News Release | Contact: | |
For Immediate Release | Anna Austin, EVP, Corporate Communications (314) 523-8354 Ian Chadsey, Manager, Investor Relations (905) 238-3904 Email: investor.relations@tlcvision.com |
TLCVisionReports Third Quarter 2005 Financial Results
St. Louis, Missouri, November 7, 2005: TLC Vision Corporation (NASDAQ:TLCV; TSX:TLC), North America’s premier eye care services company, today announced its financial results for the third quarter and nine month period ended September 30, 2005. 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 noted.
Third Quarter Highlights:
CONSOLIDATED: | ||
– – – | Revenues were $62 million EPS of $0.02 on net income of $1.7 million Operating cash flow was $6 million or $.09 per share | |
OPERATING BUSINESS (Excluding AMD): | ||
– – – | Revenues were $61 million EPS of $0.04 on net income of $2.8 million Operating cash flow was $10.4 million or $0.15 per share | |
Nine-Month Highlights: | ||
CONSOLIDATED: | ||
– – – | Revenues were $200 million EPS of $0.23 on net income of $16.8 million Operating cash flow was $19 million or $.27 per share | |
OPERATING BUSINESS (Excluding AMD): | ||
– – – | Revenues were $198 million EPS of $0.30 on net income of $21 million Operating cash flow was $34 million or $0.47 per share |
Editor’s Note: “Operating Business” (or “Operating”) is defined as TLCVision’s operating activities excluding the impact of the AMD segment, principally represented by our investment in OccuLogix Inc. To provide maximum transparency for investors, Operating Business financial results are listed separately from consolidated results in this press release.
HIGHER REVENUES
TLCVision’s third quarter net revenues from the Operating Business were $61.0 million vs. $57.5 million last year, an increase of $3.5 million or 6%. TLCVisionrefractive centers revenues were up 9% to $35 million, driven by a 4% increase in price per procedure vs. prior quarter. Year to date, centers refractive revenues were up 6%. Overall, centers quarterly procedure volume was equal to last year, as North American same store procedure volume was down by 5%, offset by volume from recent acquisitions. The access business revenues declined by $1.5 million during the quarter, with access procedure volumes down 18% as compared to the same period last year. Overall refractive procedures were 42,500 compared to 45,700 the prior year, down 7%.
Other healthcare revenues from ongoing operations grew by 20% over the prior year. Revenues from MSS were up 17%. Vision Source revenues were 21% higher than third quarter 2004.
SOLID NET INCOME AND EARNING PER SHARE
Consolidated net income for the third quarter was $1.7 million or $0.02 per share. After removing the loss from the Company’s 51% ownership in OccuLogix, Inc., net income from the Operating Business was $2.8 million or $0.04 per share, which was down $0.02 from prior year primarily as the result of lower volumes in the refractive business.
“Despite the dip in refractive volumes, we delivered a solid, profitable quarter,” said Jim Wachtman, President and Chief Executive Officer. “Currently, we are not seeing the levels of procedure growth that we or our shareholders would expect. To deliver higher growth rates, we have launched a new expansion strategy focused on the value-priced consumer segment, which includes our new LASIK Select branded centers and the acquisition of TruVision, a leading managed care contractor. We remain confident in our diversified service model and growth strategy, and comfortable with current analyst earnings expectations for full year 2005, before the impact of our AMD business.”
STRONG CASH GENERATION
The business model continues to demonstrate strong cash generation that will fund the growth strategy for the company.
Consolidated operating cash flow per share decreased 38% to $0.09 from $0.14, reflecting cash used in OccuLogix operations. Quarter-end consolidated cash and short-term investments totaled $101 million, up 88% vs. September 2004.
Operating cash flow from the Operating Business was $10.4 million or $0.15 per share, up marginally from last year. The company continues to maintain a strong financial position, with cash and short-term investments totaling $55.5 million. TLCVisioncompleted its previously announced share repurchase program in early October, with a total repurchase of two million shares of common stock.
NINE-MONTH FINANCIAL RESULTS
Total Operating Business net revenues were up 4% to $198 million compared to $190 million. Refractive revenues were $146 million, up 3%. Other healthcare revenues, excluding the AMD segment, were up 9% and MSS mobile cataract revenues were up 16%. Consolidated net income was $17 million or $0.23 per share. Operating Business earnings were $21 million or $0.30 per share, a level that compares to $0.29 for the entire year of 2004.
