SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
August 3, 2000
LCA-Vision Inc.
(Exact name of Registrant as specified in its Charter)
Delaware (State or other jurisdiction of incorporation)0-27610
(Commission File No.)11-2882328
(IRS Employer Identification Number)
7840 Montgomery Road, Cincinnati, Ohio
45236
(Address of principal executive offices)(Zip Code)
Registrant's telephone number, including area code: (513)792-9292
N/A
(Former name or former address, if changed since last report)
Item 5. Other Events
LCA-Vision Inc. issued a press release reporting second quarter financial results.
Item 7. Financial Statements and Exhibits
(a) Exhibits
99.1 Press Release dated August 3, 2000.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
LCA-VISION INC.
| Date: August 3, 2000 | By: /s/ Alan H. Buckey Alan H. Buckey Executive Vice President, Chief Financial Officer and Treasurer |
Exhibit 99.1
| Company Contacts | Investor Relations Contacts | Media Contact |
| LCA-Vision, Inc. | Lippert/Heilshorn & Associates, Inc. | The Dilenschneider Group |
| Stephen N. Joffe, Chairman & CEO | Bruce Voss (Bruce@lhai.com) | Joel Pomerantz |
| Alan Buckey, CFO | Zachary Bryant (Zachary@lhai.com) | (212) 922-0900 |
| (513) 792-9292 | (310) 575-4848 | |
| www.lca-vision.com | Kim Sutton Golodetz (Kim@lhai.com) | |
| www.lasikplus.com | (212) 838-3777 | |
| www.lhai.com |
FOR IMMEDIATE RELEASE
LCA-VISION REPORTS SECOND QUARTER FINANCIAL RESULTS
-Contribution Margin Reaches a High of 78.5%-
CINCINNATI (August 3, 2000) - LCA-Vision Inc. (NASDAQ NM: LCAV), a leading national provider of laser vision correction services, today reported financial results for the 2000 second quarter.
Laser vision correction revenues for the three months ended June 30, 2000 were $15,004,000, compared with $14,346,000 in the same period last year and $18,171,000 in the first quarter of 2000, the seasonally strongest quarter. Total revenues for the second quarter of 2000 were $15,109,000, compared with $14,730,000 for the same period last year. Average price realization per procedure declined from $1,452 in the first quarter of 2000 to $1,080 in the second quarter. Despite this price decrease, contribution margin on a sequential quarter basis was up from 67.8% to 78.5%. Contribution margin is calculated by deducting medical, professional and license fees from laser refractive surgery revenues. Contribution margin in the second quarter was aided by lower per-procedure royalties on VISX lasers and by lower professional fees.
For the three months ended June 30, 2000, LCA-Vision reported a net loss of $668,000, or $0.01 per basic and diluted share, compared with net income of $2,347,000 or $0.05 per basic and diluted share, in the second quarter of 1999.
Net loss for the six months ended June 30, 2000 was $606,000, or $0.01 per basic and diluted share, compared with net income of $3,977,000, or $0.09 cents per basic and diluted share, in the comparable period last year. Laser vision correction revenues for the first half of 2000 were $33,155,000, up 20% over $27,735,000 in the six months ended June 30, 1999. Total revenues for the first half of 2000 were $33,281,000, compared with $28,597,000 for the same period in 1999.
"The second quarter began somewhat slowly with results impacted by intense competitive pricing in most markets we serve, increased marketing expenses and the up-front costs of opening four new LasikPlus centers," said Stephen Joffe, chairman and chief executive officer of LCA-Vision. "However, as we moved through the spring, procedure volume accelerated, with June results the best in our history. We entered the current quarter with an impressive number of procedures scheduled in July as well as in August, and anticipate accelerating growth. We plan to open seven additional LasikPlus centers this year, including the August 7th opening of our 27th U.S. center. We are confident that patients served by these centers, along with our existing ones, will continue to embrace the LasikPlus program."
Mr. Joffe went on to say, "LCA-Vision's core business model is profitable and generating cash. We have committed to an aggressive new center opening program to better position the Company for continued growth and long-term profitability."
Through the end of July, under the previously announced share buyback program, the Company has purchased a total of 930,995 shares of common stock at an average price of $2.81.
LCA-Vision has scheduled an investor conference call regarding this announcement to be held today beginning at 11:00 a.m. Eastern Time. Individual investors are invited to listen to the conference call over the Internet through Vcall, a service of the Investor Broadcast Network, at www.vcall.com. To listen to the live call, please go to the Web site at least 15 minutes prior to the start of the call to register, download and install any necessary audio software. A replay will begin shortly after the call has ended and will be available for 90 days.
In addition to its 27 U.S. centers, LCA-Vision owns two facilities in Canada and one in Europe. The company is also licensing its business model to Japan's Rei Corporation, which is opening LasikPlus centers across the island nation.
For additional information, please visit our websites at www.lca-vision.com and www.lasikplus.com.
