Quarterly Sales Increased 17% While North American Sales Grew 30%....................

[Chris Ryser]

Press Release Source: Coastal Contacts Inc. On Monday June 13, 2011, 4:01 pm EDT


Coastal Contacts Reports Second Fiscal Quarter 2011 Results

Quarterly Sales Increased 17% While North American Sales Grew 30%

VANCOUVER, British Columbia, June 13, 2011 (GLOBE NEWSWIRE) -- Coastal Contacts Inc. ("Coastal" or "the Company") (TSX:COA - News) (Stockholm:COA - News) the world's largest online retailer of eyeglasses and contact lenses, today announced its financial results for the second fiscal quarter ended April 30, 2011. A conference call will be held today at 4:30 p.m. Eastern Time to discuss the results.


Sales for the second fiscal quarter increased 17% and set a quarterly record of $43.8 million compared to $37.3 million in 2010. Second quarter 2011 gross margins increased to $13.7 million or 31% compared with $10.3 million or 27% during the same period in the prior year. Adjusted EBITDA for the fiscal quarter was $1.0 million compared with $1.8 million during the same period in 2010. Net earnings for the second fiscal quarter were $0.02 million or $0.00 per share compared to net earnings of $0.4 million or $0.01 per share in the second quarter of fiscal 2010.



Coastal shipped a total of 513,603 orders during the quarter, an increase of 129,345 orders or 34% over the same period last year. Approximately 33% were to new customers with the remaining amount representing reorders.



In the second fiscal quarter of 2011 Coastal's eyeglasses sales grew to $10.1 million compared with $4.7 million during the same period in 2010. Eyeglasses shipments grew 205% as compared to the same period last year. Coastal shipped 188,170 pairs of eyeglasses in the quarter to 160,674 customers of which 126,845 were new eyeglasses customers and 33,829 were repeat customers.



Coastal's core contact lens business continued to grow organically 3% in the second quarter, compared with the same period in 2010.



"Our investments in the eyeglasses category continue to generate rapid growth from new customers and a growing base of repeat orders from existing customers," commented Mr. Roger Hardy, Coastal's Founder and CEO. "We are encouraged by Coastal's progress in the eyeglasses business in the quarter. We are well positioned to support continued growth in the upcoming quarters and to achieve our eyeglasses sales targets for fiscal 2011, as we position Coastal to lead this exciting channel.


"Coastal is actively investing in acquiring eyeglasses customers, as we added approximately 127,000 new eyeglasses customers during the quarter. All in all it was an exciting and productive quarter at Coastal and we are looking forward to a strong finish to the year."

Business highlights for the second fiscal quarter:

• Sales in the second fiscal quarter of 2011 set a record of $43.8 million as compared to $37.3 million in the second quarter of the previous fiscal year, an increase of 17%.
• Gross margin increased 33% to $13.7 million or 31% of sales.
• 513,603 orders were shipped during the quarter, an increase of 129,345 orders or 34% over the same period in 2010.
• Coastal acquired 126,845 new eyeglasses customers in the second fiscal quarter of 2011.
• Eyeglasses sales grew to $10.1 million in the second fiscal quarter of 2011, an increase of 116% over the same period in fiscal 2010.
• Shipped more than 188,000 pairs of eyeglasses in the quarter, an increase of 205% over the same period in 2010.
• $14.4 million in cash and cash equivalents as at April 30, 2011.
• Sales in North America grew 30% in the second quarter of 2011 as compared to the same period of last fiscal year.
• Sales in Sweden grew 15% in the second quarter of 2011 as compared to the same period of the last fiscal year.
• As at March 10, 2011 Coastal now has approximately 500,000 Facebook(TM) fans in multiple markets around the world.

source: http://finance.yahoo.com/news/Coasta....html?x=0&.v=1

[Patrick888]

Quarterly sales at 43.8 million, but the net earning is 0.02 million ($20,000), just trivial 20,000 dollars. The profit rate is 0.04566%. There does exist serious problems in the economics of Coastal's online biz, especially the "eyeglasses" portion.

[mav84]

Quarterly sales at 43.8 million, but the net earning is 0.02 million ($20,000), jut s trivial 20,000 dollars. The profit rate is 0.04566%. There does exist serious problems in the economics of Coastal's online biz, especially the "eyeglasses" portion.

Shareholders may not be happy, but they are spending money to make money.

Amazon.com was losing money for a good five years before they started making money.

I bet Walmart and Lux is paying very close attention to Coastal's business model.

[eyemanflying]

Whether or not one approves of this concept, this certainly proves there is definitely room for more of these.

[idispense]

Protection of the public is the baby of each Provincial College Regulatory body for both Opticians and Optometrists. Protection of Opticians and Optometrists is the baby of the Optometric Associations , The Opticians Associations and the OAC with the exception of British Columbia which is already out of the game. As they all sit twiddling their collective thumbs, doing absolutely nothing about this other than their childish , useless, 2 year old bickering, they all share 2 things in common .

(1) This will be the theme song for all of the above groups . As their bickering & laziness destroys themselves , they can give their professions one last kiss goodbye: http://www.youtube.com/watch?v=ypldM...eature=related


(2) None of the little bickering children in suits, running the regulatory bodies, see them selves as the characters "Hem & Haw" in the book "Who Moved My Cheese " And none of them recognize the characters "Sniff & Scurry" http://en.wikipedia.org/wiki/Who_Moved_My_Cheese%3F

[Chris Ryser]

I am just referring to posting of this type of news on OptiBoard.

It seems to me that the general reaction to this type of news is very small and shows a lot of disinterest by OB members and posters. So, if disinterest shows already here were it should stir up at least some peoples mind and what can we exspect from the associations.

Is there anybody that can say that their business has increased over the last 6 month ?

[idispense]

Keep posting it Chris.Do it even more aggressively. Some people do take it seriously and they do keep pushing the Associations and Colleges across the country.

We need a way to reach all opticians directly and kick their butts till they take their heads out of the sand .

[coupe]

Kevin Bacon must be making a small fortune, after what he did.

[eyemanflying]

Keep posting it Chris.Do it even more aggressively. Some people do take it seriously and they do keep pushing the Associations and Colleges across the country.

We need a way to reach all opticians directly and kick their butts till they take their heads out of the sand .

Reaching all of them is simple - but then what??? We all continue to watch it unravel and sit silent and actionless. Unfortunately, this won't change for a few reasons; there are no Colleges out there that are willing to challenge, even if they did would require substantial funds and years in court (which they don't have), and as a professional group (OD's, Opticians etc.) we lack unity at all levels - pretty pathetic really.

Once Coastal's advertising deal with Trevor Linden expires, they will probably seek Charlie Sheen as their new campaign model since they are 'Winning'.