PR Wires) PRW: LCA-Vision Third Quarter Revenue Up 77%; Growth Seen in
PRW: LCA-Vision Third Quarter Revenue Up 77%; Growth Seen in LasikPlus
Value-Pricing Model
CINCINNATI--(BUSINESS WIRE)--Oct. 28, 1999--LCA-Vision Inc. (NASDAQ NM:
LCAV), a leading U.S. based provider of laser vision correction services,
today reported financial results for the 1999 third quarter.
For the three months ended September 30, 1999, LCA-Vision reported net
income of $1,411,000, or $0.03 per diluted share, compared with a net loss
of $759,000, or a loss of $0.02 per diluted share, in the comparable period
last year. Third quarter 1999 laser vision correction revenues increased 77%
to $14,882,000, compared with $8,398,000 for the same period last year.
Total revenues for the 1999 third quarter were $14,973,000, compared with
$9,096,000 for the same period last year.
Net income for the nine months ended September 30, 1999 was $5,388,000, or
$0.11 per diluted share, compared with a net loss of $13,995,000, or a loss
of $0.38 per diluted share, in the comparable period last year. Laser vision
correction revenues for the nine months ended September 30, 1999 were
$42,617,000, compared with $23,134,000 for the same period last year, an
increase of 84%. Total revenues for the nine months ended September 30, 1999
were $43,570,000, compared with $25,323,000 for the same period in 1998.
"This period marks our fourth consecutive quarter of profitability. We have
seen a continued increase in acceptance of laser vision correction surgery
and have maintained our financial leverage enabling us to pursue our newly
introduced 'value priced' model, LasikPlus. Joining our Baltimore and
Annapolis, Maryland centers, additional markets, such as Minneapolis,
Minnesota, Columbus, Ohio and all California markets have recently adopted
this model, with outstanding initial results," stated Stephen Joffe,
chairman and chief executive officer of LCA-Vision.
As previously announced earlier this month, procedure volume at LCA-Vision's
Baltimore and Annapolis, centers increased 152% compared with last year's
third quarter, and were up 38% compared with the 1999 second quarter. The
Company continues to experience additional growth with the expansion of
LasikPlus as demonstrated by dramatic increases in incoming call volume and
comparable high conversions of inquiries to surgeries. "We are experiencing
all the leading indicators for a segmented market, where younger consumers
with less disposable income are demanding value priced procedures without
sacrificing the quality of clinical outcomes or care," continued Mr. Joffe.
"While enhanced initial marketing expenditures for LasikPlus are expected to
continue to increase for the next two quarters, the positive impact on
future earnings will be tremendous and drive additional market dominance."
Also commenting on the quarter, Larry Rapp, Treasurer and Chief Financial
Officer stated, "After raising over $37 million in a secondary equity
offering this past summer, we have significantly strengthened our balance
sheet. We have almost $1.00 per share in cash and marketable securities, net
assets of over $67 million, virtually no debt, and all preferred stock has
been converted into common shares which has eliminated dividend costs. We
continue to generate positive cash flow reinforcing our growing business and
expansion plans."
In addition, the Company completed physician enrollment in the National
LASIK Network (NLN). This network of ophthalmologists was established
subsequent to an agreement with Cole Managed Vision, a division of Cole
National Corporation, to offer laser vision correction services to Cole
members nationwide. Joffe added, "This relationship will include such
managed care organizations as Aetna/U.S. Healthcare, Blue Cross and Blue
Shield as well as MetLife, Healthnet and Cigna. We expect to reap the
benefits of this program - the first nationwide program of its type -
beginning January 2000. This agreement will provide us with the opportunity
to access over 50 million managed care lives."
LCA-Vision operates laser vision correction centers in the U.S., Canada and
Europe, which are supported by a network of over 2,200 ophthalmologists and
optometrists.
This release contains forward-looking statements that are subject to risks
and uncertainties including, but not limited to, the impact of competition
and pricing, procedure demand and marketplace acceptance, and unforeseen
fluctuations in operating results and other risks detailed from time to time
in the Company's filings with the Securities and Exchange Commission.
LCA-VISION INC.
Condensed Consolidated Balance Sheet
September 30, 1999 (unaudited) and
December 31, 1998 (audited)
September 30, December 31,
1999 1998
Assets
Current assets:
Cash and cash equivalents $13,227 $6,496
Short-term investments 37,299 --
Other 4,017 2,535
----- -----
Total current assets 54,543 9,031
Property and equipment, net 9,120 9,433
Goodwill, net 8,113 8,304
Other 1,681 4,609
----- -----
Total assets $73,457 $31,377
======= =======
Liabilities and
Shareholders' Investment
Current liabilities
Accounts payable $2,106 $ 2,030
Accrued liabilities and other 2,935 2,637
Debt maturing in one year 653 787
------- -------
Total current liabilities 5,694 5,454
Long-term debt 481 2,724
Commitments and contingencies
Shareholders' investment 67,282 23,199
------ -------
Total liabilities and
shareholders' investment $ 73,457 $ 31,377
======== ========
LCA-VISION INC.
Condensed Consolidated Statements of Operations
for the Three and Nine Months Ended September 30, 1999 and 1998
(unaudited)
(in thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
1999 1998 1999 1998
---- ---- ---- ----
Revenues:
Laser refractive
surgery $ 14,882 $ 8,398 $ 42,617 $ 23,134
Other 91 698 953 2,189
------ ------ ------ ------
Total revenues 14,973 9,096 43,570 25,323
Operating costs and
expenses:
Medical professional
and license fees 6,434 3,561 18,635 9,754
Direct costs of
services 3,108 2,771 8,396 8,234
General and
administrative
expenses 3,681 2,748 9,904 7,326
Depreciation and
amortization 775 692 2,211 2,815
Restructuring provision -- -- (150) 10,500
------ ------ ------ ------
Operating income (loss) 975 (676) 4,574 (13,306)
Equity in earnings (loss)
of unconsolidated
businesses (153) 108 264 144
Interest expense 25 108 145 698
Interest income 632 106 908 302
Other income (expense) 4 37 (55) 98
------ ------ ------ ------
Income (loss) before
taxes on income 1,433 (533) 5,546 (13,460)
Taxes on income 10 8 18 145
------ ------ ------ ------
Net income (loss) 1,423 (541) 5,528 (13,605)
Dividends to preferred
shareholders 12 218 140 390
------ ------ ------ ------
Income (loss) available
to common shareholders $ 1,411 $ (759) $ 5,388 $(13,995)
====== ====== ====== =======
Income (loss) per common
share
Basic $ 0.03 $ (0.02) $ 0.12 $ (0.38)
Diluted $ 0.03 $ (0.02) $ 0.11 $ (0.38)
Weighted average shares
used in computation
Basic 51,227 37,163 46,819 36,882
Diluted 54,389 37,163 50,104 36,882
CONTACT: LCA-Vision Inc.
Stephen N. Joffe, Chairman & CEO
Larry Rapp, Treasurer & CFO
513/792-9292
or
Lippert/Heilshorn & Associates, Inc.
Investor Relations Contacts
Bruce Voss, 310/575-4848
E-mail: Bruce@lhai.com
or
Ruth Abeshaus, 212/838-3777
E-mail: Ruth@lhai.com
or
Media Relations
Elissa Grabowski
E-mail: Elissa@lhai.com |