GROWTH STRATEGY ANNOUNCEMENTS
REFRACTIVE
TLCVisionrecently announced a new refractive expansion strategy that will establish 15 value-priced “LASIK Select” branded centers by the end of 2006. The company also acquired TruVision, a leading managed care contractor for elective health care services that will serve as a patient generation channel for the new LASIK Select centers. This acquisition provides an immediate entry point into the under-penetrated, value-priced market as TruVision is projected to refer over 23,000 LASIK procedures to its network of providers in 2005 and 28,000 in 2006.
AMBULATORY SURGERY CENTERS (ASC)
TLCVisionannounces the acquisition, effective November 1, 2005, of 49% of the Eastern Oregon Regional Surgery Center in Hermiston, Oregon. This ASC is well recognized in their market place and currently performs 800 cataract procedures annually.
In addition, TLCVisionannounces the development of a new surgery center in Milwaukee, Wisconsin. This two room ASC is a joint venture with American Surgisite and several area ophthalmologists, and is expected to open in May 2006.
MOBILE CATARACT
TLCVision announces the acquisition of 20/20 Medical, a Chicago, Illinois based mobile diagnostics company with 200 customers in 8 states. This is a strategic and geographic expansion of the growing in-office diagnostic services offering to ophthalmologists and optometrists.
Conference Call
TLCVisionis 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 7, at 10:30 a.m. Eastern Time at 800-756-8919. The call will also be broadcast live and archived on the Company’s web site atwww.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.
AboutTLCVision
TLCVisionis North America’s premier eye care services company, providing eye doctors with the tools and technologies needed to deliver high-quality patient care. Through its centers management and technology access service models, and its managed care contracting strength, TLCVision maintains leading positions in Refractive, Cataract, and AMD markets. More information about TLCVisioncan be found on the website atwww.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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
CONSOLIDATING STATEMENTS OF OPERATIONS (UNAUDITED) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands except per share amounts) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2005 | Three Months Ended September 30, 2004 | |||||||||||||||||||||||||||||||||||||||||||||||||||
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Results Before AMD | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||
Segment | AMD Segment | Total TLCVision | Results Before AMD Segment | AMD Segment | TLCVision | |||||||||||||||||||||||||||||||||||||||||||||||
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Revenues: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Refractive: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Centers | $ | 34,968 | $ | — | $ | 34,968 | $ | 32,003 | $ | — | $ | 32,003 | ||||||||||||||||||||||||||||||||||||||||
Access | 7,846 | — | 7,846 | 9,390 | — | 9,390 | ||||||||||||||||||||||||||||||||||||||||||||||
Other healthcare services | 18,190 | 635 | 18,825 | 16,080 | 219 | 16,299 | ||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | 61,004 | 635 | 61,639 | 57,473 | 219 | 57,692 | ||||||||||||||||||||||||||||||||||||||||||||||
Cost of revenues: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Refractive: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Centers | 26,147 | — | 26,147 | 23,201 | — | 23,201 | ||||||||||||||||||||||||||||||||||||||||||||||
Access | 6,319 | — | 6,319 | 6,910 | — | 6,910 | ||||||||||||||||||||||||||||||||||||||||||||||
Other healthcare services | 11,289 | 363 | 11,652 | 9,753 | 219 | 9,972 | ||||||||||||||||||||||||||||||||||||||||||||||
Total cost of revenues | 43,755 | 363 | 44,118 | 39,864 | 219 | 40,083 | ||||||||||||||||||||||||||||||||||||||||||||||
Gross profit (loss) | 17,249 | 272 | 17,521 | 17,609 | — | 17,609 | ||||||||||||||||||||||||||||||||||||||||||||||
General and administrative | 6,695 | 1,994 | 8,689 | 6,580 | 212 | 6,792 | ||||||||||||||||||||||||||||||||||||||||||||||
