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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
X-QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(b) OF THE SECURITIES
EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED
JANUARY 31, 1998
Commission file number 1-10629
LASER VISION CENTERS, INC.
(Exact name of registrant as specified in its charter)
Delaware 43-1530063
-------- ----------
(State or other jurisdiction of incorporation (I.R.S. Employer identification
or organization) number)
540 Maryville Centre Dr., Suite 200, St. Louis, Missouri 63141
--------------------------------------------------------------
(Address of principal executive offices)
(314)434-6900
-------------
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X No __
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Common Stock outstanding as of February 27, 1998 - 9,536,895 shares.
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LASER VISION CENTERS, INC.
FORM 10-Q FOR QUARTERLY PERIOD ENDED JANUARY 31, 1998
INDEX
PART OR ITEM PAGE
Part I. FINANCIAL STATEMENTS
Item 1. Interim Consolidated Financial Statements
Consolidated Balance Sheet - January 31, 1998 and
April 30, 1997....................................................3-4
Consolidated Statement of Operations - Three month and
nine month periods ended January 31, 1998 and 1997..................5
Consolidated Statement of Cash Flow - Nine month period
ended January 31, 1998 and 1997...................................6-7
Consolidated Statement of Changes in Stockholders'
Equity - Nine month period ended January 31, 1998...................8
Notes to Interim Consolidated Financial Statements...............9-10
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations
Liquidity and Capital Resources.................................10-11
Results of Operations...........................................11-14
Part II. OTHER INFORMATION
Item 1. Legal Proceedings..................................................15
Item 2. Changes in Securities..............................................15
Item 3. Defaults upon Senior Securities....................................15
Item 4. Submission of Matters to a
Vote of Security Holders...........................................15
Item 5. Other Information..................................................15
Item 6. Reports on Form 8-K................................................15
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LASER VISION CENTERS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
- -------------------------------------------
(UNAUDITED)
JANUARY 31, April 30,
1998 1997
CURRENT ASSETS
- --------------
Cash and cash equivalents $ 7,203,000 $ 3,794,000
Restricted cash 438,000 461,000
Receivables, net of allowances of
$475,000 and $360,000, respectively 3,369,000 1,719,000
Prepaid expenses and
other current assets 1,584,000 915,000
------------ ------------
Total Current Assets 12,594,000 6,889,000
EQUIPMENT
- ---------
Laser equipment 14,855,000 12,617,000
Medical Equipment 757,000 750,000
Mobile equipment 3,071,000 1,599,000
Furniture and fixtures 1,346,000 1,316,000
-Accumulated depreciation (6,968,000) (3,799,000)
------------ ------------
Total Equipment, Net 13,061,000 12,483,000
OTHER ASSETS
- ------------
Restricted cash 1,136,000 1,239,000
Goodwill, net 717,000 836,000
Tradename and service mark costs, net 125,000 136,000
Deferred contract rights 1,300,000 1,238,000
Rent deposits and other, net 60,000 49,000
------------ ------------
Total Other Assets 3,338,000 3,498,000
------------ ------------
Total Assets $ 28,993,000 $ 22,870,000
============ ============
See notes to interim consolidated financial statements
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LASER VISION CENTERS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(UNAUDITED)
JANUARY 31, April 30,
1998 1997
CURRENT LIABILITIES
Current portion of notes payable $ 1,929,000 $ 1,003,000
Current portion of capitalized
lease obligations 810,000 690,000
Accounts payable 2,647,000 2,078,000
Accrued compensation 839,000 616,000
Other accrued liabilities 1,162,000 848,000
------------ ------------
Total Current Liabilities 7,387,000 5,235,000
NON-CURRENT LIABILITIES
Notes payable 5,553,000 4,544,000
Capitalized lease obligations 944,000 1,589,000
Deferred revenue 91,000 134,000
------------ ------------
Total Non-Current Liabilities 6,588,000 6,267,000
COMMITMENTS AND CONTINGENCIES
COMMON STOCK AND STOCK OPTIONS ISSUED
