EXHIBIT 99.2
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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.
REPORTS THIRD QUATER 2010 RESULTS
NET INCOME INCREASED 18.5% YEAR-OVER-YEAR
KIBBUTZ SHAMIR, ISRAEL, NOVEMBER 23, 2010 - 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 third quarter ended September 30, 2010.
For the quarter ended September 30, 2010, revenues increased 4.7% to $37.8
million, compared with revenues of $36.2 million for the same period in 2009.
Gross profit for the quarter was $20.8 million, or 54.9% of revenues, compared
with gross profit of $19.7 million, or 54.6% of revenues for the same period
last year.
For the quarter ended September 30, 2010, operating income decreased 7.0%
to $4.5 million, or 11.9% of revenues, compared with operating income of $4.8
million, or 13.4% of revenues for the same period last year. The reduction in
operating income year-over-year was primarily the result of increased research
and development costs and elevated general and administrative costs associated
with the Company's recently announced transaction with Essilor International.
Net income for the quarter increased 18.5% to $4.3 million, compared with
net income of $3.7 million for the same period in 2009. Net income attributable
to Shamir's shareholders was $4.2 million or $0.25 per diluted share, compared
with $3.6 million or $0.22 per diluted share for the same period in 2009.
As of September 30, 2010, the Company had cash and cash equivalents,
including short-term investments of $37.8 million. As was previously announced,
the Company declared a dividend in the amount of $13.5 million (approximately
$0.804 per share) to be paid on November 24, 2010.
Commenting on the results, Amos Netzer, Chief Executive Officer of Shamir,
said, "I am pleased with our results for the third quarter of 2010 We executed
solidly and continued to make important inroads in many of our operating
markets, with the goal of advancing the recognition for Shamir-branded products.
Concurrent with these efforts, we continue to stress the importance of strict
cost controls, which has always been a major component of our operating
philosophy."
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SHAMIR / PAGE 2
Mr. Netzer continued, "To support our long range goals of expanding our
worldwide sales, we recently executed an agreement with a local distributor of
our products in the Netherlands. We are confident in our ability to penetrate
and expend our holdings in this market and to promote the Shamir brand in the
Benelux region."
For the fiscal year ending December 31, 2010, Shamir confirmed its estimate
for 2010 revenue growth to be in the range of 11%-15%, under the assumption of
December 2009 exchange rates.
CONFERENCE CALL:
Shamir has scheduled a conference call for 10:00 a.m. ET today to discuss
third 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 23919422. For those unable to participate there will be a replay
available from 1:00 p.m. ET on November 23, 2010, through 11:59 p.m. ET,
November 30, 2010. Please call: (800) 642.1687 (U.S. and Canada) or (706)
645.9291 (International). The ID code for the replay is 23919422.
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
Creation(TM), Shamir Piccolo(TM), Shamir Office(TM), Shamir Autograph(TM),
Shamir Attitude(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.
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SHAMIR / PAGE 3
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)
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SHAMIR OPTICAL INDUSTRY LTD.
Consolidated Balance Sheets
(US DOLLARS IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
As of December 31, As of September 30,
2009 2010
------------ ------------
(Unaudited)
CURRENT ASSETS:
Cash and cash equivalents $ 19,929 $ 20,645
Short-term investment 11,679 17,127
Trade receivables (1) 33,648 35,041
Other receivables and prepaid expenses 7,918 7,777
Inventory 26,946 28,277
------------ ------------
TOTAL CURRENT ASSETS 100,120 108,867
LONG-TERM INVESTMENTS:
Severance pay fund 2,909 2,819
Long-term receivables 427 386
Investments in affiliates 1,306 1,282
------------ ------------
TOTAL LONG-TERM INVESTMENTS 4,642 4,487
PROPERTY, PLANT AND EQUIPMENT, NET 38,568 37,627
OTHER ASSETS 7,439 6,161
GOODWILL 12,945 13,740
------------ ------------
TOTAL ASSETS $ 163,714 $ 170,882
============ ============
CURRENT LIABILITIES:
Short-term bank credit and loans $ 11,033 $ 8,985
Current maturities of long-term loans 6,879 5,040
Trade payables 11,680 12,873
Accrued expenses and other liabilities 15,447 16,007
------------ ------------
TOTAL CURRENT LIABILITIES 45,039 42,905
LONG-TERM LIABILITIES:
Long-term loans 12,599 8,813
Capital leases 2,367 1,654
Accrued severance pay 3,270 3,246
Other long-term liabilities 2,763 904
Deferred income taxes 2,224 2,162
------------ ------------
TOTAL LONG-TERM LIABILITIES 23,223 16,779
Redeemable non-controlling interests 690 2,146
------------ ------------
EQUITY:
Share capital
Common shares of NIS 0.01 par value
Authorized: 100,000,000 shares at December 31, 2009 and September 30,
2010; Issued and outstanding: 16,592,345 and 16,781,096 shares at
December 31, 2009 and September 30, 2010, respectively 37 38
Additional paid-in capital 68,230 70,168
Accumulated other comprehensive income (1,122) (1,686)
Retained earnings 24,795 36,791
------------ ------------
Total Shamir Optical Industry Ltd. Shareholders' equity 91,940 105,311
Non-controlling interests 2,822 3,741
------------ ------------
TOTAL EQUITY 94,762 109,052
------------ ------------
TOTAL LIABILITIES AND EQUITY $ 163,714 $ 170,882
============ ============
(1) Net of allowance for doubtful accounts of $ 3,076 and $ 3,326 as of December
31, 2009 and September 30, 2010, respectively
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SHAMIR OPTICAL INDUSTRY LTD.
Consolidated Statements of Income
(US DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------------ -------------------------
2009 2010 2009 2010
--------- --------- --------- ---------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Revenues, net $ 36,157 $ 37,845 $ 105,311 $ 118,918
Cost of revenues 16,410 17,075 48,748 53,513
--------- --------- --------- ---------
Gross profit 19,747 20,770 56,563 65,405
Operating Expenses:
Research and development costs 802 1,098 2,332 3,245
Selling and marketing expenses 10,274 10,724 30,422 32,701
General and administrative expenses 3,828 4,445 11,023 13,051
--------- --------- --------- ---------
Total operating expenses 14,904 16,267 43,777 48,997
--------- --------- --------- ---------
Operating income 4,843 4,503 12,786 16,408
Financial expenses (income) and other, net 335 (851) 237 166
--------- --------- --------- ---------
Income before taxes on income 4,508 5,354 12,549 16,242
Taxes on income 826 1,071 2,877 3,581
--------- --------- --------- ---------
Income after taxes on income 3,682 4,283 9,672 12,661
Equity in losses (earnings) of affiliates, net 13 28 (48) 55
Accretion of redeemable non controlling interest - (92) - 3
--------- --------- --------- ---------
Net income 3,669 4,347 9,720 12,603
Net income attributable to non-controlling interests 43 196 276 607
--------- --------- --------- ---------
Net income attributable to Shamir Optical Industry Ltd.
Shareholders $ 3,626 $ 4,151 $ 9,444 $ 11,996
========= ========= ========= =========
Net earnings per share:
Basic $ 0.22 $ 0.25 $ 0.58 $ 0.72
========= ========= ========= =========
Diluted $ 0.22 $ 0.25 $ 0.57 $ 0.71
========= ========= ========= =========
Number of shares:
Basic 16,424 16,779 16,424 16,745
Dilutive 16,546 16,878 16,499 16,833
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