SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
February 8, 1999
LCA-Vision Inc.
(Exact name of Registrant as specified in its Charter)
Delaware 0-27610 11-2882328
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File No.) Identification Number)
7840 Montgomery Road, Cincinnati, Ohio 45236
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (513)792-9292
N/A
(Former name or former address, if changed since last report)
<PAGE>
Item 5. Other Events
On February 8, 1999 the Registrant issued the attached press release
reporting results for the fourth quarter and full year ended
December 31, 1998.
Item 7. Financial Statements and Exhibits
(a) Exhibits
99.1 Press Release dated February 8, 1999
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned hereunto duly authorized.
LCA-VISION INC.
Date: February 11, 1999 By:/s/Larry P. Rapp
Larry P. Rapp,
Chief Financial Officer
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Exhibit 99.1
Headline: ----------------------------------------------
Contacts: Dr. Stephen N. Joffe or Joel Pomerantz
Larry Rapp The Dilenschneider
LCA-Vision Inc. Group, Inc.
(513) 792-9292 (212) 922-0900
LCA-VISION REPORTS POSITIVE FOURTH-QUARTER EPS
Company Turns Corner, Sees Strong Growth,
And Sustained Profitability In 1999
CINCINNATI, February 8, 1999 -- LCA-Vision Inc. (NASDAQ:LCAV),
a leading U.S. provider of laser vision correction services, today
reported results for the fourth quarter and full year ended December
31, 1998.
LCA-Vision made good on its long-standing forecast to
shareholders to deliver "break-even or better" financial performance
by the end of 1998. In the fourth quarter, the company generated
net income attributable to common shareholders of $247,000, or 1
cent a diluted share, on record revenues of $9.9 million. A year
ago, the company reported a net loss of $2.6 million, or 7 cents a
diluted share, on revenues of $6 million. Fourth-quarter procedure
volume doubled to 6,791, up from 3,400 procedures during the same
quarter last year.
For all of 1998, LCA-Vision performed a record-breaking 23,080
procedures, up 137 percent from a year ago. Revenues for the year
doubled to a record $35.2 million, up from $17.6 million in 1997.
Excluding the impact of restructuring charges, the company's full-year net loss
was $3.2 million, or 9 cents a diluted share, compared
with a loss of $6.9 million, or 26 cents a diluted share, a year
ago.
Including first-half restructuring charges of $10.5 million,
or 29 cents a diluted share, LCA-Vision reported a full-year net
loss attributable to common shareholders of $13.7 million, or 36
cents a diluted share. In 1997, the company posted a restructuring
charge of $1.1 million for the year, or 4 cents a diluted share.
Results for 1998 also reflect preferred dividends of $128,000
and $518,00 0 for the fourth quarter and full year, respectively,
compared with preferred dividend charges of $44,000 and $183,000,
respectively, for the 1997 periods.
Dr. Stephen Joffe, LCA-Vision chairman and CEO, commented:
"LCA-Vision had a better than break-even quarter, a clear sign, we
believe, that our business has turned the corner. The sharp
increase in procedure volume that marked the closing weeks of 1998
has continued in the new year. Looking ahead, we see continued
strong growth and sustained profitability in 1999.
"Over 400,000 laser vision correction procedures were performed
in the U.S. in 1998, exceeding projections and representing a 75
percent increase over 1997. Based on our ability, today, to treat
nearsightedness, farsightedness and astigmatism, more than 99
percent of the potential U.S. market remains untapped. LCA-Vision's
current streamlined, more efficient operational structure will allow
us to take full advantage of the rapidly accelerating pace of
patient acceptance."
Dr. Joffe noted that strong word-of-mouth endorsements from
satisfied patients continue to be the most effective motivator for
new patients to consider laser vision correction. "Outstanding
results, continued favorable media attention, and our proven
marketing techniques have given us a winning formula and every
reason to be extremely optimistic about the coming year."
LCA-Vision, which operates laser vision correction centers in
the U.S., Canada, and Europe, is supported by a network of 600
physicians and 800 referring optometrists. Since inception, more
than 45,000 laser vision correction procedures have been performed
at the company's centers.
For additional news and information about LCA-Vision and laser
vision correction, please visit the company's website at www.lca-vision.com.
# # #
Safe Harbor Statement: This release contains forward-looking
statements that are subject to risks and uncertainties, including,
but not limited to, the impact of competition and pricing, procedure
demand and marketplace acceptance, and unforeseen fluctuations in
operating results and other risks detailed from time to time in the
company's filings with the Securities and Exchange Commission.
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<TABLE>
LCA-VISION INC.
Condensed Consolidated Statements of Operations
For the Three and Twelve Months Ended December 31, 1998 and 1997
(000 omitted, except per share amounts)
<CAPTION>
For The Three Months For The Twelve Months
Ended December 31 Ended December 31
1998 1997 1998 1997
-------- --------- --------- ---------
<S> <C> <C> <C> <C>
Net revenues:
Laser refractive surgery $ 9,533 $ 4,754 $ 32,963 $ 12,917
Surgery management contracts 159 964 1,496 3,064
Other 179 318 741 1,613
-------- --------- --------- ---------
Total net revenues 9,871 6,036 35,200 17,594
Direct operating expenses 6,477 4,758 24,463 12,727
General and administrative expenses 2,819 2,540 10,144 8,005
Depreciation and amortization 706 1,068 3,521 2,511
Restructuring provision 10,500 1,110
Other 162
-------- --------- --------- ---------
Operating income (loss) (131) (2,330) (13,428) (6,911)
Equity in income (loss) from
unconsolidated affiliates 209 (2) 354 (27)
Interest income 137 171 441 217
Interest expense 88 366 786 1,140
Other income 260 21 358 77
-------- --------- --------- ---------
Income (loss) before income taxes 387 (2,506) (13,061) (7,785)
Taxes on income 12 12 157 68
-------- --------- --------- ---------
Net income (loss) 375 (2,518) (13,218) (7,853)
Preferred stock dividends 128 44 518 183
-------- --------- --------- ---------
Income (loss) applicable to
to common stock $ 247 $ (2,562) $ (13,736) $ (8,036)
======== ========= ========= ==========
Income (loss) per common share
Basic $ 0.01 $ (0.07) $ (0.36) $ (0.30)
Diluted $ 0.01 $ (0.07) $ (0.36) $ (0.30)
Weighted average shares
outstanding
Basic 40,032,347 36,664,816 37,669,471 26,709,184
Diluted 46,973,114 36,664,816 37,669,471 26,709,184
EBITDA $ 575 $ (1,262) $ 593 $ (3,300)
</TABLE>