Marketing and sales | 5,279 | 119 | 5,398 | 4,688 | 22 | 4,710 | ||||||||||||||||||||||||||||||||||||||||||||||
Research and development, clinical and regulatory | — | 1,140 | 1,140 | — | 525 | 525 | ||||||||||||||||||||||||||||||||||||||||||||||
Amortization of intangibles | 1,047 | — | 1,047 | 1,016 | — | 1,016 | ||||||||||||||||||||||||||||||||||||||||||||||
Other | 198 | (166 | ) | 32 | (163 | ) | — | (163 | ) | |||||||||||||||||||||||||||||||||||||||||||
Total operating costs | 13,219 | 3,087 | 16,306 | 12,121 | 759 | 12,880 | ||||||||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | 4,030 | (2,815 | ) | 1,215 | 5,488 | (759 | ) | 4,729 | ||||||||||||||||||||||||||||||||||||||||||||
Interest income | 660 | 411 | 1,071 | 387 | — | 387 | ||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | (435 | ) | — | (435 | ) | (573 | ) | — | (573 | ) | ||||||||||||||||||||||||||||||||||||||||||
Minority interests | (1,867 | ) | 1,258 | (609 | ) | (1,674 | ) | — | (1,674 | ) | ||||||||||||||||||||||||||||||||||||||||||
Earnings from equity investments | 487 | — | 487 | 555 | — | 555 | ||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | 2,875 | (1,146 | ) | 1,729 | 4,183 | (759 | ) | 3,424 | ||||||||||||||||||||||||||||||||||||||||||||
Income tax expense | (27 | ) | (3 | ) | (30 | ) | (102 | ) | — | (102 | ) | |||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 2,848 | $ | (1,149 | ) | $ | 1,699 | $ | 4,081 | $ | (759 | ) | $ | 3,322 | ||||||||||||||||||||||||||||||||||||||
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Earnings (loss) per share — diluted | $ | 0.04 | $ | (0.02 | ) | $ | 0.02 | $ | 0.06 | $ | (0.01 | ) | $ | 0.05 | ||||||||||||||||||||||||||||||||||||||
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Weighted average number of common shares outstanding - diluted | 71,524 | 71,524 | 71,524 | 71,353 | 71,353 | 71,353 | ||||||||||||||||||||||||||||||||||||||||||||||
Note: The AMD segment primarily includes the Company’s majority interest in OccuLogix, Inc. (formerly Vascular Sciences Corp.). | �� | |||||||||||||||||||||||||||||||||||||||||||||||||||
TLC VISION CORPORATION | ||||||||||||||||||||||||||||||||||||||||||||||||||||
CONSOLIDATING STATEMENTS OF OPERATIONS (UNAUDITED) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands except per share amounts) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Nine Months Ended | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2005 | 2004 | |||||||||||||||||||||||||||||||||||||||||||||||||||
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Results Before AMD | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment | AMD Segment | Total TLCVision | Results Before AMD Segment | AMD Segment | Total TLCVision | |||||||||||||||||||||||||||||||||||||||||||||||
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Revenues: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Refractive: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Centers | $ | 116,743 | $ | — | $ | 116,743 | $ | 110,058 | $ | — | $ | 110,058 | ||||||||||||||||||||||||||||||||||||||||
Access | 29,085 | — | 29,085 | 31,983 | — | 31,983 | ||||||||||||||||||||||||||||||||||||||||||||||
Other healthcare services | 52,045 | 1,635 | 53,680 | 47,839 | 491 | 48,330 | ||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | 197,873 | 1,635 | 199,508 | 189,880 | 491 | 190,371 | ||||||||||||||||||||||||||||||||||||||||||||||
Cost of revenues: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Refractive: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Centers | 80,597 | — | 80,597 | 76,841 | — | 76,841 | ||||||||||||||||||||||||||||||||||||||||||||||
Access | 20,929 | — | 20,929 | 22,217 | — | 22,217 | ||||||||||||||||||||||||||||||||||||||||||||||
Other healthcare services | 31,617 | 1,393 | 33,010 | 29,131 | 553 | 29,684 | ||||||||||||||||||||||||||||||||||||||||||||||
Total cost of revenues | 133,143 | 1,393 | 134,536 | 128,189 | 553 | 128,742 | ||||||||||||||||||||||||||||||||||||||||||||||
Gross profit (loss) | 64,730 | 242 | 64,972 | 61,691 | (62 | ) | 61,629 | |||||||||||||||||||||||||||||||||||||||||||||
General and administrative | 21,108 | 5,868 | 26,976 | 19,174 | 393 | 19,567 | ||||||||||||||||||||||||||||||||||||||||||||||
