LARGO, Fla., Oct. 30 /PRNewswire-FirstCall/ -- Unilens Vision Inc. , which develops, licenses, manufactures, distributes and markets specialty contact lenses, today reported higher sales and earnings before taxes for the fiscal year ended June 30, 2006 (FY2006).
Net sales, excluding royalty income, increased 23% to approximately $6.1 million in FY2006, compared with net sales of approximately $5.0 million in the previous fiscal year (FY2005). The sales increase was primarily a result of continued growth in shipments of the Company’s C-Vue multifocal and toric multifocal contact lenses to eye care professionals. Sales associated with the SoftCon EW and Aquaflex brands that were acquired from CIBA Vision at the end of February 2005 accounted for approximately 11% of the Company’s total net sales during the most recent quarter and twelve months ended June 30, 2006.
Royalty income for the fiscal year ended June 30, 2006 increased 18% to a record $1,932,942, compared with $1,632,051 in the prior fiscal year.
FY2006 income before taxes increased 18% to a record $2,018,040, compared with $1,710,687 in the prior fiscal year. After recording net income tax expense of $421,210, Unilens reported net income of $1,596,830, or $0.35 per diluted share, for the fiscal year ended June 30, 2006. In FY2005, the Company reported net income of $2,237,787, or $0.50 per diluted share, which included a net income tax benefit of $527,100.
“We are pleased to report record sales, royalties and pretax income for the year ended June 30, 2006,” stated A.W. Vitale, Chief Executive Officer of Unilens Vision Inc. “Sales of our multifocal contact lenses continued to increase throughout Fiscal 2006, when compared with prior-year periods, while sales of our more mature lines of conventional contact lenses continued to decline, indicating trends that have been apparent in recent years. Meanwhile, Bausch & Lomb’s sales of multifocal lenses that utilize our proprietary technology also continued to increase, resulting in record royalty income for the Company.”
For the three months ended June 30, 2006, net sales excluding royalty income, were relatively flat at $1,550,354, versus $1,569,306 for the quarter ending June 30, 2005. Net sales of the Company’s C-Vue disposable lenses increased by 17% during the fourth quarter of FY2006, while sales of replacement and conventional product lines declined, as expected.
Royalty income for the three months ended June 30, 2006 decreased slightly to $469,496, compared with $473,627 in the prior-year period. The decrease was attributable to a scheduled 14% reduction in the contractual royalty rate during the quarter, which was largely offset by higher sales of the licensed products. The next reduction in contractual royalty rate is scheduled to occur in November 2016.
Income before taxes for the quarter ended June 30, 2006 declined to $490,328, compared with $541,533 in the fourth quarter of FY2005. After recording net income tax benefits of $164,938, Unilens reported net income of $655,266, or $0.14 per diluted share, for quarter ended June 30, 2006. This compared with net income of $1,515,118, or $0.34 per diluted share, in the fourth quarter of FY2005, which included net income tax benefits of $973,585.
“Under the terms of our license agreement with Bausch & Lomb (“B&L”), the rate of royalties we receive per dollar of sales of licensed products decreases upon the occurrence of certain events, and such royalty rate was reduced 14% in the fourth quarter of Fiscal 2006,” continued Vitale. “However, fourth quarter royalties received from B&L declined less than 1%, as the reduction in royalty rate was almost completely offset by continued growth in sales of licensed products. We are not scheduled for another reduction in the contracted royalty rate for another ten years.”
“Shortly after the end of our fiscal year, Unilens’ Board of Directors announced plans to begin paying regular quarterly cash dividends to shareholders,” continued Vitale. “This decision was based on the Company’s strong balance sheet, and projected significant operating cash flows and is consistent with the Board’s commitment that shareholders should share directly in the earnings turnaround that has been achieved by management in recent years. An initial quarterly cash dividend of $0.075 per share is scheduled for payment in November 2006, and future increases in the cash dividend will be considered when the Company’s operating performance supports higher payouts.”
“Our financial condition at the end of the most recent fiscal year was the strongest in the Company’s history,” noted Michael Pecora, the Company’s Chief Financial Officer. “After eliminating all of our outstanding debt in the previous fiscal year, we increased our cash position by over 400% to $2.2 million, and our shareholders’ equity rose 28% to more than $7.9 million, during Fiscal 2006.”
About Unilens Vision Inc. - “The Eye Care Professionals Specialty 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 specialty contact lenses under the C-Vue, Unilens, Sof-Form, Aquaflex, SoftCon, Lombart, and LifeStyle brands. 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 “UVICF” as well as 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 risk 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.
For more information, please contact: Michael Pecora, CFO, Unilens Corp., USA at (727) 544-2531 UNILENS VISION INC. FOURTH QUARTER AND TWELVE MONTHS - FISCAL 2006 CONDENSED CONSOLIDATED FINANCIAL INFORMATION (All figures in U.S. Dollars) RESULTS OF OPERATIONS Three Months Three Months Twelve Months Twelve Months Ended Ended Ended Ended June 30, 2006 June 30, 2005 June 30, 2006 June 30, 2005 Sales $1,550,354 $1,569,306 $6,110,040 $4,971,577 Cost of sales 795,593 896,343 3,404,831 2,958,252 754,761 672,963 2,705,209 2,013,325 Expenses 750,376 615,717 2,651,850 1,921,745 Income from operations 4,385 57,246 53,359 91,580 Other items: Royalty income 469,496 473,627 1,932,942 1,632,051 Other income 9,022 8,597 9,509 7,267 Remeasurement loss (5,905) - (5,905) - Interest income (expense) 13,330 2,063 28,135 (20,211) 485,943 484,287 1,964,681 1,619,107 Income before tax 490,328 541,533 2,018,040 1,710,687 Income tax benefit (expense) 164,938 973,585 (421,210) 527,100 Net income for the period $655,266 $1,515,118 $1,596,830 $2,237,787 Net income per common share: Basic $0.15 $0.36 $0.37 $0.53 Diluted $0.14 $0.34 $0.35 $0.50 CASH FLOWS Provided (used) by: Operating activities $797,374 $421,831 $2,023,906 $1,262,375 Investing activities (58,118) (85,637) (337,348) (122,470) Financing activities 0 (310,608) 140,678 (1,235,289) Increase (decrease) in cash $733,351 $25,586 $1,827,236 $(95,384) BALANCE SHEET June 30, 2006 June 30, 2005 Cash $2,195,633 $374,302 Total assets 8,969,222 7,316,946 Current liabilities 997,010 1,082,242 Total liabilities 997,010 1,082,242 Stockholders’ equity $7,972,212 $6,234,704
Unilens Vision Inc.
CONTACT: Michael Pecora, CFO, of Unilens Corp., +1-727-544-2531
Web site: http://www.unilens.com/
