National Vision Reports Record Results for Fiscal 2004

National Vision Reports Record Results for Fiscal 2004 


LAWRENCEVILLE, Ga., March 22  /PRNewswire-FirstCall/ -- National Vision, Inc.
(AMEX:NVI) today announced operating results for its fourth quarter and fiscal
year ended January 1, 2005.

Total net revenue from continuing operations for the 2004 fourth quarter was
$55.0 million in comparison with total net revenue from continuing operations
of $55.8 million in the 2003 fourth quarter.  In 2003, the fourth quarter
included fourteen weeks' operations whereas 2004's fourth quarter was a
thirteen-week fiscal period.  Fourth quarter 2004 comparable store sales
growth, which is computed excluding the additional week in 2003, was +7.1%.

Net earnings for the current year fourth quarter were $732,000, or $0.13 per
diluted share, in comparison to net earnings of $545,000, or $0.10 per diluted
share, in the fourth quarter of the previous year.  EBITDA, adjusted as defined
in the Company's debt instruments, was $5.4 million in the 2004 fourth quarter
versus $6.1 million in the prior year's fourth quarter.

For the full year, fiscal 2004 total net revenue from continuing operations was
$228.9 million, an increase of 5.6% over 2003 net revenue from continuing
operations of $216.7 million.  Fiscal 2004 was a 52-week year and fiscal 2003
was a 53-week year.  Full year comparable sales growth, excluding the effect of
the 2003 additional week, was +6.5%.

Current year net earnings of $12.4 million, or $2.21 per diluted share, compare
to a net loss of $3.9 million, or $0.77 per share, in 2003. In 2004, adjusted
EBITDA increased to $32.8 million from $24.1 million in the previous year.

Reade Fahs, the Company's President and Chief Executive Officer, stated, "2004
has been an extremely gratifying year for the National Vision team.  Our strong
comp sales growth of +6.5% followed a year in which comp sales growth was also
quite strong, at +5.7%.  The total year-to-year profit turnaround was $16.2
million and adjusted EBITDA was an all-time record for the Company.  We are
exceptionally proud of the combined efforts of our store teams in achieving
these results."

National Vision, Inc. operates retail vision centers primarily within host
environments in the United States and Mexico.  Our vision centers sell a wide
range of optical products including eyeglasses, contact lenses and sunglasses.
As of March 22, 2005, the Company operated 409 vision centers, including 297
located inside domestic Wal-Mart stores.  We depend on our domestic Wal-Mart
locations for substantially all of our revenues and cash flow.  Investments in
the debt and equity securities of National Vision, Inc. are subject to
substantial risks as described in the Company's public filings with the
Securities and Exchange Commission.

                            NATIONAL VISION, INC.
               CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                 (In thousands except per share information)

                                  Three Months Ended        Year Ended
                                 January 1, January 3, January 1, January 3,
                                    2005       2004       2005      2004
  Sales of optical products and
   services                        $52,946    $54,107  $220,759   $210,368
  Fees from managed vision care
   services                          1,885      1,679     7,835      6,346
  Sales of home medical products
   and services                        134                  258

  Total net revenue                 54,965     55,786   228,852    216,714
  Cost of goods sold                26,159     25,115   101,167     97,532

  Gross profit                      28,806     30,671   127,685    119,182
  Selling, general & administrative
   expense                          27,249     29,457   111,119    113,804
  Operating income                   1,557      1,214    16,566      5,378
  Other income (expense), net:
     Interest expense               (2,392)    (3,064)  (10,595)   (12,913)
     Gain on repurchase of
      Senior Subordinated Notes         83      2,321     3,166      2,321
     Other income (expense), net       (30)       (56)      164         50

  Earnings (loss) before taxes,
   discontinued operations and
   cumulative effect of a
   change in accounting principle     (782)       415     9,301     (5,164)
  Income tax expense (benefit)      (1,499)       105      (822)       136

  Net earnings (loss) before
   discontinued operations and
   cumulative effect of a
   change in accounting principle      717        310    10,123     (5,300)

