LCAV...
a primary concern within this sector has been pricing pressures...howeve,r will the demand offset the reduction in price? Well, now I know why the jump in price with LCAV at 10:50 this morning...
Wednesday October 27, 10:50 am Eastern Time
Company Press Release
LCA-Vision Successfully Launches "Value-Priced"
LasikPlus
Company Expects Full-Year 2000 Pre-Tax EPS of $0.40-$0.50
CINCINNATI--(BW HealthWire)--Oct. 27, 1999--LCA-Vision Inc. (NASDAQ NM: LCAV - news), a leading
U.S.-based provider of laser vision correction services, today announced that the Company has demonstrated strong growth in
its value-priced LasikPlus centers, bringing LASIK surgery to a larger customer base by lowering the affordability bar while
maintaining the highest standards of care. LCA-Vision owns and operates 22 centers, of which the Baltimore and Annapolis,
Maryland, Minneapolis, Minnesota, Columbus, Ohio and California centers have adopted LasikPlus. The Company plans to
convert additional centers to the LasikPlus model before year-end.
''Based on our research, offering pricing of $2,995 for both eyes - which is significantly less (40%) than the customary
$4,500-$5,000 - has grown the number of procedures substantially. Our LasikPlus centers have booked more appointments in
their first weeks of operations than they have in previous months,'' stated Stephen Joffe, chairman and chief executive officer of
LCA-Vision. ''While the benefits to the patient are obvious, so are the benefits to LCA-Vision. We realize there are costs
associated with jumpstarting LasikPlus, but the positive impact on next year's financial results will be tremendous as the
Company increases profitability while maintaining per procedure net revenue. This is a short-term tradeoff between slight
sacrifices in profitability and gaining market leadership in the future.''
For the third quarter ended September 30, 1999, the Baltimore and Annapolis offices, which only began operations as
LasikPlus three weeks into the quarter, performed 1,629 procedures, compared with 1,178 during the second quarter, an
increase of 38%. This represents an increase of 152% on a same center basis compared with the 1998 third quarter. Baltimore
and Annapolis continue to generate dramatic increases in incoming call volume at a rate of 3,700 calls achieving 3,000
scheduled appointments and high surgery conversion rates, all while maintaining the excellent clinical results and patient
satisfaction found in the open-access LCA-Vision centers. In October of this year, the Company expanded LasikPlus to its
California markets, where same center growth has exceeded the Company's most aggressive expectations.
''With our new LasikPlus centers, we are experiencing a larger percentage of younger patients having surgery. In addition, the
length of time taken by prospective patients to have laser vision correction surgery has shortened. As we expected, we are
broadening the market to include consumers with less disposable income,'' stated Joe Dzialo, executive vice president of
LCA-Vision.
While marketing expenditures are expected to continue to increase for the next two quarters due to the expansion of the
LasikPlus business model, the Company expects these expenditures thereafter to level off. An anticipated doubling of
procedure growth next year is projected to generate full-year 2000 earnings per share of $0.40-$0.50 (pre-tax).
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.
Contact:
LCA-Vision Inc.
Stephen Joffe, Chairman & CEO
Larry Rapp, Treasurer & CFO
513/792-9292
or
Investor Relations:
Lippert/Heilshorn & Associates, Inc.
Bruce Voss (Bruce@lhai.com)
310/575-4848
Ruth Abeshaus (Ruth@lhai.com)
212/838-3777
or
Media Contact:
Elissa Grabowski (Elissa@lhai.com)
212/838-3777
More Quotes and News:
LCA Vision Inc (NasdaqNM:LCAV - news)
Related News Categories: biotech, health care, medical/pharmaceutical
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