National Vision(EYE) - 2023 Q4 - Annual Results

Financial Performance - Net revenue for Q4 2023 was $506.4 million, an increase of 8.0% from Q4 2022[4] - Net loss for Q4 2023 was $(16.0) million, with a Diluted EPS of $(0.20), compared to a net loss of $(9.3) million and Diluted EPS of $(0.12) in Q4 2022[4] - For fiscal year 2023, net revenue was $2,126.5 million, an increase of 6.0% from fiscal year 2022[4] - Net income for the fiscal year 2023 was a loss of $65,901,000, compared to a net income of $42,122,000 in 2022[43] - Net income for Q4 2023 was $(15,987) thousand, compared to $(9,261) thousand in Q4 2022, reflecting a decline of 72.5% year-over-year[45] - Total net revenue for fiscal year 2023 was $2,126,468, with a total impact from the Legacy Segment and Corporate/Other of $(403,254)[52] - Net income (loss) for the period was $(65,901)[52] Store Operations - The company opened 17 new stores and closed 2 stores, ending the quarter with 1,413 stores, a 4.4% increase in store count from the previous year[7] - The Company projects to open 65 to 70 new stores in fiscal 2024[20] Sales Growth - Comparable store sales growth was 6.0% and Adjusted Comparable Store Sales Growth was 5.7% from Q4 2022[5] - Total comparable store sales growth for Q4 2023 was 6.0%, compared to a decline of 5.7% in Q4 2022[50] - Adjusted Comparable Store Sales Growth for Q4 2023 was 5.7%, improving from a decline of 2.4% in Q4 2022[51] - The 2024 outlook for total comparable store sales growth is projected to be between 2.5% and 4.5%[50] Operating Income and Expenses - Adjusted Operating Income for fiscal year 2023 was $72.3 million, a decrease of 17.6% compared to fiscal year 2022[17] - Adjusted Operating Income for FY 2023 was $72,321 thousand, down 17.7% from $87,795 thousand in FY 2022[45] - Selling, general and administrative expenses for the fiscal year 2023 were $991,883,000, an increase from $915,355,000 in 2022[41] - SG&A expenses for Q4 2023 were $248,285 thousand, an increase of 6.4% from $233,944 thousand in Q4 2022[48] - Adjusted SG&A as a percentage of net revenue for Q4 2023 was 46.6%, compared to 49.2% in Q4 2022[48] Cash Flow and Assets - Cash flows from operating activities for fiscal year 2023 were $173.0 million, compared to $119.2 million for fiscal year 2022[17] - Cash provided by operating activities for the fiscal year 2023 was $173,033,000, up from $119,198,000 in 2022[43] - Total assets decreased to $2,172,511,000 as of December 30, 2023, from $2,291,246,000 as of December 31, 2022[39] - Current liabilities increased to $397,700,000 as of December 30, 2023, compared to $344,264,000 as of December 31, 2022[39] Impairment and Charges - The company recorded non-cash impairment charges of $79.7 million related to the termination of the Walmart partnership in fiscal year 2023[18] - The company incurred an asset impairment of $82,413,000 for the fiscal year 2023, compared to $5,783,000 in 2022[43] Future Projections - The company expects combined revenue from the Walmart Vision Center and AC Lens operations to be approximately $145 million in fiscal 2024[13] - Net Revenue is forecasted to be between $1.965 billion and $2.005 billion[20] - Adjusted Operating Income is anticipated to range from $61 million to $76 million[20] - Adjusted Diluted EPS is expected to be between $0.50 and $0.65[20] - Depreciation and Amortization is projected to be between $95 million and $100 million[20] - Interest expenses are expected to be between $7 million and $9 million[20] - The tax rate is projected to be between 26% and 28%[20] - Capital Expenditures are anticipated to be between $110 million and $115 million[20] - The Company emphasizes that actual results may vary significantly from these projections due to various uncertainties[21] Discontinued Operations - The company expects to report Discontinued Operations for Walmart Vision Center Operations starting Q1 2024 and for AC Lens Operations in Q2 2024[53] - Included in SG&A for Corporate/Other Segment is $7.9 million representing Walmart store operations' share of corporate costs[52] - Depreciation and amortization included $1.8 million related to Walmart store operations and $2.6 million related to AC Lens operations[52] - The anticipated effect of the disposal of Walmart Vision Center and AC Lens businesses is being assessed for future reporting[52] - The results presented are estimates and subject to adjustment as the company implements revised accounting treatment[53] Investor Relations - Investor relations contact is available through Tamara Gonzalez and Caitlin Churchill at National Vision Holdings, Inc.[54]