LCAV...beaten down sector due to pricing pressures...company changes focus to accomodate price sensitivity, and appears to be working...
Friday January 7, 6:30 am Eastern Time
Company Press Release
LCA-Vision Reports 50% Gain in Fourth Quarter
1999 Procedure Growth
LasikPlus Centers Now Account for More than Half of All Procedures
CINCINNATI--(BW HealthWire)--Jan. 7, 2000-- Company Plans to open at least 10 New LasikPlus Centers in 2000
LCA-Vision Inc. (NASDAQ NM: LCAV - news), a leading U.S.-based provider of laser vision correction services, today
announced that fourth quarter procedure volume grew 50 percent versus a year ago. Laser vision correction procedures for the
final quarter of 1999 rose to 8,541, up from 5,686 procedures for the same period last year. For all of 1999, the company
reported a record 33,266 procedures, up from 19,791 in 1998, a 68 percent gain.
The company also noted that LasikPlus accounted for more than half of the company's fourth quarter procedures, despite the
impact of downtime related to the startup and conversion of existing LCA-Vision centers to the company's new, value-priced
LasikPlus format
``Consumer response to LasikPlus continues to exceed our expectations,' said Stephen N. Joffe, LCA-Vision chairman and
CEO. ``While we continue to focus on the conversion of our remaining LCA-Vision centers, we are now planning to open a
minimum of 10 brand new LasikPlus centers in 2000. Our strategy of opening the bulk of these new centers in existing markets,
as we did recently in Tampa and Minneapolis, will allow us to leverage and maximize the advertising and marketing dollars
earmarked for this effort.
``Our media saturation approach to the LasikPlus rollout has achieved enormous name recognition for LasikPlus in our target
markets. We plan to continue to spend aggressively to position value-priced LasikPlus as the high-quality provider of choice.
To achieve that goal, we have earmarked $15-$20 million in advertising, marketing and promotion this year to support the
ongoing introduction of LasikPlus.'
About LasikPlus
At $2,995 for both eyes, LasikPlus is priced approximately 40 percent below the $4,500-$5,000 customarily charged for laser
vision correction. This has lowered the affordability bar, accelerated consumer acceptance and created a far larger base of
potential patients for LasikPlus.
LCA-Vision launched LasikPlus in the Baltimore/Annapolis market in July1999. Based on the overwhelming success of this
test, the company has adopted LasikPlus as its new business model and expects to complete the conversion of its remaining
open-access centers this year. LasikPlus is being rolled out on a market-by-market basis in order to maximize management
resources, fine tune marketing strategy and minimize the impact of conversion-related downtime on the company's operating
performance.
About the National LASIK Network
On January 1, 2000, LCA-Vision launched the National LASIK Network (NLN), a joint venture with Cole National
Corporation (NYSE: CNJ - news) that makes laser vision correction more available and affordable to tens of millions of
potential new patients. The NLN, which includes all existing and future LCA-Vision and LasikPlus centers, currently has
participating providers in 63 major markets.
LCA-Vision will manage the NLN provider network and schedule member treatment in cooperation with Cole Managed
Vision, a unit of Cole National Corporation. Cole Managed Vision, a leading provider of vision care benefits with more than 50
million covered lives under management, recently began marketing a new laser vision correction benefit that offers eligible
members special pricing from NLN?s provider network.
LCA-Vision currently owns and operates 24 laser vision correction centers in the U.S., Canada, and Europe. More than 60
million Americans who wear eyeglasses or contact lenses are currently eligible for laser vision correction.
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. |