FOR CONTRACT RIGHTS 1,310,000 1,092,000
STOCKHOLDERS' EQUITY
Preferred stock - 6,000 shares
issued at $1,000 par value, Series B
4,500 shares outstanding 3,891,000
Common stock, par value of $.01 per
share, 50,000,000 shares authorized;
9,326,058 and 8,817,057 shares issued
and outstanding, respectively 93,000 88,000
Warrants and options 603,000 36,000
Paid-in capital 41,255,000 38,663,000
Accumulated deficit (32,134,000) (28,511,000)
------------ ------------
Total Stockholders' Equity 13,708,000 10,276,000
------------ ------------
Total Liabilities and Stockholders' Equity $ 28,993,000 $ 22,870,000
============ ============
See notes to interim consolidated financial statements
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LASER VISION CENTERS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
- ------------------------------------------------
Three Month Period Nine Month Period
Ended January 31, Ended January 31,
1998 1997 1998 1997
REVENUES $ 6,345,000 $ 2,009,000 $ 15,666,000 $ 5,439,000
Cost of revenues, depreciation
and amortization 1,102,000 932,000 3,224,000 2,491,000
Cost of revenues, other 3,366,000 959,000 8,508,000 2,622,000
----------- ----------- ------------ -----------
GROSS PROFIT 1,877,000 118,000 3,934,000 326,000
----------- ----------- ------------ -----------
Operating Expenses:
General and administrative 1,009,000 1,052,000 2,542,000 2,944,000
Salaries and related expenses 1,192,000 791,000 3,133,000 2,413,000
Depreciation and amortization 126,000 113,000 376,000 321,000
Selling and marketing expenses 311,000 365,000 1,027,000 1,356,000
----------- ----------- ------------ -----------
2,638,000 2,321,000 7,078,000 7,034,000
----------- ----------- ------------ -----------
LOSS FROM OPERATIONS (761,000) (2,203,000) (3,144,000) (6,708,000)
Other income (expenses)
Interest and other income 113,000 64,000 257,000 227,000
Interest expense (265,000) (194,000) (736,000) (383,000)
Minority interest in net loss
of subsidiary
103,000
----------- ----------- ------------ -----------
NET LOSS ($913,000) ($2,333,000) ($3,623,000) ($6,761,000)
=========== =========== ============ ===========
BASIC AND DILUTED NET LOSS PER SHARE ($0.10) ($0.26) ($0.42) ($0.83)
=========== =========== ============ ===========
Weighted average number of
common shares outstanding -
basic and diluted 9,301,000 8,811,000 9,055,000 8,294,000
=========== =========== ============ ===========
See notes to interim consolidated financial statements
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LASER VISION CENTERS, INC. AND SUBSIDIARIES Nine Month Period
CONSOLIDATED STATEMENT OF CASH FLOW (UNAUDITED) Ended January 31,
- ----------------------------------------------- 1998 1997
CASH FLOWS FROM OPERATING ACTIVITIES
- ------------------------------------
Net loss ($3,623,000) ($6,761,000)
Adjustments to reconcile net loss to net cash
used in operating activities:
Depreciation and amortization 3,600,000 2,812,000
Compensation paid in common stock,
options or warrants 249,000
Provision for uncollectible accounts 115,000 (23,000)
Receivables increase (1,765,000) (572,000)
Prepaid expenses and other current asset increase (669,000) (253,000)
Minority interests decrease (103,000)
Accounts payable and accrued
liabilities increase (decrease) 1,107,000 (186,000)
Deferred revenue decrease (43,000) (64,000)
----------- ------------
Net cash used in operating activities (1,029,000) (5,150,000)
CASH FLOWS FROM INVESTING ACTIVITIES
- ------------------------------------
Acquisition of equipment (2,960,000) (3,291,000)
Acquisition of goodwill (206,000)
Other (18,000) (169,000)
----------- ------------
CASH FLOWS FROM FINANCING ACTIVITIES
- ------------------------------------
Proceeds from private offering, preferred 6,000,000
Private placement offering costs, preferred (513,000)
Return of restricted cash 126,000
Proceeds from exercise of stock options 320,000 107,000
Proceeds from exercise of Class C, D and
E warrants 294,000
Proceeds from exercise of other warrants 705,000
Principal payments under capitalized
lease obligations and notes payable (1,379,000) (2,381,000)
Proceeds from loan financing 1,863,000 2,573,000
----------- ------------
Net cash provided by financing activities 7,416,000 299,000
----------- ------------
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 3,409,000 (8,517,000)
Cash and cash equivalents at beginning of period 3,794,000 12,672,000
----------- ------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 7,203,000 $ 4,155,000
