Coastal Contacts Reaches Record Sales of $196.1 million in 2012, Focuses on Growing Online Sales of Eyeglasses

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VANCOUVER, British Columbia—Online optical retailer, Coastal Contacts Inc. (NASDAQ: COA) (TSX: COA) (Stockholm: COA) reported it reached record sales of $196.1 million, increased eyeglasses sales to $48 million and contact lens sales to $148.2 million for the 2012 fiscal year, according to financial results for the fourth quarter and fiscal year ended Oct. 31, 2012 released Dec. 19, 2012. Total sales were up 7 percent, eyeglass sales were up 22 percent and contact lens sales were up 3 percent when compared to the same period in 2011.

For the year, Coastal reported a net loss of $4.9 million for the fiscal 12-month period, compared with a net loss of $5.3 million in the comparable period a year ago.

For the fourth quarter ended Oct. 31, 2012, total sales increased 4 percent to $50.7 million from $48.7 million, and eyeglasses sales increased 27 percent to $13.8 million from $10.9 million during the same period in 2011. For the fourth quarter, Coastal reported a net loss of $2.6 million, compared with a net loss of $1.5 million in the fourth quarter of 2011.

In addition, company execs said, in a conference call with financial analysts on Dec. 19, that it had "achieved good traction with a test that it is conducting with a group that operates multiple stores in the U.S. by driving eye exams into their stores and becoming their fulfillment partner for glasses." The company later declined to specify which group they were working with on the test. The company also said its eyeglass sales into the United States during the fourth quarter increased 100 percent when compared with the same period in 2011, although Coastal would not detail the dollars of those sales.

Roger Hardy, Coastal's founder and CEO, said, "We continue to leverage the predictable recurring revenue and earnings generated in the contact lens category and invest in the rapidly growing and higher margin eyeglasses business. We shipped approximately one million pairs of eyeglasses during 2012, which is a significant milestone for Coastal after launching this category in 2009. A particular highlight was growth of 100 percent year over year in the U.S. eyeglasses market during the fourth quarter, which was in line with our expectations and remains a key focus for the company. We believe the eyeglasses category holds significant potential for both rapid growth and earnings expansion as markets develop."

The company noted the following highlights for fiscal year 2012: total order volume was approximately 2.3 million orders; the customer base reached 4.3 million vision corrected customers, eyeglass shipments grew to 987,000 pairs, an increase of 27 percent over 2011; its proprietary contact lens brand, Splash, comprised 6 percent of contact lens unit sales; and the company's private label frames accounted for 72 percent of overall eyeglass sales.

A replay of Coastal's conference is available for seven days at: 800-937-6305, passcode 477096.

Founded in 2000, Coastal Contacts services customers in more than 150 countries through its family of websites, including Coastal.com, ClearlyContacts.ca, Lensway.com, Lensway.co.uk, Lensway.se, ClearlyContacts.com.au, ClearlyContacts.co.nz, Contactsan.com, Coastallens.com and Lensway.com.br.