News Release | Contact: | |
For Immediate Release | James J. Hyland, VP Investor Relations (636) 534-2369 Email: investor.relations@tlcvision.com |
TLCVisionReports First Quarter 2008 EPS of $0.12 Per Share
Same-Store Procedure Growth up 9%
ST. LOUIS, MO, May 6, 2008:TLCVisionCorporation(NASDAQ:TLCV; TSX:TLC), North America’s premier eye care services company, today reported first quarter earnings of $0.12 per diluted share for the quarter ended March 31, 2008.
First Quarter 2008 Results
• | Revenue for the first quarter was $90.4 million, compared to $82.3 million for the prior year period, up 9.7%. |
• | Refractive Centers revenue was $59.0 million, up 13.9% on the strength of higher majority-owned center procedures, which totaled 34,600 procedures in the first quarter, a 9% overall increase driven by a 9% increase on a same-store majority-owned basis. Average revenue per center procedure increased to $1,704, up 4.3% from the prior year period. |
• | Doctor Services revenue increased 0.3% to $25.1 million on the strength of higher cataract procedures. |
• | Eye Care revenue increased 13.5% to $6.3 million on the strength of increases in both the number of franchises and revenue per franchisee. |
• | Consolidated net income for the first quarter was $6.1 million, compared to $3.5 million for the prior year period, up 75%. Earnings per diluted share for the first quarter were $0.12, compared to $0.05 for the prior year period, up 142%. |
• | First quarter operating cash flow was $22.8 million, or $0.45 per share, compared to $15.3 million, or $0.22 per share, in the prior year period, up 49%. |
• | Total debt was reduced during the first quarter by $6.9 million, or 6.2%. |
Jim Wachtman, President and Chief Executive Officerof TLCVision, commented, “We are very pleased with the operating results for the first quarter. Over the past year and a half, our team has worked very hard to develop and execute a comprehensive strategy to grow the revenue of the company in order to better leverage our fixed cost infrastructure as well as drive both cash flow and earnings per share.
These results indicate the high operating leverage of our business model and its tremendous potential, especially in a stronger economic environment. We remain very focused on driving revenue growth, managing our costs, paying down debt and delivering shareholder value.”
Conference Call
The Company will host a conference call and live web cast with investors and analysts on Tuesday, May 6, 2008 at 4:30 p.m. (EDT). To access, please dial 866-303-7746 or 416-641-6141 (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 May 20, 2008. To access the replay, dial 800-408-3053 or 416-695-5800 (international callers) and enter the pass code: 3258680. 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
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, technology access service models, extensive optometric relationships, aggressive consumer advertising and managed care contracting strength, TLCVisionmaintains leading positions in Refractive, Cataract and Eye Care markets. Information about vision correction surgery can be found on the TLC Laser Eye Center’ website atwww.lasik.com. More information about TLCVisioncan be found on the Company’s website atwww.tlcv.com.
