Unilens Vision Inc. (OTCBB: UVIC) (TSX-V: UVI), which develops,
licenses, manufactures, distributes and markets specialty contact
lenses, today reported its operating results for the third quarter
and first nine months of FY2010.
Royalty income for the quarter ended March 31, 2010 increased
slightly to a third quarter record of $734,803, compared with
$734,249 in the three months ended March 31, 2009. Sales of
licensed products by the Company's licensee, Bausch & Lomb,
continued to increase, resulting in higher royalty income.
Net sales excluding royalty income declined to $1,535,454 in the
most recent quarter, versus $1,701,043 in the third quarter of
FY2009. The decrease in sales was primarily due to a soft U.S.
economy and increased competition from new product offerings and
rebate programs.
FY2010 third quarter pretax income decreased 39.5% to $450,559,
compared with $745,249 in the third quarter of FY2009. The decrease
was primarily attributable to (1) a reduction in gross profit
resulting from lower sales, (2) one-time administrative expenses of
approximately $110,000 associated with stock compensation expense
and the migration of the Company's corporate presence from Canada
to the U.S., and (3) interest expense and amortization of loan fees
of approximately $60,000 related to financing of the stock
repurchase completed in January 2010.
After recording net income tax expense of $174,990, the Company
reported net income of $275,569 in the most recent quarter, a
decrease of 38.3% when compared with net income of $446,850 in the
year-earlier quarter (after income tax expense of $298,399). The
Company earned $0.10 per diluted share in the third quarter of
FY2010, versus earnings of $0.10 per diluted share in the third
quarter of FY2009. Diluted per-share earnings were calculated on
2,855,684 common shares in the FY2010 third quarter, versus
4,555,678 diluted shares in the prior-year quarter. The 37%
decrease in average diluted shares resulted from the Company's
repurchase of 2,188,861 outstanding shares of common stock on
January 20, 2010.
"The decline in third quarter earnings was primarily due to the
introduction of new products and marketing programs by certain
competitors in the midst of an economic recession, combined with
one-time administrative expenses," stated Michael Pecora, Chief
Executive Officer of Unilens Vision Inc. "We have developed
strategies to address recent competitive challenges and will
continue to build upon our reputation as 'The Independent Eye Care
Professionals' Contact Lens Company'. Meanwhile, our royalty income
stream continues to grow as Bausch & Lomb utilizes our
proprietary technology in new products and markets its contact
lenses in an expanding number of countries around the world."
Royalty income for the nine months ended March 31, 2010
increased 6.6% to a record $2,253,865, compared with $2,114,215 in
the first nine months of FY2009, demonstrating continued sales
growth of licensed products by Bausch & Lomb.
For the nine months ended March 31, 2010, net sales excluding
royalty income declined to $4,633,666, compared with $4,992,811 in
the corresponding period of the previous fiscal year. Net sales of
the Company's C-Vue brand disposable contact lenses increased
approximately 0.5% during the first nine months of FY2010, while
sales of custom lenses and replacement products continued to
decline, as expected.
Pretax income for the nine months ended March 31, 2010 decreased
10.6% to $1,895,360, compared with $2,120,225 in the prior-year
period. After recording net income tax expense of $700,395, the
Company reported net income of $1,194,965, for the nine months
ended March 31, 2010, versus net income (after income tax expense
of $848,063) of $1,272,162 in the first nine months of FY2009. The
Company earned $0.30 per diluted share in the nine months ended
March 31, 2010, versus earnings per diluted share of $0.28 in the
prior-year period. Diluted per-share earnings were calculated on
3,998,122 common shares in the first nine months of FY2010,
compared with 4,556,425 diluted shares in the corresponding period
in FY2009. The 12% decrease in average diluted shares resulted from
the Company's repurchase of 2,188,861 outstanding shares of common
stock in January 2010.
