CINCINNATI, April 24, 2012 /PRNewswire/ -- LCA-Vision Inc.
(NASDAQ: LCAV), a leading provider of laser vision correction
services under the LasikPlus® brand, today announced
financial and operating results for the three months ended
March 31, 2012.
First Quarter 2012 Financial and Operating Highlights
(all comparisons are with the first quarter of 2011)
- Revenues increased 11.9% to $36.1
million from $32.3 million;
adjusted revenues increased 13.9% to $35.3
million from $31.0
million.
- Total procedure volume increased 11.3% to 20,987 procedures
from 18,857 procedures.
- Operating income increased to $3.8
million from $2.0 million;
adjusted operating income increased to $3.0
million from $0.8 million. The
improvement in operating income and adjusted operating income
reflects higher procedure revenue offset partially by increases in
variable costs, additional spending on marketing and advertising,
and increases in general and administrative costs.
- Marketing cost per eye decreased to $326 from $344.
- Net income was $3.8 million, or
$0.20 per share, compared with net
income of $2.0 million, or
$0.11 per share.
- Net cash provided by operations was $4.5
million compared with $4.8
million. Although net income increased substantially for the
first quarter of 2012, changes in working capital resulted in a
reduction of cash from operations in the first quarter of 2012
compared with a source of cash in the prior year.
- Cash and investments increased by $3.5
million to $48.3 million as of
March 31, 2012, compared with
$44.8 million as of December 31, 2011.
The company provides adjusted revenues and operating income as a
means of measuring performance that adjusts for the non-cash impact
of accounting for separately priced extended warranties. A
reconciliation of revenues and operating income as reported in
accordance with U.S. Generally Accepted Accounting Principles
(GAAP) is provided at the end of this news release. Management
believes that the adjusted information better reflects operating
performance and, therefore, is more meaningful to investors.
"We are pleased to report a profitable quarter, which reflects
seasonally strong procedure volume as patients take advantage of
flexible spending programs in the first quarter," said LCA-Vision
Chief Financial Officer Michael J.
Celebrezze. "Additionally, we benefited from a modest
improvement in the Consumer Confidence Present Situation Index,
which historically has correlated closely with our procedure
volume. However, we continue to believe the index remains
below the level at which consumers are comfortable with
discretionary spending on medical procedures.
"Importantly, we are reporting double-digit growth in revenues
and procedure volume compared with the prior year and a 90%
increase in net income. Even with the $500 discount promotion we offered during most of
the first quarter, average price per procedure of $1,683 was $38
higher than the first quarter of 2011 and was $25 above the price for the fourth quarter of
2011. In reviewing our operating metrics compared with the prior
year, our preoperative appointment show rate was considerably
higher."
LCA-Vision Chief Operating Officer David
L. Thomas said, "We are firmly focused on continued
improvements in our laser vision correction services business.
Currently, we are optimizing marketing activities at the local
level and working to align staff with increases in preoperative
exams in certain centers. We see ample opportunity for growth in
our laser vision correction business as the economy gains
momentum. Our vision center staff and call center team are
delivering a high level of patient satisfaction which results in
word of mouth referrals to Lasik Plus®.
"In addition to improving our core business, we have a
well-defined, multi-part strategy to promote future growth and
profitability. We are expanding our affiliate network of key
eye-care professionals for LASIK and cataract patient referrals
beyond our direct-to-consumer model, and we recently hired a vice
president to oversee this function. We also are implementing a
marketing and operational plan to support a successful expansion
into cataract and premium intraocular lens (IOL) surgery under our
new Visium Eye Institute™ brand. We are on track to have this
offering available in 10 to 14 markets by the end of 2012. We see
significant long-term opportunity with this offering as the
cataract and premium IOL market is four times as large as laser
vision correction, although, as previously announced, we expect to
incur start-up losses associated with our business
expansion."
Near-term Financial Outlook
LCA-Vision intends to continue to manage expenses conservatively
in 2012; its plans and outlook for the year include:
- The company does not plan to open any new vision centers in the
near term. LCA-Vision will consider restarting its de novo
vision center opening program when market conditions improve and
the company moves closer to sustained profitability in its core
laser vision correction services business.
