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: April 22, 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 7. Financial Statements and Exhibits
(c)
Exhibits.
99.1 Earnings Release dated April 22, 2003
Item 9.
The information contained in this Item 9 of this Current Report is being furnished pursuant to “Item 12. Results of Operations and Financial Condition” of Form 8-K in accordance with SEC Release Nos. 33-8216; 34-47583.
The information in this Current Report is being furnished and shall not be deemed “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended.
On April 22, 2003, LCA-Vision Inc. issued an earnings release announcing its financial results for the first quarter ended March 31, 2003. A copy of the earnings release is attached as Exhibit 99.1.
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: 4/22/03 | 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 | Jody Cain |
Alan H. Buckey, CFO | (310) 691-7100 |
(513) 792-9292 | jcain@lhai.com |
www.lasikplus.com |
LCA-VISION REPORTS RECORD FIRST QUARTER EPS OF $0.16
Net income increases by 53% and average price realization up 10% compared with first quarter of 2002
CINCINNATI (April 22, 2003) – LCA-Vision Inc. (Nasdaq NM: LCAV),a leading provider of laser vision correction services through its LasikPlus branded centers, today reported net income for the first quarter ended March 31, 2003 of $1,757,000, or $0.16 per fully diluted share, compared with net income of $1,151,000, or $0.11 per fully diluted share, in the first quarter of 2002.
Laser vision correction revenues for the first quarter of 2003 grew more than 6% to $19,982,000, compared with $18,808,000 in the first quarter of 2002. Average price realization per procedure rose 10% to $1,173 in the first quarter of 2003, from $1,066 in the first quarter of 2002 and $1,090 in the fourth quarter of 2002.
Net cash provided by operations in the first quarter of 2003 was $3,296,000. As a result, cash and short-term investments increased to $21,182,000 at March 31, 2003, up from $18,298,000 as of December 31, 2002.
Stephen N. Joffe, Chairman and CEO of LCA-Vision, stated, “We are particularly pleased with our recent financial and operational performance, which puts LCA-Vision on track to achieve our full-year earnings per share objective of $0.30 to $0.35.
“We are encouraged by our programs to actively control costs while simultaneously improving key operating metrics, including patient volume per center, conversion rate, and price realization per procedure. We expect further increases in price realization during the balance of 2003, including from the newly implemented, highly customized laser eye surgery procedure,” explained Mr. Joffe.
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“We also anticipate additional revenue growth during the current year as we selectively open new LasikPlus centers in 2003. We have very specific criteria for center locations and we open each center with the expectation of reaching breakeven within six months,” added Mr. Joffe. “With our strengthened balance sheet, we are in a good position to continue our planned expansion.”
LCA-Vision has scheduled an investor conference call to be held today beginning at 10:00 a.m. Eastern Time. Individuals interested in listening to the conference call may do so by dialing 888-803-7404 toll free within the U.S. and Canada, or 706-634-1308 for international callers. A telephone replay will be available for 48 hours by dialing 800-642-1687 toll-free within the U.S. and Canada, or 706-645-9291 for international callers. Enter reservation number 9669483.
Individual investors are invited to listen to the conference call over the internet by going to the “Investors” section of the Company’s website atwww.lasikplus.com. A replay of the call will be available for 30 days.
LCA-Vision owns and operates 32 LasikPlus laser vision correction facilities in the U.S., 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. For a discussion of factors that may cause actual results to differ materially from current expectations, please review the Company’s filings with the Securities and Exchange Commission, including but not limited to forms 10-K and 10-Q.
