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 (Date of earliest event reported)
November 3, 1998
LCA-Vision Inc.
(Exact name of Registrant as specified in its Charter)
Delaware 0-27610 11-2882328
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File No.) 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 5. Other Events
On October 30, 1998 the Registrant issued the attached press release
announcing its third quarter 1998 earnings.
On November 3, 1998, the Registrant issued the attached press
release announcing that all its U.S. Centers are equipped with the
new VISX Lasers approved today by the FDA for the treatment of
Hyperopia, Centers expect to begin treating backlog of farsighted
patients shortly.
Item 7. Financial Statements and Exhibits
(a) Exhibits
99.1 Press Release dated November 3, 1998
99.2 Press Release dated October 30, 1998
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: November 6, 1998 By:/s/Larry P. Rapp
Larry P. Rapp,
Chief Financial Officer
Exhibit 99.1
Headline: ----------------------------------------------
Contacts: Dr. Stephen N. Joffe Ken DiPaola
or Larry P. Rapp or Joel Pomerantz
LCA-Vision Inc. The Dilenschneider Group, Inc.
(513) 792-9292 (212) 922-0900
LCA-VISION SAYS ALL ITS U.S. CENTERS ARE EQUIPPED WITH
THE NEW VISX LASERS APPROVED TODAY BY THE FDA
FOR THE TREATMENT OF HYPEROPIA
Centers Expect to Begin Treating Backlog of Farsighted Patients
Shortly
CINCINNATI, November 3 -- Responding to today's FDA approval of the
VISX Star S2 excimer laser to treat hyperopia or farsightedness,
LCA-Vision Inc. (NASDAQ:LCAV), one of the largest U.S.-based
providers of laser vision correction, said today all of its U.S.
centers are equipped with the newly approved VISX lasers and that it
will begin treating its backlog of farsighted patients shortly.
Commenting on today's approval, LCA-Vision Chairman and CEO Dr.
Stephen Joffe said: "We already have a backlog of hundreds of
prospective farsighted patients who have been awaiting this approval
to receive full evaluation and treatment. As news of FDA approval
to treat farsightedness circulates, we believe that number will rise
significantly."
The FDA green light is expected to add more than 50 million
additional hyperopic American adults to the pool of potential
patients for laser vision correction. The FDA first approved laser
treatment of myopia, or nearsightedness, in October, 1995, followed
by approval to treat astigmatism in April, 1997. The number of
laser vision correction procedures performed each quarter by LCA-Vision has
been growing at triple-digit annual rates since early
1996. Industry estimates for the number of laser vision correction
procedures that will be performed nationwide in 1998, range from
350,000 to 500,000, up from 200,000 in 1997.
LCA-Vision Inc., which operates 21 laser vision correction centers
in the U.S., Canada, and Europe, is supported by a qualified and
experienced network of 600 physicians and 800 referring
optometrists. Since inception, more than 38,000 laser vision
correction procedures have been performed at the company's centers.
LCA-Vision also manages laser, and minimally invasive, multi-specialty programs
for major hospitals across the country.
# # #
Safe Harbor Statement: This release contains forward-looking
statements that are subject to risks and uncertainties, including,
but not limited to, the impact of competition and pricing, procedure
demand and marketplace acceptance, and unforeseen fluctuations in
operating results and other risks detailed from time to time in the
company's filings with the Securities and Exchange Commission.
November 3, 1998
Exhibit 99.2
Headline: ----------------------------------------------
Contacts: Dr. Stephen N. Joffe Ken DiPaola
or Larry P. Rapp or Joel Pomerantz
LCA-Vision Inc. The Dilenschneider Group, Inc.
(513) 792-9292 (212) 922-0900
LCA-VISION REPORTS RECORD THIRD-QUARTER REVENUES;
LASER VISION CORRECTION VOLUME UP 122 PERCENT
Company Is Cash Flow Positive; Cuts Per Share Loss to 2 Cents from
8 Cents Last Year
CINCINNATI, October 30, 1998 --- LCA-Vision Inc. (NASDAQ:LCAV),
one of the largest U.S.-based providers of laser vision correction
services, today reported record revenues and a sharp decline in
losses for the third quarter ended September 30, 1998.
Third-quarter revenues from laser vision correction increased
sharply, up 116 percent to a record $8,509,000, versus $3,948,000 a
year ago. Procedure volume for the period grew to a record 6,093
procedures, up 122 percent from 2,749 procedures for the same
quarter last year. Total revenues for the period rose 84 percent to
$9,096,000, up from $4,956,000, a year ago.
In the third quarter, the company was again cash flow positive,
underscoring the continued improvement in operating performance.
EBITDA for the quarter rose to a positive $16,000, up from a deficit
of $657,000 a year ago. The company also trimmed its third-quarter
net loss to $759,000, or 2 cents per diluted share, compared with a
net loss of $2,614,000, or 8 cents per diluted share, a year ago.