=========== ============
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LASER VISION CENTERS, INC. AND SUBSIDIARIES Nine Month Period
CONSOLIDATED STATEMENT OF CASH FLOW Ended January 31,
- ------------------------------------------- 1998 1997
Non-cash investing and financing:
- ---------------------------------
Conversion of preferred stock, accrual of
preferred dividends, and value assigned
to warrants $1,596,000 $14,539,000
Capital lease obligations and notes payable
related to laser and equipment purchases 925,000 1,044,000
Adjustment of value of common stock and
stock options issued for contract rights 218,000
Equipment deposits and assets held for sale
exchanged for equipment 2,965,000
Restricted cash acquired through financing 1,650,000
Common stock issued to acquire goodwill and
reduce liabilities 200,000
See notes to interim consolidated financial statements
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LASER VISION CENTERS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED)
- ---------------------------------------------------------------------
COMMON STOCK
$.01 PAR VALUE
PAID-IN WARRANTS AND ACCUMULATE TOTAL SHAREHOLDERS'
PREFERRED STOCK SHARES AMOUNT CAPITAL OPTIONS DEFICIT EQUITY
Balance - April 30, 1997 $ - 8,817,057 $88,000 $ 38,663,000 $ 36,000 ($28,511,000) $ 10,276,000
Issuance of Preferred Stock 5,125,000 362,000 5,487,000
Exercise of incentive options 67,300 1,000 319,000 320,000
Exercise of non-qualified
warrants 140,700 1,000 704,000 705,000
Exercise of Class C, D and
E warrants 60,573 1,000 293,000 294,000
Dividends accrued on
convertible preferred stock 155,000 (155,000) -
Conversion of preferred stock (1,389,000) 234,464 2,000 1,387,000 -
Warrants and Options 205,000 205,000
Shares issued to 401(k) plan
for employees 5,964 44,000 44,000
Net loss for the nine month
period ended January 31, 1998 (3,623,000) (3,623,000)
----------- --------- -------- ------------ -------- ------------ ------------
Balance - January 31, 1998 $ 3,891,000 9,326,058 $ 93,000 $ 41,255,000 $603,000 ($32,134,000) $ 13,708,000
=========== ========= ======== ============ ======== ============ ============
See notes to interim consolidated financial statements
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LASER VISION CENTERS, INC. AND SUBSIDIARIES
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
JANUARY 31, 1998
(Unaudited)
Item 1.
1. The information contained in the interim consolidated financial statements
and footnotes is condensed from that which would appear in the annual
consolidated financial statements. Accordingly, the interim consolidated
financial statements included herein should be read in conjunction with the
consolidated financial statements and related notes thereto contained in the
April 30, 1997 Annual Report on Form 10-K filed by Laser Vision Centers, Inc.
(the "Company") with the Securities and Exchange Commission. The unaudited
interim consolidated financial statements as of January 31, 1998 and January 31,
1997, and for the quarterly and nine month periods then ended, include all
normal recurring adjustments which management considers necessary for a fair
presentation. The results of operations for the interim periods are not
necessarily indicative of the results which may be expected for the entire
fiscal year. The interim consolidated financial statements include the accounts
and transactions of the Company and its subsidiaries. All significant
intercompany transactions and accounts have been eliminated.
The net loss per share was computed using the weighted average number of common
shares outstanding during each period. The loss per common share for the nine
months ended January 31, 1998 and for the quarter ended January 31, 1998,
reflects $155,000 and $56,000, respectively, of accrued dividends on the Series
B Convertible Preferred Stock. The loss per common share for the nine months
ended January 31, 1997, reflects $126,000 of accrued dividends on Convertible
Preferred Stock with Mandatory Redemption in 2005.
The Company adopted Statement of Financial Accounting Standards No. 128,
"Earnings per Share" effective in the quarter ended January 31, 1998. Basic and
diluted earnings per share are the same due to the anti-dilutive effect of
common stock equivalents since the Company is in a loss position. Common stock
equivalents include options and warrants. These common stock equivalents would
be dilutive if the Company were reporting net income.
