MIRA INFORM REPORT

 

 

Report Date :

23.07.2013

 

IDENTIFICATION DETAILS

 

Name :

COASTAL CONTACTS INC.

 

 

Registered Office :

2985 Virtual Way, Ste 320 Vancouver, British Columbia V5M 4X7

 

 

Country :

Canada

 

 

Date of Incorporation :

14.12.2000

 

 

Legal Form :

Public Company (COA)

 

 

Line of Business :

Subject operates as an online retailer of contact lenses, eyeglasses, sunglasses, and related vision care products in North America, Europe, and the Asia Pacific region. It also provides ready-made reading glasses, sport and safety eyewear, glass cases and cleaners, contact lens cases, eye drops and vitamins, and contact lens solutions.

 

 

No. of Employees :

654

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

Payment Behaviour :

Slow but correct

Litigation :

Clear

 

 

NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – March 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

Canada

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

CANADA - ECONOMIC OVERVIEW

 

As an affluent, high-tech industrial society in the trillion-dollar class, Canada resembles the US in its market-oriented economic system, pattern of production, and affluent living standards. Since World War II, the impressive growth of the manufacturing, mining, and service sectors has transformed the nation from a largely rural economy into one primarily industrial and urban. The 1989 US-Canada Free Trade Agreement (FTA) and the 1994 North American Free Trade Agreement (NAFTA) (which includes Mexico) touched off a dramatic increase in trade and economic integration with the US its principal trading partner. Canada enjoys a substantial trade surplus with the US, which absorbs about three-fourths of Canadian exports each year. Canada is the US's largest foreign supplier of energy, including oil, gas, uranium, and electric power. Given its great natural resources, highly skilled labor force, and modern capital plant, Canada enjoyed solid economic growth from 1993 through 2007. Buffeted by the global economic crisis, the economy dropped into a sharp recession in the final months of 2008, and Ottawa posted its first fiscal deficit in 2009 after 12 years of surplus. Canada's major banks, however, emerged from the financial crisis of 2008-09 among the strongest in the world, owing to the financial sector''s tradition of conservative lending practices and strong capitalization. Canada achieved marginal growth in 2010-12 and plans to balance the budget by 2015. In addition, the country''s petroleum sector is rapidly becoming an even larger economic driver with Alberta''s oil sands significantly boosting Canada''s proven oil reserves, ranking the country third in the world behind Saudi Arabia and Venezuela.

Source : CIA


Company name and address

 

Company name:            COASTAL CONTACTS INC.

 

Address:                                   2985 Virtual Way, Ste 320

                                     Vancouver, British Columbia V5M 4X7 - Canada

 

 

Telephone:                    +1 604-669-1555

 

Fax:                              +1 604-669-6855

 

Website:                        www.coastalcontacts.com

 

 

Corporate ID#:               3828484

 

State:                           Federal

 

 

Judicial form:                 Public Company (COA)

 

Date incorporated:          12-14-2000

 

Stock:                           32,272,845 shares issued and outstanding

 

Market Value:                CAD 163,300,596=

 

 

Name of manager:          Roger HARDY

 

 

ACTIVITIES & OPERATIONS

 

Business:

 

Coastal Contacts Inc. operates as an online retailer of contact lenses, eyeglasses, sunglasses, and related vision care products in North America, Europe, and the Asia Pacific region. It also provides ready-made reading glasses, sport and safety eyewear, glass cases and cleaners, contact lens cases, eye drops and vitamins, and contact lens solutions.

The company offers contact lenses primarily under the Acuvue, Bausch & Lomb, Freshlook, Proclear, Air Optix, and Dailies brand names; eyeglasses principally under the Kenneth Cole, Lacoste, Nike, and Vera Wang brand names; and sunglasses primarily under the Ray-Ban, Maui Jim, Oakley, Spy, Hugo Boss, Skechers, and DSquared brand names.

Coastal Contacts Inc. sells its products through telephone, e-mail, and proprietary Web sites, which include coastalcontacts.com, lensway.com, lensway.se, clearlycontacts.ca, mylenses.nl, and contactsan.com.

The company was founded in 2000 and is headquartered in Vancouver, Canada.

 

 

 

Staff:     654

 

 

Operations & branches:

 

At above address, we find the corporate office, on lease.