[Tables to Follow]
LCA-Vision Inc. | ||||
Condensed Consolidated Statements of Income | ||||
(Dollars in thousands except per share data) | ||||
Three months ended March 31, | ||||
2003(1) | 2002(1) | |||
Revenues -- Laser refractive surgery | $ 19,982 | $ 18,808 | ||
Operating costs and expenses | ||||
Medical professional and license fees | 4,071 | 3,778 | ||
Direct costs of services | 7,774 | 7,514 | ||
General and administrative expenses | 2,018 | 2,162 | ||
Marketing and advertising | 2,975 | 3,104 | ||
Depreciation | 1,505 | 1,458 | ||
Special charges | - | (174) | ||
Operating income | 1,639 | 966 | ||
Equity in earnings from unconsolidated businesses | 147 | 117 | ||
Minority equity interest | (80) | (67) | ||
Interest expense | - | (2) | ||
Interest income | 36 | 137 | ||
Other income | 53 | - | ||
Income before taxes on income | 1,795 | 1,151 | ||
Income tax expense | 38 | - | ||
Net income | $ 1,757 | $ 1,151 | ||
Income per common share | ||||
Basic | $ 0.16 | $ 0.11 | ||
Diluted | $ 0.16 | $ 0.11 | ||
Weighted average shares outstanding | ||||
Basic | 10,743 | 10,957 | ||
Diluted | 10,744 | 10,965 | ||
(1) Unaudited | ||||
LCA-Vision Inc. | |||
Condensed Consolidated Balance Sheets | |||
(Dollars in thousands except per share data) | |||
Assets | March 31, 2003(1) | December 31, 2002 | |
Current Assets | |||
Cash and cash equivalents | $ 21,182 | $ 18,298 | |
Accounts receivable, net | 769 | 393 | |
Receivable from vendor | 444 | 337 | |
Prepaid expenses, inventory and other | 908 | 1,462 | |
Total current assets | 23,303 | 20,490 | |
Property and Equipment | 37,776 | 37,301 | |
Accumulated depreciation and amortization | (20,424) | (18,868) | |
Property and equipment, net | 17,352 | 18,433 | |
Goodwill, net | 275 | 275 | |
Deferred compensation plan assets | 200 | 127 | |
Investment in unconsolidated businesses | 395 | 263 | |
Other assets, net | 430 | 408 | |
Total assets | $ 41,955 | $ 39,996 | |
Liabilities and Shareholders' Investment | |||
Current liabilities | |||
Accounts payable | $ 2,686 | $ 3,855 | |
Accrued liabilities and other | 4,849 | 3,660 | |
Debt maturing in one year | 7 | 10 | |
Total current liabilities | 7,542 | 7,525 | |
Deferred compensation liability | 212 | 129 | |
Minority equity interest | 310 | 230 | |
Shareholders' investment | |||
Common stock ($0.001 par value; 13,110,306 and 13,110,306 shares and | |||
10,743,109 and 10,743,109 shares issued and outstanding, respectively) | 13 | 13 | |
Contributed capital | 91,474 | 91,474 | |
Warrants | 1,982 | 1,982 | |
Notes receivable from shareholders | (1,542) | (1,532) | |
Common stock in treasury, at cost (2,367,197 shares and 2,367,197 shares) | (15,462) | (15,462) | |
Accumulated deficit | (42,581) | (44,338) | |
Accumulated other comprehensive loss | 7 | (25) | |
Total shareholders' investment | 33,891 | 32,112 | |
Total liabilities and shareholders' investment | $ 41,955 | $ 39,996 | |
(1) Unaudited | |||
LCA-Vision Inc. | |||
Condensed Consolidated Statements of Cash Flow | |||
(Dollars in thousands except per share data) | |||
| |||
Three Months Ended March 31, | |||
2003(1) | 2002(1) | ||
Cash flow from operating activities: | |||
Net income | $ 1,757 | $ 1,151 | |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation | 1,505 | 1,458 | |
Warrant amortization | - | 175 | |
Deferred Compensation | 82 | - | |
Equity in earnings of unconsolidated affiliates | (147) | (117) | |
Restructuring/Impairment provision | - | (174) | |
Changes in working capital: |
| ||
Accounts receivable | (376) | (598) | |
Receivable from vendor | (107) | (260) | |
Prepaid expenses, inventory and other | 554 | 617 | |
Accounts payable | (1,169) | 229 | |
Accrued liabilities and other | 1,197 | 427 | |
Net cash provided by operations | 3,296 | 2,908 | |
Cash flow from investing activities: | |||
Purchase of property and equipment | (475) | (302) | |
Deferred Compensation Plan | (72) | - | |
Loans to shareholders | (10) | (12) | |
Other, net | 133 | (181) | |
Net cash used in investing activities | (424) | (495) | |
Cash flows from financing activities: | |||
Principal payments of long-term notes, debt and capital lease obligations | (3) | (8) | |
Shares repurchased for treasury stock | - | (2,460) | |
Exercise of stock options | - | 121 | |
Distribution of minority equity investees | 15 | 33 | |
Net cash used by financing activities | 12 | (2,314) | |
Increase in cash and cash equivalents | 2,884 | 99 | |
Cash and cash equivalents at beginning of period | 18,298 | 16,609 | |
Cash and cash equivalents at end of period | $ 21,182 | $ 16,708 | |
(1) Unaudited | |||