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TLC VISION CORPORATION | ||||||||||||||
CONSOLIDATING STATEMENTS OF OPERATIONS (UNAUDITED) | ||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||
Three Months Ended March 31, 2008 | Three Months Ended March 31, 2007 | |||||||||||||
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Results Before AMD | Results Before AMD | |||||||||||||||||||||||||||
Segment | AMD Segment | Total TLCVision | Segment | AMD Segment | Total TLCVision | |||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||
Refractive centers | $ | 58,967 | $ | — | $ | 58,967 | $ | 51,784 | $ | — | $ | 51,784 | ||||||||||||||||
Doctor services | 25,063 | — | 25,063 | 24,990 | — | 24,990 | ||||||||||||||||||||||
Eye care | 6,325 | — | 6,325 | 5,572 | — | 5,572 | ||||||||||||||||||||||
Total revenues | 90,355 | — | 90,355 | 82,346 | — | 82,346 | ||||||||||||||||||||||
Cost of revenues (excluding amortization): | ||||||||||||||||||||||||||||
Refractive centers | 37,357 | — | 37,357 | 34,236 | — | 34,236 | ||||||||||||||||||||||
Doctor services | 18,141 | — | 18,141 | 17,801 | — | 17,801 | ||||||||||||||||||||||
Eye care | 2,822 | — | 2,822 | 2,475 | — | 2,475 | ||||||||||||||||||||||
Total cost of revenues (excluding amortization) | 58,320 | — | 58,320 | 54,512 | — | 54,512 | ||||||||||||||||||||||
Gross profit | 32,035 | — | 32,035 | 27,834 | — | 27,834 | ||||||||||||||||||||||
General and administrative | 8,367 | — | 8,367 | 9,917 | — | 9,917 | ||||||||||||||||||||||
Marketing and sales | 11,651 | — | 11,651 | 8,435 | — | 8,435 | ||||||||||||||||||||||
Amortization of intangibles | 830 | — | 830 | 784 | — | 784 | ||||||||||||||||||||||
Other (income) expense, net | (197 | ) | — | (197 | ) | 438 | — | 438 | ||||||||||||||||||||
Total operating costs | 20,651 | — | 20,651 | 19,574 | — | 19,574 | ||||||||||||||||||||||
Operating income | 11,384 | — | 11,384 | 8,260 | — | 8,260 | ||||||||||||||||||||||
Interest income | 210 | — | 210 | 568 | — | 568 | ||||||||||||||||||||||
Interest expense | (2,476 | ) | — | (2,476 | ) | (440 | ) | — | (440 | ) | ||||||||||||||||||
Minority interests | (2,816 | ) | — | (2,816 | ) | (2,448 | ) | — | (2,448 | ) | ||||||||||||||||||
Earnings (loss) from equity investments | 217 | — | 217 | 811 | (2,517 | ) | (1,706 | ) | ||||||||||||||||||||
Income (loss) from continuing operations before income taxes | 6,519 | — | 6,519 | 6,751 | (2,517 | ) | 4,234 | |||||||||||||||||||||
Income tax expense | (447 | ) | — | (447 | ) | (951 | ) | — | (951 | ) | ||||||||||||||||||
Income (loss) from continuing operations | 6,072 | — | 6,072 | 5,800 | (2,517 | ) | 3,283 | |||||||||||||||||||||
Income from discontinued operations, net of tax | — | — | — | 195 | — | 195 | ||||||||||||||||||||||
Net income (loss) | $ | 6,072 | $ | — | $ | 6,072 | $ | 5,995 | $ | (2,517 | ) | $ | 3,478 | |||||||||||||||
Earnings (loss) per share — diluted | $ | 0.12 | $ | — | $ | 0.12 | $ | 0.09 | $ | (0.04 | ) | $ | 0.05 | |||||||||||||||
Weighted average number of common shares outstanding — diluted | 50,282 | 50,282 | 50,282 | 69,651 | 69,651 | 69,651 | ||||||||||||||||||||||
Note: The AMD segment includes the Company’s interest in OccuLogix, Inc. | ||||||||||||||||||||||||||||
TLC VISION CORPORATION | ||||||||||||||||||||||||||||
CONSOLIDATING BALANCE SHEETS | ||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
