Ar,
Here are the earnings for LCAV. Very encouraging wouldn't you agree?
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Thursday March 19, 8:26 am Eastern Time
Company Press Release
LCA-Vision Inc. Reports Fourth Quarter, Full Year
Results
Summit Acquisition and Anticipated Restructuring Costs Impact 1997
Earnings
CINCINNATI--(BUSINESS WIRE)--March 19, 1998-- LCA-Vision Inc. (NASDAQ:LCAV -
news), the leading U.S. company in the rapidly-expanding laser vision correction sector, today
reported results for the fourth quarter and full year ended December 31, 1997.
For the fourth quarter, total revenues rose 82 percent to $6.0 million, compared with revenues of
$3.3 million for the fourth quarter of 1996. The net loss for the quarter was $2.6 million, or 7 cents
per share, compared with a net loss of $1.5 million, or 8 cents per share, a year ago.
For the full 1997 year, revenues rose 27.5 percent to $17.6 million, up from $13.8 million in 1996.
Due, in part, to one-time charges related to the August, 1997 acquisition of 19 laser vision centers
owned by Summit Technology, Inc., the company posted a net loss for the year of $8.0 million, or
30 cents a share, compared with a net loss of $4.1 million, or 21 cents a share, in 1996.
Commenting on 1997 results, LCA-Vision CEO and Chairman Dr. Stephen Joffe said: ''As
anticipated, the Summit acquisition added $2.6 million in revenues and greatly increased our size,
but also produced losses of $1.9 million, or 5 cents per share. A previously-announced restructuring
reserve of $1.1 million, or 4 cents per share, also impacted 1997 earnings.
Original Centers At, Or Near, Operating Profitability
''Nearly every one of our original LCA-Vision centers is now either profitable or very close to
profitability. We are in the process of implementing our template for operating success at the
newly-acquired Summit centers and expect to turn them around in 1998. Historically, it has taken
approximately 12 months for a center to achieve positive earnings. We have now achieved one of
our goals -- that of building the largest laser vision correction network in the country with locations
in many major markets -- but our No. 1 objective remains achieving operating profitability at all of
our centers and we will continue to make measurable progress against that objective in 1998.@
Dr. Joffe noted further that before the Summit deal was struck, Awe recognized that some
under-performing locations would have to be closed. Charges linked to these closures and our
efforts to bring several other Summit centers up to speed had the expected adverse impact on
l997's earnings. Most of the post-acquisition-related losses are now behind us.''
On the positive side, the Summit transaction, positioning LCA-Vision with more U.S. centers than
any competitor, gave the company a valuable national presence. It also provided an infusion of $10
million in cash; significantly expanded the company's physician relationships; and laid the
groundwork for achieving substantial economies of scale in advertising and marketing.
Patient Volume Well Ahead Of Projections
Dr. Joffe also reported that overall LCA-Vision patient volume is currently exceeding projections.
''The momentum demonstrated in l997, when our physicians in the U.S. completed 11,268 eye
surgeries, compared with 4,022 in 1996 or a gain of 281 percent, is continuing in the first quarter of
1998.''
He attributed some of the gain to increasing patient demand for the second generation,
state-of-the-art laser vision correction technique known as LASIK which now represents well over
50 percent of all procedures performed in the company's 31 centers.
Besides generating even higher margins than the traditional PRK procedure, Dr. Joffe pointed out
that LASIK allows opthalmologists to treat both eyes at the same time; involves very minimal patient
discomfort; and produces instant results, enabling patients to see normally almost immediately after
the 30-minute surgery.
LCA-Vision operates 28 laser vision correction centers in the U.S., two in Canada, and one in
Helsinki, Finland. Close to 25,000 successful procedures have now been performed at the
company's locations which have more than 600 physicians and 800 referring optometrists affiliated
with them.
LCA-Vision also manages laser, and minimally invasive, multi-specialty programs for major
hospitals across the country.
LCA-VISION INC.
Condensed Consolidated Statements of Operations
for the Three and Twelve Months Ended December 31, 1997 and 1996
(000 omitted, except per share amounts)
Three Months Ended Twelve Months Ended
December 31, December 31,
----------------- -----------------
1997 1996 1997 1996
------ ------ ------ ------
Net revenues:
Laser refractive eye
surgery centers $ 4,940 $ 1,111 $ 12,917 $ 3,715
Multi-specialty laser
surgery programs 922 1,066 3,064 4,665
Other 174 1,128 1,613 5,380
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Total net revenues 6,036 3,305 17,594 13,760
Direct operating expenses 4,310 2,738 11,433 7,732
General and administrative
expenses 2,988 1,194 9,299 7,327
Pre-operating expenses -- 137 162 225
Depreciation and amortization 1,068 428 2,511 1,597
Repositioning costs -- -- 1,100 --
-----------------------------------------
Operating (loss) (2,330) (1,192) (6,911) (3,121)
Equity in income (loss) of
unconsolidated affiliates (2) (171) (27) (906)
Interest expense (366) (229) (1,140) (770)
Interest income 171 24 217 89
Other 21 36 77 106
Gain on sale of investment of
unconsolidated affiliate -- -- -- 546
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(Loss) before income taxes (2,506) (1,532) (7,785) (4,057)
Income taxes 12 (43) 68 --
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Net (loss) (2,518) (1,489) (7,853) (4,057)
Accrued dividend - Class B
preferred stock (44) (183)
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Amount applicable to
(loss) per common share $(2,562) $(1,489) $(8,036) $(4,057)
==========================================
Net (loss) per common share
Basic $ (0.07) $ (0.08) $ (0.30) $ (0.21)
Diluted $ (0.07) $ (0.08) $ (0.30) $ (0.21)
Average common shares
outstanding 36,664,816 19,584,486 26,709,184 19,609,505
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End of Report
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