KIBBUTZ SHAMIR, Israel,
March 14, 2011 /PRNewswire/ -- Shamir
Optical Industry Ltd. (Nasdaq: SHMR) ("Shamir"), a
leading provider of innovative products and technology to the
ophthalmic lens market, today announced unaudited financial results
for the fourth quarter and year ended December 31, 2010.
For the quarter ended December 31,
2010, revenues increased 5.4% to $39.1 million, compared with revenues of
$37.1 million for the same period in
2009. Gross profit for the quarter was $21.1
million, or 54.0% of revenues, compared with gross profit of
$20.4 million, or 55.0% of revenues
for the same period last year.
For the quarter ended December 31,
2010, operating income was $3.3
million, or 8.6% of revenues, compared with operating income
of $4.5 million, or 12.3% of revenues
for the same period last year. The reduction in operating
income year-over-year was primarily due to the mix of products sold
which negatively affected gross profit, costs associated with the
Company's previously announced transaction with Essilor
International, restructuring costs in France and an increase in marketing and
selling expenses.
Net income for the quarter was $3.0
million, compared with net income of $3.5 million for the same period in 2009. Net
income attributable to Shamir's shareholders was $2.8 million or $0.16 per diluted share, compared with
$3.3 million or $0.20 per diluted share for the same period in
2009.
Excluding the effect of non-cash stock-based compensation
expenses, amortization of intangible assets, restructuring costs in
France in 2010 and Essilor
transaction costs in 2010, operating income for the quarter was
$4.6 million, or 11.8% of revenues,
compared with operating income of $5.0
million, or 13.5% of revenues, for the same period last
year.
Excluding the effect of non-cash stock-based compensation
expenses, amortization of intangible assets, accretion of
redeemable non-controlling interest, restructuring costs in
France in 2010 and Essilor
transaction costs in 2010, all net of tax, net income attributable
to Shamir's shareholders for the quarter was $3.9 million, or $0.22 per diluted share, compared with net income
of $3.6 million, or $0.22 per diluted share for the same period last
year.
For the year ended December 31,
2010, revenues increased 11.0% to $158.0 million, compared with revenues of
$142.4 million for the year 2009.
Gross profit for the year 2010 was $86.5
million, or 54.8% of revenues, compared with gross profit of
$76.9 million, or 54.0% of revenues
for last year.
For the year ended December 31,
2010, operating income increased 14.0% to $19.8 million, or 12.5% of revenues, compared
with operating income of $17.3
million, or 12.2% of revenues for last year.
Net income for the year increased 17.5% to $15.6 million, compared with net income of
$13.3 million for the year
2009. Net income attributable to Shamir's shareholders increased
15.8% to $14.8 million or
$0.87 per diluted share, compared
with $12.8 million or $0.77 per diluted share for the year 2009.
Excluding the effect of non-cash stock-based compensation
expenses, amortization of intangible assets, restructuring costs in
France in 2010, Essilor
transaction costs in 2010 and compensation to the Company's former
chief executive officer in 2009, operating income for the year was
$23.4 million, or 14.8% of revenues,
compared with operating income of $19.2
million, or 13.5% of revenues, for last year.
Excluding the effect of non-cash stock-based compensation
expenses, amortization of intangible assets, accretion of
redeemable non-controlling interest, restructuring costs in
France in 2010, Essilor
transaction costs in 2010 and compensation to the Company's former
chief executive officer in 2009, all net of tax, net income
attributable to Shamir's shareholders for the year increased 24.2%
to $17.7 million, or $1.05 per diluted share, compared with net income
of $14.3 million or $0.86 per diluted share for last year.
The reconciliation of GAAP operating income and net income to
non-GAAP operating income and non-GAAP net income is set forth
below.
As of December 31, 2010, the
Company had cash and cash equivalents, including short-term
investments of $28.4 million.
Commenting on the results, Amos
Netzer, Chief Executive Officer of Shamir, said, "I am
satisfied with our results for 2010. During the year, we
continued to successfully increase the recognition for
Shamir-branded products, a testament to the strength of our organic
growth and strategic acquisition strategy. We also continued
to have similar success with our efforts to optimize our operations
as was demonstrated in the fourth quarter in France, where we went from a two-subsidiary
structure, down to a single, more efficient structure."
Mr. Netzer continued, "Most recently, we expanded our reach in
Israel through the acquisition of
the operations of a local distributor. Through this action,
we expect to achieve improved access to customers and to drive
increased sales volume. In addition, we expect to complete
the acquisition of the operation of a local Italian laboratory in
the second quarter to expand our footprint in Italy."
