[LCAV] Selling off AH on earnings. Justified ?
LCA-Vision Grows Revenues 43% as Market Share Expands to an Estimated 11.9%
Wednesday February 22, 7:30 am ET
Procedure Volume Increases 41% and Same Store Revenues Rise 34%
CINCINNATI--(BUSINESS WIRE)--Feb. 22, 2006--LCA-Vision Inc. (Nasdaq:LCAV - News), a leading provider of laser vision correction services under the LasikPlus brand, today announced fourth quarter and full-year financial and operational results for the period ended December 31, 2005.
Fourth Quarter Highlights
Revenues grew 43% to approximately $46.8 million from approximately $32.7 million.
Procedure volume rose 41% to 34,225 from 24,224.
Pre-tax income increased 58% to $10.3 million from $6.5 million.
Market share expanded to an estimated 11.9% of all U.S. refractive procedures performed.
Same-store revenues in the U.S. were up 34% at LasikPlus vision centers open at least 12 months.
Earnings per share increased 30% to $0.30 from $0.23.
Successfully opened four new LasikPlus vision centers in Portland, Oregon; Pittsburgh, Pennsylvania; Albuquerque, New Mexico; and Birmingham, Alabama.
Full-Year Highlights
Revenues grew 51% to approximately $192.4 million from approximately $127.1 million.
Procedure volume rose 48% to 142,000 from 95,835.
Pre-tax income doubled to approximately $52.8 million from approximately $26.4 million.
Reported earnings per share of $1.47.
Successfully opened 10 new LasikPlus vision centers-all in new markets.
Increased the quarterly dividend by 50% to $0.12 per share from $0.08 per share.
Craig Joffe, LCA-Vision's Chief Operating Officer, who has been appointed Interim Chief Executive Officer effective March 1, 2006, commented, "I am pleased to report another strong quarter and full fiscal year of exceptional financial and operational performance. We continued to improve upon our industry-leading performance metrics. Based on industry sources, we believe that our market share grew to an estimated 12% in 2005's fourth quarter from 8% in 2004's fourth quarter. Along with our commitment to provide our patients advanced technology, experience, and exceptional quality of care at an affordable value price, we continue to produce industry-leading growth in revenues and profits."
"We successfully opened 10 new vision centers throughout the year, and now have a total of 50 LasikPlus vision centers located in 25 states and 37 markets, reaching approximately 40% of the United States population. Consumer demand for the laser vision correction procedure at our LasikPlus vision centers continues to grow strongly. The vision centers we opened in the first half of 2005 reached profitability ahead of our six-month target, and we believe those opened in the latter part of the year are quickly ramping to profitability. In addition, over the past four quarters, our same-store revenue growth averaged 42%. As we move into 2006 and beyond, we remain focused on strategically expanding the LasikPlus footprint throughout the United States, while continuing to capture market share in our existing locations. We expect to open 10 to 12 vision centers in 2006. The timing of the vision center openings is expected to be spread throughout the year, and consistent with previous disclosure, we will announce the locations of the centers prior to their openings."
Revenues & Operating Income
Revenues grew 43% to approximately $46.8 million in 2005's fourth quarter from approximately $32.7 million in 2004's fourth quarter, and procedure volume increased 41% to 34,225 from 24,224. Fourth quarter 2005 operating income increased 53% to approximately $8.6 million from approximately $5.6 million in the fourth quarter of 2004, and operating margins increased to 18.4% from 17.2%.
For the full-year of 2005, revenues grew 51% to approximately $192.4 million from approximately $127.1 million in 2004, and procedure volume increased 48% to 142,000 from 95,835. Full-year 2005 operating income increased 102% to approximately $48.9 million from approximately $24.2 million in 2004, and operating margins increased to 25.4% from 19.0%.
Net Income & Earnings Per Share
Fourth quarter 2005 net income increased 35% to approximately $6.6 million from approximately $4.9 million in the fourth quarter of 2004. Fourth quarter 2005 earnings per diluted share increased 30% to $0.30 from $0.23 in the fourth quarter of 2004.
For the full year of 2005, net income was approximately $31.7 million, or $1.47 per diluted share, compared with approximately $32.0 million, or $1.54 per diluted share for the full-year of 2004. Included in 2004's full-year financial results was the reversal and usage of the valuation allowance against deferred tax assets of approximately $16.4 million related to federal and state net operating loss carryforwards generated in prior years. Excluding the change in the valuation allowance against deferred tax assets, full-year 2005 net income increased 103% to $31.7 million from $15.6 million, and earnings per diluted share grew approximately 96% to $1.47 from $0.75. Management believes that excluding the change and usage of the valuation allowance against deferred tax assets is a meaningful disclosure as it allows for year-over-year comparisons of financial results on a consistent basis, and is more reflective of the operating results of the business.
Strong Balance Sheet
Cash provided by operations for the full year of 2005 grew over 38% to approximately $42.6 million from approximately $30.8 million in 2004. Cash and cash equivalents increased to approximately $111.0 million as of December 31, 2005 from approximately $109.6 million as of September 30, 2005, and approximately $86.6 million as of December 31, 2004.
Board of Directors Approve Dividend Payment
LCA-Vision's Board of Directors approved a dividend of $0.12 per share, payable as of March 14, 2006 to shareholders of record as of March 7, 2006.
Share Repurchase
In May 2005, LCA-Vision announced that it had been authorized by its board of directors to purchase up to 1,000,000 shares of its common stock. Through December 31, 2005, the company had repurchased 50,000 shares of common stock.
Outlook
LCA-Vision currently expects earnings per diluted share for the full-year of 2006 to be in the range of $1.65 to $1.75. The company is also reaffirming its previously provided guidance of 30% to 40% revenue growth for the full-year of 2006. Guidance reflects an effective tax rate of approximately 40% to 41% for all periods, and also includes the expected full-year impact of approximately $0.18 to $0.20 per diluted share for the expensing of stock options and other share-based compensation that will occur beginning in the first quarter of 2006. |