  Discontinued operations:
     Operating income from
      discontinued operations          (10)       325     2,344      2,204
     Gain (loss) on disposal            25          3       (57)      (146)
     Income tax expense                           (93)      (35)       (62)
  Earnings from discontinued
   operations                           15        235     2,252      1,996

  Earnings (loss) before cumulative
   effect of a change in accounting
   principle                           732        545    12,375     (3,304)
  Cumulative effect of a change in
   accounting principle                                               (564)

  Net earnings (loss)                 $732       $545   $12,375    $(3,868)

  Earnings (loss) per common share:

     Basic                           $0.14      $0.11     $2.43     $(0.77)

     Diluted                         $0.13      $0.10     $2.21     $(0.77)



                           NATIONAL VISION, INC.
                    COMPUTATION OF CONSOLIDATED EBITDA
  Three Month Periods and Years Ended January 1, 2005 and January 3, 2004
                              (In thousands)

                                        Three Months
                                           Ended             Year Ended
                                       Jan. 1,  Jan. 3,    Jan. 1,   Jan. 3,
                                        2005    2004         2005     2004

  Net earnings (loss)                   $732    $545       $12,375  $(3,868)
  Adjustment to net earnings
   (loss):
     Interest expense                  2,392   3,064        10,595   12,913
     Income tax expense (benefit)     (1,499)    198          (787)     198
     Depreciation and amortization     3,432   3,968        13,542   15,962
     Cumulative effect of a
      change in accounting principle                                    564
     Gain on repurchase of Notes         (83) (2,321)       (3,166)  (2,321)
     Impairment of long-lived assets     336     550           336      550
     Other                                56     139           (63)      66

  EBITDA                              $5,366  $6,143       $32,832  $24,064



                               NATIONAL VISION, INC.
                       CONDENSED CONSOLIDATED BALANCE SHEETS
                        January 1, 2005 and January 3, 2004
                                  (In thousands)

                                        January 1, 2005   January 3, 2004
  ASSETS
  CURRENT ASSETS:
    Cash and cash equivalents               $7,858              $3,545
    Accounts receivable
     (net of allowance:
      2004 - $423; 2003 - $769)              2,561               3,078
    Inventories                             14,065              17,387
    Other current assets                     9,394               1,278
    Deferred income tax asset                2,405               7,305
       Total current assets                 36,283              32,593
   PROPERTY AND EQUIPMENT, net              12,271              13,619
   INTANGIBLE VALUE OF CONTRACTUAL RIGHTS
    (net of accumulated amortization:
     2004 - $26,974; 2003 - $19,466)        85,771              93,279
   OTHER ASSETS AND DEFERRED COSTS
    (net of accumulated
     amortization: 2004 - $1,193;
     2003 - $964)                              785                 806
                                          $135,110            $140,297

  LIABILITIES AND SHAREHOLDERS'
   EQUITY
  CURRENT LIABILITIES:
     Accounts payable                       $3,446              $3,506
     Accrued expenses and other
      current liabilities                   23,772              25,132
     Senior Subordinated Notes -
      current portion                        4,858                 545
        Total current
         liabilities                        32,076              29,183
  DEFERRED INCOME TAX LIABILITY              8,191               7,305
  OTHER LONG TERM LIABILITIES                  491
  SENIOR SUBORDINATED NOTES                 72,930              94,939
  COMMITMENTS AND CONTINGENCIES
  SHAREHOLDERS' EQUITY:
     Preferred stock, $1 par value;
      5,000,000 shares authorized,
      none issued
     Common stock, $0.01 par
      value; 10,000,000 shares authorized,
      5,390,679 and 5,243,047 shares
      issued and outstanding
      at January 1, 2005
      and January 3, 2004,
      respectively                              54                  52
     Additional paid-in capital             25,592              25,129
     Deferred stock
      compensation                            (407)               (108)
     Retained deficit                       (3,557)            (15,932)
     Accumulated other
      comprehensive loss                      (260)               (271)
        Total shareholders' equity          21,422               8,870
                                          $135,110            $140,297


DATASOURCE: National Vision, Inc.



CONTACT:  Paul A. Criscillis, Jr., Senior Vice President and CFO of

National Vision, Inc. [phone]



Web site:  http://www.nationalvision.com/ 

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