News Release | Contact: | |
For Immediate Release | James J. Hyland, VP Investor Relations (636) 534-2369 Email: investor.relations@tlcvision.com |
TLCVisionReports 2007 Same-Store Procedure Growth up 7%
Issues First Quarter 2008 EPS Guidance of $0.07
ST. LOUIS, MO, March 12, 2008:TLC Vision Corporation(NASDAQ:TLCV; TSX:TLC), North America’s premier eye care services company, today announced results for the fourth quarter and full-year ended December 31, 2007 and offered guidance for the first quarter of 2008.
Jim Wachtman, President and Chief Executive Officerof TLCVision, commented, “TLC made great strides during 2007, despite the fact that it was a year of transition and investment for the Company. Our revenues were up across all three business segments. At the same time, we completed some significant strategic goals: implemented a new refractive strategy, simplified our overall business and improved our operating discipline, refined our strategic focus, and strengthened our executive leadership team. Overall, we reinforced our position as a leading competitor for 2008 and beyond.
During 2007 and the first quarter of 2008, we not only successfully repositioned 54 of our centers to our new refractive strategy, we also significantly increased consumer awareness of the TLC brand in the marketplace. Recent consumer awareness studies indicate an increased likelihood for consumers to consider TLC for LASIK over our competitors. Use of Tiger Woods in our consumer advertising has greatly enhanced the TLC image of trust and quality, and our direct to consumer message is well-positioned in the marketplace. As a result of our multi-pronged marketing strategy, we delivered 6.7% same-store procedure growth and 13.6% overall procedure growth in our repositioned centers, well above industry growth rates.
Our first quarter performance for 2008 has been very strong. As we announced earlier this quarter, the Company recorded a 14.3% increase in same-store refractive center procedures for January. In addition, we anticipate first quarter 2008 same-store procedure volume will show absolute growth well in excess of industry levels. We anticipate that first quarter 2008 revenues will be approximately $89 million and first quarter 2008 EPS will be approximately $0.07 per fully diluted share. We will continue to make progress in 2008 as we now have the right strategy, the right people and the right business model in place.”
Fourth Quarter 2007 Results and Highlights
• | Revenue for the fourth quarter was $66.3 million, a 5.7% increase over prior year revenue of $62.7 million. *Pro forma revenue, including revenue from discontinued operations for the three months ended December 31, 2007 was $67.0 million, compared to $63.5 million for the prior year period, an increase of 5.4%. |
• | Refractive Centers revenue increased by 4.8% to $36.3 million on the strength of higher center procedures (up 2.5% on a same store basis to 20,800 for majority-owned centers). Total center procedures including minority-owned centers) increased 1.1% to 24,800. |
oDoctor Services revenue increased 4.0% to $23.3 million. oEye Care revenue increased 18% to $6.7 million. |
• | TLC opened one new de novo refractive center in Kennesaw, Georgia and announced the opening of its new Toronto, Ontario center in Q1 2008. |
• | The Company completed the sale of its interest in Oxford Eye Surgery Center (Oxford, MS) on December 31, 2007. Combined with the sale of its Midland, TX ambulatory surgery center (sold in the third quarter of 2007) and the recently announced sale of its interest in the Rockland Surgery Center (Wilmington, DE), this reduces the number of stand-alone ambulatory surgery centers in the Company’s portfolio to five. |
• | Consolidated net loss for the fourth quarter was ($25.3) million ($0.51 per diluted share), compared to a net loss of ($2.4) million from the prior year period. The consolidated quarterly net loss includes non-cash charges from the Company’s interest in OccuLogix, Inc. ($6.6 million) and impairment and restructuring charges ($6.5 million). |
• | *Pro forma net loss before AMD, excluding the charges noted above, as well as normalizing interest expense and income taxes, was ($6.8) million, or ($0.14) per diluted share, compared to a net loss of ($1.9) million, or ($0.04) per diluted share, in the prior year period. |
• | Fourth quarter operating cash flow was $1.5 million, or $0.03 per share, compared to $3.0 million, or $0.04 per share, in the prior year period. |
Full-Year 2007 Results
• | Revenue for the twelve months ended December 31, 2007 was $298.4 million, compared to $277.8 million for the prior year period, an increase of 7.4%. *Pro forma revenue, including revenue from discontinued operations for the twelve months ended December 31, 2007 was $301.9 million, compared to $281.8 million for the prior year period, an increase of 7.1%. |
• | Consolidated net loss was ($43.5) million ($0.74 per fully diluted share) compared to net income of $11.5 million, or $0.17 per fully diluted share, for the prior year period, and reflects the impact of the non-cash charges from the Company’s interest in OccuLogix, Inc. ($12.5 million) and impairment and restructuring charges ($21.0 million). |
