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: February 19, 2002
(Date of earliest event reported)
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 financial results for the three months and year ended December 31, 2001.
Item 7. Financial Statements and Exhibits
(a) Exhibits
99.1 Press Release dated February 19, 2002
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: February 21, 2002 | By: /s/Alan H. Buckey Alan H. Buckey Executive Vice President, Chief Financial Officer and Treasurer |
Exhibit 99.1
Company Contacts: | Investor Relations Contacts: |
LCA-Vision, Inc. | Lippert/Heilshorn & Associates, Inc. |
Stephen N. Joffe, Chairman and CEO | Bruce Voss (bvoss@lhai.com) |
Alan H. Buckey, CFO | (310) 691-7100 |
(513) 792-9292 | Kim Sutton Golodetz (kgolodetz@lhai.com) |
www.lasikplus.com | (212) 838-3777 |
www.lhai.com |
FOR IMMEDIATE RELEASE
LCA-VISION REPORTS FOURTH QUARTER AND YEAR-END FINANCIAL RESULTS
Laser Vision Correction Revenue Grows 8% Year-Over-Year
Fourth Quarter Developments Augur Well for Growth for 2002 First Quarter and Beyond
CINCINNATI (February 19 , 2002) - LCA-Vision Inc. (NASDAQ NM: LCAV), a leading provider of value-priced laser vision correction services across the U.S., today reported financial results for the three months and year ended December 31, 2001.
Laser vision correction revenues for the fourth quarter of 2001 were $10,874,000, compared with $14,396,000 in the fourth quarter of 2000, and for the full year 2001 increased 8% to $68,025,000, compared with $63,141,000 for the full year 2000.
Fourth quarter 2001 average price realization per procedure was declined to $1,020 and the contribution margin was 80.5% compared with an average price realization per procedure of $996 and a contribution margin of 81.0% in the third quarter of 2001, and an average price realization per procedure of $877 and a contribution margin of 78.7% during the fourth quarter of 2000. Contribution margin is calculated by deducting medical, professional and license fees from laser refractive surgery revenues.
LCA-Vision posted a net loss for the 2001 fourth quarter of $4,635,000, or $0.10 per share on 46,045,000 shares outstanding, compared with a 2001 third quarter net loss before special charges of $3,675,000, or $0.08 per share on 46,472,000 shares outstanding. A year ago, LCA-Vision reported a fourth quarter net loss of $1,559,000, or $0.03 per diluted share on 49,123,000 shares outstanding.
The net loss for the 12 months ended December 31, 2001, excluding a non-cash valuation reserve and special charges, was $6,256,000, or $0.13 per share on 46,562,000 shares outstanding, compared with a net loss of $2,366,000, or $0.05 per share on 50,951,000 shares for the full year 2000. Including special charges, the Company reported a 2001 net loss $23,375,000, or $0.50 per share.
"The new year is off to a strong start thanks to the Company's restructuring in the second half of 2001 that has set the tone for improvements in the first quarter of 2002 and beyond," said Stephen Joffe, LCA-Vision's Chairman and CEO. "In the fourth quarter of 2001, annualized cost savings from the Company's restructuring program were $9,856,000. We remain confident that LCA-Vision will be operating cash flow positive for the first quarter of 2002. For the full year 2002, we continue to expect the Company to return to profitability by remaining at breakeven or better in the first half of 2002, and growing with the strengthening economy in the second half of the year."
-continued-
Joffe also discussed the Company's recent share repurchase and the current balance sheet. He said, "In first quarter of 2002, all 6,531,526 recently registered shares of LCA-Vision common stock previously held by Summit Autonomous Inc., a subsidiary of ALCON Holdings Inc., were acquired at a price of 75 cents per share. The transaction was split equally between the Company share repurchase program and members of LCA-Vision's senior management and Board of Directors. The Company financed none of the shares acquired by LCA-Vision management and directors."
The share buyback program authorized by the Company's Board of Directors in June 2000 was completed January 10, 2001. Five million shares were repurchased at an average price of $2.08 per share. In December 2000, the Board of Directors authorized a repurchase of an additional five million shares of common stock. Of that authorization, the Company has repurchased 4,457,883 shares at an average price of $1.13 per share through January 31, 2002.
LCA-Vision has scheduled an investor conference call regarding this announcement to be held today beginning at 10:30 a.m. Eastern Time. Individual investors are invited to listen to the conference call over the Internet, by going to the "Investors" section of the Company's Website at www.LasikPlus.com. A replay will begin shortly after the call has ended and will be available for 30 days.
LCA-Vision owns and operates 31 LasikPlus laser vision correction facilities in the U.S., plus two centers in Canada and a joint venture in Europe.
For additional information, please visit the Company's Website at at www.LasikPlus.com.