- The company anticipates a modest improvement in price per
procedure from the 2011 average of $1,655.
- The company expects marketing and advertising expenses for the
2012 second quarter to be between $6.8
million and $7.3 million.
- The company expects capital expenditures in 2012 to be between
$2.0 million and $2.5 million for
cataract-related equipment and other capital needs.
The company affirms that the number of procedures companywide
required for its laser vision correction business to achieve
breakeven cash flow, after capital expenditures and debt service,
remains approximately 70,000 per year. The company expects to incur
start-up losses and capital investment during the expansion phase
for its cataract and IOL business.
Conference Call and Webcast
As previously announced, a conference call and webcast will be
held today beginning at 10:00 a.m. Eastern
time. To access the conference call, dial 866-322-1352 (U.S.
and Canada) or 706-643-6246
(international callers). The webcast will also be available in the
investor relations section of LCA-Vision's website. A replay of the
call and webcast will begin approximately two hours after the live
call has ended. To access the replay, dial 855-859-2056 (U.S. and
Canada) or 404-537-3406
(international callers) and enter the conference ID number:
59649604.
Forward-Looking Statements
This news release contains forward-looking statements based on
current expectations, forecasts and assumptions of LCA-Vision that
are subject to risks and uncertainties. The forward-looking
statements in this release are based on information available to
the company as of the date hereof. Actual results could differ
materially from those stated or implied in the forward-looking
statements due to risks and uncertainties associated with its
business. In addition to the risk factors discussed in the
company's Form 10-K and other filings with the Securities and
Exchange Commission, there are a number of other risks and
uncertainties associated with its business including, without
limitation, the successful execution of cost effective marketing
strategies to drive patients to its vision centers; the impact of
low consumer confidence and discretionary spending; competition in
the laser vision correction industry; the company's ability to
attract patients; the possibility of adverse outcomes or long-term
side effects of laser vision correction and negative publicity
regarding laser vision correction; the company's ability to operate
profitable vision centers and retain qualified personnel during
periods of lower procedure volumes; the company's success in
expanding its services into the cataract and IOL market; the
continued availability of non-recourse third-party financing for
its patients on terms similar to what it has paid historically; and
the future value of revenues financed by the company and its
ability to collect on such financings, which will in turn depend on
a number of factors, including the consumer credit environment and
the company's ability to manage credit risk related to consumer
debt, bankruptcies and other credit trends.
Further, the Food and Drug Administration's (FDA) advisory board
on ophthalmic devices currently is reviewing concerns about
post-LASIK quality of life matters, and the FDA has undertaken a
study on LASIK outcomes and quality of life that is expected to end
in 2012. The FDA or another regulatory body could take legal
or regulatory action against the company or others in the laser
vision correction industry. The outcome of this review or
legal or regulatory action could potentially impact negatively the
acceptance of LASIK. In addition, the acceptance rate of new
technologies and our ability to implement successfully new
technologies on a national basis create additional risk.
Except to the extent required under the federal securities laws
and the rules and regulations promulgated by the Securities and
Exchange Commission, the company assumes no obligation to update
the information included in this news release, whether as a result
of new information, future events or circumstances, or
otherwise.
About LCA-Vision Inc./LasikPlus®
LCA-Vision Inc., a leading provider of laser vision correction
services under the LasikPlus® brand, operates 52
LasikPlus® fixed-site laser vision centers in 26 states and
41 markets in the United States.
Additional company information is available at www.lca-vision.com
and www.lasikplus.com.
Earning Trust Every Moment;
Transforming Lives Every Day.
For
Additional Information
|
|
|
|
Company
Contact:
|
Investor Relations Contact:
|
Barb
Kise
|
Jody
Cain
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LCA-Vision
Inc.
|
LHA
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513-792-9292
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310-691-7100 – jcain@lhai.com
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@LHA_IR_PR
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LCA-Vision Inc.
