================================================================================ EXHIBIT 99.2
Investor Relations Contacts: Roni Gavrielov Jeffrey Goldberger/Marybeth Csaby KM / KCSA Investor Relations KCSA Strategic Communications +972-3-516-7620 212-896-1249/212-896-1236 roni@km-ir.co.il jgoldberger@kcsa.com / mcsaby@kcsa.com SHAMIR OPTICAL INDUSTRY LTD. REPORTS THIRD QUARTER 2009 RESULTS OPERATING INCOME INCREASED 64.3% IN THE QUARTER PURCHASED CONTROLLING STAKE IN AUSTRALIAN LAB KIBBUTZ SHAMIR, ISRAEL, NOVEMBER 18, 2009 - Shamir Optical Industry Ltd. (Nasdaq: SHMR) ("SHAMIR"), a leading provider of innovative products and technology to the ophthalmic lens market, today announced unaudited financial results for the third quarter ended September 30, 2009. For the quarter ended September 30, 2009, revenues were $36.2 million, compared to $36.1 million for the third quarter of 2008. Gross profit for the quarter increased 3.8% to $19.7 million, or 54.6% of revenues, compared to gross profit of $19.0 million, or 52.7% of revenues for the same period last year. For the quarter ended September 30, 2009, operating income increased 64.3% to $4.8 million, or 13.4% of revenues, compared to operating income of $2.9 million, or 8.2% of revenues for the same period last year. Net income for the quarter increased 67.7% to $3.7 million compared to net income of $2.2 million for the comparable period in 2008. Net income attributable to Shamir's shareholders was $0.22 per diluted share, compared with $0.13 per diluted share for the same period in 2008. As of September 30, 2008, the Company had cash and cash equivalents, including short-term investments of $28.1 million. Commenting on the results, Amos Netzer, Chief Executive Officer of Shamir, said, "Shamir preformed well in the third quarter, particularly in light of the difficult economic environment throughout the world. We executed solidly and continued to make important inroads in many of our operating markets, with the goal of advancing the recognition of Shamir-branded products. Concurrent with these efforts, we continue to stress the importance of strict cost controls, which has always been a centerpiece of our operating philosophy, but has become increasingly important during these difficult economic times."
SHAMIR / PAGE 2 Mr. Netzer continued, "To support our long range goals of expanding our worldwide sales and manufacturing capabilities, we recently purchased a 66.6% stake in a local lab in Australia that currently has annual revenue of approximately USD $7 million. We are enthusiastic about this opportunity and are confident in our ability to penetrate and expand our holdings in this new market and to promote the Shamir brand in this region. This new acquisition follows the recently reported gain of control of our lab in Thailand which as of this quarter was consolidated into our reported financial results." Mr. Netzer concluded, "In terms of our overall strategy, we continue to maintain a strong balance between investing in long-term growth and monitoring operational expenses, which has helped us achieve positive performance thus far this year." CONFERENCE CALL: Shamir has scheduled a conference call for 10:00 a.m. ET today to discuss third quarter results. To participate in the call, please dial (888) 562-3356 (U.S. and Canada) or (973) 582-2700 (International). The conference ID for this event is 40966354. For those unable to participate there will be replay available from 12:00 p.m. ET on November 18, 2009, through 11:59 p.m. EDT, November 25, 2009. Please call: (800) 642-1687 (U.S. and Canada) (706) 645-9291 (International). The ID code for the replay is 40966354. The call will be available as a live, listen-only webcast at www.kcsa.com. Please go to the KCSA website at least 15 minutes prior to the scheduled start time to register, download and install any necessary audio software. A 30-day archive of the webcast will be available approximately 2 hours after the conclusion of the live call. ABOUT SHAMIR Shamir is a leading provider of innovative products and technology to the spectacle lens market. Utilizing its proprietary technology, the company develops, designs, manufactures, and markets progressive lenses to sell to the ophthalmic market. In addition, Shamir utilizes its technology to provide design services to optical lens manufacturers under service and royalty agreements. Progressive lenses are used to treat presbyopia, a vision condition where the eye loses its ability to focus on close objects. Progressive lenses combine several optical strengths into a single lens to provide a gradual and seamless transition from near to intermediate, to distant vision. Shamir differentiates its products from its competitors' primarily through lens design. Shamir's leading lenses are marketed under a variety of trade names, including Shamir Genesis(TM), Shamir Piccolo(TM), Shamir Office(TM), Shamir Nano(TM), Shamir Autograph(TM) and Shamir Smart(TM). Shamir believes that it has one of the world's preeminent research and development teams for progressive lenses, molds, and complementary technologies and tools. Shamir developed software dedicated to the design of progressive lenses. This software is based on Shamir's proprietary mathematical algorithms that optimize designs of progressive lenses for a variety of activities and environments. Shamir also has created software tools specifically designed for research and development and production requirements, including Eye Point Technology software, which simulates human vision.