• | *Pro forma net loss before AMD, excluding the charges noted above, as well as normalizing interest expense and income taxes, was ($1.2) million, or ($0.02) per diluted share, compared to net income of $12.5 million, or $0.21 per diluted share, in the prior year period. |
• | Year-to-date operating cash flow was $31.3 million, or $0.53 per share, compared to $38.4 million, or $0.55 per share, in the prior year period. The primary reason for the decrease was the incremental investment in the Refractive Centers business. |
• | As previously announced, the Company completed a recapitalization in June, prior to a general downturn in the overall financial markets in the second half of 2007. The recapitalization allowed TLC to return $115 million in immediate value to shareholders. |
Wachtman continued. “While we are concerned about the current trends in the overall consumer economy, we remain encouraged about TLC’s market position and strategy and believe that the steps we have taken throughout 2007 will continue to drive increased market penetration and above-average industry growth going forward.”
* Pro-forma results are presented to facilitate a comparison of current year and prior year results. The calculations of pro-forma results are not specified by United States generally accepted accounting principles. Our calculations of pro-forma results may not be comparable to similarly–titled measures of other companies. A reconciliation of reported net income to pro-forma net income for both the quarter and twelve months is included in the attached Consolidated Statements of Operation.
Conference Call
TLCVisioninvites all interested parties to participate in a conference call during which time the financial and operating results will be discussed. The call will be held today, at 9:00 a.m. Eastern Standard Time. To participate, please dial 866-852-2121 or 416-641-6119 (international callers). The call will be broadcast live on the Company’s web site atwww.tlcv.com under the “Webcasts” link in the Investor Relations section.
A replay of the conference call will be available until March 26, 2008. To access the replay, dial 800-408-3053 or 416-695-5800 (international callers) and enter the pass code: 3251532. The call will also be archived on the Company’s web site atwww.tlcv.com under the “Webcasts” link in the Investor Relations section.
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, Section 21E of the U.S. Securities Exchange Act of 1934 and Canadian Provincial Securities Laws, 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. We caution that all forward-looking information is inherently uncertain and that actual results may differ materially from the assumptions, estimates or expectations reflected in the forward-looking information. A number of factors could cause actual results to differ materially from those in forward-looking statements, including but not limited to economic conditions, the level of competitive intensity for laser vision correction, the market acceptance of laser vision correction, concerns about potential side effects and long term effects of laser vision correction, the ability to maintain agreements with doctors on satisfactory terms, quarterly fluctuation of operating results that make financial forecasting difficult, the volatility of the market price of our common shares, profitability of investments, successful execution of our direct-to-consumer marketing programs, the ability to open new centers, the reliance on key personnel, medical malpractice claims and the ability to maintain adequate insurance therefore, claims for federal, state and local taxes, compliance with industry regulation, compliance with U.S. and Canadian healthcare regulations, disputes regarding intellectual property, many of which are beyond our control.
Therefore, should one or more of theses risks materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary significantly from what we currently foresee. Accordingly, we warn investors to exercise caution when considering any such forward-looking information herein and to not place undue reliance on such statements and assumptions. We are under no obligation (and we expressly disclaim any such obligation) to update or alter any forward-looking statements or assumptions whether as a result of new information, future events or otherwise, except as required by law.
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. TLCVisionassumes no obligation to update the information contained in this press release.
About TLCVision
TLCVision is 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, extensive optometric relationships, direct to consumer advertising and managed care contracting strength, TLCVision maintains leading positions in Refractive, Cataract and Eye Care markets. Information about vision correction surgery can be found on the TLC Laser Eye Centers website at www.tlcvision.com. More information about TLCVision can be found on the website at www.tlcv.com.
Note that the unaudited, interim consolidated financial statements for the three and twelve months ended December 31, 2006 include certain reclassifications to conform with the business-line and segment classifications for the three and twelve months ended December 31, 2007.