|
Condensed Consolidated Balance Sheets (Unaudited)
|
(Dollars
in thousands)
|
|
|
March
31, 2012
|
|
December 31, 2011
|
Assets
|
|
|
|
Current
assets
|
|
|
|
Cash
and cash equivalents
|
$
22,914
|
|
$
18,568
|
Short-term investments
|
24,520
|
|
25,311
|
Patient
receivables, net of allowances of $1,002 and $1,035
|
2,895
|
|
2,366
|
Other
accounts receivable, net
|
2,945
|
|
1,974
|
Prepaid
expenses and other
|
3,714
|
|
4,254
|
|
|
|
|
Total
current assets
|
56,988
|
|
52,473
|
|
|
|
|
Property
and equipment, net
|
9,389
|
|
10,637
|
Long-term
investments
|
882
|
|
902
|
Patient
receivables, net of allowances of $719 and $634
|
1,099
|
|
769
|
Other
assets
|
1,349
|
|
1,652
|
|
|
|
|
Total
assets
|
$
69,707
|
|
$
66,433
|
|
|
|
|
Liabilities and Stockholders'
Investment
|
|
|
|
Current
liabilities
|
|
|
|
Accounts payable
|
$
9,534
|
|
$
8,103
|
Accrued
liabilities and other
|
12,129
|
|
12,175
|
Deferred revenue
|
2,064
|
|
2,516
|
Debt
obligations maturing within one year
|
3,015
|
|
2,978
|
|
|
|
|
Total
current liabilities
|
26,742
|
|
25,772
|
|
|
|
|
Long-term
insurance reserves, less current portion
|
6,183
|
|
6,264
|
Long-term
debt obligations, less current portion
|
258
|
|
1,026
|
Other
long-term liabilities
|
6,124
|
|
7,106
|
|
|
|
|
Stockholders' investment
|
|
|
|
Common
stock ($.001 par value; 25,291,637 shares issued and
|
|
|
|
18,972,134 and
18,858,147 shares outstanding, respectively)
|
25
|
|
25
|
Contributed capital
|
177,790
|
|
177,287
|
Common
stock in treasury, at cost (6,319,503 shares and 6,433,490 shares,
respectively)
|
(112,047)
|
|
(112,910)
|
Accumulated deficit
|
(36,041)
|
|
(38,720)
|
Accumulated other comprehensive income
|
673
|
|
583
|
Total
stockholders' investment
|
30,400
|
|
26,265
|
|
|
|
|
Total
liabilities and stockholders' investment
|
$
69,707
|
|
$
66,433
|
|
|
|
|
LCA-Vision Inc.
|
Condensed Consolidated Statements of Operations
and Comprehensive Income (Unaudited)
|
(Amounts
in thousands except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
Three
months ended March 31,
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
Revenues
|
$
36,138
|
|
$
32,282
|
|
|
|
|
|
|
Operating
costs and expenses
|
|
|
|
|
Medical
professional and license fees
|
8,682
|
|
7,983
|
|
Direct
costs of services
|
11,911
|
|
11,020
|
|
General
and administrative expenses
|
3,706
|
|
3,456
|
|
Marketing
and advertising
|
6,851
|
|
6,496
|
|
Depreciation
|
1,312
|
|
1,454
|
|
Restructuring charges
|
-
|
|
56
|
|
|
32,462
|
|
30,465
|
|
Gain on
sale of assets
|
78
|
|
163
|
|
|
|
|
|
|
Operating
income
|
3,754
|
|
1,980
|
|
|
|
|
|
|
Net
investment income and other
|
116
|
|
80
|
|
|
|
|
|
|
Income
before taxes
|
3,870
|
|
2,060
|
|
|
|
|
|
|
Income tax
expense
|
24
|
|
41
|
|
|
|
|
|
|
Net
income
|
$
3,846
|
|
$
2,019
|
|
|
|
|
|
|
Earnings
per common share
|
|
|
|
|
Basic
|
$
0.20
|
|
$
0.11
|
|
Diluted
|
$
0.20
|
|
$
0.11
|
|
|
|
|
|
|
Weighted
average shares outstanding
|
|
|
|
|
Basic
|
18,895
|
|
18,743
|
|
Diluted
|
19,090
|
|
18,884
|
|
|
|
|
|
|
Comprehensive income
|
$
3,936
|
|
$
2,158
|
|
|
|
|
|
|
LCA-Vision Inc.