2. In June 1997, the Company completed a $6 million private placement, before
expenses, of 6,000 shares of Series B Convertible Preferred Stock with $1,000
stated value per share, and 100,000 vested warrants with an exercise price of
$9.39 per warrant, 130% of the average market price. An additional 100,000
warrants may be issued in June 1998 at 130% of the then current market price if
at least $2 million of Series B Preferred remains outstanding. The Series B
shares accrue a 5% non-cash dividend equivalent in preferred stock per year,
convert (within a range) to common stock at a discount to the market price of
the common stock and must be converted to common stock within five years. In
August 1997, the common shares underlying this convertible preferred stock and
warrants were registered with
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the Securities and Exchange Commission pursuant to registration rights under the
Series B stock purchase agreement. The $5.5 million net proceeds after fees is
being used for working capital, the acquisition of equipment and general
corporate purposes. The market value of the warrants associated with this
transaction have been recorded as Warrants and Options in the equity section of
the balance sheet. In September 1997, 1,500 shares of Series B Convertible
Preferred Stock and the related accrued dividends were converted to 234,464
shares of common stock. In February 1998, 1,250 shares of Series B Convertible
Preferred Stock and the related accrued dividends were converted to 210,837
shares of common stock. As of February 27, 1998, 3,250 shares of Series B
Convertible Preferred Stock were outstanding.
3. In September, 1997 the Company borrowed $1,050,000 at 11.3% with a term of
four years to finance the acquisition of lasers and mobile equipment. The debt
is collateralized by the same equipment. In October, 1997 the Company borrowed
$813,000 from the lender which provided financing in March 1997. Under the March
1997 debt agreement, the lender had the right to increase the percentage funded
by the loan under similar financial terms. This debt bears interest at 13.6%
with a term of four years. In January, 1998 the Company borrowed a total of
$925,000 at rates ranging from 5.8% to 9.5% and with terms ranging from two to
three years to finance the acquisition of lasers and medical equipment.
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
ITEM 2.
(A) LIQUIDITY AND CAPITAL RESOURCES
Since the completion of its initial public offering in April 1991, the Company's
primary sources of liquidity have consisted of financing from the sale of Common
Stock and Convertible Preferred Stock, revenues from laser access services and
marketing provided to ophthalmologists, equipment loans and equipment leases. At
January 31, 1998, the Company had $7,203,000 of cash and cash equivalents
compared with $3,794,000 at April 30, 1997. At January 31, 1998, the Company had
working capital of $5,207,000 compared with working capital of $1,654,000 at
April 30, 1997. The ratio of current assets to current liabilities at January
31, 1998 was 1.70 to one, compared to 1.32 to one at April 30, 1997.
Cash Flows from Operating Activities
Net cash used for operating activities was $1,029,000 for the nine months ended
January 31, 1998 compared to $5,150,000 for the nine months ended January 31,
1997. The cash flows used for operating activities during the nine months ended
January 31, 1998 primarily represents the net loss incurred in this period less
depreciation and amortization plus increases in accounts receivable and prepaid
expenses and other current assets partially offset by net increases in current
liabilities. The cash flows used for operating activities during the nine months
ended January 31, 1997 primarily represents the net loss incurred in this period
less depreciation and amortization plus a decrease in accounts payable and
accrued liabilities and increases in accounts receivable, and prepaid expenses
and other current assets.
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During the quarter ended January 31, 1998, depreciation and amortization
represented 135% of the net loss for the quarter.
Cash Flows from Investing Activities
Net cash used for investing activities was $2,978,000 and $3,666,000 during the
nine months ended January 31, 1998 and 1997, respectively. Cash used for
investing during the nine months ended January 31, 1998 and 1997 was primarily
used to acquire equipment for the expanding U.S. market.
Cash Flows from Financing Activities
Net cash provided by financing activities was $7,416,000 and $299,000 during the
nine months ended January 31, 1998 and 1997, respectively. Cash provided by
financing during the nine months ended January 31, 1998 was primarily provided
by a private placement of preferred stock, proceeds from exercise of stock
options and warrants, and proceeds from loan financing, partially offset by
principal payments under capitalized lease obligations and notes payable. Loan
proceeds, offset by lease payments, were the primary source of cash provided by
financing during the nine months ended January 31, 1997.