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CONSOLIDATING STATEMENTS OF OPERATIONS (UNAUDITED) | ||||||||||||||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||||||||||||||
Three Months Ended December 31, 2007 | Three Months Ended December 31, 2006 | |||||||||||||||||||||||||||
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Results Before AMD | Results Before AMD | |||||||||||||||||||||||||||||||||||||||||||||||||||
Segment | AMD Segment | Total TLCVision | Segment | AMD Segment | Total TLCVision | |||||||||||||||||||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Refractive centers | $ | 36,311 | $ | - | $ | 36,311 | $ | 34,652 | $ | - | $ | 34,652 | ||||||||||||||||||||||||||||||||||||||||
Doctor services | 23,321 | - | 23,321 | 22,411 | - | 22,411 | ||||||||||||||||||||||||||||||||||||||||||||||
Eye care | 6,662 | - | 6,662 | 5,646 | - | 5,646 | ||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | 66,294 | - | 66,294 | 62,709 | - | 62,709 | ||||||||||||||||||||||||||||||||||||||||||||||
Cost of revenues (excluding amortization): | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Refractive centers | 29,383 | - | 29,383 | 26,655 | - | 26,655 | ||||||||||||||||||||||||||||||||||||||||||||||
Doctor services | 17,066 | - | 17,066 | 16,529 | - | 16,529 | ||||||||||||||||||||||||||||||||||||||||||||||
Eye care | 2,940 | - | 2,940 | 2,426 | - | 2,426 | ||||||||||||||||||||||||||||||||||||||||||||||
Total cost of revenues (excluding amortization) | 49,389 | - | 49,389 | 45,610 | - | 45,610 | ||||||||||||||||||||||||||||||||||||||||||||||
Gross profit | 16,905 | - | 16,905 | 17,099 | - | 17,099 | ||||||||||||||||||||||||||||||||||||||||||||||
General and administrative | 8,606 | - | 8,606 | 8,550 | - | 8,550 | ||||||||||||||||||||||||||||||||||||||||||||||
Marketing and sales | 12,389 | - | 12,389 | 7,467 | - | 7,467 | ||||||||||||||||||||||||||||||||||||||||||||||
Research and development, clinical and regulatory | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||
Amortization of intangibles | 844 | - | 844 | 865 | - | 865 | ||||||||||||||||||||||||||||||||||||||||||||||
Impairment of goodwill and other assets | 4,550 | - | 4,550 | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||
Other expenses, net | 1,771 | - | 1,771 | 781 | - | 781 | ||||||||||||||||||||||||||||||||||||||||||||||
Total operating costs | 28,160 | - | 28,160 | 17,663 | - | 17,663 | ||||||||||||||||||||||||||||||||||||||||||||||
Operating loss | (11,255 | ) | - | (11,255 | ) | (564 | ) | - | (564 | ) | ||||||||||||||||||||||||||||||||||||||||||
Loss on sale of Occulogix, Inc. stock | - | (34 | ) | (34 | ) | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||
Interest income | 227 | - | 227 | 525 | - | 525 | ||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | (2,370 | ) | - | (2,370 | ) | (404 | ) | - | (404 | ) | ||||||||||||||||||||||||||||||||||||||||||
Minority interests | (1,979 | ) | - | (1,979 | ) | (1,977 | ) | - | (1,977 | ) | ||||||||||||||||||||||||||||||||||||||||||
(Loss) earnings from equity investments | (81 | ) | (6,573 | ) | (6,654 | ) | 450 | (2,506 | ) | (2,056 | ) | |||||||||||||||||||||||||||||||||||||||||
(Loss) income from continuing operations before | ||||||||||||||||||||||||||||||||||||||||||||||||||||
income taxes | (15,458 | ) | (6,607 | ) | (22,065 | ) | (1,970 | ) | (2,506 | ) | (4,476 | ) | ||||||||||||||||||||||||||||||||||||||||
Income tax (expense) benefit | (3,445 | ) | - | (3,445 | ) | 5,027 | - | 5,027 | ||||||||||||||||||||||||||||||||||||||||||||
(Loss) income from continuing operations | (18,903 | ) | (6,607 | ) | (25,510 | ) | 3,057 | (2,506 | ) | 551 | ||||||||||||||||||||||||||||||||||||||||||
Income (loss) from discontinued operations, net | ||||||||||||||||||||||||||||||||||||||||||||||||||||