Conference Call:
Shamir has scheduled a conference call for 11:00 a.m. ET today to discuss fourth quarter
results. To participate in the call, please dial (888)
562.3356 (U.S. and Canada) or
(973) 582.2700 (International). The conference ID for this
event is 47057180. For those unable to participate there will
be a replay available from 2:00 p.m.
ET on March 14, 2011 through
11:59 p.m. ET, March 21, 2011. Please call: (800) 642.1687
(U.S. and Canada) or (706)
645.9291 (International). The ID code for the replay is
47057180.
The call will be available as a live, listen-only webcast at
www.kcsa.com. Please go to the KCSA website at least 15 minutes
prior to the scheduled start time to register, download and install
any necessary audio software. A 30-day archive of the webcast will
be available approximately 2 hours after the conclusion of the live
call.
About non – GAAP financial measures
This press release includes non-GAAP financial measures -
non-GAAP operating income and non-GAAP net income – that exclude
certain charges. The presentation of this financial information is
not intended to be considered in isolation or as a substitute for
the financial information prepared and presented in accordance with
GAAP. Management of Shamir believes that non-GAAP operating income
and non-GAAP net income provides meaningful supplemental
information because these numbers reflect the Company's core
operational results and are used by management internally to review
Shamir's financial results.
About Shamir
Shamir is a leading provider of innovative products and
technology to the spectacle lens market. Utilizing its proprietary
technology, the company develops, designs, manufactures, and
markets progressive lenses to sell to the ophthalmic market. In
addition, Shamir utilizes its technology to provide design services
to optical lens manufacturers under service and royalty agreements.
Progressive lenses are used to treat presbyopia, a vision condition
where the eye loses its ability to focus on close objects.
Progressive lenses combine several optical strengths into a single
lens to provide a gradual and seamless transition from near to
intermediate, to distant vision. Shamir differentiates its products
from its competitors' primarily through lens design. Shamir's
leading lenses are marketed under a variety of trade names,
including Shamir Creation™, Shamir Piccolo™, Shamir Office™, Shamir
Autograph™, Shamir Attitude™ and Shamir Smart™. Shamir believes
that it has one of the world's preeminent research and development
teams for progressive lenses, molds, and complementary technologies
and tools. Shamir developed software dedicated to the design of
progressive lenses. This software is based on Shamir's proprietary
mathematical algorithms that optimize designs of progressive lenses
for a variety of activities and environments. Shamir also has
created software tools specifically designed for research and
development and production requirements, including Eye Point
Technology software, which simulates human vision.
Safe Harbor Statement
Statements concerning Shamir's business outlook or future
economic performance; product introductions and plans and
objectives related thereto; and assumptions made or expectations as
to any future events, conditions, performance or other matters, are
"forward-looking statements" as that term is defined under U.S.
federal securities laws. Forward-looking statements are subject to
various risks, uncertainties and other factors that could cause
actual results to differ materially from those stated in such
statements. These risks, uncertainties and factors include, but are
not limited to: The conflicts in the region; the effects of
competition in our industry, and changes in our relationships with
optical laboratories, distributors, research and development
partners and other third parties; the effects of the international
expansion of our operations and our ability to manage our growth,
including our ability to manage potential future acquisitions; the
effect of global economic conditions in general and conditions in
Shamir's industry and target markets in particular; shifts in
supply and demand; market acceptance of new products and continuing
products' demand; the impact of competitive products and pricing on
Shamir's and its customers' products and markets; timely product
and technology development/upgrades and the ability to manage
changes in market conditions as needed; interest rate fluctuations;
and other factors detailed in Shamir's filings with the Securities
and Exchange Commission. Shamir assumes no obligation to update the
information in this release.
Investor Relations
Contacts:
|
|
|
Roni Gavrielov
|
Jeffrey Goldberger/Marybeth
Csaby
|
|
KM / KCSA Investor
Relations
|
KCSA Strategic
Communications
|
|
+972-3-516-7620
|
212-896-1249/212-896-1236
|
|
roni@km-ir.co.il
|
jgoldberger@kcsa.com
/ mcsaby@kcsa.com
|
|
|
|
|
|
|
SHAMIR OPTICAL INDUSTRY
LTD.
