[TLC VISION LOGO] EXHIBIT 99.1
NEWS RELEASE CONTACT:
FOR IMMEDIATE RELEASE Stephen Kilmer
Vice President, Investor Relations
(905) 238-3904
TLCVISION REPORTS Q1-04 FINANCIAL RESULTS
TORONTO, ONTARIO--(May 10, 2004) - TLC Vision Corporation (NASDAQ:TLCV;
TSX:TLC), North America's premier eye care services company, today announced its
financial results for the three month period ended March 31, 2004. 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.
Q1-04 total net revenues were $65.2 million, up 22% from $53.6 million in Q1-03
and up 34% from $48.5 million in the previous quarter.
First quarter total paid laser procedure volumes were over 56,800. Procedure
volumes include procedures of a former subsidiary that became an equity
investment in 2004. Same-store year-over-year volume growth of 16% in the
centers was partially offset by the closing of unprofitable centers and lower,
but still positive, 4% year-over-year volume growth in the access business. The
result was that Q1-04 procedure volumes were up 6% from the 53,500 reported in
the same three month period a year ago and represented an increase of 47%
sequentially from the 38,600 refractive procedures performed last quarter. The
procedure volume mix in Q1-04 was 58% centers versus 42% access. Custom LASIK
procedures represented approximately 49% of owned or managed center volumes in
Q1-04.
On a GAAP basis, TLCVision reported a Q1-04 net profit of $8.1 million or $0.12
per share. This represents more than a 7-fold increase from $1.1 million or
$0.02 per share for the same three month period a year ago, and compares to a
loss of ($2.9 million) or ($0.04) per share last quarter. First quarter 2004
adjusted EBITDA was $13.3 million, up 88% from the $7.1 million for the same
period last year and an increase of 237% from $3.9 million in Q4-03.
[Adjusted EBITDA is defined as earnings before interest, taxes, depreciation and
amortization ("EBITDA") excluding certain non-recurring items and research and
development costs 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 operating results as prescribed by U.S. GAAP and
"Adjusted EBITDA".]
Elias Vamvakas, TLCVision's Chairman & CEO, commented "I believe that our
operations team did an outstanding job in preparing TLCVision to capitalize so
well financially on procedure volume growth in the seasonally strong first
quarter. Year-over-year growth trends improved throughout the first quarter and
that momentum has so far continued into Q2. Indeed, April 2004 total paid laser
procedure volumes were up more than 20% from April 2003 levels. I am very
pleased with what we have accomplished thus far and am confident that we will
continue to build on TLCVision's world-leading position going forward."
About TLCVision
TLCVision is North America's premier eye care services company. Through its
subsidiaries, the company focuses on three large eye care markets - refractive
surgery (surface of the eye), cataract surgery (anterior of the eye) and the
development of a potential dry AMD therapy (posterior of the eye). The key
drivers of TLCVision's strategy are our affiliated network of thousands of eye
doctors, proven corporate and consumer marketing and education programs, and
access to state of the art clinical technologies. We are supported by a strong
operations management culture and superior information technology. More
information about the company can be found on the TLCVision 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.
/T/
TLC VISION CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In thousands except per share amounts)
<Table>
<Caption>
THREE MONTHS ENDED MARCH 31,
---------------------------
2004 2003
----------- -----------
Revenues:
Refractive:
Centers $ 38,838 $ 30,923
Access 12,049 10,929
Other healthcare services 14,288 11,738
----------- -----------
Total revenues 65,175 53,590
----------- -----------
Cost of revenues:
Refractive:
Centers 26,152 22,543
Access 8,172 7,162
Other healthcare services 9,138 7,480
----------- -----------
Total cost of revenues 43,462 37,185
----------- -----------
Gross margin 21,713 16,405
----------- -----------
General and administrative 7,901 8,019
Marketing 2,894 3,661
Research and development 374 --
Amortization of intangibles 1,012 1,672
Write down in the fair value of investments -- 203
----------- -----------
12,181 13,555
----------- -----------
Operating income 9,532 2,850
Other income, net 548 368
Interest expense, net (403) (368)
Minority interests (1,874) (1,541)
Earnings from equity investments 399 --
----------- -----------
Income before income taxes 8,202 1,309
Income tax expense (150) (239)
----------- -----------
Net income $ 8,052 $ 1,070
=========== ===========
Earnings per share - basic $ 0.12 $ 0.02
=========== ===========
Earnings per share - diluted $ 0.12 $ 0.02
=========== ===========
Weighted average number of common shares
outstanding - basic 66,932 64,060
Weighted average number of common shares
outstanding - diluted 69,433 64,060
</Table>
TLC VISION CORPORATION
RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA (UNAUDITED)
(In thousands except per share amounts)
<Table>
<Caption>
THREE MONTHS ENDED MARCH 31,
-----------------------------
2004 2003
------------ ------------
Net Income $ 8,052 $ 1,070
Interest 403 368
Taxes 150 239
Depreciation and amortization 4,557 5,554
------------ ------------
EBITDA 13,162 7,231
Research and development 374 --
Variable stock option expense 319 --
Adjustment to fair value of investments
and long-term receivables allowance, net -- 203
Other income, net (548) (368)
------------ ------------
Adjusted EBITDA $ 13,307 $ 7,066
============ ============
</Table>
TLC VISION CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands)
(UNAUDITED)
<Table>
<Caption>
MARCH 31, DECEMBER 31,
2004 2003
------------ ------------
ASSETS
Current assets
Cash and cash equivalents $ 37,080 $ 29,580
Short-term investments 313 748
Accounts receivable 17,959 15,617
Prepaids and other current assets 12,159 11,646
------------ ------------
Total current assets 67,511 57,591
Restricted cash 1,369 1,376
Investments and other assets 7,518 3,102
Intangibles, net 20,548 22,959
Goodwill, net 52,728 48,829
Fixed assets 52,189 56,891
------------ ------------
Total assets $ 201,863 $ 190,748
============ ============
LIABILITIES
Current liabilities
Accounts payable $ 9,385 $ 10,627
Accrued liabilities 26,512 25,811
Current portion of long-term debt 12,305 10,285
------------ ------------
Total current liabilities 48,202 46,723
Other long-term liabilities 2,554 2,607
Long term-debt, less current maturities 13,475 19,242
Minority interests 9,705 10,907
SHAREHOLDERS' EQUITY
Capital stock 409,580 397,878
Option and warrant equity 5,047 8,143
Accumulated deficit (286,700) (294,752)
------------ ------------
Total shareholders' equity 127,927 111,269
------------ ------------
Total liabilities and
shareholders' equity $ 201,863 $ 190,748
============ ============
</Table>
/T/