of tax | 226 | - | 226 | (2,912 | ) | - | (2,912 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Net (loss) income | $ | (18,677 | ) | $ | (6,607 | ) | $ | (25,284 | ) | $ | 145 | $ | (2,506 | ) | $ | (2,361 | ) | |||||||||||||||||||||||||||||||||||
(Loss) earnigns per share — diluted | $ | (0.37 | ) | $ | (0.13 | ) | $ | (0.51 | ) | $ | 0.00 | $ | (0.03 | ) | $ | (0.03 | ) | |||||||||||||||||||||||||||||||||||
Weighted average number of common shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||
outstanding — diluted | 49,928 | 49,928 | 49,928 | 69,759 | 69,759 | 69,759 | ||||||||||||||||||||||||||||||||||||||||||||||
Calculation of Pro Forma Net Income and EPS | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net (loss) income, as reported | $ | (18,677 | ) | $ | 145 | |||||||||||||||||||||||||||||||||||||||||||||||
Add: Non-recurring costs | 6,513 | 5,305 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense from Dutch tender | 0 | (1,779 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||
Adjust income tax expense to 21% | 5,275 | (5,545 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||
Pro forma net (loss) income | $ | (6,889 | ) | $ | (1,874 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
Pro forma (loss) earnings per share | $ | (0.14 | ) | $ | (0.04 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
Calculation of Pro Forma Total Revenues | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues, as reported | $ | 66,294 | $ | 62,709 | ||||||||||||||||||||||||||||||||||||||||||||||||
Add: Revenues from Discontinued Operations | 665 | 832 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Pro forma total revenues | $ | 66,959 | $ | 63,541 | ||||||||||||||||||||||||||||||||||||||||||||||||
Note: The AMD segment includes the Company’s interest in OccuLogix, Inc. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
TLC VISION CORPORATION | ||||||||||||||||||||||||||||||||||||||||||||||||||||
CONSOLIDATING STATEMENTS OF OPERATIONS (UNAUDITED) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Twelve Months Ended December 31, 2007 | Twelve Months Ended December 31, 2006 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Results Before AMD | Results Before AMD | |||||||||||||||||||||||||||||||||||||||||||||||||||
Segment | AMD Segment | Total TLCVision | Segment | AMD Segment | Total TLCVision | |||||||||||||||||||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Refractive centers | $ | 174,816 | $ | - | $ | 174,816 | $ | 161,822 | $ | - | $ | 161,822 | ||||||||||||||||||||||||||||||||||||||||
Doctor services | 97,087 | - | 97,087 | 93,171 | - | 93,171 | ||||||||||||||||||||||||||||||||||||||||||||||
Eye care | 26,511 | - | 26,511 | 22,860 | - | 22,860 | ||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | 298,414 | - | 298,414 | 277,853 | - | 277,853 | ||||||||||||||||||||||||||||||||||||||||||||||
Cost of revenues (excluding amortization): | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Refractive centers | 126,804 | - | 126,804 | 114,883 | - | 114,883 | ||||||||||||||||||||||||||||||||||||||||||||||
Doctor services | 70,281 | - | 70,281 | 66,662 | - | 66,662 | ||||||||||||||||||||||||||||||||||||||||||||||
Eye care | 11,999 | - | 11,999 | 9,733 | 1,659 | 11,392 | ||||||||||||||||||||||||||||||||||||||||||||||
Total cost of revenues (excluding amortization) | 209,084 | - | 209,084 | 191,278 | 1,659 | 192,937 | ||||||||||||||||||||||||||||||||||||||||||||||
Gross profit (loss) | 89,330 | - | 89,330 | 86,575 | (1,659 | ) | 84,916 | |||||||||||||||||||||||||||||||||||||||||||||
General and administrative | 34,819 | - | 34,819 | 32,717 | 1,759 | 34,476 | ||||||||||||||||||||||||||||||||||||||||||||||
