Sola International: fiscal year 2004 fourth quarter results

Sola International Inc. has announced the following fiscal year 2004 fourth quarter results:
- Net sales of $178.2 million compared with $153.8 million in the year ago period, an increase of 15.8%;
- Adjusted operating margins of 16.7% compared to 14.8% in the prior year period;
- Adjusted Ebitda (Earnings before Interest, Taxes, Depreciation and Amortization) margins of 19.9% compared to 18.1% in the prior year period;
- Reported net income of $4.6 million compared to $8.0 million in the prior year period;
- Adjusted net income of $14.4 million compared to year ago adjusted net income of $12.8 million;
- Cash flow from operations of $23.2 million compared to $20.1 million in the year ago period.

Commenting on the fiscal 2004 fourth quarter, Chief Executive Officer Jeremy Bishop said: "Operationally, I am pleased with this quarter's performance. The Company's growth strategies are working; new products are gaining momentum, expenses are under control and we continue to gain operating leverage. Net sales, excluding the impact of currency, increased 6.0% in the quarter compared to the 4-6% predicted on last quarter's call. Our performance was balanced among all major regions as North America sales increased 6.0%, Europe increased 5.8% and Rest of World (Row) increased 6.5%. Within Europe, sales results were particularly strong in France, Italy, Portugal, Germany and the United Kingdom, while Row benefited from a modest recovery in Japan and Australia and continued strong results in South America".

Commenting on the Company's fiscal 2005 outlook, Bishop said: "I estimate that the global value of the lens market will grow at 2% to 3% with volumes relatively constant in North America, Europe, Japan and Australia, while the emerging markets of China and India will provide low double digit volume growth but declining average selling prices that will also result in 2% to 3% value growth in these markets. By region we anticipate constant currency revenue growth of 4% to 6% in North America and in Europe and 3% to 5% in Rest of World. On a consolidated basis we are targeting overall sales growth of 4% to 6%".