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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) NOVEMBER 23, 1999
U.S. VISION, INC.
(Exact Name of Registrant as Specified in Charter)
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<S> <C> <C>
DELAWARE 0-23397 22-3032948
(State or other jurisdiction of (Commission File Number) (I.R.S. employer identification no.)
incorporation or organization)
1 HARMON DRIVE, GLEN OAKS INDUSTRIAL PARK, GLENDORA, NEW JERSEY 08029
(Address of principal executive offices) (Zip Code)
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(856) 228-1000
(Registrant's Telephone Number, Including Area Code)
(Former Name or Former Address, if Changed Since Last Report)
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ITEM 5. OTHER EVENTS.
On November 23, 1999, U.S. Vision, Inc. issued a press release
reporting earnings results for the third quarter and nine months ended October
31, 1999.
A copy of the press release is attached as Exhibit 99.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
(c) Exhibits.
99 -- Press Release, dated November 23, 1999.*
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* Filed herewith.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
U.S. Vision, Inc. has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
Date: November 24, 1999 U.S. VISION, INC.
By: /s/ Kathy G. Cullen
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Kathy G. Cullen, Chief Financial Officer
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EXHIBIT INDEX
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EXHIBIT
NUMBER EXHIBIT
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99 -- Press Release, dated November 23, 1999.*
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* Filed herewith.
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EXHIBIT 99
NEWS RELEASE
FOR IMMEDIATE RELEASE
For: U. S. Vision, Inc.
Contact: Kathy Cullen
Chief Financial Officer
(856) 228-1000
Stacey Bibi/Caroline Eustace/
FOR IMMEDIATE RELEASE Bernadette Garfinkle
Morgen-Walke Associates
(212) 850-5600
Media: Michael McMullan/
Stacy Roth
Morgen-Walke Associates
(212) 850-5600
U.S. VISION ANNOUNCES THIRD QUARTER AND NINE MONTH
RESULTS
-- ANNOUNCES 700TH STORE OPENING --
Glendora, NJ, November 23, 1999 -- U.S. Vision, Inc. (Nasdaq:USVI) today
announced financial results for the third quarter and nine months ended October
31, 1999.
Net income for the third quarter was $488,000, or $0.06 per share,
versus net income of $2.0 million, or $0.25 per share, in the third quarter of
last year. Earnings per share on a diluted pro forma basis, which assumes a 38%
tax rate, were $0.00 for the third quarter compared to $0.18 in the third
quarter last year. Net sales for the quarter increased 6.2% to $36.2 million
compared to $34.1 million for the third quarter last year. Comparable store
sales declined 1.5% for the quarter.
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Net income for the nine months was $3.9 million, or $0.51 per share, compared to
$6.9 million, or $0.86 per share for the same period a year ago. On a pro forma
basis, assuming a 38% tax rate, diluted earnings per share were $0.34 for the
nine months compared to $0.57 for the same period last year. Net sales for the
period rose 9.1% to $109.7 million compared to $100.5 million last year.
Comparable store sales rose 0.9% for the nine month period ended October 31,
1999.
Commenting on the results, William A. Schwartz, President and Chief
Executive Officer, stated, "Our business during the period continued to be
impacted by decreased traffic at store locations; ongoing softness of optical
sales throughout the entire sector; and a highly competitive and promotional
environment. In addition, results were affected by increased SG&A expenses as a
result of our aggressive store expansion plan and greater spending on
advertising programs. At the present time, we do not believe that these business
trends will improve in the fourth quarter, which is traditionally the slowest
sales quarter of the year."
"Earlier in the year, we were focused on diversifying our host store
base through an aggressive expansion strategy. Year-to-date, we have acquired or
opened 84 locations and are pleased to have reached the 700th store milestone.
Currently, our strategy is dedicated to stimulating sales and enhancing
profitability of these new locations."
"Our strategy for the foreseeable future is to lessen the pace of new
store openings and to continue our efforts to increase store traffic through
promotional programs and advertising campaigns in targeted markets. Furthermore,
we will enhance product lines to include a broader selection of ready-reader
eyeglasses and increase services to our customers by offering laser vision
corrective surgery through a strategic alliance with a leading provider of laser
vision surgery."
