EXHIBIT 99.3
TLCVISION REPORTS FINANCIAL RESULTS FOR THE THREE AND SIX MONTHS ENDED JUNE 30,
2004
TORONTO, ONTARIO--(CCNMatthews - Aug. 9, 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 and six month periods ended
June 30, 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.
Q2-04 total net revenues were $64.7 million, up 36% from $47.5 million in the
second quarter of 2003.
Second quarter total paid laser procedure volumes were over 51,600. Same-store
year-over-year volume growth of 24% in the centers was partially offset by 9%
year-over-year volume growth in the access business. The result was that Q2-04
total procedure volumes were up 16% from 44,500 for the same three month period
a year ago. The procedure volume mix in Q2-04 was 59% centers versus 41% access.
CustomLASIK procedures represented approximately 52% of center volumes in Q2-04.
TLCVision reported a Q2-04 net profit of $6.2 million, or $0.09 per share,
compared to a loss of ($3.5 million), or ($0.05) per share, reported in last
year's second quarter. The Q2-04 net profit included restructuring, severance
and other charges totaling $2.8 million, or $0.04 per share, primarily related
to future severance payments associated with the planned retirements of B.
Charles (Chuck) Bono III as Chief Financial Officer and Robert W. May as General
Counsel. The effect of these charges was partially offset by a positive gain of
$1.2 million, or $0.02 per share, due to the reversal of a reserve for long-term
receivables.
Editors should note that investment analyst estimates do not generally reflect
the impact of one-time charges or gains. Excluding the aforementioned one-time
adjustments, TLCVision's non-GAAP net profit was $7.8 million, or $0.11 per
share. This was comparable with the $0.12 per share profit reported for the
seasonally strong first quarter of 2004.
Second quarter 2004 adjusted EBITDA was $13.1 million, up 272% from the $3.5
million reported for the same three month period last year.
(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".)
For the six months ended June 30, 2004 paid laser procedure volumes were over
108,500 and total net revenues were $129.8 million. This compared to paid laser
procedure volumes of 98,000 and total net revenues of $101.1 million
for the comparable period of the prior year. The net profit for the six months
ended June 30, 2004 was $14.3 million, or $0.20 per share, compared to a net
loss of ($2.4 million), or ($0.04) per share, for the same period last year.
Adjusted EBITDA for the six months ended June 30, 2004 was $26.4 million, up
149% from the Adjusted EBITDA of $10.6 million for the first half of 2003.
Elias Vamvakas, TLCVision's Chairman, commented "I am very pleased with what we
have accomplished thus far in 2004. Adjusted EBITDA for the first six months of
2004 alone has already exceeded that achieved for the entire 2003 year by 48%,
or $8.6 million. Now into our third quarter, early indications are that
year-over-year growth trends will continue. I remain confident that we will
continue to build on TLCVision's world-leading position going forward."
Conference Call
TLCVision is pleased to invite all interested parties to participate in a
conference call during which these results will be discussed. The call will be
held today, August 9, at 4:30 p.m. Eastern Time at 1-800-731-2911. The call will
also be broadcast live and archived on the company's web site at www.tlcv.com
under the "Webcasts" link in the Investor Relations section. In addition, the
live web cast will be available at various other popular portals and financial
web sites.
About TLC Vision
TLCVision is North America's premier eye care services company. 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.
