Exhibit 99.1
(TLC VISION LOGO (SM))
NEWS RELEASE CONTACT:
FOR IMMEDIATE RELEASE Stephen Kilmer
Director of Investor Relations
(905) 238-3904
Email: investor.relations@tlcvision.com
TLCVISION REPORTS Q3-03 FINANCIAL RESULTS
TORONTO, ON, NOVEMBER 12, 2003: TLC Vision Corporation (NASDAQ:TLCV; TSX:TLC),
North America's premier eye care services company, today announced its financial
results for the three and nine month periods ended September 30, 2003. 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 stated.
Q3-03 paid laser procedure volumes were over 39,500 compared to 40,700 in the
same period a year ago. This result was due to strong same-store volume growth
in the owned and managed centers of 15% offset by merger consolidation, the
closing of unprofitable centers, and a 8.7% volume decline in the lower margin
contribution access business.
CustomLASIK procedures represented approximately 32% of this quarter's owned and
managed center volumes. Higher pricing and gross margins associated with
CustomLASIK procedures, combined with lower break-even refractive volume
requirements led to significantly improved operating performance.
Q3-03 total net revenues were $46.0 million, up from $43.8 million in Q3-02.
Revenues from other healthcare services continued to demonstrate steady growth
and represented 26.6% of total net revenues in Q3-03 compared to 22.8% in the
same three month period a year ago.
On a GAAP basis, TLCVision reported a net loss of ($4.1 million) or ($0.06) per
share in the third quarter of 2003 which included $975,000 in research and
development expense related to the Company's ongoing investment in Vascular
Sciences Corporation. TLCVision reported a net loss of ($2.5 million) or ($0.04)
per share for the same period a year ago which included a non-recurring gain of
$6.6 million or $0.10 per share related to the settlement of a class action
antitrust case with two laser manufacturers. Excluding this one-time gain, the
Q3-02 loss was ($9.1 million) or ($0.14) per share.
Q3-03 adjusted EBITDA grew almost ten-fold to $3.3 million from $340,000 in
Q3-02.
[Adjusted EBITDA is defined as earnings before interest, taxes, depreciation and
amortization ("EBITDA") excluding certain non-recurring items and is used to
assist in understanding and comparing operating results. EBITDA and Adjusted
EBITDA, which are not calculated identically by all companies, are not
substitutes for operating income, net income and cash flow as determined in
accordance with generally accepted accounting principles. Management uses EBITDA
and Adjusted EBITDA as key measures of operating performance. Reference should
be made to the "Adjusted EBITDA" table that provides reconciliation between
earnings (loss) as prescribed by U.S. GAAP and "Adjusted EBITDA".]
Elias Vamvakas, TLCVision's Chairman & CEO, commented "Now out of the third
quarter, our weakest period of the year, early indications in the fourth quarter
are that CustomLASIK adoption rate momentum is continuing to gradually build in
the center business while seasonal strength in total refractive volumes is
materializing. With the combination of margin expansion and volume growth, we
feel confident that we are on track to deliver significantly improved financial
performance."
ABOUT TLC VISION
TLC Vision Corporation is North America's premier eye care services company.
TLCVision enjoys a number of valuable assets including an affiliated network of
more than 12,500 optometrists and 1,000 ophthalmic surgeons, access to some of
the newest clinical technologies, proven patient education and marketing
programs, state-of-the art information systems, a strong operations management
culture and a number of well established corporate brands. The Company's common
shares trade on the NASDAQ National Market under the symbol 'TLCV' and on the
Toronto Stock Exchange under the symbol 'TLC'. Visit TLCVision's web site at
www.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.
