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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
FORM 10-K/A
(Mark One)
[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended January 3, 1998
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES ACT OF 1934
Commission File Number 0-20001
NATIONAL VISION ASSOCIATES, LTD.
(Exact name of Registrant as specified in its charter)
Georgia
(State or other jurisdiction of
incorporation or organization)
58-1910859
(I.R.S. Employer Identification No.)
296 Grayson Highway
Lawrenceville, Georgia
(Address of principal executive offices)
30045
(Zip Code)
Registrant's telephone number, including area code: (770) 822-3600
Securities registered pursuant to Section 12(b) of the Act:
None
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ITEM 2. PROPERTIES
The Company's 414 domestic vision centers in operation as of
January 3, 1998 are located in the following states:
Alabama 7 New Hampshire 4
Alaska 5 New Jersey 12
Arizona 14 New Mexico 10
California 78 New York 26
Colorado 8 North Carolina 37
Connecticut 9 North Dakota 10
Florida 4 Oregon 9
Georgia 36 Pennsylvania 18
Hawaii 4 South Carolina 11
Iowa 7 South Dakota 1
Kansas 10 Tennessee 1
Kentucky 1 Texas 6
Louisiana 1 Virginia 20
Maryland 3 Washington 3
Massachusetts 4 West Virginia 7
Minnesota 34 Wisconsin 4
Montana 2 Wyoming 1
Nevada 7
The Company's foreign vision centers in operation as of January 3,
1998 are located in the following countries:
Czech Republic and Slovakia 3
Mexico 26
The Company's home office is located in approximately 66,000 square feet
of space in Lawrenceville, Georgia, and is subleased from Wal-Mart through
the year 2001 (with an option to renew for approximately seven additional
years). The Company's central distribution center, an anti-reflective and
mirror coating facility, and a lens laboratory are located in the Company's
Lawrenceville headquarters.
The Company has regional headquarters located in St. Cloud, Minnesota,
which is subject to a lease with a term expiring on October 1, 2007. This
facility also contains a full-service optical laboratory.
The Company's Los Angeles laboratory is also held under lease, which
was cancelled effective February 1998. The Company has entered into a lease
(which expires in December 2002) for a successor facility in the Los Angeles
area.
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ITEM 6. SELECTED FINANCIAL DATA
The following selected financial data of the Company with respect to
the consolidated financial statements for the years ended December 31,
1993, 1994, December 30, 1995, December 28, 1996 and January 3, 1998 is
derived from the Company's consolidated financial statements. The selected
financial data set forth below should be read in conjunction with the
consolidated financial statements and notes thereto included elsewhere
herein. For information on dispositions of certain business operations,
see Note 14 to consolidated financial statements.
<TABLE>
<CAPTION>
1993 1994 (1) 1995 (2) 1996 (2) 1997 (2)(6)
---- -------- -------- ---- ----
(000's except per share information and statistical data)
<S> <C> <C> <C> <C> <C>
STATEMENTS OF OPERATIONS DATA:
Net Sales $88,340 $119,395 $145,573 $160,376 $186,354
Cost of Goods Sold 41,445 53,898 67,966 76,692 86,363
------- -------- -------- -------- --------
Gross Profit 46,895 65,497 77,607 83,684 99,991
Gross Profit Percentage 53% 55% 53% 52% 54%
Selling, General, and Administrative
Expenses 48,602 63,911 74,390 76,920 89,156
Provision for Dispositions (3) 7,727 -- 958 -- --
Other Nonrecurring Charges (3) 2,750 -- 1,053 -- --
Stock Compensation Expense (3) 834 -- -- -- --
------- -------- -------- -------- --------
Operating Income (Loss) (13,018) 1,586 1,206 6,764 10,835
Other Income (Expense), Net 154 (1,195) (2,626) (2,084) (1,554)
------- -------- -------- -------- --------
Income (Loss) Before Income Taxes (12,864) 391 (1,420) 4,680 9,281
Income Tax Benefit (Expense) 900 (40) (100) (1,200) (3,708)
