LensCrafters 2006 Annual Report Download - page 124

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>124 | ANNUAL REPORT 2006
The following unaudited proforma information for the year ended December 31, 2004 summarizes
the results of operations as if the acquisition of Cole had been completed on January 1, 2004 and
includes certain pro forma adjustments such as additional amortization expense attributable to
identifiable intangibles:
(Euro/000, except per share data - Unaudited) 2004
Net sales 4,027,057
Income from operations 488,223
Net income 276,212
No. of shares (thousands) - Basic 448,275
No. of shares (thousands) - Diluted 450,361
Earnings per share (Euro) - Basic 0.62
Earnings per share (Euro) - Diluted 0.61
This pro forma financial information is presented for informational purposes only and is not
necessarily indicative of the results of operations that would have been achieved had the
acquisition taken place on January 1, 2004.
On October 17, 2004, Cole caused its subsidiary to purchase Euro 122.2 million (US$ 150 million)
of its outstanding 8 7/8% Senior Subordinated Notes due 2012 in a tender offer and consent
solicitation for Euro 143 million (US$ 175.5 million), which amount represented all of the issued and
outstanding notes of such series. On November 30, 2004, Cole redeemed all of its outstanding 8
5/8% Senior Subordinated Notes due 2007 for Euro 103.0 million (US$ 126.4 million).
c) Other acquisitions and establishments
The following is a description of other acquisitions and establishments. No pro forma financial
information is presented, as these acquisitions individually or in aggregate were not material to the
Company's consolidated financial statements.
•In April 2005, the Company purchased 26 stores from SunShade Holding Corporation and
Hao’s International. The acquisition was accounted for in accordance with SFAS 141 and,
accordingly, the purchase price of Euro 11.1 million has been allocated to the fair market value
of the assets and liabilities of the company as defined by the asset purchase agreement. All
valuations of net assets including but not limited to fixed assets and inventory were completed
during 2006 and goodwill for an amount of Euro 7.8 million in excess of the net assets acquired
has been recorded in the accompanying Consolidated Balance Sheets. No pro forma financial
information is presented, as the acquisition was not material to the Company's consolidated
financial statements. The acquisition was made as result of the Company’s strategy to continue
expansion of its retail business in North America.
•In September 2005, the Company purchased 27 stores in Canada from Symbol of Sight, Ltd
known as Precision Optical. The acquisition was accounted for in accordance with SFAS 141
and, accordingly, the purchase price of Euro 13.8 million has been allocated to the fair market
value of the assets and liabilities of the company as defined by the asset purchase agreement.
All valuations of net assets including but not limited to fixed assets and inventory were
completed during 2006, and goodwill for an amount of Euro 11.9 million in excess of the net
assets acquired has been recorded in the accompanying Consolidated Balance Sheets. No pro
forma financial information is presented, as the acquisition was not material to the Company's
consolidated financial statements. The acquisition was made as result of the Company’s
strategy to continue expansion of its retail business in Canada.