Marketing and sales | 15,747 | 491 | 16,238 | 13,478 | 87 | 13,565 | ||||||||||||||||||||||||||||||||||||||||||||||
Research and development, clinical and regulatory | — | 3,794 | 3,794 | — | 1,249 | 1,249 | ||||||||||||||||||||||||||||||||||||||||||||||
Amortization of intangibles | 3,090 | — | 3,090 | 3,085 | — | 3,085 | ||||||||||||||||||||||||||||||||||||||||||||||
Other | (835 | ) | (166 | ) | (1,001 | ) | (1,895 | ) | — | (1,895 | ) | |||||||||||||||||||||||||||||||||||||||||
Restructuring, severance and other charges | — | — | — | 2,755 | — | 2,755 | ||||||||||||||||||||||||||||||||||||||||||||||
Total operating costs | 39,110 | 9,987 | 49,097 | 36,597 | 1,729 | 38,326 | ||||||||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | 25,620 | (9,745 | ) | 15,875 | 25,094 | (1,791 | ) | 23,303 | ||||||||||||||||||||||||||||||||||||||||||||
Interest income | 2,174 | 1,187 | 3,361 | 1,338 | — | 1,338 | ||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | (1,316 | ) | — | (1,316 | ) | (2,199 | ) | — | (2,199 | ) | ||||||||||||||||||||||||||||||||||||||||||
Minority interests | (6,567 | ) | 4,167 | (2,400 | ) | (6,002 | ) | — | (6,002 | ) | ||||||||||||||||||||||||||||||||||||||||||
Earnings from equity investments | 1,826 | — | 1,826 | 1,567 | — | 1,567 | ||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | 21,737 | (4,391 | ) | 17,346 | 19,798 | (1,791 | ) | 18,007 | ||||||||||||||||||||||||||||||||||||||||||||
Income tax expense | (527 | ) | (3 | ) | (530 | ) | (394 | ) | — | (394 | ) | |||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 21,210 | $ | (4,394 | ) | $ | 16,816 | $ | 19,404 | $ | (1,791 | ) | $ | 17,613 | ||||||||||||||||||||||||||||||||||||||
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Earnings (loss) per share — diluted | $ | 0.30 | $ | (0.07 | ) | $ | 0.23 | $ | 0.27 | $ | (0.02 | ) | $ | 0.25 | ||||||||||||||||||||||||||||||||||||||
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Weighted average number of common shares outstanding - diluted | 71,877 | 71,877 | 71,877 | 70,832 | 70,832 | 70,832 | ||||||||||||||||||||||||||||||||||||||||||||||
Note: The AMD segment primarily includes the Company’s majority interest in OccuLogix, Inc. (formerly Vascular Sciences Corp.). | ||||||||||||||||||||||||||||||||||||||||||||||||||||
TLC VISION CORPORATION | ||||||||||||||||||||||||||||||||||||||||||||||||||||
CONSOLIDATING BALANCE SHEETS | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2005 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(Unaudited) | December 31, 2004 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Results Before AMD | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment | AMD Segment | Total TLCVision | Results Before AMD Segment (Unaudited) | AMD Segment (Unaudited ) | Total TLCVision | |||||||||||||||||||||||||||||||||||||||||||||||
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ASSETS | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Current assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 37,263 | $ | 13,394 | $ | 50,657 | $ | 15,847 | $ | 17,588 | $ | 33,435 | ||||||||||||||||||||||||||||||||||||||||
Short-term investments | 18,200 | 32,435 | 50,635 | 68,515 | 42,500 | 111,015 | ||||||||||||||||||||||||||||||||||||||||||||||
Accounts receivable | 18,063 | 949 | 19,012 | 16,489 | 954 | 17,443 | ||||||||||||||||||||||||||||||||||||||||||||||
Prepaids and other current assets | 11,874 | 6,398 | 18,272 | 12,212 | 1,609 | 13,821 | ||||||||||||||||||||||||||||||||||||||||||||||
Total current assets | 85,400 | 53,176 | 138,576 | 113,063 | 62,651 | 175,714 | ||||||||||||||||||||||||||||||||||||||||||||||
Intercompany | 1,679 | (1,679 | ) | — | 1,877 | (1,877 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||
Restricted cash | 1,140 | — | 1,140 | 932 | — | 932 | ||||||||||||||||||||||||||||||||||||||||||||||
Investments and other assets | 12,497 | — | 12,497 | 10,482 | — | 10,482 | ||||||||||||||||||||||||||||||||||||||||||||||
Goodwill | 89,039 | — | 89,039 | 53,774 | — | 53,774 | ||||||||||||||||||||||||||||||||||||||||||||||
Intangibles, net | 22,587 | 116 | 22,703 | 18,037 | 103 | 18,140 | ||||||||||||||||||||||||||||||||||||||||||||||