SHAMIR / PAGE 3 SAFE HARBOR STATEMENT Statements concerning Shamir's business outlook or future economic performance; product introductions and plans and objectives related thereto; and assumptions made or expectations as to any future events, conditions, performance or other matters, are "forward-looking statements" as that term is defined under U.S. federal securities laws. Forward-looking statements are subject to various risks, uncertainties and other factors that could cause actual results to differ materially from those stated in such statements. These risks, uncertainties and factors include, but are not limited to: The conflicts in the region; the effects of competition in our industry, and changes in our relationships with optical laboratories, distributors, research and development partners and other third parties; the effects of the international expansion of our operations and our ability to manage our growth, including our ability to manage potential future acquisitions; the effect of global economic conditions in general and conditions in Shamir's industry and target markets in particular; shifts in supply and demand; market acceptance of new products and continuing products' demand; the impact of competitive products and pricing on Shamir's and its customers' products and markets; timely product and technology development/upgrades and the ability to manage changes in market conditions as needed; interest rate fluctuations; and other factors detailed in Shamir's filings with the Securities and Exchange Commission. Shamir assumes no obligation to update the information in this release. (TABLES TO FOLLOW)
SHAMIR OPTICAL INDUSTRY LTD. Consolidated Balance Sheets (US DOLLARS IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA) As of December 31, As of September 30, --------- --------- 2008 2009 --------- --------- (Unaudited) CURRENT ASSETS: Cash and cash equivalents $ 18,276 $ 13,395 Short-term investment 7,187 14,723 Trade receivables (1) 30,331 35,176 Other receivables and prepaid expenses 8,469 9,299 Inventory 26,063 27,206 --------- --------- TOTAL CURRENT ASSETS 90,326 99,799 LONG-TERM INVESTMENTS: Severance pay fund 2,584 2,854 Long-term receivables 813 242 Investments in affiliates 2,085 1,319 --------- --------- TOTAL LONG-TERM INVESTMENTS 5,482 4,415 PROPERTY, PLANT AND EQUIPMENT, NET 38,617 38,369 OTHER ASSETS 5,902 5,949 GOODWILL 9,169 9,764 --------- --------- TOTAL ASSETS $ 149,496 $ 158,296 ========= ========= CURRENT LIABILITIES: Short-term bank credit and loans $ 11,597 $ 9,224 Current maturities of long-term loans 10,403 6,562 Trade payables 8,876 11,583 Accrued expenses and other liabilities 11,680 14,324 --------- --------- TOTAL CURRENT LIABILITIES 42,556 41,693 LONG-TERM LIABILITIES: Long-term loans 9,800 7,522 Capital leases 3,393 2,625 Accrued severance pay 3,172 3,276 Other long-term liabilities 634 560 Deferred income taxes 1,922 1,988 --------- --------- TOTAL LONG-TERM LIABILITIES 18,921 15,971 EQUITY: Share capital Common shares of NIS 0.01 par value Authorized: 100,000,000 shares at December 31, 2008 and September 30, 2009; Issued and outstanding: 16,423,740 shares at December 31, 2008 and September 30, 2009 37 37 Additional paid-in capital 67,362 67,733 Accumulated other comprehensive income (2,637) (876) Retained earnings 22,007 31,451 --------- --------- Total Shamir Optical Industry Ltd. Shareholders' equity 86,769 98,345 Non-controlling interests 1,250 2,287 --------- --------- TOTAL EQUITY 88,019 100,632 --------- --------- TOTAL LIABILITIES AND EQUITY $ 149,496 $ 158,296 ========= ========= (1) Net of allowance for doubtful accounts of $ 2,159 and $ 2,691 as of December 31, 2008 and September 30, 2009, respectively.
SHAMIR OPTICAL INDUSTRY LTD. Consolidated Statements of Income (US DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA) Three Months Ended September 30, Nine Months Ended September 30, ----------------------- ----------------------- 2008 (1) 2009 2008 (1) 2009 -------- -------- -------- -------- (Unaudited) (Unaudited) (Unaudited) (Unaudited) Revenues, net $ 36,118 $ 36,157 $111,171 $105,311 Cost of revenues 17,098 16,410 51,272 48,748 -------- -------- -------- -------- Gross profit 19,020 19,747 59,899 56,563 Operating Expenses: Research and development costs 868 802 2,607 2,332 Selling and marketing expenses 10,472 10,274 33,527 30,422 General and administrative expenses 4,733 3,828 13,308 11,023 -------- -------- -------- -------- Total operating expenses 16,073 14,904 49,442 43,777 -------- -------- -------- -------- Operating income 2,947 4,843 10,457 12,786 Financial expenses and other, net 369 335 869 237 -------- -------- -------- -------- Income before taxes on income 2,578 4,508 9,588 12,549 Taxes on income 379 826 2,063 2,877 -------- -------- -------- -------- Income after taxes on income 2,199 3,682 7,525 9,672 Equity in losses (earnings) of affiliates, net 11 13 (14) (48) -------- -------- -------- -------- Net income 2,188 3,669 7,539 9,720 Net income (loss) attributable to non-controlling interests (18) 43 (180) 276 -------- -------- -------- -------- Net income attributable to Shamir Optical Industry Ltd. Shareholders $ 2,206 $ 3,626 $ 7,719 $ 9,444 ======== ======== ======== ======== Net earnings per share: Basic $ 0.13 $ 0.22 $ 0.47 $ 0.58 ======== ======== ======== ======== Diluted $ 0.13 $ 0.22 $ 0.47 $ 0.57 ======== ======== ======== ======== Number of shares: Basic 16,424 16,424 16,424 16,424 Dilutive 16,527 16,546 16,532 16,499 (1) Amounts have been reclassified to reflect the implementation of SFAS No. 160, Non-controlling Interests in Consolidated Financial Statements, an amendment of ARB No. 151.