|
Condensed Consolidated Statements of Cash Flows
(Unaudited)
|
(Dollars
in thousands)
|
|
|
|
|
|
Three
months ended March 31,
|
|
2012
|
|
2011
|
|
|
|
|
Cash flows
from operating activities:
|
|
|
|
Net
income
|
$
3,846
|
|
$
2,019
|
Adjustments to reconcile net income to net cash
provided by operating activities:
|
|
|
|
Depreciation
|
1,312
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|
1,454
|
Provision for loss on doubtful accounts
|
243
|
|
155
|
Loss
(gain) on sale of investments, net
|
8
|
|
(10)
|
Gain on
sale of property and equipment
|
(78)
|
|
(163)
|
Stock-based compensation
|
504
|
|
375
|
Insurance reserves
|
(93)
|
|
(205)
|
Changes
in operating assets and liabilities:
|
|
|
|
Patient accounts
receivable
|
(1,097)
|
|
(290)
|
Other accounts
receivable
|
(975)
|
|
(370)
|
Prepaid expenses and
other
|
449
|
|
1,406
|
Accounts
payable
|
1,431
|
|
535
|
Deferred revenue, net
of professional fees
|
(738)
|
|
(1,142)
|
Accrued liabilities
and other
|
(319)
|
|
1,051
|
|
|
|
|
Net cash
provided by operations
|
4,493
|
|
4,815
|
|
|
|
|
Cash flows
from investing activities:
|
|
|
|
Purchases of property and equipment
|
(67)
|
|
(634)
|
Proceeds from sale of assets
|
127
|
|
570
|
Purchases of investment securities
|
(32,203)
|
|
(40,061)
|
Proceeds from sale of investment securities
|
32,929
|
|
42,267
|
Other,
net
|
-
|
|
8
|
|
|
|
|
Net cash
provided by investing activities
|
786
|
|
2,150
|
|
|
|
|
Cash flows
from financing activities:
|
|
|
|
Principal payments of loan
|
(731)
|
|
(979)
|
Shares
repurchased for treasury stock
|
(357)
|
|
(288)
|
Proceeds from exercise of stock options
|
52
|
|
23
|
|
|
|
|
Net cash
used in financing activities
|
(1,036)
|
|
(1,244)
|
|
|
|
|
Net effect
of exchange rate changes on cash and cash equivalents
|
103
|
|
131
|
|
|
|
|
Increase
in cash and cash equivalents
|
4,346
|
|
5,852
|
|
|
|
|
Cash and
cash equivalents at beginning of period
|
18,568
|
|
19,350
|
|
|
|
|
Cash and
cash equivalents at end of period
|
$
22,914
|
|
$
25,202
|
|
|
|
|
LCA-Vision Inc.
Effect of the Change in Accounting for Deferred Revenues
on Financial Results
(Dollars in thousands)
(Unaudited)
To supplement its Consolidated Financial Statements presented in
accordance with accounting principles generally accepted in
the United States, LCA-Vision
discusses adjusted revenues and operating income. Management
utilizes this information as a means of measuring performance that
adjusts for the non-cash impact of the accounting for separately
priced extended warranties and believes that including this
additional disclosure is meaningful to investors for the same
reason.
Accordingly, this news release contains non-GAAP financial
measures within the meaning of Regulation G promulgated by the
Securities and Exchange Commission. A reconciliation of the
difference between the non-GAAP measures with the most directly
comparable financial measures calculated in accordance with GAAP
follows:
|
|
Three
months ended March 31,
|
|
|
|
2012
|
|
2011
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
Reported
U.S. GAAP
|
|
$
36,138
|
|
$
32,282
|
|
Adjustments:
|
|
|
|
|
|
Amortization of prior deferred revenue
|
|
(821)
|
|
(1,269)
|
|
Adjusted
revenues
|
|
$
35,317
|
|
$
31,013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
|
|
|
|
|
|
|
|
|
|
|
|
Reported U.S.
GAAP
|
|
$
3,754
|
|
$
1,980
|
|
Adjustments:
|
|
|
|
|
|
Amortization of prior deferred revenue
|
|
(821)
|
|
(1,269)
|
|
Amortization of prior professional fees
|
|
82
|
|
127
|
|
Adjusted operating
income
|
|
$
3,015
|
|
$
838
|
|
|
|
|
|
|
|
SOURCE LCA-Vision Inc.