The Company expects to continue to fund future operations from existing cash and
cash equivalents, revenues received from providing laser access and marketing
services, the exercise of stock options and warrants and future financing as
required. There can be no assurance that capital will be available when needed
or, if available, that the terms for obtaining such funds will be favorable to
the Company.
(B) RESULTS OF OPERATIONS
QUARTER ENDED JANUARY 31, 1998 COMPARED TO QUARTER ENDED JANUARY 31, 1997
The Company has continued to provide excimer laser access to additional sites
throughout the U.S.
Revenues
Total revenues of $6,345,000 for the quarter ended January 31, 1998 increased by
$4,336,000 from $2,009,000 for the quarter ended January 31, 1997, or an
increase of 216%.
Revenues for the LaserVision Centers division increased to $6,225,000 for the
quarter ended January 31, 1998 from $1,837,000 for the quarter ended January 31,
1997. The increase is attributable to higher revenues from U.S. operations of
$4.5 million partially offset by a decrease in Canadian and European revenues
totaling $89,000. The increase in U.S. revenues for the LaserVision Centers
division is attributable to the increased number of lasers in operation in an
increased number of markets. During the quarter ended January 31, 1998 the
Company served over 100 U.S. markets.
Revenues for the MarketVision division declined from $172,000 to $120,000 due to
the shift of attention
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to providing practice development services for the Company's laser centers for
which the Company does not record revenue.
Cost of Revenues/Gross Profit
Cost of revenues increased to $4,468,000 for the quarter ended January 31, 1998
from $1,891,000 for the quarter ended January 31, 1997. Depreciation in cost of
revenue increased to $1,102,000 from $932,000 in these respective periods due to
the increased number of lasers and mobile equipment in the U.S. partially offset
by decreases in depreciation on lasers which were written down to estimated fair
market value during the fourth quarter of fiscal 1997.
Other costs of revenues increased to $3,366,000 for the quarter ended January
31, 1998 from $959,000 for the quarter ended January 31, 1997 due to increased
costs, including Pillar Point royalties of $1,474,000, professional medical
services of $164,000, mobile laser operator salaries, travel and set-up related
costs of $622,000, and increased expenses related to physician training programs
of $121,000. The net increase, when combined with the revenue increase, resulted
in these other costs of revenues increasing from 48% of total revenues for the
quarter ended January 31, 1997 to 53% of total revenues for the quarter ended
January 31, 1998. The increase in these other costs of revenues as a percentage
of revenues is attributable to the change in the revenue mix to greater U.S.
revenues which have greater costs of revenue, particularly Pillar Point
royalties.
Total gross profit improved from $118,000 for the quarter ended January 31, 1997
to $1,877,000 for the quarter ended January 31, 1998. The variable gross profit,
excluding depreciation, increased to $2,979,000 from $1,050,000, primarily due
to increased procedures in the U.S.
Operating Expenses
General and administrative expenses decreased from $1,052,000 to $1,009,000 for
the quarters ended January 31, 1997 and 1998, respectively. The decrease is
primarily attributable to a decrease of $62,000 in legal fees associated with
tradename issues.
Salaries and related expenses increased from $791,000 to $1,192,000 for the
quarters ended January 31, 1997 and 1998, respectively. The increase was due to
an increased number of employees to support operations, salary adjustments and
the related payroll taxes and fringe benefits.
Depreciation and amortization increased from $113,000 to $126,000 for the
quarter ended January 31, 1997 and 1998, respectively. The increase was
primarily due to increased depreciation for the corporate office.
Selling and marketing expenses decreased from $365,000 to $311,000 for the
quarters ended January 31, 1997 and 1998, respectively. The decrease was
primarily due to decreased media advertising of $43,000.
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Other Income (Expenses)
Higher interest expense caused the decline to a net $152,000 in other expenses
during the quarter ended January 31, 1998 from a net $130,000 in other expenses
during the quarter ended January 31, 1997.
NINE MONTHS ENDED JANUARY 31, 1998 COMPARED TO NINE MONTHS ENDED JANUARY 31,
1997
Revenues
Total revenues of $15,666,000 for the nine months ended January 31, 1998
increased by $10,227,000 from $5,439,000 for the nine months ended January 31,
1997, or an increase of 188%.
