores and a 2.7% decrease in comparable store sales. The Company reported a net loss for the third quarter of $773,000, or $0.10 per share, compared to net income of $1.4 million, or $0.17 per share, in the third quarter of last year.

Net sales for the nine months ended October 31, 2001 declined 10.0% to $104.5 million compared to $116.1 million for the same period last year. The decline was due to the closing of 110 unproductive stores and a 3.1% decrease in comparable store sales. Net income for the nine months ended October 31, 2001, was $508,000, or $0.06 per share, compared to $4.7 million, or $0.60 per share, for the same period last year.

The prior year results benefited from the capitalization of certain costs (including salaries and interest expense) incurred in connection with the development of our point of sales system. Excluding the impact of those costs and the expenses incurred in connection with the proposed merger of the Company with the NOROB Group, Inc., the loss for the current quarter would have been $192,000 and net income for the nine month period would have been $2.2 million. The Company announced earlier this week that the proposed merger with NOROB has been terminated.

Commenting on the results, William A. Schwartz, President and Chief Executive Officer, stated, "A weak year for most of retail, including the optical industry and U. S. Vision, was compounded by the events of September 11, but through the nine months ending October 31, 2001, we had decreased SG&A expenses by $4.3 million. Cost of sales as a percentage of net sales for the nine months ended October 31, 2001 decreased by 0.2% due to preemptive action taken by management. However the positive benefits of these initiatives on our results were overwhelmed by the negative impact on sales and margins due to September 11 and its aftermath."

Mr. Schwartz concluded, "As a result of the events of September 11 and the slowdown in the economy, management has taken a number of actions to reduce costs and improve profitability. Such actions include price increases, closing unprofitable stores, staff reductions, pay freezes, unpaid leaves, department consolidations, and reductions in travel and advertising. Due to the timing of these actions, the benefits are not expected to begin to be realized until the first quarter of fiscal 2002."

U.S. Vision also announced that Carmen J. Nepa III has been named Chief Financial Officer of the Company. Mr. Nepa joins U.S. Vision from the Philadelphia office of Ernst & Young LLP, the Company's independent auditors.

U.S. Vision's management will conduct a conference call today at 4:30 P.M. (EST) to discuss the third quarter results. The dial-in number for that call is 212-896-6076. A replay of the conference call will be available from 6:30 PM (EST) on Wednesday, November 28, 2001, through 6:30 PM (EST) on Friday, November 30, 2001, and the replay dial-in number is 858-812-6440 (access code 20007761).

U.S. Vision is a leading national retailer of optical products and services primarily through licensed retail optical departments located in regional and national department stores. The Company currently operates approximately 618 locations in 47 states in the United States and Canada. U.S. Vision's retail optical departments offer an extensive selection of designer brand and private label prescription eyewear, contact lenses, sunglasses and accessories, as well as on-site eye examinations performed by independent optometrists.

This press release contains statements that are forward-looking within the meaning of applicable federal securities laws including but not limited to statements regarding the Company's expectations concerning its financial performance and operations. These statements are based on the Company's current expectations and assumptions, which are subject to a number of risks and uncertainties that could cause the actual results to differ materially from those anticipated. Factors that could cause actual results to differ include the factors set forth under the caption "Caution Regarding Forward Looking Statements" in the Company's Annual Report on Form 10-K for fiscal year ended January 31, 2001 and as they may be updated in any subsequent Quarterly Reports on Form 10-Q, all as filed with the Securities and Exchange Commission.


                            U.S. Vision, Inc.
                 Consolidated Statements of Operations
           (Dollars in thousands, except per share amounts)


                         Three Months Ended       Nine Months Ended
                           October 31,               October 31,
                       2001          2000         2001         2000
                    ----------    ----------   ----------   ----------

 Net sales          $   34,231    $   37,395   $  104,507   $  116,060
 Cost of sales          10,314        11,143       31,441       35,158
                    ----------    ----------   ----------   ----------
 Gross profit           23,917        26,252       73,066       80,902
 Operating expenses:
  Selling,
   general and
   administrative       23,154        23,633       67,756       72,022
   expenses
  Depreciation and
   amortization          1,312         1,135        3,961        3,628
                    ----------    ----------   ----------   ----------
                        24,466        24,768       71,717       75,650
                    ----------    ----------   ----------   ----------
 Operating income
  (loss)                  (549)        1,484        1,349        5,252
 Interest expense,
  net                      224            91          800          338
                    ----------    ----------   ----------   ----------
 Income (loss)
  before income
  tax provision           (773)        1,393          549        4,914
 Income tax
  provision                  0            35           41          217
                    ----------    ----------   ----------   ----------
 Net income (loss)  $     (773)   $    1,358   $      508   $    4,697
                    ==========    ==========   ==========   ==========
 Net income (loss)
  per share
  - diluted         $    (0.10)   $     0.17   $     0.06   $     0.60
                    ==========    ==========   ==========   ==========
 Shares used in
  computing net
  income (loss)
  per share
  - diluted          7,802,942     7,855,476    7,952,893    7,820,453
                    ==========    ==========   ==========   ==========


                           U.S. Vision, Inc.
                      Consolidated Balance Sheets
                        (Dollars in thousands)

                                       October 31,        January 31,
                                          2001               2001
                                        ---------          ---------
 Assets
 Current assets:
  Cash                                  $     537          $     240
  Accounts receivable                      11,450             10,879
  Inventory                                20,752             20,954
  Other                                       931              1,130
                                        ---------          ---------
 Total current assets                      33,670             33,203

 Property, plant, and equipment, net       39,008             40,524

 Goodwill, net                              6,095              6,356

 Other assets                                 630                995
                                        ---------          ---------
                                        $  79,403          $  81,078
                                        =========          =========
 Liabilities and stockholders' equity
 Current liabilities:
  Accounts payable-trade                $   5,944          $   4,865
  Accrued expenses and other                5,351              6,483
  Current portion of obligations
   under capital lease                      1,025                945
  Current portion of long-term debt           364                450
                                        ---------          ---------
 Total current liabilities                 12,684             12,743

 Obligations under capital lease            1,734              2,272
 Long-term debt, less current portion      14,662             16,112
 Other long-term liabilities                  369                505

 Stockholders' equity:
  Common stock                                 78                 78
  Additional paid-in capital              115,766            115,766
  Accumulated deficit                     (65,890)           (66,398)
                                        ---------          ---------
 Total stockholders' equity                49,954             49,446
                                        ---------          ---------
                                        $  79,403          $  81,078
                                        =========          =========


            

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