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Thread: Coastal Contacts getting big loan...................................

  1. #1
    Manuf. Lens Surface Treatments
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    Redhot Jumper Coastal Contacts getting big loan...................................

    Source: Coastal Contacts Inc.


    Coastal Contacts Secures $5 Million Revolving Line of Credit From Bank of America, N.A.

    VANCOUVER, British Columbia, March 30, 2010 (GLOBE NEWSWIRE) -- Coastal Contacts Inc. ("Coastal") (TSX:COA) (Stockholm:COA) today announced that it has entered into a loan agreement (the "Loan Agreement") with the Bank of America for a $5 million secured revolving line of credit (the "Line of Credit").

    The Line of Credit is available until March 31, 2012 and Coastal may borrow and repay any principal amounts drawn on the Line of Credit during this period. The Line of Credit is subject to a maximum advance of the lesser of either $5 million and a percentage of certain of Coastal's working capital assets. Obligations under the Loan Agreement are secured by all of Coastal's assets.

    "We are pleased with establishing a banking relationship with a reputable and global institution such as Bank of America," said Roger Hardy, Coastal's President and CEO. "This relationship represents another important step in the development of our world class organization."

    About Coastal Contacts:
    Coastal Contacts Inc. is the world's leading online vision products company which designs, produces and distributes a diversified offering of contact lenses and eyeglasses. Coastal's unique combination of branded and private label products represent quality, value and above all, service. Coastal sells into more than 150 countries through proprietary web properties which reflect the culture and consumer preference of the target market. As new markets for eyeglasses and contact lenses evolve, Coastal is positioned to become the vision product consumer's retailer of choice owing to its compelling value proposition combining value and service. A leader in many of its markets, Coastal is rapidly advancing toward its goal of becoming the "World's Optical Store."

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    With rates still so low, why use your own capital? Their stock value continues to be almost worth nothing at $1.44 per share.

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    Quote Originally Posted by eyemanflying View Post
    Their stock value continues to be almost worth nothing at $1.44 per share.
    Sweeeeeeeeeeeeet!

    I bought at $1.33!

    I'm in the money!!!

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    Quote Originally Posted by Fezz View Post
    Sweeeeeeeeeeeeet!

    I bought at $1.33!

    I'm in the money!!!
    Fezz, depending how many you purchased, that isn't enough for a sip of ale! At that rate, you will continue to stay thirsty my friend!

  5. #5
    Underemployed Genius Jacqui's Avatar
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    Why can't I get a deal like this??

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    Independent Owner kcount's Avatar
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    Not surprising they need the credit line considering they posting declines in revenue. maybe selling glasses on the cheap isn't a great idea?

    Compared to the same quarter last year, Coastal Contacts Inc. has seen their bottom line shrink from C$968.0K to C$750.0K despite an increase in revenues from C$31.3M to C$35.9M. An increase in the percentage of sales devoted to cost of goods sold from 68.04% to 71.28% was a key component in the falling bottom line in the face of rising revenues.

    So, their selling more and making less. hmmm, thats great business, sounds like the VSP business model!

    Interesting that their eyeglass revenues are $3.8M seems very low considering that they sell to Canada and the US. My last employer had two offices and did slightly over 2M.
    • Optician
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    Quote Originally Posted by kcount View Post
    Not surprising they need the credit line considering they posting declines in revenue. maybe selling glasses on the cheap isn't a great idea?

    Compared to the same quarter last year, Coastal Contacts Inc. has seen their bottom line shrink from C$968.0K to C$750.0K despite an increase in revenues from C$31.3M to C$35.9M. An increase in the percentage of sales devoted to cost of goods sold from 68.04% to 71.28% was a key component in the falling bottom line in the face of rising revenues.


    So, their selling more and making less. hmmm, thats great business, sounds like the VSP business model!

    Interesting that their eyeglass revenues are $3.8M seems very low considering that they sell to Canada and the US. My last employer had two offices and did slightly over 2M.
    A growing revenue stream, increasing COGS and declining margins is a recipe for disaster. I agree, it's no wonder thay need that $5M credit line.

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    Manuf. Lens Surface Treatments
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    Maybe they are gearing up ......................

    Quote Originally Posted by eyemanflying View Post

    A growing revenue stream, increasing COGS and declining margins is a recipe for disaster. I agree, it's no wonder thay need that $5M credit line.
    Maybe they are gearing up for another takeover by our friends from Fance, the Canadian E is separate from the E in the USA.. And or the need some money to hand out to some politicians to change the rules in other Provinces

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    OptiBoard Professional Ory's Avatar
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    keep in mind this company has been giving away hundreds of pair of free eyeglasses lately. The cost of the free eyewear is advertising but is put in the COGS column when accounting.

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    Quote Originally Posted by Chris Ryser View Post
    Maybe they are gearing up for another takeover by our friends from Fance, the Canadian E is separate from the E in the USA.. And or the need some money to hand out to some politicians to change the rules in other Provinces
    Maybe it's to pay the guy that just revised the RHPA last week!

    Its also quite possible since 'E' is now officially declared an internet supplier, that would certainly fit their mold.

    Hey, when you can't win new business and market share on products or service alone (which they can't), you buy it. No creativity, lame and expensive.

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