TLC VISION CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
<Table>
<Caption>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
------------------------- -------------------------
2003 2002 2003 2002
---------- ---------- ---------- ----------
Revenues
Refractive
Owned.............................. $ 12,386 $ 13,231 $ 40,649 $ 40,679
Managed............................ 12,546 10,895 41,443 42,695
Access............................. 8,861 9,684 29,437 17,349
Other healthcare services............... 12,221 9,992 35,607 23,128
---------- ---------- ---------- ----------
Total revenues............................ 46,014 43,802 147,136 123,851
---------- ---------- ---------- ----------
Cost of revenues
Refractive
Owned.............................. 10,412 11,714 33,128 31,427
Managed............................ 9,827 9,732 30,290 30,478
Access............................. 6,558 6,864 20,201 11,866
Reduction in fair value of capital
assets............................ -- -- -- 1,487
Other healthcare services............... 7,752 6,185 23,182 14,950
---------- ---------- ---------- ----------
Total cost of revenues.................... 34,549 34,495 106,801 90,208
---------- ---------- ---------- ----------
Gross margin............................ 11,465 9,307 40,335 33,643
---------- ---------- ---------- ----------
General and administrative................ 8,023 9,478 24,355 26,539
Marketing................................. 3,118 3,688 10,275 10,732
Amortization of intangibles............... 1,665 1,556 5,015 6,343
Research and development.................. 975 2,000 975 4,000
Impairment of goodwill and other intangible
assets.................................. -- -- -- 81,720
Adjustment to the fair value of
investments and long-term receivables
allowance, net.......................... 231 -- (217) 5,003
Restructuring and other charges........... -- 1,064 1,720 8,055
---------- ---------- ---------- ----------
........................................... 14,012 17,786 42,123 142,392
---------- ---------- ---------- ----------
Operating loss............................ (2,547) (8,479) (1,788) (108,749)
Other income and (expense):
Other income, net....................... 74 6,627 640 6,627
Interest expense, net................... (325) (258) (1,086) (902)
Minority interests...................... (1,110) (132) (3,612) (822)
---------- ---------- ---------- ----------
Loss before income taxes.................. (3,908) (2,242) (5,846) (103,846)
Income tax expense........................ (182) (290) (627) (1,158)
---------- ---------- ---------- ----------
Net loss.................................. $ (4,090) $ (2,532) $ (6,473) $ (105,004)
========== ========== ========== ==========
Net loss per share - basic and diluted.... (0.06) $ (0.04) $ (0.10) $ (2.05)
========== ========== ========== ==========
Weighted average number of common shares
outstanding - basic and diluted......... 64,743 64,056 63,888 51,220
</Table>
TLC VISION CORPORATION
RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA
(IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)
<Table>
<Caption>
3 MONTHS ENDED SEPTEMBER 30,
-----------------------------
2003 2002
----------- -----------
Loss for the period $ (4,090) $ (2,532)
Interest 325 258
Taxes 182 290
Depreciation and amortization 5,760 5,887
----------- -----------
EBITDA 2,177 3,903
Research and development (1) 975 2,000
Restructuring and other charges -- 1,064
Adjustment to the fair value of
investments and long-term receivables allowance, net 231 --
Other income, net (74) (6,627)
----------- -----------
Adjusted EBITDA $ 3,309 $ 340
=========== ===========
Weighted average number of shares 64,743 64,056
Adjusted EBITDA per share $ 0.05 $ 0.01
</Table>
(1) Research and development expense relates to TLCVision's agreement to advance
up to $6 million in convertible and non-convertible debt to Vascular Sciences
Corporation from time to time in addition to the $3 million of Vascular Sciences
equity acquired and expensed in 2002. Vascular Science's technology is in the
development stage and, accordingly, the Company accounts for its investment as a
research and development arrangement whereby costs are expensed as amounts are
provided to Vascular Science.
TLC VISION CORPORATION
NET REVENUE AFTER DOCTOR COMPENSATION SUPPLEMENTAL ANALYSIS
(IN THOUSANDS)
(UNAUDITED)
<Table>
<Caption>
3 MONTHS ENDED SEPTEMBER 30,
-------------------------------
2003 2002
------------ ------------
Revenue - Refractive $ 33,793 $ 33,810
Doctors Compensation (2,455) (3,063)
------------ ------------
Net Revenue after Doctors Compensation - Refractive 31,338 30,747
Other Healthcare Service 12,221 9,992
------------ ------------
Total Net Revenue after Doctors Compensation $ 43,559 $ 40,739
============ ============
</Table>
TLC VISION CORPORATION
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
<Table>
<Caption>
(UNAUDITED)
SEPTEMBER 30, DECEMBER 31,
2003 2002
------------- -------------
ASSETS
Current assets
Cash and cash equivalents $ 25,328 $ 36,081
Restricted cash - current 3,211 --
Short-term investments 769 1,557
Accounts receivable 18,800 14,155
Prepaids and other current assets 10,758 9,820
------------- -------------
Total current assets 58,866 61,613
Restricted cash - non-current 1,349 3,975
Investments and other assets 2,308 2,442
Intangibles, net 24,575 29,326
Goodwill, net 47,990 40,697
Fixed assets 57,175 58,003
------------- -------------
Total assets $ 192,263 $ 196,056
============= =============
LIABILITIES
Current liabilities
Accounts payable $ 11,579 $ 13,857
Accrued liabilities 29,540 28,911
Current portion of long-term debt 9,602 6,322
------------- -------------
Total current liabilities 50,721 49,090
Other long-term liabilities 3,394 9,630
Long term-debt, less current maturities 16,633 15,760
Minority interests 10,354 9,748
SHAREHOLDERS' EQUITY
Capital stock 396,884 388,769
Treasury stock (2,429) (2,623)
Option and warrant equity 8,532 11,035
Accumulated deficit (291,826) (285,353)
------------- -------------
Total shareholders' equity 111,161 111,828
------------- -------------
Total liabilities and shareholders' equity $ 192,263 $ 196,056
============= =============
</Table>