Commenting on the results, LCA-Vision CEO Dr. Stephen Joffe said:
Procedure volume continues to accelerate at a healthy pace. We look
for further progress in the fourth quarter and remain confident that
we can achieve positive earnings per share in the first quarter of
1999.
Dr. Joffe continued: We reduced third-quarter general and
administrative expenses by approximately $150,000 versus a year ago,
even though marketing and advertising expenses grew by more than
$500,000, reflecting the stepped-up spending needed to drive patient
volume at our centers. The payoff on this kind of marketing
investment is not immediate, but it should significantly benefit
volume growth in future periods. The year-over-year increase in
direct operating expenses this quarter was due primarily to
increased physician and royalty fees, which are tied directly to
higher volume.
Nine-month revenues from laser vision correction rose 194 percent to
$23,423,000, versus $7,977,000 last year. Total revenues for the
period rose 119 percent to $25,323,000, up from $11,558,000 for the
same period a year ago. Including one-time restructuring charges of
$10,500,000, recorded earlier this year, LCA-Vision's nine-month
loss was $13,995,000, or 38 cents per diluted share. A year ago,
the company lost $5,335,000, or 23 cents per diluted share,
including a $1,100,000 restructuring provision.
Through the first nine months of 1998, the number of laser vision
correction procedures performed by LCA-Vision rose 154 percent to a
record 16,280, up from 6,412 procedures last year.
Demand Continues to Grow
Commenting on the sustained quarterly growth in procedure volume,
Dr. Joffe added: Enthusiastic patient word-of-mouth continues to
fuel accelerating demand. LASIK, the newest laser vision correction
procedure, is another plus. It shortens recovery time dramatically
and most patients can see a marked improvement shortly after this
procedure is finished.
The anticipated FDA approval of treatment for farsightedness, or
hyperopia, will add millions of additional potential patients and
provide a further boost for laser vision correction. We have
already made the considerable investment needed to equip all of our
centers with the required VISX Star S2 lasers, so we can begin
treating hyperopic patients very quickly.
LCA-Vision Inc. operates 21 laser vision correction centers in the
U.S., Canada and Europe. Since inception, more than 38,000 laser
vision correction procedures have been performed at the company's
centers. LCA-Vision also manages laser, and minimally invasive,
hospital surgical programs.
Safe Harbor Statement: This release contains forwardlooking
statements that are subject to risks and uncertainties, including,
but not limited to, the impact of competition and pricing, procedure
demand and marketplace acceptance, and unforeseen fluctuations in
operating results and other risks detailed from time to time in the
company's filings with the Securities and Exchange Commission.
(See Accompanying Financial Tables)
LCA-VISION INC.
Condensed Consolidated Statements of Operations
for the Three and Nine Months Ended September 30, 1998 and 1997
(Unaudited)
(Dollars in thousands, except per share amounts)
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
-------------------- -------------------
1998 1997 1998 1997
---- ---- ---- ----
Net revenues:
Laser refractive eye surgery centers $ 8,509 $ 3,948 $ 23,423 $ 7,977
Multi-specialty laser surgery programs 431 657 1,338 2,142
Other 156 351 562 1,439
-------- ------- -------- -------
Total net revenues 9,096 4,956 25,323 11,558
Direct operating expenses 6,332 2,711 17,987 7,124
General and administrative expenses 2,749 2,902 7,327 6,310
Center pre-opening expenses -- -- -- 163
Depreciation and amortization 692 611 2,815 1,443
Restructuring services -- 1,100 10,500 1,100
Income (loss) from Operations (676) (2,368) (13,306) (4,581)
Equity in income (loss) from
unconsolidated affiliates 108 5 144 (26)
Interest income 106 10 302 45
Interest expense (108) (267) (698) (774)
Other income (expense) 37 44 98 57
Income (loss) before income tax (533) (2,575) (13,460) (5,280)
Income tax expense (8) 6 (145) (56)
Net income (loss) (541) (2,569) (13,605) (5,335)
Accrued dividend - Class B
preferred stock 218 45 390 139
Amount applicable to income (loss)
per common share $ (759) $ (2,614) $ (13,995) $ (5,474)
=========== ========== =========== ==========
Income (loss) per common share
Basic $ (0.02) $ (0.08) $ (0.38) $ (0.23)
Diluted $ (0.02) $ (0.08) $ (0.38) $ (0.23)
Weighted average common shares outstanding
Basic and Diluted 37,162,537 30,976,290 36,881,845 23,390,639
Operating (loss) $ (676) $ (2,368) $ (13,306) $ (4,581)
Restructuring services -- 1,100 10,500 1,100
Depreciation and amortization 692 611 2,815 1,443
EBITDA $ 16 $ (657) $ 9 $ (2,038)
========== =========== ========== ===========