About Unilens Vision Inc. -- "The Independent Eye Care
Professionals' Contact Lens Company"
Established in 1989, Unilens Vision Inc., through its wholly
owned subsidiary Unilens Corp., USA, located in Largo, Florida,
develops, licenses, manufactures, distributes and markets contact
lenses primarily under the C-Vue® brand directly to Independent Eye
Care Professionals. Additional information on the Company may be
accessed on the Internet at www.unilens.com. The Company's common
stock is listed on the OTC Bulletin Board under the symbol "UVIC"
and on the Canadian TSX Venture Exchange under the symbol
"UVI".
(Note: All financial information in this release is stated in
U.S. Dollars.)
The information contained in this news release, other than
historical information, consists of forward-looking statements that
involve risks and uncertainties that could cause actual results to
differ materially from those described in such statements. For a
discussion of certain factors that could cause actual results to
differ materially from those described in the forward-looking
statements, please refer to the Company's most recent filings with
the SEC and the TSX Venture Exchange. The TSX Venture Exchange has
not reviewed and does not accept responsibility for the adequacy or
accuracy of this release.
UNILENS VISION INC.
THIRD QUARTER - FISCAL 2010
CONDENSED CONSOLIDATED FINANCIAL INFORMATION
(All figures in U.S. Dollars)
RESULTS OF OPERATIONS
Three Three
Months Months Nine months Nine months
Ended Ended Ended Ended
March 31, March 31, March 31, March 31,
2010 2009 2010 2009
---------- ---------- ----------- ----------
Sales $1,535,454 $1,701,043 $ 4,633,666 $4,992,811
Cost of sales 912,581 943,931 2,717,169 2,752,561
---------- ---------- ----------- ----------
622,873 757,112 1,916,497 2,240,250
---------- ---------- ----------- ----------
Expenses 827,865 731,093 2,204,063 2,206,395
---------- ---------- ----------- ----------
(Loss) income from
operations (204,992) 26,019 (287,566) 33,855
Other items:
Royalty income 734,803 734,249 2,253,865 2,114,215
Other expense (16,059) (12,917) (15,236) (19,406)
Remeasurement expense (3,398) (2,479) (1,575) (11,463)
Interest (expense) income (59,795) 377 (54,128) 3,024
---------- ---------- ----------- ----------
655,551 719,230 2,182,926 2,086,370
---------- ---------- ----------- ----------
Income before income tax
expense 450,559 745,249 1,895,360 2,120,225
Income tax expense 174,990 298,399 700,395 848,063
---------- ---------- ----------- ----------
Net income for the
period $ 275,569 $ 446,850 $ 1,194,965 $1,272,162
========== ========== =========== ==========
Net income per common
share:
Basic $ 0.10 $ 0.10 $ 0.30 $ 0.28
Diluted $ 0.10 $ 0.10 $ 0.30 $ 0.28
========== ========== =========== ==========
CASH FLOWS
---------- ---------- ----------- ----------
Provided (used) by:
Operating activities $ 398,389 $ 960,719 $ 2,122,312 $2,255,774
Investing activities 237,343 (264,083) 477,219 (329,144)
Financing activities (1,559,953) (409,565) (2,691,349) (2,593,908)
---------- ---------- ----------- ----------
Increase (decrease) in
cash $ (924,221) $ 287,071 $ (91,818) $ (667,278)
========== ========== =========== ==========
========== ========== =========== ==========
BALANCE SHEET
---------- ----------- ----------
June 30, March 31, March 31,
2009 2010 2009
---------- ----------- ----------
Cash and certificates of
deposit $1,678,626 $ 1,085,233 $1,174,735
Total assets 5,749,661 4,552,449 5,529,389
Current liabilities 1,056,312 2,444,815 1,024,441
Total liabilities 1,056,312 7,044,815 1,024,441
Stockholders' equity
(deficit) $4,693,349 $(2,492,366) $4,504,948
========== =========== ==========
For more information, please contact: Leonard F. Barker CFO
Unilens Vision Inc. (727) 544-2531
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