LensCrafters 2007 Annual Report Download - page 139

> 138 | ANNUAL REPORT 2007
The following table sets forth the Company’s unaudited pro forma consolidated results of
operations assuming that the acquisition of Oakley was completed as of January 1 of each of the
fiscal years shown below (in thousands of Euro except for earnings per share data):
Pro forma data may not be indicative of the results that would have been obtained had these events
actually occurred at the beginning of the periods presented, nor does it intend to be a projection of
future results.
b) Other acquisitions and investments:
The following is a description of other acquisitions and investments. No pro forma financial
information is presented, as these acquisitions were not material, individually or in aggregate, to the
Company's consolidated financial statements.
• In February 2007, the Company completed the acquisition of certain assets and assumed
certain liabilities of D.O.C Optics Corporation and its affiliates, an optical retail business with
approximately 100 stores located primarily in the Midwest United States of America for
approximately Euro 83.7 million (US$ 110.2 million) in cash. The Company expects to convert
the stores acquired to the current operating names, “LensCrafters” and “Pearle”. The purchase
price, including direct acquisition-related expenses, was allocated to the assets acquired and
liabilities assumed based on their fair value at the date of the acquisition. The goodwill recorded
in the consolidated financial statements as of December 31, 2007 totals Euro 70.4 million, of
which Euro 64.9 million is deductible for tax purposes. The Company used various methods to
calculate the fair value of the assets acquired and liabilities assumed and all valuations are not
yet completed. The final allocation of the purchase price among the assets and liabilities
acquired and the amount of the goodwill has been completed in 2008 resulting in no material
differences from the purchase price allocation done in 2007. The acquisition was made as a
result of the Company’s strategy to continue expansion of its retail business in the United States
of America.
• During 2007, in compliance with the 2006 decision of the Supreme Court of India, the Company
launched a public offering to acquire an additional 31% of the outstanding equity share capital
of RayBan Sun Optics India LTD (“RBSO”). Effective upon the entry of the shares tendered in
the offer into the share register on June 26, 2007 the Company increased its ownership interest
in RBSO to 70.5%. As of such date, RBSO was consolidated into the financial statements. The
operations of RBSO for the short period in 2007 and prior to our obtaining majority control were
immaterial to the consolidated financial statements presented. The total cost of the shares
acquired was approximately Euro 13 million (US$ 17.2 million). The Company recorded the
acquisition as a “step-acquisition” and allocated the purchase price paid over the newly
acquired proportional share of the fair value of RBSO assets and liabilities acquired. There were
no substantial unrecognized intangibles, and as such, goodwill was recorded for the excess
price paid over the net fair values of assets and liabilities of approximately Euro 9.1 million (US$
12.3 million).
2007 2006
Net sales 5,539,000 5,243,055
Net income 470,363 385,896
Earnings per share (Continuing operations):
Basic 1.04 0.85
Diluted 1.04 0.85