Marketing and sales | 42,979 | - | 42,979 | 27,622 | 169 | 27,791 | ||||||||||||||||||||||||||||||||||||||||||||||
Research and development, clinical and regulatory | - | - | - | - | 1,475 | 1,475 | ||||||||||||||||||||||||||||||||||||||||||||||
Amortization of intangibles | 3,398 | - | 3,398 | 3,451 | - | 3,451 | ||||||||||||||||||||||||||||||||||||||||||||||
Impairment of goodwill and other assets | 7,659 | - | 7,659 | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||
Other expenses, net | 2,753 | - | 2,753 | 25 | 849 | 874 | ||||||||||||||||||||||||||||||||||||||||||||||
Total operating costs | 91,608 | - | 91,608 | 63,815 | 4,252 | 68,067 | ||||||||||||||||||||||||||||||||||||||||||||||
Operating (loss) income | (2,278 | ) | - | (2,278 | ) | 22,760 | (5,911 | ) | 16,849 | |||||||||||||||||||||||||||||||||||||||||||
Gain on sale of Occulogix, Inc. stock | - | 899 | 899 | - | 1,450 | 1,450 | ||||||||||||||||||||||||||||||||||||||||||||||
Interest income | 1,621 | - | 1,621 | 1,964 | 366 | 2,330 | ||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | (5,778 | ) | - | (5,778 | ) | (1,455 | ) | - | (1,455 | ) | ||||||||||||||||||||||||||||||||||||||||||
Minority interests | (8,921 | ) | - | (8,921 | ) | (9,228 | ) | 2,715 | (6,513 | ) | ||||||||||||||||||||||||||||||||||||||||||
Earnings (losses) from equity investments | 1,029 | (13,396 | ) | (12,367 | ) | 3,173 | (5,809 | ) | (2,636 | ) | ||||||||||||||||||||||||||||||||||||||||||
(Loss) income from continuing operations before | ||||||||||||||||||||||||||||||||||||||||||||||||||||
income taxes | (14,327 | ) | (12,497 | ) | (26,824 | ) | 17,214 | (7,189 | ) | 10,025 | ||||||||||||||||||||||||||||||||||||||||||
Income tax (expense) benefit | (8,476 | ) | - | (8,476 | ) | 3,655 | - | 3,655 | ||||||||||||||||||||||||||||||||||||||||||||
(Loss) income from continuing operations | (22,803 | ) | (12,497 | ) | (35,300 | ) | 20,869 | (7,189 | ) | 13,680 | ||||||||||||||||||||||||||||||||||||||||||
(Loss) income from discontinued operations, net | ||||||||||||||||||||||||||||||||||||||||||||||||||||
of tax | (8,214 | ) | - | (8,214 | ) | (2,161 | ) | - | (2,161 | ) | ||||||||||||||||||||||||||||||||||||||||||
Net (loss) income | $ | (31,017 | ) | $ | (12,497 | ) | $ | (43,514 | ) | $ | 18,708 | $ | (7,189 | ) | $ | 11,519 | ||||||||||||||||||||||||||||||||||||
(Loss) earnings per share — diluted | $ | (0.53 | ) | $ | (0.21 | ) | $ | (0.74 | ) | $ | 0.27 | $ | (0.10 | ) | $ | 0.17 | ||||||||||||||||||||||||||||||||||||
Weighted average number of common shares | ||||||||||||||||||||||||||||||||||||||||||||||||||||
outstanding — diluted | 59,139 | 59,139 | 59,139 | 69,580 | 69,580 | 69,580 | ||||||||||||||||||||||||||||||||||||||||||||||
Calculation of Pro Forma Net Income and EPS | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net (loss) income, as reported | (31,017 | ) | 18,708 | |||||||||||||||||||||||||||||||||||||||||||||||||
Add: Non-recurring costs | 20,987 | 5,305 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense from Dutch tender | 0 | (3,829 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||
Adjust income tax expense to 21% | 8,802 | (7,722 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||
Pro forma net (loss) income | (1,228 | ) | 12,462 | |||||||||||||||||||||||||||||||||||||||||||||||||
$ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Pro forma (loss) earnings per share | $ | (0.02 | ) | 0.21 | ||||||||||||||||||||||||||||||||||||||||||||||||
Calculation of Pro Forma Total Revenues | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues, as reported | $ | 298,414 | $ | 277,853 | ||||||||||||||||||||||||||||||||||||||||||||||||
Add: Revenues from Discontinued Operations | 3,535 | 3,973 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Pro forma total revenues | $ | 301,949 | $ | 281,826 | ||||||||||||||||||||||||||||||||||||||||||||||||