 

 

SHAREHOLDERS & MANAGERS

 

Shareholders:

 

The Company is listed with the Toronto Stock Exchange under symbol COA.

 

 

Management:

 

Roger HARDY, Chairman, Director and CEO

Roger V. Hardy co-founded Clearly Contacts Ltd. in 2000 and serves as its Chairman, Chief Executive Officer and President. Mr. Hardy co-founded Coastal Contacts Inc. and has been Chief Executive Officer since July 2002 and served as its President from September 21, 2006 to August 14, 2012.

Mr.  Hardy served as an Acting Chief Executive Officer of LensLogistics AB (alternate name Lensway AB) of Coastal Contacts Inc. since March 2010.

He served as the Chief Executive Officer of LensLogistics AB. He served as the President of more.com Canada. He co-founded ClearlyContacts.com in 1999 and served as its President and Chief Executive Officer. From 1994 to 1998, he served as National Account Manager of Loomis Courier. He has been the Chairman of Coastal Contacts Inc. since December 2003 and its Director since July 1, 2002. He has been a Director of Builddirect.com Technologies, Inc. since September 2009. He has achieved numerous awards including the BC Business Top 40 under 40 and the Pacific Ernst and Young Entrepreneur of the Year in 2006. He is an active member of the Young President Organization (YPO). Mr. Hardy holds a Bachelors of Arts degree from Bishops University.

 

Steve BOCHEN, COO

Nicolas BOZIKIS, CFO

 

As far as we know, they are not involved in other local corporations.

 

 

Subsidiaries

And partnership:                        None

 

 

FINANCIALS

 

On attachment:

- 10K 2012

 

On June 10, 2013, Coastal Contacts Inc. announced unaudited consolidated earnings results for the second quarter and six months ended April 30, 2013.

For the quarter, the company reported sales of CAD 53,745,000 against CAD 48,212,000 a year ago. Loss from operating activities was CAD 6,757,000 against CAD 97,000 a year ago. Loss before income taxes was CAD 7,320,000 against income before income taxes of CAD 25,000 a year ago.

 

 

Net loss for the period was CAD 6,984,000 against CAD 242,000 a year ago. Basic and diluted loss per share was CAD 0.23 against CAD 0.01 a year ago. Adjusted LBITDA was CAD 5,430,000 against adjusted EBITDA of CAD 949,000 a year ago.

The increase in revenue of CAD 5.5 million is therefore a result of the increase in average order size from CAD 85.05 to CAD 96.51 per order, an increase of 13%. The increase in average order size is primarily attributable to the glasses business.

For the six months, the company reported sales of CAD 108,643,000 against CAD 95,061,000 a year ago.

Loss from operating activities was CAD 9,453,000 against CAD 40,000 a year ago. Loss before income taxes was CAD 10,440,000 against CAD 109,000 a year ago. Net loss for the period was CAD 10,359,000 against CAD 438,000 a year ago. Basic and diluted loss per share was CAD 0.35 against CAD 0.02 a year ago. Adjusted LBITDA was CAD 7,194,000 against adjusted EBITDA of CAD 1,974,000 a year ago. Net cash used in operating activities was CAD 7,020,000 compared to CAD 1,859,000 a year ago. Acquisition of property, equipment and leasehold improvements, net was CAD 261,000 compared to CAD 987,000 a year ago. Acquisition of intangible assets, net was CAD 1,239,000 compared to CAD 706,000 a year ago.

 

Banks:  Royal Bank of Canada

           

 

LEGAL FILINGS

 

Legal filings & complaints:

 

As of today date, there is no legal filing pending with the Courts.

 

Secured debts summary:   Several

 

 

COMPANY CREDIT HISTORY

 

National Credit Bureaus gave a medium credit rating.

 

According to our credit analysts, during the last 6 months, 83% of trade experience indicates a regular payment.

Payments of imports are currently made with an average of 5 to 10 days beyond terms.

 

The Company is improving its payments, but the cash remains low, due to high inventories and a flat market.

 

The Company is in good standing.

This means that all local and federal taxes were paid on due date.

 

The risk is medium.

 

Our opinion:

 

A business connection may be conducted but we suggest you to check regularly the way of payments.

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.41

UK Pound

1

Rs.90.74

Euro

1

Rs.78.11

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

New Business

 

--

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.