Consolidated Balance
Sheets
(US dollars in thousands, except
share and per share data)
|
|
|
As of
December 31,
|
|
As of
December 31,
|
|
|
|
2009
|
|
2010
|
|
|
|
|
|
(Unaudited)
|
|
CURRENT ASSETS:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
19,929
|
|
$
15,360
|
|
Short-term investment
|
|
11,679
|
|
12,998
|
|
Trade receivables (1)
|
|
33,648
|
|
34,223
|
|
Other receivables and prepaid
expenses
|
|
7,918
|
|
8,190
|
|
Inventory
|
|
26,946
|
|
28,728
|
|
TOTAL CURRENT
ASSETS
|
|
100,120
|
|
99,499
|
|
|
|
|
|
|
|
LONG-TERM
INVESTMENTS:
|
|
|
|
|
|
Severance pay fund
|
|
2,909
|
|
3,013
|
|
Long-term receivables
|
|
427
|
|
604
|
|
Investments in
affiliates
|
|
1,306
|
|
1,245
|
|
TOTAL LONG-TERM
INVESTMENTS
|
|
4,642
|
|
4,862
|
|
|
|
|
|
|
|
PROPERTY, PLANT AND EQUIPMENT,
NET
|
|
38,568
|
|
37,927
|
|
OTHER ASSETS
|
|
7,439
|
|
6,069
|
|
GOODWILL
|
|
12,945
|
|
13,942
|
|
TOTAL ASSETS
|
|
$
163,714
|
|
$
162,299
|
|
|
|
|
|
|
|
CURRENT LIABILITIES:
|
|
|
|
|
|
Short-term bank credit and
loans
|
|
$
11,033
|
|
$
8,404
|
|
Current maturities of long-term
loans
|
|
6,879
|
|
4,972
|
|
Trade payables
|
|
11,680
|
|
13,133
|
|
Accrued expenses and other
liabilities
|
|
15,447
|
|
15,920
|
|
TOTAL CURRENT
LIABILITIES
|
|
45,039
|
|
42,429
|
|
|
|
|
|
|
|
LONG-TERM
LIABILITIES:
|
|
|
|
|
|
Long-term loans
|
|
12,599
|
|
8,866
|
|
Capital leases
|
|
2,367
|
|
1,237
|
|
Accrued severance pay
|
|
3,270
|
|
3,411
|
|
Other long-term
liabilities
|
|
2,763
|
|
353
|
|
Deferred income taxes
|
|
2,224
|
|
1,875
|
|
TOTAL LONG-TERM
LIABILITIES
|
|
23,223
|
|
15,742
|
|
|
|
|
|
|
|
Redeemable non-controlling
interests
|
|
690
|
|
2,248
|
|
EQUITY:
|
|
|
|
|
|
Share capital
|
|
|
|
|
|
Common shares of NIS 0.01 par
value
|
|
|
|
|
|
Authorized: 100,000,000 shares
at December 31, 2009 and December 31, 2010; Issued and outstanding:
16,592,345 and 17,132,267 shares at December 31, 2009
and December 31, 2010, respectively
|
|
37
|
|
39
|
|
Additional paid-in
capital
|
|
68,230
|
|
73,851
|
|
Accumulated other comprehensive
income
|
|
(1,122)
|
|
(2,056)
|
|
Retained earnings
|
|
24,795
|
|
26,107
|
|
Total Shamir Optical
Industry Ltd. Shareholders' equity
|
|
91,940
|
|
97,941
|
|
Non-controlling
interests
|
|
2,822
|
|
3,939
|
|
TOTAL
EQUITY
|
|
94,762
|
|
101,880
|
|
TOTAL LIABILITIES AND
EQUITY
|
|
$
163,714
|
|
$
162,299
|
|
(1) Net of allowance for
doubtful accounts of $ 3,076 and $ 3,409 as of December 31, 2009
and December 31, 2010, respectively
|
|
|
|
|
|
|
|
|
SHAMIR OPTICAL INDUSTRY
LTD.