Note: The AMD segment includes the Company’s interest in OccuLogix, Inc. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
TLC VISION CORPORATION | ||||||||||||||||||||||||||||||||||||||||||||||||||||
CONSOLIDATING BALANCE SHEETS | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2007 | December 31, 2006 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Results Before AMD | Results Before AMD | |||||||||||||||||||||||||||||||||||||||||||||||||||
Segment | AMD Segment | Total TLCVision | Segment (Unaudited) | AMD Segment (Unaudited) | Total TLCVision | |||||||||||||||||||||||||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Current assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 12,925 | $ | - | $ | 12,925 | $ | 28,917 | - | $ | 28,917 | |||||||||||||||||||||||||||||||||||||||||
Short-term investments | - | - | - | 11,575 | - | 11,575 | ||||||||||||||||||||||||||||||||||||||||||||||
Accounts receivable, net | 18,076 | - | 18,076 | 19,315 | - | 19,315 | ||||||||||||||||||||||||||||||||||||||||||||||
Deferred tax asset | - | - | - | 7,153 | - | 7,153 | ||||||||||||||||||||||||||||||||||||||||||||||
Prepaid expenses, inventory and other | 14,882 | - | 14,882 | 13,911 | - | 13,911 | ||||||||||||||||||||||||||||||||||||||||||||||
Total current assets | 45,883 | - | 45,883 | 80,871 | - | 80,871 | ||||||||||||||||||||||||||||||||||||||||||||||
Restricted cash | 1,101 | - | 1,101 | 1,035 | - | 1,035 | ||||||||||||||||||||||||||||||||||||||||||||||
Investments and other assets | 17,524 | - | 17,524 | 24,495 | 14,362 | 38,857 | ||||||||||||||||||||||||||||||||||||||||||||||
Goodwill | 94,346 | - | 94,346 | 96,148 | - | 96,148 | ||||||||||||||||||||||||||||||||||||||||||||||
Other intangible assets, net | 17,020 | - | 17,020 | 20,503 | - | 20,503 | ||||||||||||||||||||||||||||||||||||||||||||||
Fixed assets, net | 61,936 | - | 61,936 | 56,888 | - | 56,888 | ||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 237,810 | $ | - | $ | 237,810 | $279,940 | $ | 14,362 | $ | 294,302 | |||||||||||||||||||||||||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Current liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts payable | $ | 17,177 | - | $ | 17,177 | $12,314 | - | $ | 12,314 | |||||||||||||||||||||||||||||||||||||||||||
Accrued liabilities | 28,115 | - | 28,115 | 20,231 | - | 20,231 | ||||||||||||||||||||||||||||||||||||||||||||||
Current maturities of long-term debt | 11,732 | - | 11,732 | 8,311 | - | 8,311 | ||||||||||||||||||||||||||||||||||||||||||||||
Total current liabilities | 57,024 | - | 57,024 | 40,856 | - | 40,856 | ||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt, less current maturities | 98,417 | - | 98,417 | 15,122 | - | 15,122 | ||||||||||||||||||||||||||||||||||||||||||||||
Other long-term liabilities | 5,023 | - | 5,023 | 4,442 | - | 4,442 | ||||||||||||||||||||||||||||||||||||||||||||||
Minority interests | 15,224 | - | 15,224 | 14,583 | - | 14,583 | ||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities | 175,688 | - | 175,688 | 75,003 | - | 75,003 | ||||||||||||||||||||||||||||||||||||||||||||||
STOCKHOLDERS’ EQUITY | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock | 308,972 | 28,501 | 337,473 | 419,767 | 30,366 | 450,133 | ||||||||||||||||||||||||||||||||||||||||||||||
Option and warrant equity | 837 | - | 837 | 1,806 | - | 1,806 | ||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | (784 | ) | - | (784 | ) | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||
Accumulated deficit | (246,903 | ) | (28,501 | ) | (275,404 | ) | (216,636 | ) | (16,004 | ) | (232,640) | |||||||||||||||||||||||||||||||||||||||||
