EXHIBIT 99.2
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 REPORTS
FOURTH QUARTER AND YEAR-END 2009 RESULTS
FOURTH QUARTER REVENUE UP 27.2% YEAR-OVER-YEAR
FOURTH QUARTER NET INCOME UP 132.8% YEAR-OVER-YEAR
KIBBUTZ SHAMIR, ISRAEL, MARCH 11, 2010 - Shamir Optical Industry Ltd.
(Nasdaq: SHMR) ("SHAMIR"), a leading provider of innovative products and
technology to the ophthalmic lens market, today announced its unaudited
financial results for the fourth quarter and year ended December 31, 2009.
For the quarter ended December 31, 2009, revenues increased 27.2% to $37.1
million, compared to $29.2 million for the fourth quarter of 2008. Gross profit
for the quarter increased 27.2% to $20.4 million, or 55.0% of revenues, compared
to a gross profit of $16.0 million, or 54.9% of revenues for the same period
last year.
For the quarter ended December 31, 2009, operating income increased 55.6%
to $4.5 million, or 12.3% of revenues, compared to operating income of $2.9
million, or 10.0% of revenues for the same period last year. Net income for the
quarter increased 132.8% to $3.5 million compared to a net income of $1.5
million for the comparable period in 2008. Net income attributable to Shamir's
shareholders was $0.20 per diluted share, compared to $0.08 per diluted share
for the same period in 2008.
For the year ended December 31, 2009, revenues were $142.4 million,
compared to $140.3 million for the same period in 2008. Gross profit for the
year was $76.9 million, or 54.0% of revenues, compared to gross profit of $75.9
million, or 54.1% of revenues for the same period last year.
For the year ended December 31, 2009, operating income was $17.3 million,
or 12.2% of revenues, compared to operating income of $13.4 million, or 9.5% of
revenues for the same period last year. Net income for the year was $13.3
million, or $0.77 per diluted share, compared to net income of $9.1 million or
$0.55 per diluted share for the comparable period in 2008.
As of December 31, 2009, the Company had cash and cash equivalents,
including short-term investments of $31.6 million.
Commenting on the results, Amos Netzer, Chief Executive Officer of Shamir,
said, "Despite continued economic challenges throughout the world during the
fourth quarter, and for that matter, the full year, Shamir's performance
surpassed internal projections. During the year we increased penetration and
acceptance of the Shamir brand as well as experienced the maturing of our
investments in both manufacturing and distribution."
Mr. Netzer concluded, "The overall strength of our results in 2009 gives us
reason to feel confident that we will achieve similar success in 2010. Our
strategy remains intact, which includes continued operational excellence and
penetration into new markets."
For the fiscal year ending on December 31, 2010, Shamir currently estimates
its 2010 revenues growth in the range of 8%-12%, under the assumption of
December 2009 exchange rates.
CONFERENCE CALL:
Shamir has scheduled a conference call for 10:30 a.m. ET today to discuss
fourth quarter and year-end 2009 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 57774730. For those unable to participate there
will be replay available from 1:30 p.m. ET on March 11, 2010, through 11:59 p.m.
EDT, March 18, 2010. Please call: (800) 642-1687 (U.S. and Canada) (706)
645-9291 (International). The ID code for the replay is 57774730.
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 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
Genesis(TM), Shamir Piccolo(TM), Shamir Office(TM), Shamir Autograph(TM) and
Shamir Smart(TM). 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.