March 31, 2008 | December 31, 2007 | |||||||||||||||||||||||||||
Results Before AMD | Results Before AMD | AMD Segment | ||||||||||||||||||||||||||
Segment | AMD Segment | Total TLCVision | Segment (Unaudited) | (Unaudited) | Total TLCVision | |||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||
Current assets | ||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 22,992 | $ | — | $ | 22,992 | $ | 12,925 | $ | — | $ | 12,925 | ||||||||||||||||
Accounts receivable, net | 20,745 | — | 20,745 | 18,076 | — | 18,076 | ||||||||||||||||||||||
Prepaid expenses, inventory and other | 14,404 | — | 14,404 | 14,882 | — | 14,882 | ||||||||||||||||||||||
Total current assets | 58,141 | — | 58,141 | 45,883 | — | 45,883 | ||||||||||||||||||||||
Restricted cash | 1,115 | — | 1,115 | 1,101 | — | 1,101 | ||||||||||||||||||||||
Investments and other assets | 17,753 | — | 17,753 | 17,524 | — | 17,524 | ||||||||||||||||||||||
Goodwill | 99,351 | — | 99,351 | 94,346 | — | 94,346 | ||||||||||||||||||||||
Other intangible assets, net | 16,189 | — | 16,189 | 17,020 | — | 17,020 | ||||||||||||||||||||||
Fixed assets, net | 59,583 | — | 59,583 | 61,936 | — | 61,936 | ||||||||||||||||||||||
Total assets | $ | 252,132 | $ | — | $ | 252,132 | $ | 237,810 | $ | — | $ | 237,810 | ||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||||||
Current liabilities | ||||||||||||||||||||||||||||
Accounts payable | $ | 24,423 | $ | — | $ | 24,423 | $ | 17,177 | $ | — | $ | 17,177 | ||||||||||||||||
Accrued liabilities | 34,611 | — | 34,611 | 28,115 | — | 28,115 | ||||||||||||||||||||||
Current maturities of long-term debt | 7,744 | — | 7,744 | 11,732 | — | 11,732 | ||||||||||||||||||||||
Total current liabilities | 66,778 | — | 66,778 | 57,024 | — | 57,024 | ||||||||||||||||||||||
Long-term debt, less current maturities | 95,548 | — | 95,548 | 98,417 | — | 98,417 | ||||||||||||||||||||||
Other long-term liabilities | 7,030 | — | 7,030 | 5,023 | — | 5,023 | ||||||||||||||||||||||
Minority interests | 15,294 | — | 15,294 | 15,224 | — | 15,224 | ||||||||||||||||||||||
Total liabilities | 184,650 | — | 184,650 | 175,688 | — | 175,688 | ||||||||||||||||||||||
STOCKHOLDERS’ EQUITY | ||||||||||||||||||||||||||||
Common stock | 309,652 | 28,501 | 338,153 | 308,972 | 28,501 | 337,473 | ||||||||||||||||||||||
Option and warrant equity | 745 | — | 745 | 837 | — | 837 | ||||||||||||||||||||||
Other comprehensive income | (2,084 | ) | — | (2,084 | ) | (784 | ) | — | (784 | ) | ||||||||||||||||||
Accumulated deficit | (240,831 | ) | (28,501 | ) | (269,332 | ) | (246,903 | ) | (28,501 | ) | (275,404 | ) | ||||||||||||||||
Total stockholders’ equity | 67,482 | — | 67,482 | 62,122 | — | 62,122 | ||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 252,132 | $ | — | $ | 252,132 | $ | 237,810 | $ | — | $ | 237,810 | ||||||||||||||||
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) | ||||||||||||||||||||||||||||
Three Months Ended March 31, 2008 | Three Months Ended March 31, 2007 | |||||||||||||||||||||||||||
Results Before AMD | Results Before AMD | |||||||||||||||||||||||||||
Segment | AMD Segment | Total TLCVision | Segment | AMD Segment | Total TLCVision | |||||||||||||||||||||||
OPERATING ACTIVITIES | ||||||||||||||||||||||||||||
Net income (loss) | $ | 6,072 | $ | — | $ | 6,072 | $ | 5,995 | $ | (2,517 | ) | $ | 3,478 | |||||||||||||||
