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, 2003
(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 a 22% increase in fourth quarter revenues to $13,300,000, on procedure volume of 12,204. A year ago, the company reported revenues of $10,894,000, on fourth quarter volume of 10,684 procedures.
Item 7. Financial Statements and Exhibits
(a) Exhibits
99.1 Press Release dated February 19, 2003
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: 2/19/03 | By: /s/Alan H. Buckey Alan H. Buckey Executive Vice President, Chief Financial Officer and Treasurer |
Exhibit 99.1
Contact:
Stephen N. Joffe
Jody Cain
LCA-Vision Inc.
Lippert Heilshorn & Assoc.
513-792-9292
310-691-7100
LCA-VISION REPORTS 22% INCREASE IN FOURTH QUARTER REVENUES
Trims Fourth Quarter Loss on Improved Pricing and Higher Procedure Volume
CINCINNATI (February 19, 2003) – LCA-Vision Inc. (NASDAQ NM: LCAV), a leading provider of laser vision correction services across the U.S., today reported a 22% increase in fourth quarter revenues to $13,300,000, on procedure volume of 12,204. A year ago, the company reported revenues of $10,894,000, on fourth quarter volume of 10,684 procedures.
Average price realization per procedure increased to $1,090 in the fourth quarter, up from $1,020 per procedure last year. Contribution margin -- laser refractive surgery revenues less medical, professional and license fees -- rose to 81.4% compared with 80.5% in the fourth quarter of 2001.
The company posted a fourth quarter net loss of $1,888,000, or 18 cents per share, compared with a net loss a year ago of $4,635,000, or 40 cents per share.
“We have just put 18 difficult months behind us,” said Stephen Joffe, LCA-Vision’s chairman and CEO. “But I am pleased to say that the steps we have taken to expand revenues and cut costs are making a tremendous difference in our overall results. We fully expect a return to profitability in the first quarter of 2003, and anticipate full year earnings per share in the range of 30 to 35 cents per share, which would generate EBITDA in excess of $9 million. With expected capital expenditures in 2003 of $1 million, we anticipate generating significant positive cash flow for the year.”
Joffe also commented on the continued strength of the company’s balance sheet. “We have more than $18 million in cash and no debt. In January of last year, we repurchased 7% of our outstanding shares for $2.4 million and still increased our cash on hand in 2002 by $1.7 million.”
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For the 12 months ended December 31, 2002, the company reported a net loss of $6,108,000, or 57 cents per share, excluding a benefit of $2,282,000 from the settlement of litigation. A year ago, LCA-Vision’s net loss was $6,256,000, or 54 cents per share, excluding a non-cash valuation reserve and special charges of $17,119,000. Including all special items, the company reported a 2002 net loss of $3,826,000, or 35 cents per share, compared with a 2001 net loss of $23,375,000, or $2.01 per share.
LCA-Vision has scheduled an investor conference call to be held today beginning at 10:00 Eastern Standard Time. Individual investors are invited to listen to the conference call over the Internet by going the Investor section of the Company’s website at www.LasikPlus.com. A replay of the call will be available for 30 days.
LCA-Vision owns and operates 33 LasikPlus vision correction facilities in the United States, plus two centers in Canada, and a joint venture in Europe.
# # #
This news release contains forward-looking statements that are subject to risks and uncertainties that may result in actual results to differ materially from current expectations. For a discussion of risks and uncertainties that the company faces, please refer to the company’s filings with the Securities and Exchange Commission including, but not limited to, forms 10K and 10Q.