TLC VISION CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In thousands except per share amounts)
THREE MONTHS SIX MONTHS
ENDED JUNE 30, ENDED JUNE 30,
------------------ ------------------
2004 2003 2004 2003
------- ------- ------- -------
Revenues
Refractive
Centers $36,374 $26,237 $75,212 $57,160
Access 10,544 9,647 22,593 20,576
Other healthcare services 17,743 11,648 32,031 23,386
------- ------- ------- -------
Total revenues 64,661 47,532 129,836 101,122
------- ------- ------- -------
Cost of revenues
Refractive
Centers 24,645 20,636 50,797 43,179
Access 7,135 6,481 15,307 13,643
Other healthcare services 10,574 7,950 19,712 15,430
------- ------- ------- -------
Total cost of revenues 42,354 35,067 85,816 72,252
------- ------- ------- -------
Gross margin 22,307 12,465 44,020 28,870
------- ------- ------- -------
General and administrative 7,400 8,313 15,301 16,332
Marketing 3,435 3,496 6,329 7,157
Research and development 350 -- 724 --
Amortization of intangibles 1,057 1,678 2,069 3,350
Adjustment to the fair value of
investments
and long-term receivables (1,206) (651) (1,206) (448)
Restructuring, severance and other
charges 2,755 1,720 2,755 1,720
------- ------- ------- -------
13,791 14,556 25,972 28,111
------- ------- ------- -------
Operating income (loss) 8,516 (2,091) 18,048 759
Other income (expense), net (22) 198 526 566
Interest expense, net (272) (393) (675) (761)
Minority interests (2,454) (961) (4,328) (2,502)
Earnings from equity investments 613 -- 1,012 --
------- ------- ------- -------
Income (loss) before income taxes 6,381 (3,247) 14,583 (1,938)
Income tax expense (142) (206) (292) (445)
------- ------- ------- -------
Net income (loss) $ 6,239 $(3,453) $14,291 $(2,383)
------- ------- ------- -------
Earnings (loss) per share - basic $ 0.09 $ (0.05) $ 0.21 $ (0.04)
======= ======= ======= =======
Earnings (loss) per share - diluted $ 0.09 $ (0.05) $ 0.20 $ (0.04)
======= ======= ======= =======
Weighted average number of common
shares outstanding - basic 68,585 63,457 67,759 63,435
Weighted average number of common
shares outstanding - diluted 71,249 63,457 70,341 63,435
TLC VISION CORPORATION
RECONCILIATION OF NET INCOME TO ADJUSTED
EBITDA
(In thousands except per share amounts)
(unaudited)
3 months 3 months 6 months 6 months
ended ended ended ended
June 30 June 30 June 30 June 30
-------------------- --------------------
2004 2003 2004 2004
-------- -------- -------- --------
Net income (loss) $ 6,239 $ (3,453) $ 14,291 $ (2,383)
Interest 272 393 675 761
Taxes 142 206 292 445
Depreciation and amortization 4,461 5,493 9,018 11,047
-------- -------- -------- --------
EBITDA 11,114 2,639 24,276 9,870
-------- -------- -------- --------
Research and development 350 - 724 -
Variable stock option expense 15 - 334 -
Restructuring, severance and
other charges 2,755 1,720 2,755 1,720
Adjustment to the fair value of
investments and long-term
receivables, net (1,206) (651) (1,206) (448)
Other income, net 22 (198) (526) (566)
-------- -------- -------- --------
Adjusted EBITDA $ 13,050 $ 3,510 $ 26,357 $ 10,576
======== ======== ======== ========
TLC VISION CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands)
(UNAUDITED)
JUNE 30, DECEMBER 31,
2004 2003
--------- ------------
ASSETS
Current assets
Cash and cash equivalents $ 47,952 $ 29,580
Short-term investments 313 748
Accounts receivable 17,721 15,617
Prepaids and other current assets 12,753 11,646
--------- ------------
Total current assets 78,739 57,591
Restricted cash 1,352 1,376
Investments and other assets 7,858 3,102
Intangibles, net 20,327 22,959
Goodwill, net 53,088 48,829
Fixed assets, net 50,780 56,891
--------- ------------
Total assets $ 212,144 $ 190,748
========= ============
LIABILITIES
Current liabilities
Accounts payable $ 7,669 $ 10,627
Accrued liabilities 25,678 25,811
Current portion of long-term debt 10,058 10,285
--------- ------------
Total current liabilities 43,405 46,723
Other long-term liabilities 2,493 2,607
Long-term debt, less current
maturities 12,341 19,242
Minority interests 9,751 10,907
SHAREHOLDERS' EQUITY
Capital stock 419,738 397,878
Option and warrant equity 4,877 8,143
Accumulated deficit (280,461) (294,752)
--------- ------------
Total shareholders' equity 144,154 111,269
--------- ------------
Total liabilities and shareholders'
equity $ 212,144 $ 190,748
========= ============
- -30-
Stephen Kilmer
VP, Investor Relations
TLC Vision Corporation (NASDAQ:TLCV; TSX:TLC)
(905) 238-3904