EXHIBIT 99.1
News Release | Contact: | |
For Immediate Release | Anna Austin Vice President, Corporate Communications (314) 523-8354 investor.relations@tlcvision.com |
TLCVisionReports Q3-04 Financial Results
St. Louis, MO, November 8, 2004:TLC Vision Corporation (NASDAQ:TLCV; TSX:TLC), North America’s premier eye care services company, today announced its financial results for the three and nine month periods ended September 30, 2004. All dollar amounts are expressed in U.S. currency and results are reported in accordance with U.S. generally accepted accounting principles (U.S. GAAP) unless otherwise stated.
Q3-04 total net revenues were $56.6 million, up 23% from $46 million in the third quarter of 2003.
Third quarter total paid laser procedure volumes were over 45,600. Year-over-year volume increased 21% in the centers and 9% in the access business. The result was Q3-04 total procedure volumes were up 16% from 39,400 for the same three month period a year ago. The procedure volume mix in Q3-04 was 60% centers versus 40% access. CustomLASIK procedures represented approximately 55% of center volumes in Q3-04.
TLCVisionreported a Q3-04 net profit of $3.3 million or $0.05 per share, compared to a loss of ($4.1 million), or ($0.06) per share reported in last year’s third quarter. Third quarter 2004 adjusted EBITDA was $8.0 million, up 143% from the $3.3 million for the same period last year.
[Adjusted EBITDA is defined as earnings before interest, taxes, depreciation and amortization (“EBITDA”) excluding certain non-recurring items and research and development costs and is used to assist in understanding and comparing operating results. EBITDA and Adjusted EBITDA, which are not calculated identically by all companies, are not substitutes for operating income, net income and cash flow as determined in accordance with generally accepted accounting principles. Management uses EBITDA and Adjusted EBITDA as key measures of operating performance. Reference should be made to the “Adjusted EBITDA” table that provides reconciliation between operating results as prescribed by U.S. GAAP and “Adjusted EBITDA”.]
Jim Wachtman, TLCVision’s CEO, commented “Our premium model continues to demonstrate superior financial leverage even during a slow seasonal period. During our second quarter conference call, we said that growth trends were continuing, and they obviously have. Based on preliminary analysis, we now expect these trends to continue through the remainder of 2004 and into 2005. Additionally, we continue to improve our financial position, and are poised to capitalize on new growth opportunities.“
Conference Call
TLCVision is pleased to invite all interested parties to participate in a conference call during which these results will be discussed. The call will be held today, November 8, at 4:30 p.m. Eastern Time at 1-800-291-5032. The call will also be broadcast live and archived on the company’s web site at www.tlcv.com under the “Webcasts” link in the Investor Relations section. In addition, the live web cast will be available at various other popular portals and financial web sites.
About TLC Vision
TLCVision is North America’s premier eye care services company. The key drivers of TLCVision’s strategy are our affiliated network of thousands of eye doctors, proven corporate and consumer marketing and education programs, and access to state of the art clinical technologies. We are supported by a strong operations management culture and superior information technology. More information about the company can be found on the TLCVision web site at www.tlcv.com.
Forward Looking Statements
This press release contains certain forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934, which statements can be identified by the use of forward looking terminology, such as “may”, “will”, “expect”, ”intend”, “anticipate”, “estimate”, “predict”, “plans” or “continue” or the negative thereof or other variations thereon or comparable terminology referring to future events or results. The Company’s actual results could differ materially from those anticipated in these forward-looking statements as a result of numerous factors, including the timing of expenditures, effects of competition, changes to pricing, acquisitions and expansion opportunities, any of which could cause actual results to vary materially from current results or TLCVision’s anticipated future results. See the Company’s reports filed with the Canadian Securities Regulators and the U.S. Securities and Exchange Commission from time to time for cautionary statements identifying important factors with respect to such forward looking statements, including certain risks and uncertainties, that could cause actual results to differ materially from results referred to in forward looking statements. TLCVision assumes no obligation to update the information contained in this press release.