Fixed assets, net | 46,853 | 495 | 47,348 | 45,636 | 563 | 46,199 | ||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 259,195 | $ | 52,108 | $ | 311,303 | $ | 243,801 | $ | 61,440 | $ | 305,241 | ||||||||||||||||||||||||||||||||||||||||
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LIABILITIES | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Current liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts payable | $ | 8,688 | $ | 113 | $ | 8,801 | $ | 8,491 | $ | 225 | $ | 8,716 | ||||||||||||||||||||||||||||||||||||||||
Accrued liabilities | 25,807 | 2,827 | 28,634 | 23,425 | 3,714 | 27,139 | ||||||||||||||||||||||||||||||||||||||||||||||
Current portion of long-term debt | 4,572 | — | 4,572 | 8,664 | — | 8,664 | ||||||||||||||||||||||||||||||||||||||||||||||
Total current liabilities | 39,067 | 2,940 | 42,007 | 40,580 | 3,939 | 44,519 | ||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt, less current maturities | 12,020 | — | 12,020 | 9,991 | — | 9,991 | ||||||||||||||||||||||||||||||||||||||||||||||
Other long-term liabilities | 2,640 | — | 2,640 | 2,242 | 480 | 2,722 | ||||||||||||||||||||||||||||||||||||||||||||||
Minority interests | 15,030 | 24,222 | 39,252 | 9,307 | 27,915 | 37,222 | ||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities | 68,757 | 27,162 | 95,919 | 62,120 | 32,334 | 94,454 | ||||||||||||||||||||||||||||||||||||||||||||||
STOCKHOLDERS’ EQUITY | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital stock | 422,095 | 30,317 | 452,412 | 428,877 | 30,082 | 458,959 | ||||||||||||||||||||||||||||||||||||||||||||||
Option and warrant equity | 1,868 | — | 1,868 | 2,872 | — | 2,872 | ||||||||||||||||||||||||||||||||||||||||||||||
Treasury stock | (4,668 | ) | (4,668 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||
Accumulated deficit | (228,857 | ) | (5,371 | ) | (234,228 | ) | (250,068 | ) | (976 | ) | (251,044 | ) | ||||||||||||||||||||||||||||||||||||||||
Total stockholders’ equity | 190,438 | 24,946 | 215,384 | 181,681 | 29,106 | 210,787 | ||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 259,195 | $ | 52,108 | $ | 311,303 | $ | 243,801 | $ | 61,440 | $ | 305,241 | ||||||||||||||||||||||||||||||||||||||||
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Note: The AMD segment primarily includes the Company’s majority interest in OccuLogix, Inc. (formerly Vascular Sciences Corp.). | ||||||||||||||||||||||||||||||||||||||||||||||||||||
TLC VISION CORPORATION | ||||||||||||||||||||||||||||||||||||||||||||||||||||
CONSOLIDATING STATEMENTS OF CASH FLOWS (UNAUDITED) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands except per share amounts) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Nine Months Ended | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2005 | 2004 | |||||||||||||||||||||||||||||||||||||||||||||||||||
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Results Before AMD | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment | AMD Segment | Total TLCVision | Results Before AMD Segment | AMD Segment | Total TLCVision | |||||||||||||||||||||||||||||||||||||||||||||||
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OPERATING ACTIVITIES | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 21,210 | $ | (4,394 | ) | $ | 16,816 | $ | 19,404 | $ | (1,791 | ) | $ | 17,613 | ||||||||||||||||||||||||||||||||||||||
Adjustments to reconcile net income (loss) to net cash from operating activities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 11,931 | 88 | 12,019 | 13,251 | 53 | 13,304 | ||||||||||||||||||||||||||||||||||||||||||||||
Write-offs (reimbursements) of investments in research and development | ||||||||||||||||||||||||||||||||||||||||||||||||||||
arrangements | (300 | ) | — | (300 | ) | (400 | ) | 1,249 | 849 | |||||||||||||||||||||||||||||||||||||||||||
Minority interests | 6,567 | (4,167 | ) | 2,400 | 6,002 | — | 6,002 | |||||||||||||||||||||||||||||||||||||||||||||
Earnings from equity investments | (1,826 | ) | — | (1,826 | ) | (1,567 | ) | — | (1,567 | ) | ||||||||||||||||||||||||||||||||||||||||||
Loss (gain) on disposals of fixed assets | (38 | ) | (166 | ) | (204 | ) | 1,032 | — | 1,032 | |||||||||||||||||||||||||||||||||||||||||||
