Revenue Increased 26% Year-Over-Year to a Record $34.8 million Sixth Consecutive Quarter Reporting Positive Adjusted EBITDA KITS Virtual Try-On Reaches Milestone with Over 1.35 Million Glasses Tried On VANCOUVER, BC, May 8, 2024 /CNW/ - Kits Eyecare Ltd. (TSX:KITS) ("KITS" or the "Company"), the leading vertically integrated eyecare provider, is reporting its results for the first quarter ended March 31, 2024. First Quarter 2024 Financial & Operational Highlights For the first quarter of 2024, compared to the first quarter of 2023: Revenue increased by 26% to a record $34.8 million compared to $27.7 million Gross margin was $11.2 million or 32.1% of revenues, compared to $9.1 million or 33.0% of revenues Marketing expenses as a percentage of revenue improved by 150 basis points to 13.0% compared to 14.5% Fulfillment expenses as a percentage of revenue improved by 60 basis points to 11.9% compared to 12.5% General and administrative expenses as a percentage of revenue improved 10 basis points to 6.9% compared to 7.0% EBITDA improved by $1.2 million to $1.2 million compared to $(0.05) million Adjusted EBITDA improved by 100% to $0.6 million compared to $0.3 million Net income was $0.1 million compared to a net loss of $1.0 million More than 75,000 pairs of glasses delivered in the quarter compared to 67,000 pairs of glasses Over 1.35 million glasses were tried on using our Virtual Try-On compared to 0.65 million glasses Management Commentary "We started 2024 with another record quarter, achieving an annual revenue run-rate of nearly $140 million while achieving our sixth straight quarter of Adjusted EBITDA positive growth," said Roger Hardy, Co-Founder and CEO of KITS. "We witnessed strength across our business as we saw all product categories and geographies outperforming the broader market, with more and more consumers choosing KITS. Additionally, we were thrilled to see over 1.35 million glasses were tried on using our Virtual Try-On Tool (VTO), indicating customers' growing interest and engagement with our product in a virtual setting. We also maintained strict cost discipline throughout the quarter as we saw our operating expenses as a percentage of revenue decline across the board. With uncertainty throughout the broader consumer environment, our offering continued to cut through the economic and competitor noise, with more and more customers choosing KITS. We are seeing our momentum build, and we remain confident in our strategy to systematically grow while generating positive adjusted EBITDA and cash flows."  First Quarter 2024 Financial Results Revenue increased by 26% to $34.8 million compared to $27.7 million in the first 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 a growth in repeat eyeglass customers. Gross profit increased by 22% to $11.2 million compared to $9.1 million in the prior year period. Net income was $0.1 million, or $0.0 per share (diluted), compared to a net loss of $1.0 million, or $(0.03) per share (basic), in the prior year period. EBITDA increased to $1.2 million compared to $(0.05) million in the prior year period, while Adjusted EBITDA improved by 100% to $0.6 million compared to $0.3 million in the prior year period. The bottom-line improvements were primarily attributable to the aforementioned increase in revenue and gross profit, along with a foreign exchange gain during the period. On March 31, 2024, cash and cash equivalents totaled $18.4 million compared to $16.0 million on December 31, 2023. Second Quarter 2024 Outlook For the second quarter of 2024, KITS management expects revenue to be in the range of $36 million to $38 million, with Adjusted EBITDA as a percentage of revenue between 3% and 5%. Conference Call KITS 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, May 8, 2024Time: 9:00 a.m. Eastern time (6:00 a.m. Pacific time)Presentation webcast link: https://app.webinar.net/M608Xd8XN73Rapid connect link: https://emportal.ink/3POkVWyNorth American toll-free number: 1-888-664-6392Local Toronto dial-in number: 416-764-8659Confirmation #: 40820683 Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Group at 1-949-574-3860. Financial Highlights The following selected financial information is qualified in its entirety by and should be read conjunction with our consolidated financial statements for the three months ended March 31, 2024 and March 31, 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 Financial and Operating Data March 31, 2024 (unaudited) March 31, 2023 (unaudited)