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FGX International reports strong sales growth for Q2
30 Jul '08
6 min read
FGX International announced financial results for its second quarter and six months ended June 28, 2008.
CEO Alec Taylor commented, "We enjoyed excellent financial results during the second quarter of 2008 and generated momentum which we are working hard to sustain. Both our non-prescription reading glasses and sunglasses businesses experienced double digit year over year growth in a very difficult retail environment. We continued to add to our leadership position in both of these categories through organic growth and the addition of new retail accounts, behind our Foster Grant and Magnivision brands. We achieved these results while maintaining strong margins and improving our working capital metrics."
Highlights for the first six months include:
-- Net sales increased 6% to $130.8 million in the first six months of 2008 from $123.8 million in the first six months of 2007.
-- Net income increased 84% to $6.3 million in the first six months of 2008 from $3.4 million in the first six months of 2007.
-- Earnings per diluted share increased to $0.29 in the first six months of 2008 from $0.23 in the first six months of 2007, a 28% increase.
-- Earnings before interest, taxes, depreciation and amortization (EBITDA) increased 2% to $23.6 million in the first six months of 2008 from $23.3 million in the first six months of 2007.
The increase in sales in the sunglasses and prescription frame segment for both the quarter and six months was due to organic growth at existing customers and higher sales related to a promotional program at a major customer.
Sales in the Company's international segment were flat for the second quarter and down slightly in the first six months, compared to the prior period, as a result of a non-anniversaried reading glasses roll-out in the UK in the first quarter of 2007 and lower than expected sunglasses sales in the second quarter of 2008. These results were partially offset by higher sales across all product lines in Canada for both the current quarter and the first six months of 2008.
CEO Alec Taylor commented, "We are pleased to report such strong sales and earnings for the first six months of 2008. The first quarter of 2008 was a difficult comparison due to the Walgreens rollout a year ago, but the strength of our second quarter results led to an outstanding first half of 2008. We continued to build the value of our brands during the first half of 2008 while delivering consistently strong sales and earnings supported by excellent gross and operating profit margins."
A reconciliation of EBITDA and Free Cash Flow, which are non-GAAP measures, are included in the Consolidated Statements of Income and Other Selected Data, and related notes thereto, attached to this release. The Company believes that non-GAAP measures are useful for an understanding of its ongoing business.
Additional Results
The following additional results were experienced in the second quarter and the first six months of 2008:
CEO Alec Taylor commented, "We enjoyed excellent financial results during the second quarter of 2008 and generated momentum which we are working hard to sustain. Both our non-prescription reading glasses and sunglasses businesses experienced double digit year over year growth in a very difficult retail environment. We continued to add to our leadership position in both of these categories through organic growth and the addition of new retail accounts, behind our Foster Grant and Magnivision brands. We achieved these results while maintaining strong margins and improving our working capital metrics."
Highlights for the first six months include:
-- Net sales increased 6% to $130.8 million in the first six months of 2008 from $123.8 million in the first six months of 2007.
-- Net income increased 84% to $6.3 million in the first six months of 2008 from $3.4 million in the first six months of 2007.
-- Earnings per diluted share increased to $0.29 in the first six months of 2008 from $0.23 in the first six months of 2007, a 28% increase.
-- Earnings before interest, taxes, depreciation and amortization (EBITDA) increased 2% to $23.6 million in the first six months of 2008 from $23.3 million in the first six months of 2007.
The increase in sales in the sunglasses and prescription frame segment for both the quarter and six months was due to organic growth at existing customers and higher sales related to a promotional program at a major customer.
Sales in the Company's international segment were flat for the second quarter and down slightly in the first six months, compared to the prior period, as a result of a non-anniversaried reading glasses roll-out in the UK in the first quarter of 2007 and lower than expected sunglasses sales in the second quarter of 2008. These results were partially offset by higher sales across all product lines in Canada for both the current quarter and the first six months of 2008.
CEO Alec Taylor commented, "We are pleased to report such strong sales and earnings for the first six months of 2008. The first quarter of 2008 was a difficult comparison due to the Walgreens rollout a year ago, but the strength of our second quarter results led to an outstanding first half of 2008. We continued to build the value of our brands during the first half of 2008 while delivering consistently strong sales and earnings supported by excellent gross and operating profit margins."
A reconciliation of EBITDA and Free Cash Flow, which are non-GAAP measures, are included in the Consolidated Statements of Income and Other Selected Data, and related notes thereto, attached to this release. The Company believes that non-GAAP measures are useful for an understanding of its ongoing business.
Additional Results
The following additional results were experienced in the second quarter and the first six months of 2008:
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