Consolidated Statements of
Income
(US dollars in thousands, except
per share data)
|
|
|
|
Three Months
Ended December 31,
|
|
Year Ended
December 31,
|
|
|
|
2009
|
|
2010
|
|
2009
|
|
2010
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
(Unaudited)
|
|
Revenues, net
|
$
37,073
|
|
$
39,073
|
|
$ 142,384
|
|
$ 157,991
|
|
Cost of revenues
|
16,700
|
|
17,972
|
|
65,448
|
|
71,485
|
|
Gross profit
|
20,373
|
|
21,101
|
|
76,936
|
|
86,506
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses:
|
|
|
|
|
|
|
|
|
|
Research and development
costs
|
907
|
|
1,334
|
|
3,239
|
|
4,579
|
|
|
Selling and marketing
expenses
|
10,537
|
|
12,236
|
|
40,959
|
|
44,937
|
|
|
General and administrative
expenses
|
4,387
|
|
4,187
|
|
15,410
|
|
17,238
|
|
Total operating
expenses
|
15,831
|
|
17,757
|
|
59,608
|
|
66,754
|
|
Operating income
|
4,542
|
|
3,344
|
|
17,328
|
|
19,752
|
|
|
|
|
|
|
|
|
|
|
|
Financial expenses and other,
net
|
158
|
|
51
|
|
395
|
|
220
|
|
Income before taxes on
income
|
4,384
|
|
3,293
|
|
16,933
|
|
19,532
|
|
Taxes on income
|
822
|
|
253
|
|
3,699
|
|
3,834
|
|
Income after taxes on
income
|
3,562
|
|
3,040
|
|
13,234
|
|
15,698
|
|
|
|
|
|
|
|
|
|
|
|
Equity in losses
(earnings) of affiliates, net
|
17
|
|
59
|
|
(31)
|
|
114
|
|
Net income
|
3,545
|
|
2,981
|
|
13,265
|
|
15,584
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to
non-controlling interests
|
201
|
|
165
|
|
477
|
|
772
|
|
Net income attributable to
Shamir Optical Industry Ltd. Shareholders
|
$ 3,344
|
|
$ 2,816
|
|
$
12,788
|
|
$ 14,812
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per
share:
|
|
|
|
|
|
|
|
|
|
Basic
|
$
0.20
|
|
$
0.17
|
|
$ 0.78
|
|
$ 0.88
|
|
|
Diluted
|
$
0.20
|
|
$
0.16
|
|
$ 0.77
|
|
$ 0.87
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of shares:
|
|
|
|
|
|
|
|
|
|
Basic
|
16,480
|
|
16,847
|
|
16,438
|
|
16,771
|
|
|
Dilutive
|
16,623
|
|
17,279
|
|
16,530
|
|
16,945
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHAMIR OPTICAL INDUSTRY
LTD.
Reconciliation of Non-GAAP
Operating Income and Net Income
(US dollars in thousands, except
per share data)
|
|
|
|
Three Months
Ended December 31,
|
|
Year Ended
December 31,
|
|
|
|
2009
|
|
2010
|
|
2009
|
|
2010
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
$ 4,542
|
|
$ 3,344
|
|
$ 17,328
|
|
$ 19,752
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjustment:
|
|
|
|
|
|
|
|
|
|
Stock based
compensation
|
79
|
|
138
|
|
451
|
|
565
|
|
|
Amortization of intangible
assets
|
385
|
|
375
|
|
1,148
|
|
1,452
|
|
|
Essilor transaction
costs
|
-
|
|
410
|
|
-
|
|
1,253
|
|
|
Restructuring costs in
France
|
-
|
|
340
|
|
-
|
|
340
|
|
|
Compensation to former Chief
Executive Officer
|
-
|
|
-
|
|
303
|
|
-
|
|
Non-GAAP operating
income
|
$5,006
|
|
$4,607
|
|
$19,230
|
|
$ 23,362
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to
Shamir Optical Industry Ltd. Shareholders
|
$3,344
|
|
$2,816
|
|
$12,788
|
|
$14,812
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjustment:
|
|
|
|
|
|
|
|
|
|
Stock based
compensation
|
79
|
|
138
|
|
451
|
|
565
|
|
|
Amortization of intangible
assets, net
|
284
|
|
276
|
|
863
|
|
1,075
|
|
|
Essilor transaction costs,
net
|
-
|
|
408
|
|
-
|
|
1,040
|
|
|
Restructuring costs in France,
net
|
-
|
|
228
|
|
-
|
|
228
|
|
|
Accretion of redeemable non
controlling interest
|
(64)
|
|
(1)
|
|
(64)
|
|
2
|
|
|
Compensation to former Chief
Executive Officer, net
|
-
|
|
-
|
|
227
|
|
-
|
|
Non-GAAP net income attributable
to Shamir Optical Industry Ltd. Shareholders
|
$3,643
|
|
$3,865
|
|
$14,265
|
|
$ 17,722
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per
share:
|
|
|
|
|
|
|
|
|
|
Basic
|
$ 0.22
|
|
$ 0.23
|
|
$ 0.87
|
|
$
1.06
|
|
|
Diluted
|
$ 0.22
|
|
$ 0.22
|
|
$ 0.86
|
|
$
1.05
|
|
|
|
|
|
|
|
|
|
|
|
Number of shares:
|
|
|
|
|
|
|
|
|
|
Basic
|
16,480
|
|
16,847
|
|
16,438
|
|
16,771
|
|
|
Dilutive
|
16,623
|
|
17,279
|
|
16,530
|
|
16,945
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Shamir Optical Industries Ltd.