Vision Twenty-One screams upward
Revenue grows, new refractive surgery facility opens
By Sam Ames, CBS MarketWatch
Last Update: 5:36 PM ET Jun 10, 1999
Also: Movers & Shakers
LARGO, Fla. (CBS.MW) -- Shares of eye-care specialist Vision
Twenty-One screamed 29 percent higher Thursday -- on top of a 48
percent jump Wednesday -- after the company announced positive
earnings news for the first quarter.
Shares of Vision
Twenty-One (EYESE:
news, msgs) rose 1
19/32 to 7 1/16 on
volume of 2.8 million
shares. As of
Thursday's close,
shares were up 91
percent from
Tuesday's closing
price.
The company, which is involved in vision-care management and ocular
surgery, announced Wednesday that first-quarter revenue increased 30
percent to $65.9 million, while earnings before interest, taxes and
depreciation, or EBITDA, increased more than 20 percent to $5.4
million. Vision Twenty-One had 9 cents a share, or $1.3 million, in net
income before charges from a previously announced restructuring
plan. The company earned 11 cents per share in the year-ago period,
according to First Call.
The company said that 213 percent more refractive
surgical procedures were performed in the quarter
than the total in the first quarter of 1998. These
procedures correct vision problems such as
myopia, hyperopia and astigmatism.
The company also announced the completion of the
sale of Buying Group for an undisclosed sum.
Vision Twenty-One applied the proceeds to debt
service. The company added that the sale will
reduce revenue but improve overall operating
margins.
"On a forward basis, we will accelerate our laser
vision correction initiatives. We expect refractive
surgery to be the highest-growth segment of the
company and a substantial portion of our future
earnings," said Theodore Gillette, chairman,
president and chief executive of Vision
Twenty-One.
The company on Thursday announced the opening of a new facility in
downtown Minneapolis in alliance with the Minnesota Eye Laser &
Surgery Center. The location is one of six opened this year by Vision
Twenty-One.
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