Adjustments to reconcile net income (loss) to net cash from operating activities: | ||||||||||||||||||||||||||||
Depreciation and amortization | 4,895 | — | 4,895 | 4,389 | — | 4,389 | ||||||||||||||||||||||
Minority interests | 2,816 | — | 2,816 | 2,539 | — | 2,539 | ||||||||||||||||||||||
(Earnings) losses from equity investments | (217 | ) | — | (217 | ) | (811 | ) | 2,517 | 1,706 | |||||||||||||||||||
Deferred taxes | — | — | — | 851 | — | 851 | ||||||||||||||||||||||
Gain on sales and disposals of fixed assets | (69 | ) | — | (69 | ) | (88 | ) | — | (88 | ) | ||||||||||||||||||
Gain on sale of businesses | (145 | ) | — | (145 | ) | — | — | — | ||||||||||||||||||||
Non-cash compensation expense | 357 | — | 357 | 390 | — | 390 | ||||||||||||||||||||||
Other | 251 | — | 251 | 15 | — | 15 | ||||||||||||||||||||||
Changes in operating assets and liabilities, net of acquisitions and dispositions: | 8,846 | — | 8,846 | 2,019 | — | 2,019 | ||||||||||||||||||||||
Cash from operating activities | 22,806 | — | 22,806 | 15,299 | — | 15,299 | ||||||||||||||||||||||
INVESTING ACTIVITIES | ||||||||||||||||||||||||||||
Purchases of fixed assets | (851 | ) | — | (851 | ) | (3,671 | ) | — | (3,671 | ) | ||||||||||||||||||
Proceeds from sales of fixed assets | 165 | — | 165 | 243 | — | 243 | ||||||||||||||||||||||
Distributions and loan payments received from equity investments | 601 | — | 601 | 1,431 | — | 1,431 | ||||||||||||||||||||||
Acquisitions and equity investments | (2,984 | ) | — | (2,984 | ) | (2,718 | ) | — | (2,718 | ) | ||||||||||||||||||
Proceeds from sales of short-term investments | — | — | — | 3,225 | — | 3,225 | ||||||||||||||||||||||
Divestitures of businesses | 1,179 | — | 1,179 | — | — | — | ||||||||||||||||||||||
Purchases of short-term investments | — | — | — | (3,750 | ) | — | (3,750 | ) | ||||||||||||||||||||
Other | 29 | — | 29 | (10 | ) | — | (10 | ) | ||||||||||||||||||||
Cash used in investing activities | (1,861 | ) | — | (1,861 | ) | (5,250 | ) | — | (5,250 | ) | ||||||||||||||||||
FINANCING ACTIVITIES | ||||||||||||||||||||||||||||
Restricted cash movement | (14 | ) | — | (14 | ) | — | — | — | ||||||||||||||||||||
Principal payments of debt financing and capital leases | (13,199 | ) | — | (13,199 | ) | (1,926 | ) | — | (1,926 | ) | ||||||||||||||||||
Proceeds from debt financing | 5,384 | — | 5,384 | 167 | — | 167 | ||||||||||||||||||||||
Capitalized debt costs | (534 | ) | — | (534 | ) | — | — | — | ||||||||||||||||||||
Distributions to minority interests | (2,746 | ) | — | (2,746 | ) | (2,357 | ) | — | (2,357 | ) | ||||||||||||||||||
Proceeds from issuances of common stock | 231 | — | 231 | 122 | — | 122 | ||||||||||||||||||||||
Cash used in financing activities | (10,878 | ) | — | (10,878 | ) | (3,994 | ) | — | (3,994 | ) | ||||||||||||||||||
Net increase in cash and cash equivalents during the period | 10,067 | — | 10,067 | 6,055 | — | 6,055 | ||||||||||||||||||||||
Cash and cash equivalents, beginning of period | 12,925 | — | 12,925 | 28,917 | — | 28,917 | ||||||||||||||||||||||
Cash and cash equivalents, end of period | $ | 22,992 | $ | — | $ | 22,992 | $ | 34,972 | $ | — | $ | 34,972 | ||||||||||||||||
Operating cash flow per diluted share | $ | 0.45 | $ | — | $ | 0.45 | $ | 0.22 | $ | — | $ | 0.22 | ||||||||||||||||
Note: The AMD segment includes the Company’s interest in OccuLogix, Inc. |
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