Total stockholders’ equity | 62,122 | - | 62,122 | 204,937 | 14,362 | 219,299 | ||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 237,810 | $ | - | $ | 237,810 | $ | 279,940 | $ | 14,362 | $ | 294,302 | ||||||||||||||||||||||||||||||||||||||||
Note: The AMD segment includes the Company’s interest in OccuLogix, Inc. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
TLC VISION CORPORATION | ||||||||||||||||||||||||||||||||||||||||||||||||||||
CONSOLIDATING STATEMENTS OF CASH FLOWS (UNAUDITED) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Twelve Months Ended December 31, 2007 | Twelve Months Ended December 31, 2006 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Results Before AMD | Results Before AMD | |||||||||||||||||||||||||||||||||||||||||||||||||||
Segment | AMD Segment | Total TLCVision | Segment | AMD Segment | Total TLCVision | |||||||||||||||||||||||||||||||||||||||||||||||
OPERATING ACTIVITIES | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net (loss) income | $ | (31,017 | ) | $ | (12,497 | ) | $ | (43,514 | ) | $ | 18,708 | $ | (7,189 | ) | $ | 11,519 | ||||||||||||||||||||||||||||||||||||
Adjustments to reconcile net (loss) income to net | ||||||||||||||||||||||||||||||||||||||||||||||||||||
cash from operating activities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 18,859 | - | 18,859 | 16,358 | 34 | 16,392 | ||||||||||||||||||||||||||||||||||||||||||||||
Reimbursements from investments in research and | ||||||||||||||||||||||||||||||||||||||||||||||||||||
development | ||||||||||||||||||||||||||||||||||||||||||||||||||||
arrangements | - | - | - | (300 | ) | - | (300 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Impairment of goodwill and other assets | 16,950 | - | 16,950 | 4,087 | - | 4,087 | ||||||||||||||||||||||||||||||||||||||||||||||
Minority interests | 9,423 | - | 9,423 | 9,737 | (2,715 | ) | 7,022 | |||||||||||||||||||||||||||||||||||||||||||||
(Earnings) losses from equity investments | (1,029 | ) | 13,396 | 12,367 | (3,173 | ) | 5,809 | 2,636 | ||||||||||||||||||||||||||||||||||||||||||||
Deferred taxes | 6,639 | - | 6,639 | (5,241 | ) | - | (5,241 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Excess tax benefits from stock-based compensation | ||||||||||||||||||||||||||||||||||||||||||||||||||||
expense | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||||||
(Gain) loss on sales and disposals of fixed assets | (11 | ) | - | (11 | ) | 111 | 29 | 140 | ||||||||||||||||||||||||||||||||||||||||||||
Gain on sale of subsidiary stock | - | (899 | ) | (899 | ) | (349 | ) | (1,450 | ) | (1,799 | ) | |||||||||||||||||||||||||||||||||||||||||
Write-down of OccuLogix, Inc. inventory | - | - | - | - | 1,625 | 1,625 | ||||||||||||||||||||||||||||||||||||||||||||||
Loss (gain) on sale of business | 233 | - | 233 | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||
Non-cash compensation expense | 1,115 | - | 1,115 | 1,258 | 186 | 1,444 | ||||||||||||||||||||||||||||||||||||||||||||||
Adjustments to the fair values of long-lived | ||||||||||||||||||||||||||||||||||||||||||||||||||||
assets and liabilities | - | - | - | 294 | - | 294 | ||||||||||||||||||||||||||||||||||||||||||||||
Other | 275 | - | 275 | 58 | 26 | 84 | ||||||||||||||||||||||||||||||||||||||||||||||
Changes in operating assets and liabilities, net | ||||||||||||||||||||||||||||||||||||||||||||||||||||
of acquisitions and dispositions: | 9,893 | - | 9,893 | (3,190 | ) | (1,225 | ) | (4,415 | ) | |||||||||||||||||||||||||||||||||||||||||||
Cash from operating activities | 31,330 | - | 31,330 | 38,358 | (4,870 | ) | 33,488 | |||||||||||||||||||||||||||||||||||||||||||||
INVESTING ACTIVITIES | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases of fixed assets | (13,279 | ) | - | (13,279 | ) | (11,493 | ) | - | (11,493 | ) | ||||||||||||||||||||||||||||||||||||||||||