------- -------- -------- -------- --------
Net Income (Loss) $(11,964) $ 351 $ (1,520) $ 3,480 $ 5,573
======== ======== ======== ======== ========
Basic Earnings (Loss) Per Common Share (4) $ (.59) $ .02 $ (.07) $ .17 $ .27
======== ======== ======== ======== ========
Diluted Earnings (Loss) Per Common Share (4) $ (.59) $ .02 $ (.07) $ .17 $ .27
======== ======== ======== ======== ========
Earnings (Loss) before Interest, Taxes, $ (7,506) $ 9,153 $ 11,584 $ 16,922 $ 21,870
Depreciation and Amortization
As a Percentage of Sales (8.5%) 7.7% 8.0% 10.6% 11.7%
STATISTICAL DATA (UNAUDITED):
Domestic Vision Centers Open at
End of Period 186 261 319 320 414
Mexico and Eastern Europe Vision
Centers Open at End of Period 19 30 26 21 29
Average Weekly Consolidated Sales
Per Vision Center (5) $10,200 $ 9,500 $8,700 $9,300 $9,400
Average Weekly Sales Per Domestic
Vision Center (5) $11,000 $10,100 $9,100 $9,600 $9,800
Average Weekly Sales Per Vision Center
in Mexico (5) $ 6,800 $ 4,100 $2,900 $2,700 $2,700
</TABLE>
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<TABLE>
<CAPTION>
1993 1994(1) 1995(2) 1996 (2) 1997 (2)(6)
---- ------- ------- ---- ----
<S> <C> <C> <C> <C> <C>
BALANCE SHEET DATA:
Working Capital $ 6,954 $ 8,723 $14,556 $13,502 $12,171
Total Assets 66,172 77,612 81,237 74,564 83,250
Long-Term Debt and Capital Lease
Obligations 15,135 30,479 38,000 26,500 23,725
Shareholders' Equity 31,577 29,613 26,326 29,906 36,368
Long-Term Debt and Lease Obligations
as a Percentage of Shareholders'
Equity 48% 103% 144% 89% 65%
</TABLE>
(1) Financial information for 1994 includes results of international
operations for the 11 months ended November 30, 1994.
(2) Financial information for 1995 and subsequent years include results
of international operations for the 12 months ended November 30.
See Note 2 to consolidated financial statements.
(3) In 1995, the Company decided to dispose of its non-core business
operations, resulting in a $2 million provision. See Note 14 to
consolidated financial statements. In 1993, the Company recorded
provisions for nonrecurring charges related to the disposition of
the Canada business, termination of a proposed acquisition of a
frame manufacturer, write off of capitalized costs for a point of
sale system, and compensation expense associated with certain stock
options granted to employees of the Company.
(4) In 1997, the Company adopted SFAS No. 128, "Earnings per Share".
Basic earnings per common share were computed by dividing net
income by the weighted average number of common shares outstanding
during the year. Diluted earnings per common share were computed
as basic earnings per common share, adjusted for outstanding stock
options that are dilutive. Outstanding options with an exercise
price below the average price of the Company's common stock have
been included in the computation of diluted earnings per common
share, using the treasury stock method, as of the date of the grant.
Stock options have been excluded from the calculation of weighted
average shares outstanding during 1993 and 1995, as the effect would
be antidilutive. All earnings per share calculations for 1993
through 1996 have been restated to conform with SFAS No. 128.
(5) Calculated from sales from each month during the period divided by
the number of store weeks of sales during the period, excluding
stores not open a full month.
(6) Effective January 1, 1995, the Company changed its year end to a
52/53 week retail calendar (see Note 2 to consolidated financial
statements). Fiscal 1997 consisted of 53 weeks ended January 3,
1998. Sales for the 53rd week approximated $3.0 million in
fiscal 1997.
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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
NATIONAL VISION ASSOCIATES, LTD.
By: /s/Sandra M. Buffa
Sandra M. Buffa
Senior Vice President, Finance
and Treasurer, and Director
(Principal Financial Officer)
Date: March 11, 1998
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