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Mr. Schwartz concluded, "Despite disappointing sales trends and
adjusted earnings expectations, we continue to believe that, over the long-term,
the optical industry will benefit from compelling customer demographics and U.S.
Vision will benefit from an expanded and diversified host store base."
U.S. Vision is a leading national retailer of optical products and
services primarily through licensed retail optical departments located in
regional and national department stores, such as May Company, Federated
Department Stores, J.C. Penney and Proffitts. The Company currently operates 700
locations in 48 states in the United States and in Canada. U.S. Vision's retail
optical departments offer an extensive selection of designer brand and private
label prescription eye wear, contact lenses, sunglasses and accessories, as well
as on-site eye examinations performed by independent optometrists.
This press release contains statements that are forward-looking within the
meaning of applicable federal securities laws and are based on U.S. Vision, Inc.
current expectations and assumptions, which are subject to a number of risks and
uncertainties that could cause the actual results to differ materially from
those anticipated. Factors that could cause actual results to differ include
those described under the heading "Caution Regarding Forward-Looking Statements"
in the Company's Report on Form 10-K for 1999 as they may be updated in any
subsequent report on Form 10-Q, all as filed with the Securities and Exchange
Commission. The company does not plan to generally publicly update prior
forward-looking statements for unanticipated events or otherwise and,
accordingly, prior forward-looking statements should not be considered to be
"fresh" simply because the company has not made additional comments on those
forward-looking statements.
(Tables to Follow)
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U.S. VISION, INC.
CONSOLIDATED STATEMENT OF INCOME
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
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Three Months Ended Nine Months Ended
October 31, October 31,
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1999 1998 1999 1998
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Net sales $ 36,223 $ 34,090 $ 109,665 $ 100,509
Cost of sales 11,219 10,387 33,700 30,676
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Gross profit 25,004 23,703 75,965 69,833
Operating expenses:
Selling, general and
administrative expenses 23,760 20,495 67,608 59,364
Depreciation and amortization 1,074 818 3,821 2,891
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24,834 21,313 71,429 62,255
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Operating income 170 2,390 4,536 7,578
Interest expense, net 111 148 299 355
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Income before income
tax provision (benefit) 59 2,242 4,237 7,223
Income tax provision (benefit) (429) 285 299 355
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Net income $ 488 $ 1,957 $ 3,938 $ 6,868
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Net income per share -
diluted $ 0.06 $ 0.25 $ 0.51 $ 0.86
Shares used in computing
net income per share
- diluted 7,793,807 7,888,796 7,793,807 7,977,672
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Pro forma net income per
share - diluted (1) $ -- $ 0.18 $ 0.34 $ 0.57
Shares used in computing
pro forma net income
per share - diluted(2) 7,793,807 7,888,796 7,793,807 7,977,672
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(1) Includes for the quarters and year ended October 31, 1999 and 1998 a
provision for income taxes as if the Company had not been able to utilize
its existing Net Operating Loss Carryforwards and, therefore, was subject
to all applicable federal and state income taxes at an effective rate of
38%.
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(2) Options to purchase additional shares of common stock have no impact on
earnings per share for the quarter and six months ended October 31, 1999
as their effect was antidilutive.
U.S. VISION, INC.
CONSOLIDATED BALANCE SHEETS
(DOLLARS IN THOUSANDS)
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October 31, January 31,
1999 1999
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Assets
Current assets:
Cash $ 728 $ 693
Accounts receivable 13,232 13,520
Inventory 26,927 22,818
Other 1,020 847
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Total current assets 41,907 37,878
Property, plant, and equipment, net 36,960 31,634
Goodwill, net 6,680 5,565
Other assets 641 517
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$ 86,188 $ 75,594
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Liabilities and stockholders' equity
Current liabilities:
Accounts payable-trade $ 10,552 $ 7,894
Accrued expenses and other 3,500 5,238
Current portion of obligations
under capital lease 669 660
Current portion of long-term debt 1,295 934
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Total current liabilities 16,016 14,726
Obligations under capital lease 1,888 1,542
Long-term debt, less current portion 17,546 12,527
Other long-term liabilities 330 329
Stockholders' equity:
Common stock 78 78
Additional paid-in capital 115,766 115,766
Accumulated deficit (65,436) (69,374)
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Total stockholders' equity 50,408 46,470
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$ 86,188 $ 75,594
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