Revenues for the LaserVision Centers division increased to $15,222,000 for the
nine months ended January 31, 1998 from $4,596,000 for the nine months ended
January 31, 1997. The increase is attributable to higher revenues from U.S.
operations of $10.7 million partially offset by a decrease in Canadian revenues
of $101,000. The increase in U.S. revenues for the LaserVision Centers division
is attributable to the increased number of lasers in operation in an increased
number of markets.
Revenues for the MarketVision division declined from $843,000 to $445,000 due to
the shift of attention to providing practice development services for the
Company's laser centers for which the Company does not record revenue.
Cost of Revenues/Gross Profit
Cost of revenues increased to $11,732,000 for the nine months ended January 31,
1998 from $5,113,000 for the nine months ended January 31, 1997. Depreciation in
cost of revenue increased to $3,224,000 from $2,491,000 in these respective
periods due to the increased lasers and mobile equipment in the U.S. partially
offset by decreases in depreciation on lasers which were written down to
estimated fair market value during the fourth quarter of fiscal 1997.
Other costs of revenues increased to $8,508,000 for the nine months ended
January 31, 1998 from $2,622,000 for the nine months ended January 31, 1997 due
to increased costs, including Pillar Point royalties of $3,633,000, professional
medical services of $681,000, mobile laser operator salaries, travel and set-up
related costs of $1,676,000 and increased expenses related to physician training
programs of $215,000. These increases were partially offset by decreases in
costs of revenue for Market Vision of $194,000. The net increase, when combined
with the revenue increase, resulted in these other costs of revenues increasing
from 48% of total revenues for the nine months ended January 31, 1997 to 54% of
total revenues for the nine months ended January 31, 1998. The increase in these
other costs of revenues as a percentage of revenues is attributable to the
change in the revenue mix to greater U.S. revenues which have greater costs of
revenue, particularly Pillar Point royalties.
Total gross profit improved from $326,000 for the nine months ended January 31,
1997 to $3,934,000 for the nine months ended January 31, 1998. The variable
gross profit, excluding depreciation, increased
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to $7,158,000 from $2,817,000, primarily due to increased laser procedures in
the U.S.
Operating Expenses
General and administrative expenses decreased from $2,944,000 to $2,542,000 for
the nine month periods ended January 31, 1997 and 1998, respectively. The
decrease is primarily attributable to a one-time write-off of $260,000 of stock
offering costs in the quarter ended July 31, 1996 and a decrease of $271,000 in
legal fees associated with tradename issues partially offset by increases in
professional fees of $83,000 and increases in rent of $39,000.
Salaries and related expenses increased from $2,413,000 to $3,133,000 for the
nine month periods ended January 31, 1997 and 1998, respectively. The increase
was due to an increased number of employees to support operations, salary
adjustments and the related payroll taxes and fringe benefits.
Depreciation and amortization increased from $321,000 to $376,000 for the nine
month periods ended January 31, 1997 and 1998, respectively. The increase was
primarily due to an increase in amortization of goodwill associated with
acquisitions.
Selling and marketing expenses decreased from $1,356,000 to $1,027,000 for the
nine month periods ended January 31, 1997 and 1998, respectively. The decrease
was primarily due to decreased marketing programs of $227,000 and decreased
travel costs of $90,000.
Other Income (Expenses)
Higher interest expense caused the decline to a net $479,000 other expenses
during the nine months ended January 31, 1998, from a net $53,000 in other
expenses during the nine months ended January 31, 1997.
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PART II-OTHER INFORMATION
Item 1. Legal Proceedings
There has been no material change in the status of any litigation from
that reported in the Form 10-K for the year ended April 30, 1997, nor has any
other material litigation been initiated.
Item 2. Changes in Securities
None.
Item 3. Defaults upon Senior Securities
None
Item 4. Submission of Matters to a Vote of Security Holders
None
Item 5. Other Information
None
Item 6. Reports on Form 8-K during the period covered by this report:
None.
Exhibits - None
Signature
---------
Pursuant to the requirement of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
LASER VISION CENTERS, INC.
\s\John J. Klobnak March 6 , 1998
- ------------------------------------- --------------------
John J. Klobnak Date
Chairman of the Board and Chief Executive Officer
\s\B. Charles Bono III March 6, 1998
- ------------------------------------ -------------------
B. Charles Bono III Date
Chief Financial Officer
and Principal Accounting Officer
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