(TABLES TO FOLLOW)
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,
2008 2009
------------ ------------
(Unaudited)
CURRENT ASSETS:
Cash and cash equivalents $ 18,276 $ 19,929
Short-term investment 7,187 11,679
Trade receivables (1) 30,331 33,648
Other receivables and prepaid expenses 8,469 7,918
Inventory 26,063 26,946
------------ ------------
TOTAL CURRENT ASSETS 90,326 100,120
LONG-TERM INVESTMENTS:
Severance pay fund 2,584 2,909
Long-term receivables 813 427
Investments in affiliates 2,085 1,306
------------ ------------
TOTAL LONG-TERM INVESTMENTS 5,482 4,642
PROPERTY, PLANT AND EQUIPMENT, NET 38,617 38,568
OTHER ASSETS 5,902 7,439
GOODWILL 9,169 12,945
------------ ------------
TOTAL ASSETS $ 149,496 $ 163,714
============ ============
CURRENT LIABILITIES:
Short-term bank credit and loans $ 11,597 $ 11,033
Current maturities of long-term loans 10,403 6,879
Trade payables 8,876 11,680
Accrued expenses and other liabilities 11,680 15,447
------------ ------------
TOTAL CURRENT LIABILITIES 42,556 45,039
LONG-TERM LIABILITIES:
Long-term loans 9,800 12,599
Capital leases 3,393 2,367
Accrued severance pay 3,172 3,270
Other long-term liabilities 634 2,763
Deferred income taxes 1,922 2,224
------------ ------------
TOTAL LONG-TERM LIABILITIES 18,921 23,223
Redeemable non-controlling interest 690
------------
EQUITY:
Share capital
Common shares of NIS 0.01 par value
Authorized: 100,000,000 shares at December 31, 2008 and
2009; Issued and outstanding: 16,423,740 and 16,592,345
shares at December 31, 2008 and 2009, respectively 37 37
Additional paid-in capital 67,362 68,230
Accumulated other comprehensive income (2,637) (1,122)
Retained earnings 22,007 24,795
------------ ------------
Total Shamir Optical Industry Ltd. Shareholders' equity 86,769 91,940
Non-controlling interests 1,250 2,822
------------ ------------
TOTAL EQUITY 88,019 94,762
------------ ------------
TOTAL LIABILITIES AND EQUITY $ 149,496 $ 163,714
============ ============
(1)Net of allowance for doubtful accounts of $ 2,066 and $ 3,076 as of December
31, 2008 and 2009, 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,
-------------------------- --------------------------
2008 (1) 2009 2008 (1) 2009
--------- --------- --------- ---------
(Unaudited) (Unaudited) (Unaudited)
Revenues, net $ 29,155 $ 37,073 $ 140,326 $ 142,384
Cost of revenues 13,143 16,700 64,415 65,448
--------- --------- --------- ---------
Gross profit 16,012 20,373 75,911 76,936
Operating Expenses:
Research and development costs 761 907 3,368 3,239
Selling and marketing expenses 8,847 10,537 42,374 40,959
General and administrative
expenses 3,485 4,387 16,793 15,410
--------- --------- --------- ---------
Total operating expenses 13,093 15,831 62,535 59,608
--------- --------- --------- ---------
Operating income 2,919 4,542 13,376 17,328
Financial expenses and other, net 1,273 158 2,142 395
--------- --------- --------- ---------
Income before taxes on income 1,646 4,384 11,234 16,933
Taxes on income 153 822 2,216 3,699
--------- --------- --------- ---------
Income after taxes on income 1,493 3,562 9,018 13,234
Equity in losses (earnings) of affiliates, net (30) 17 (44) (31)
--------- --------- --------- ---------
Net income 1,523 3,545 9,062 13,265
Net income (loss) attributable to
non-controlling interests 164 201 (16) 477
--------- --------- --------- ---------
Net income attributable to Shamir Optical
Industry Ltd. Shareholders $ 1,359 $ 3,344 $ 9,078 $ 12,788
========= ========= ========= =========
Net earnings per share:
Basic $ 0.08 $ 0.20 $ 0.55 $ 0.78
========= ========= ========= =========
Diluted $ 0.08 $ 0.20 $ 0.55 $ 0.77
========= ========= ========= =========
Number of shares:
Basic 16,424 16,480 16,424 16,438
Dilutive 16,492 16,623 16,522 16,530
(1) Amounts have been reclassified to reflect the implementation of SFAS No.
160, Non-controlling Interests in Consolidated Financial Statements, an
amendment of ARB No. 51.