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TLC VISION CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In thousands except per share amounts)
| THREE MONTHS ENDED | NINE MONTHS ENDED | |||||||||||||||
| SEPTEMBER 30, | SEPTEMBER 30, | |||||||||||||||
| 2004 | 2003 | 2004 | 2003 | |||||||||||||
| Revenues | ||||||||||||||||
| Refractive | ||||||||||||||||
| Centers | $ | 30,955 | $ | 24,932 | $ | 106,167 | $ | 82,092 | ||||||||
| Access | 9,390 | 8,861 | 31,983 | 29,437 | ||||||||||||
| Other healthcare services | 16,299 | 12,221 | 48,330 | 35,607 | ||||||||||||
| Total revenues | 56,644 | 46,014 | 186,480 | 147,136 | ||||||||||||
| Cost of revenues | ||||||||||||||||
| Refractive | ||||||||||||||||
| Centers | 22,153 | 20,239 | 72,950 | 63,418 | ||||||||||||
| Access | 6,910 | 6,558 | 22,217 | 20,201 | ||||||||||||
| Other healthcare services | 9,972 | 7,752 | 29,684 | 23,182 | ||||||||||||
| Total cost of revenues | 39,035 | 34,549 | 124,851 | 106,801 | ||||||||||||
| Gross margin | 17,609 | 11,465 | 61,629 | 40,335 | ||||||||||||
| General and administrative | 8,152 | 8,023 | 23,453 | 24,355 | ||||||||||||
| Marketing | 3,350 | 3,118 | 9,679 | 10,275 | ||||||||||||
| Research and development | 125 | 975 | 849 | 975 | ||||||||||||
| Amortization of intangibles | 1,016 | 1,665 | 3,085 | 5,015 | ||||||||||||
| Adjustment to the fair value of investments and long-term receivables | — | 231 | (1,206 | ) | (217 | ) | ||||||||||
| Restructuring, severance and other charges | — | — | 2,755 | 1,720 | ||||||||||||
| 12,643 | 14,012 | 38,615 | 42,123 | |||||||||||||
| Operating income (loss) | 4,966 | (2,547 | ) | 23,014 | (1,788 | ) | ||||||||||
| Other income (expense), net | (237 | ) | 74 | 289 | 640 | |||||||||||
| Interest expense, net | (186 | ) | (325 | ) | (861 | ) | (1,086 | ) | ||||||||
| Minority interests | (1,674 | ) | (1,110 | ) | (6,002 | ) | (3,612 | ) | ||||||||
| Earnings from equity investments | 555 | — | 1,567 | — | ||||||||||||
| Income (loss) before income taxes | 3,424 | (3,908 | ) | 18,007 | (5,846 | ) | ||||||||||
| Income tax expense | (102 | ) | (182 | ) | (394 | ) | (627 | ) | ||||||||
| Net income (loss) | $ | 3,322 | $ | (4,090 | ) | $ | 17,613 | $ | (6,473 | ) | ||||||
| Earnings (loss) per share – basic | $ | 0.05 | $ | (0.06 | ) | $ | 0.26 | $ | (0.10 | ) | ||||||
| Earnings (loss) per share – diluted | $ | 0.05 | $ | (0.06 | ) | $ | 0.25 | $ | (0.10 | ) | ||||||
| Weighted average number of common shares outstanding — basic | 69,004 | 64,743 | 68,153 | 63,888 | ||||||||||||
| Weighted average number of common shares outstanding — diluted | 71,353 | 64,743 | 70,832 | 63,888 | ||||||||||||
| TLC VISION CORPORATION | ||||||||||||||||
| RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA | ||||||||||||||||
| (In thousands except per share amounts) | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| 3 months ended | 3 months ended | 9 months ended | 9 months ended | |||||||||||||
| September 30 | September 30 | September 30 | September 30 | |||||||||||||
| 2004 | 2003 | 2004 | 2003 | |||||||||||||
| Net income (loss) | $ | 3,322 | $ | (4,090 | ) | $ | 17,613 | $ | (6,473 | ) | ||||||
| Interest | 186 | 325 | 861 | 1,086 | ||||||||||||
| Taxes | 102 | 182 | 394 | 627 | ||||||||||||
| Depreciation and amortization | 4,286 | 5,760 | 13,304 | 16,807 | ||||||||||||
| EBITDA | 7,896 | 2,177 | 32,172 | 12,047 | ||||||||||||
| Research and development | 125 | 975 | 849 | 975 | ||||||||||||
| Variable stock option expense | (228 | ) | — | 106 | — | |||||||||||
| Restructuring, severance and other charges | — | — | 2,755 | 1,720 | ||||||||||||
| Adjustment to the fair value of investments and long-term receivables, net | - | 231 | (1,206 | ) | (217 | ) | ||||||||||
| Other income, net | 237 | (74 | ) | (289 | ) | (640 | ) | |||||||||
| Adjusted EBITDA | $ | 8,030 | $ | 3,309 | $ | 34,387 | $ | 13,885 | ||||||||
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TLC VISION CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands)
| (UNAUDITED) | ||||||||
| SEPTEMER 30, | DECEMBER 31, | |||||||
| 2004 | 2003 | |||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 53,496 | $ | 29,580 | ||||
| Short-term investments | 313 | 748 | ||||||
| Accounts receivable | 17,386 | 15,617 | ||||||
| Prepaids and other current assets | 12,573 | 11,646 | ||||||
| Total current assets | 83,768 | 57,591 | ||||||
| Restricted cash | 1,388 | 1,376 | ||||||
| Investments and other assets | 6,237 | 3,102 | ||||||
| Intangibles, net | 19,050 | 22,959 | ||||||
| Goodwill, net | 53,764 | 48,829 | ||||||
| Fixed assets, net | 48,435 | 56,891 | ||||||
| Total assets | $ | 212,642 | $ | 190,748 | ||||
| LIABILITIES | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 7,378 | $ | 10,627 | ||||
| Accrued liabilities | 25,018 | 25,811 | ||||||
| Current portion of long-term debt | 9,328 | 10,285 | ||||||
| Total current liabilities | 41,724 | 46,723 | ||||||
| Other long-term liabilities | 2,294 | 2,607 | ||||||
| Long-term debt, less current maturities | 10,501 | 19,242 | ||||||
| Minority interests | 9,625 | 10,907 | ||||||
| SHAREHOLDERS’ EQUITY | ||||||||
| Capital stock | 421,393 | 397,878 | ||||||
| Option and warrant equity | 4,244 | 8,143 | ||||||
| Accumulated deficit | (277,139 | ) | (294,752 | ) | ||||
| Total shareholders’ equity | 148,498 | 111,269 | ||||||
| Total liabilities and shareholders’ equity | $ | 212,642 | $ | 190,748 | ||||
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