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
[Tables to Follow]
LCA-VISION INC. | ||||||
Condensed Consolidated Statements of Income | ||||||
for the Six Months Ended June 30, 2000 and 1999 | ||||||
(Unaudited) | ||||||
| Dollars in thousands except per-share amounts | ||||||
Three months ended June 30 | Six months ended June 30 | |||||
| Revenues | 2000 --------------------- | 1999 -------------------- | 2000 ------------------- | 1999 ----------------- | ||
| Laser refractive surgery | $15,004 | $14,346 | $33,155 | $27,735 | ||
| Other | 105 --------------------- | 384 -------------------- | 126 ------------------- | 862 ----------------- | ||
| Total Revenues | 15,109 | 14,730 | 33,281 | 28,597 | ||
| Operating costs and expenses | ||||||
| Medical professional and license fees | 3,224 | 6,186 | 9,077 | 12,201 | ||
| Direct costs of service | 5,516 | 2,732 | 10,160 | 5,288 | ||
| General and administrative expenses | 3,700 | 2,357 | 7,042 | 5,002 | ||
| Marketing and advertising | 4,141 | 896 | 8,268 | 1,438 | ||
| Depreciation | 845 | 724 | 1,621 | 1,069 | ||
| Restructuring accrual | - ------------------ | (150) ------------------- | - ------------------ | - ------------------ | ||
| Operating income (loss) | (2,317) | 1,985 | (2,887) | 3,599 | ||
| Equity in earnings from unconsolidated businesses | 3 | 94 | 9 | 417 | ||
| Interest expense | (19) | (27) | (40) | (120) | ||
| Interest income | 719 | 129 | 1,395 | 276 | ||
| Other income (expense) | 537 ------------------ | 218 ------------------- | 555 ------------------ | (59) ----------------- | ||
| Income (loss) before taxes on income | (1,077) | 2,399 | (968) | 4,113 | ||
| Income tax expense/(benefit) | (409) ----------------- | 8 ------------------- | (362) ----------------- | 8 ----------------- | ||
| Net income (loss) | (668) | 2,391 | (606) | 4,105 | ||
| Preferred stock dividends | - | 44 | - | 128 | ||
| Income (loss) applicable to common stock | $(668) ============ | $2,347 ============ | $(606) =========== | $3,977 =========== | ||
| Income per common share | ||||||
| Basic | $(0.01) | $0.05 | $(0.01) | $0.09 | ||
| Diluted | $(0.01) | $0.05 | $(0.01) | $0.09 | ||
| Weighted average shares outstanding | ||||||
| Basic | 51,881 | 45,450 | 51,873 | 44,614 | ||
| Diluted | 52,652 | 49,035 | 53,655 | 47,962 | ||
LCA-Vision Inc. | |||||
Condensed Consolidated Balance Sheet (Unaudited) | |||||
June 30, 2000 - December 31, 1999 Dollars in Thousands | |||||
| June 30, 2000 | December 31, 1999 | ||||
| Assets | |||||
| Current Assets | |||||
| Cash and cash equivalents | $6,665 | $11,891 | |||
| Short-term investments | 38,228 | 37299 | |||
| Accounts receivable, net | 3,791 | 1971 | |||
| Deferred tax asset | 631 | 631 | |||
| Pre-paid expenses, inventory and other | 1,834 -------------------- | 1,984 ------------------ | |||
| Total current assets | 51,149 | 53,776 | |||
| Property and equipment, net | 13,700 | 9,726 | |||
| Goodwill, net | 828 | 902 | |||
| Deferred tax asset | 13,162 | 12,950 | |||
| Obligations due from shareholders | 708 | 708 | |||
| Investment in unconsolidated business | 256 | 254 | |||
| Other assets | 2,674 -------------------- | 6,974 ------------------ | |||
| Total assets | $82,477 ============ | $85,290 =========== | |||
| Liabilities and Shareholders' Investment | |||||
| Current liabilities | |||||
| Accounts payable | $5,795 | $2,458 | |||
| Accrued liabilities and taxes | 1,582 | 1,821 | |||
| Debt maturing in one year | 455 -------------------- | 676 ------------------ | |||
| Total current liabilities | 7,832 | 4,955 | |||
| Long-term debt | 119 | 250 | |||
| Commitments and contingencies | - | - | |||
| Minority equity interest | 18 | 40 | |||
| Shareholders' investment | |||||
| Preferred stock | - | - | |||
| Common stock ($0.001 par value; 52,077,878 shares | |||||
| and 51,513,989 shares issued) | 111 | 111 | |||
| Contributed capital | 89,562 | 88,348 | |||
| Warrants | 2,353 | 6,362 | |||
| Notes receivable from shareholders | (610) | - | |||
| Common stock in treasury, at cost (542,909 shares) | (1,532) | (30) | |||
| Accumulated deficit | (15,384) | -14771 | |||
| Foreign currency translation adjustment | 8 ------------------- | 25 ------------------- | |||
| 74,508 ------------------- | 80,045 ------------------- | ||||
| Total liabilities and shareholders' investment | $82,477 =========== | $85,290 =========== | |||
