LensCrafters 2013 Annual Report Download - page 9

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RESULTS OF OPERATIONS FOR YEARS ENDED DECEMBER 31, 2013 AND 2012
Years ended December 31,
(Amounts in thousands of Euro)
2013
% of
net sales 2012*
% of
net sales
Net sales 7,312,611 100.0% 7,086,142 100.0%
Cost of sales 2,524,006 34.5%
2,435,993
34.4%
Gross profit 4,788,605 65.5% 4,650,148 65.6%
Selling 2,241,841 30.7% 2,270,071 32.0%
Royalties 144,588 2.0% 124,403 1.8%
Advertising 479,878 6.6% 446,175 6.3%
General and administrative 866,624 11.9% 839,360 11.8%
Total operating expenses 3,732,930 51.0% 3,680,008 51.9%
Income from operations 1,055,673 14.4% 970,139 13.7%
Other income/(expense)
Interest income 10,072 0.1% 18,910 0.3%
Interest expense (102,132) (1.4%) (138,140) (1.9%)
Other—net (7,247) (0.1%) (6,463) (0.1%)
Income before provision for income taxes 956,365 13.1% 844,447 11.9%
Provision for income taxes (407,505) (5.6%) (305,891) (4.3%)
Net income 548,861 7.5% 538,556 7.6%
Attributable to
—Luxottica Group stockholders 544,696 7.4% 534,375 7.5%
—non-controlling interests 4,165 0.1% 4,181 0.1%
NET INCOME 548,861 7.5% 538,556 7.6%
* Starting from January 1, 2013 the Group adopted IAS 19 revised “Employee benefits”, which requires retrospective
application. Accordingly, the 2012 comparative information has been restated based on the new standard. As a result
income from operations and net income attributable to Luxottica Stockholders decreased by Euro 11.9 million and
Euro 7.3 million, respectively. In 2013 the Group reclassified certain warehouse and freight-in shipping expenses of
certain subsidiaries from operating expenses, primarily general and administrative, to cost of sales. The
reclassification totaled Euro 63.5 million and Euro 56.9 million in 2013 and 2012, respectively.
In 2013, the Group incurred non-recurring expenses of (i) Euro 9 million (Euro 5.9 million net of the tax effect)
related to the reorganization of the newly acquired Alain Mikli business, (ii) Euro 26.7 million for the tax audits relating to
Luxottica S.r.l. (fiscal year 2007, and (iii) Euro 40.0 million for tax audit relating to Luxottica S.r.l. (fiscal years subsequent
to 2007). In the same period of 2012, the Group recognized non-recurring expenses (i) of Euro 21.7 million
(Euro 15.2 million net of the tax effect) related to the restructuring of the Australian retail business and (ii) of Euro 10.0
million for the tax audit relating to Luxottica S.r.l. (fiscal year 2007).
The Group’s income from operations, EBITDA and net income attributable to Luxottica Group stockholders
adjusted to exclude the above non-recurring items woud be as follows:
:
Adjusted Measures
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2013
% of
net sales
2012
% of
net sales
%
change
Adjusted income from Operations 1,064,673 14,6% 991,847 14.0% 7.3%
Adjusted EBITDA 1,431,304 19,6% 1,350,133 19.1% 6.0%
Adjusted Net Income attributable to Luxottica Group
Stockholders 617,300
8,4% 559,570 7.9% 10,3%
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For a further discussion of Adjusted Measures, see page 29—“Non-IFRS Measures.”