This news release contains forward-looking statements that are subject to risks and uncertainties including, but not limited to, the impact of competition, pricing, procedure demand, marketplace acceptance, patient outcomes, different healing results, unforeseen fluctuations in operating results, general economic conditions, and other risks detailed from time to time in the company's filings with the Securities and Exchange Commission.
[Tables to follow]
LCA-Vision Inc. | |||||
Condensed Consolidated Statements of Operations | |||||
for the Three and Twelve Months Ended December 31, 2001 and 2000 | |||||
(Unaudited) | |||||
Dollars in thousands except per share data | |||||
Three months ended | Twelve months ended | ||||
December 31, | December 31, | ||||
2001 | 2000 | 2001 | 2000 | ||
Revenues | |||||
Laser refractive surgery | $ 10,874 | $ 14,396 | $ 68,025 | $ 63,141 | |
Other | 20 | 115 | 71 | 309 | |
Total revenues | 10,894 | 14,511 | 68,096 | 63,450 | |
Operating costs and expenses | |||||
Medical professional and license fees | 2,128 | 3,086 | 13,626 | 15,542 | |
Direct costs of service | 7,073 | 7,680 | 33,616 | 27,218 | |
General and administrative expenses | 1,995 | 2,324 | 8,727 | 9,394 | |
Marketing and advertising | 3,051 | 3,489 | 12,732 | 14,565 | |
Depreciation and amortization | 1,400 | 1,182 | 5,625 | 3,839 | |
Restructuring provision | - | - | 1,774 | - | |
Operating (loss) income | (4,753) | (3,250) | (8,004) | (7,108) | |
Equity in earnings from unconsolidated businesses | 64 | 25 | 372 | 49 | |
Minority equity interest | (23) | 4 | (10) | (12) | |
Interest (expense) | (10) | (8) | (17) | (58) | |
Interest income | 110 | 669 | 924 | 2,713 | |
Other income | (42) | 31 | (51) | 616 | |
(Loss) income before taxes on income | (4,654) | (2,529) | (6,786) | (3,800) | |
Income tax (expense) benefit | 19 | 970 | (16,589) | 1,434 | |
Net (loss) income | (4,635) | (1,559) | (23,375) | (2,366) | |
(Loss) income per common share | |||||
Basic | $ (0.10) | $ (0.03) | $ (0.50) | $ (0.05) | |
Diluted | $ (0.10) | $ (0.03) | $ (0.50) | $ (0.05) | |
Weighted average shares used in computation | |||||
Basic | 46,045 | 49,123 | 46,562 | 50,951 | |
Diluted | 46,045 | 49,123 | 46,562 | 50,951 |
LCA-Vision Inc. | |||
Condensed Consolidated Balance Sheets | |||
For the Twelve Months Ended December 31, 2001 and 2000 | |||
(Unaudited) | |||
At December 31, | |||
2001 | 2000 | ||
(Dollars in thousands, except per share amounts) | |||
Assets | |||
Current assets | |||
Cash and cash equivalents | $ 16,609 | $ 19,692 | |
Short-term investments | - | 8,626 | |
Accounts receivable, net | 517 | 1,417 | |
Receivable from vendor | 234 | 2,280 | |
Deferred tax asset | - | 521 | |
Prepaid expenses, inventory and other | 1,959 | 2,001 | |
Total current assets | 19,319 | 34,537 | |
Property and equipment | 36,411 | 31,860 | |
Accumulated depreciation and amortization | (13,753) | (10,340) | |
Property and equipment, net | 22,658 | 21,520 | |
Goodwill, net | 275 | 753 | |
Deferred tax asset | - | 16,085 | |
Obligations due from shareholders and affiliates, net | - | 190 | |
Investment in unconsolidated businesses | 290 | 295 | |
Other assets, net | 646 | 2,217 | |
Total assets | $ 43,188 ========= | $ 75,597 ========== | |
Liabilities and Shareholders' Investment | |||
Current liabilities | |||
Accounts payable | $ 2,645 | $ 7,587 | |
Accrued liabilities and other | 2,270 | 2,709 | |
Debt maturing in one year | 26 | 178 | |
Total current liabilities | 4,941 | 10,474 | |
Long-term debt | 4 | 48 | |
Commitments and contingencies | |||
Minority equity interest | 41 | 30 | |
Shareholders' investment | |||
Common stock ($0.01 par value; 52,248,554 and 51,112,404 shares and | |||
46,045,525 and 47,393,508 shares issued and outstanding, respectively) | 113 | 112 | |
Contributed capital | 91,019 | 90,858 | |
Warrants | 2,105 | 2,105 | |
Notes receivable from shareholders | (1,488) | (1,013) | |
Common stock in treasury, at cost (6,203,029 and 4,718,896 shares) | (13,013) | (9,875) | |
Accumulated deficit | (40,512) | (17,137) | |
Foreign currency translation adjustment | (22) | (5) | |
Total shareholders' investment | 38,202 | 65,045 | |
Total liabilities and shareholders' investment | $ 43,188 ========= | $ 75,597 ========== |