[Tables to follow]
LCA-Vision Inc. | |||||||
Condensed Consolidated Statements of Income | |||||||
(Dollars in thousands except per share data) | |||||||
Three months ended | Twelve months ended | ||||||
December 31, | December 31, | ||||||
2002(1) | 2001(1) | 2002(1) | 2001(1) | ||||
| |||||||
Revenues - Laser refractive surgery | 13,300 | 10,894 | 61,838 | 68,096 | |||
Operating costs and expenses | |||||||
Medical professional and license fees | 2,479 | 2,128 | 12,270 | 13,626 | |||
Direct costs of services | 6,668 | 7,073 | 28,796 | 33,616 | |||
General and administrative expenses | 1,873 | 1,995 | 8,327 | 8,727 | |||
Marketing and advertising | 2,645 | 3,051 | 12,823 | 12,732 | |||
Depreciation and amortization | �� 1,540 | 1,400 | 5,997 | 5,625 | |||
Special charges | - | - | (174) | 1,774 | |||
Operating loss | (1,905) | (4,753) | (6,201) | (8,004) | |||
Equity in earnings from unconsolidated businesses | 12 | 64 | 241 | 372 | |||
Minority equity interest | (31) | (23) | (189) | (10) | |||
Interest expense | (1) | (10) | (4) | (17) | |||
Interest income | 115 | 110 | 225 | 924 | |||
Other income expense | (3) | (42) | (6) | (51) | |||
Litigation Settlement | - | - | 2,282 | - | |||
Loss before taxes on income | (1,813) | (4,654) | (3,652) | (6,786) | |||
Income tax expense (benefit) | 75 | (19) | 174 | 16,589 | |||
Net loss | $ (1,888) ========== | $ (4,635) ========= | $ (3,826) ========== | $ (23,375) ======== | |||
Income per common share | |||||||
Basic | $ (0.18) | $ (0.40) | $ (0.35) | $ (2.01) | |||
Diluted | $ (0.18) | $ (0.40) | $ (0.35) | $ (2.01) | |||
Weighted average shares outstanding | |||||||
Basic | 10,744 | 11,511 | 10,794 | 11,641 | |||
Diluted | 10,744 | 11,511 | 10,794 | 11,641 | |||
(1) Unaudited |
LCA-Vision Inc. | |||
Consolidated Balance Sheets | |||
(Dollars in thousands, except per share amounts) | |||
At December 31, | |||
2002(1) | 2001(1) | ||
Assets | |||
Current assets |
| ||
Cash and cash equivalents | $ 18,298 | $ 16,609 | |
Accounts receivable, net | 393 | 517 | |
Receivable from vendor | 337 | 234 | |
Prepaid expenses, inventory and other | 1,462 | 1,959 | |
Total current assets | 20,490 | 19,319 | |
Property and equipment | 37,301 | 36,411 | |
Accumulated depreciation and amortization | (18,868) | (13,753) | |
Property and equipment, net | 18,433 | 22,658 | |
Goodwill, net | 275 | 275 | |
Deferred Compensation Plan Assets | 127 | - | |
Investment in unconsolidated businesses | 263 | 290 | |
Other assets, net | 408 | 646 | |
Total assets | $ 39,996 ============ | $ 43,188 ========== | |
Liabilities and Shareholders Investment | |||
Current liabilities |
| ||
Accounts payable | $ 3,855 | $ 2,645 | |
Accrued liabilities and other | 3,660 | 2,270 | |
Debt maturing in one year | 10 | 26 | |
Total current liabilities | 7,525 | 4,941 | |
Long-term debt | - | 4 | |
Deferred Compensation Liability | 129 | - | |
Minority equity interest | 230 | 41 | |
Shareholders investment | |||
Common stock ($.001 par value; 13,110,306 and 13,064,056 shares and | |||
10,743,109 and 11,513,299 shares issued and outstanding, respectively) | 13 | 52 | |
Contributed capital | 91,474 | 91,080 | |
Warrants | 1,982 | 2,105 | |
Notes receivable from shareholders | (1,532) | (1,488) | |
Common stock in treasury, at cost (2,367,197 shares and 1,550,757 shares) | (15,462) | (13,013) | |
Accumulated deficit | (44,338) | (40,512) | |
Accumulated other comprehensive loss | (25) | (22) | |
Total shareholders investment | 32,112 | 38,202 | |
Total liabilities and shareholders investment | $ 39,996 ============ | $ 43,188 ========== | |
(1) Unaudited |