Revenue Increased 26% Year-Over-Year to a Record $37.9 million Canadian Revenue Increased 47% Year-Over-Year Seventh Consecutive Quarter Reporting Positive Adjusted EBITDA VANCOUVER, BC, Aug. 7, 2024 /CNW/ - Kits Eyecare Ltd. (TSX:KITS) ("KITS" or the "Company"), the leading vertically integrated eyecare provider, is reporting its results for the second quarter ended June 30, 2024. Second Quarter 2024 Financial & Operational Highlights For the second quarter of 2024, compared to the first quarter of 2023: Revenue increased by 26% to a record $37.9 million compared to $30.0 million Gross profit was $12.4 million or 32.8% of revenues, compared to $9.9 million or 33.0% of revenues Marketing expenses as a percentage of revenue improved by 30 basis points to 13.4% compared to 13.7% Fulfillment expenses as a percentage of revenue improved by 140 basis points to 11.2% compared to 12.6% General and administrative expenses as a percentage of revenue were 7.2% compared to 6.6%. Excluding Share-based compensation, General and administrative expenses as a percentage of revenue improved to 5.8% compared to 5.9% EBITDA improved by $1.6 million to $1.1 million compared to $(0.5) million Adjusted EBITDA improved by $0.8 million to $1.3 million compared to $0.5 million Net income was $0.2 million compared to a net loss of $1.2 million Glasses revenue increased by 41.7% to a record $5.0 million compared to $3.5 million Record revenue milestone of $13.8 million from new customers Year-to-Date 2024 Financial & Operational Highlights For the six months ended June 30, 2024, compared to the six months ended June 30, 2023: Revenue increased 25.9% to $72.6 million compared to $57.7 million Gross profit was $23.6 million or 32.5% of revenues, compared to $19.0 million or 33.0% of revenues Marketing expenses as a percentage of revenue declined by 80 basis points to 13.2% compared to 14.0% Fulfillment expenses as a percentage of revenue declined by 110 basis points to 11.5% compared to 12.6% General and administrative expenses as a percentage of revenue were 7.1% compared to 6.8%. Excluding Share-based compensation, General and administrative expenses as a percentage of revenue were 6.0% compared to 6.0% Adjusted EBITDA improved by $1.1 million to $1.9 million compared to $0.8 million Net income was $0.3 million compared to a net loss of $2.2 million Strong quarter end cash balance of approximately $19.3 million compared to $19.8 million Generated positive cash flow from operations of $7.0 million compared to $3.5million Management Commentary"Again this quarter the KITS team executed across all the key metrics in our business as we continued on our mission to make eyecare easy for everyone, everywhere." said Roger Hardy, co-founder and CEO of KITS. "Once again we are leading the category in growth providing record revenue, at the high end of our range, led by our Canadian business which grew 47%, while our overall business accelerated to 26% growth year over year. Our glasses business grew more than 41% in the quarter, and we were excited to launch our Pangolins which look to lead with design and innovation in the smart eyewear category. We achieved leverage across our fulfillment, operations and marketing, and held all other costs steady while paying down debt and growing our cash flows, achieving our seventh straight quarter of positive EBITDA. Overall, it was an excellent quarter by the team which shows an acceleration across almost every key metric in the business."  Second Quarter 2024 Financial ResultsRevenue increased by 26% to $37.9 million compared to $30.0 million in the second quarter of 2023 (the "prior year period"). The increase was primarily attributable to strong repeat customer revenue in both contact lens and eyeglasses, higher average order value and growth in the Canadian market. Gross profit increased by 25.2% to $12.4 million compared to $9.9 million in the prior year period. Net income was $0.2 million, or $0.01 per share , compared to a net loss of $1.2 million, or $(0.04) per share , in the prior year period. EBITDA increased to $1.1 million compared to $(0.5) million in the prior year period, while Adjusted EBITDA improved to $1.3 million compared to $0.5 million in the prior year period. The bottom-line improvements were primarily attributable to the aforementioned increase in revenue and gross profit, along with achieving marketing and fulfillment efficiencies as a percentage of revenue. On June 30, 2024, cash and cash equivalents totaled $19.3 million compared to $16.0 million on December 31, 2023, and $18.4 million on March 31, 2024 Third Quarter 2024 OutlookFor the third quarter of 2024, KITS management expects revenue to be in the range of $39 million to $41 million, with Adjusted EBITDA as a percentage of revenue between 3% and 5%. See "Forward-Looking Statements" below for important disclosure with respect to expectations and forward-looking information. Conference CallKITS management will host the conference call followed by a question-and-answer period. To access the call instantly, please click here to register your name and phone number via the rapid connect link. The conference call will also be webcast live with a presentation and available for replay here and via the investor relations section of the Company's website at www.kits.com. Date: Wednesday, August 7, 2024Time: 9:00 a.m. Eastern time (6:00 a.m. Pacific time)Presentation webcast link: https://app.webinar.net/qoaRjx9Q73vRapid connect link: https://emportal.ink/3xTdvvi North American toll-free number: 1-888-664-6392Local Toronto dial-in number: 416-764-8659Confirmation #: 17009422 Financial HighlightsThe following selected financial information is qualified in its entirety by and should be read conjunction with our consolidated financial statements for the three and six months ended June 30, 2024 and June 30, 2023 and accompanying notes and Management's Discussion and Analysis ("MD&A") which may be viewed on SEDAR at www.sedarplus.ca. Three Months Ended Six Months Ended Financial and Operating Data June 30, 2024 (unaudited) June 30, 2023 (unaudited) June 30, 2024 (unaudited) June 30, 2023 (unaudited) Revenue $ 37,852 $ 30,030 $ 72,634 $ 57,697 Net income (loss) $ 187 $ (1,184) $ 251 $ (2,204)