Gain on the sales of subsidiaries | (319 | ) | — | (319 | ) | (1,143 | ) | — | (1,143 | ) | ||||||||||||||||||||||||||||||||||||||||||
Non-cash compensation expense | 69 | 216 | 285 | 424 | — | 424 | ||||||||||||||||||||||||||||||||||||||||||||||
Adjustment to the fair value of investments and long-term receivables | — | — | — | (1,206 | ) | (1,206 | ) | |||||||||||||||||||||||||||||||||||||||||||||
Other | — | 135 | 135 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Changes in operating assets and liabilities, net of acquisitions and dispositions: | (3,594 | ) | (6,286 | ) | (9,880 | ) | (6,309 | ) | 686 | (5,623 | ) | |||||||||||||||||||||||||||||||||||||||||
Cash from operating activities | 33,700 | (14,574 | ) | 19,126 | 29,488 | 197 | 29,685 | |||||||||||||||||||||||||||||||||||||||||||||
INVESTING ACTIVITIES | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases of fixed assets | (6,526 | ) | (138 | ) | (6,664 | ) | (4,115 | ) | (128 | ) | (4,243 | ) | ||||||||||||||||||||||||||||||||||||||||
Proceeds from sales of fixed assets | 966 | 284 | 1,250 | 900 | — | 900 | ||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from divestitures of investments and subsidiaries, net | 3,430 | — | 3,430 | 729 | — | 729 | ||||||||||||||||||||||||||||||||||||||||||||||
Distributions and loan payments received from equity investments | 1,828 | — | 1,828 | 792 | — | 792 | ||||||||||||||||||||||||||||||||||||||||||||||
Reimbursements from (investments in) research and development arrangements | 300 | — | 300 | (849 | ) | — | (849 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Acquisitions and equity investments | (42,119 | ) | — | (42,119 | ) | (5,245 | ) | — | (5,245 | ) | ||||||||||||||||||||||||||||||||||||||||||
Proceeds from sales of short-term investments | 78,025 | 20,550 | 98,575 | 2,165 | — | 2,165 | ||||||||||||||||||||||||||||||||||||||||||||||
Purchases of short-term investments | (27,710 | ) | (10,585 | ) | (38,295 | ) | (31,230 | ) | — | (31,230 | ) | |||||||||||||||||||||||||||||||||||||||||
Other | 48 | (15 | ) | 33 | 711 | — | 711 | |||||||||||||||||||||||||||||||||||||||||||||
Cash from investing activities | 8,242 | 10,096 | 18,338 | (36,142 | ) | (128 | ) | (36,270 | ) | |||||||||||||||||||||||||||||||||||||||||||
FINANCING ACTIVITIES | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted cash movement | (208 | ) | — | (208 | ) | (12 | ) | — | (12 | ) | ||||||||||||||||||||||||||||||||||||||||||
Principal payments of debt financing and capital leases | (7,500 | ) | — | (7,500 | ) | (12,137 | ) | — | (12,137 | ) | ||||||||||||||||||||||||||||||||||||||||||
Proceeds from debt financing | 1,489 | — | 1,489 | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Distributions to minority interests | (6,024 | ) | — | (6,024 | ) | (5,536 | ) | — | (5,536 | ) | ||||||||||||||||||||||||||||||||||||||||||
Purchases of treasury stock | (10,031 | ) | — | (10,031 | ) | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Proceeds from issuance of common stock | 1,748 | — | 1,748 | 19,121 | — | 19,121 | ||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from issuance of OccuLogix, Inc. common stock | — | 284 | 284 | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Cash from financing activities | (20,526 | ) | 284 | (20,242 | ) | 1,436 | — | 1,436 | ||||||||||||||||||||||||||||||||||||||||||||
Net increase (decrease) in cash and cash equivalents during the period | 21,416 | (4,194 | ) | 17,222 | (5,218 | ) | 69 | (5,149 | ) | |||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents, beginning of period | 15,847 | 17,588 | 33,435 | 21,554 | 26 | 21,580 | ||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents, end of period | $ | 37,263 | $ | 13,394 | $ | 50,657 | $ | 16,336 | $ | 95 | $ | 16,431 | ||||||||||||||||||||||||||||||||||||||||
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Operating cash flow per diluted share | $ | 0.47 | $ | (0.20 | ) | $ | 0.27 | $ | 0.42 | $ | 0.00 | $ | 0.42 | |||||||||||||||||||||||||||||||||||||||
Note: The AMD segment primarily includes the Company’s majority interest in OccuLogix, Inc. (formerly Vascular Sciences Corp.). |
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