Proceeds from sales of fixed assets | 1,114 | - | 1,114 | 681 | - | 681 | ||||||||||||||||||||||||||||||||||||||||||||||
Distributions and loan payments received from | ||||||||||||||||||||||||||||||||||||||||||||||||||||
equity investments | 2,846 | - | 2,846 | 3,613 | - | 3,613 | ||||||||||||||||||||||||||||||||||||||||||||||
Reimbursements from investments in research and | ||||||||||||||||||||||||||||||||||||||||||||||||||||
development | ||||||||||||||||||||||||||||||||||||||||||||||||||||
arrangements | - | - | - | 300 | - | 300 | ||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions and equity investments | (4,815 | ) | - | (4,815 | ) | (7,839 | ) | - | (7,839 | ) | ||||||||||||||||||||||||||||||||||||||||||
Proceeds from sales of short-term investments | 17,375 | - | 17,375 | 400 | 9,925 | 10,325 | ||||||||||||||||||||||||||||||||||||||||||||||
Purchases of short-term investments | (5,800 | ) | - | (5,800 | ) | (5,425 | ) | - | (5,425 | ) | ||||||||||||||||||||||||||||||||||||||||||
Proceeds from sale of subsidiary stock, net | 2,000 | - | 2,000 | 230 | 2,226 | 2,456 | ||||||||||||||||||||||||||||||||||||||||||||||
Divestitures of business | 1,619 | - | 1,619 | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||
Occulogix, Inc. cash balance at time of | ||||||||||||||||||||||||||||||||||||||||||||||||||||
deconsolidation | - | - | - | - | (14,814 | ) | (14,814 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Other | 123 | - | 123 | 59 | (71 | ) | (12 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Cash from investing activities | 1,183 | - | 1,183 | (19,474 | ) | (2,734 | ) | (22,208 | ) | |||||||||||||||||||||||||||||||||||||||||||
FINANCING ACTIVITIES | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted cash movement | (66 | ) | - | (66 | ) | (60 | ) | - | (60 | ) | ||||||||||||||||||||||||||||||||||||||||||
Principal payments of debt financing and capital | ||||||||||||||||||||||||||||||||||||||||||||||||||||
leases | (11,998 | ) | - | (11,998 | ) | (6,479 | ) | - | (6,479 | ) | ||||||||||||||||||||||||||||||||||||||||||
Proceeds from debt financing | 89,717 | - | 89,717 | 441 | - | 441 | ||||||||||||||||||||||||||||||||||||||||||||||
Capitalized debt costs | (1,960 | ) | - | (1,960 | ) | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||
Distributions to minority interests | (9,454 | ) | - | (9,454 | ) | (9,197 | ) | - | (9,197 | ) | ||||||||||||||||||||||||||||||||||||||||||
Proceeds from issuances of common stock | 2,825 | - | 2,825 | 970 | - | 970 | ||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from issuances of OccuLogix, Inc. stock | - | - | - | - | 233 | 233 | ||||||||||||||||||||||||||||||||||||||||||||||
Transfer from AMD segment | - | - | - | 2,236 | (2,236 | ) | - | |||||||||||||||||||||||||||||||||||||||||||||
Purchases of treasury stock | (117,569 | ) | - | (117,569 | ) | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||
Cash from financing activities | (48,505 | ) | - | (48,505 | ) | (12,089 | ) | (2,003 | ) | (14,092 | ) | |||||||||||||||||||||||||||||||||||||||||
Net (decrease) increase in cash and cash | ||||||||||||||||||||||||||||||||||||||||||||||||||||
equivalents during the period | (15,992 | ) | - | (15,992 | ) | 6,795 | (9,607 | ) | (2,812 | ) | ||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents, beginning of period | 28,917 | 28,917 | 22,122 | 9,607 | 31,729 | |||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents, end of period | $ | 12,925 | $ | - | $ | 12,925 | $ | 28,917 | $ | - | $ | 28,917 | ||||||||||||||||||||||||||||||||||||||||
Operating cash flow per diluted share | $ | 0.53 | $ | - | $ | 0.53 | $ | 0.55 | $ | (0.07 | ) | $ | 0.48 | |||||||||||||||||||||||||||||||||||||||
Note: The AMD segment includes the Company’s interest in OccuLogix, Inc. |
2