FORM 6-K
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of April, 1998
TLC The Laser Center, Inc.
(Commission File No. 0-29302)
5600 Explorer Drive, Suite 301, Mississauga, Ontario, Canada L4W 4Y2
(Address of principal executive offices)
[Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.] Form 20-F |_| Form 40-F |X|
[Indicate by check mark whether the registrant by furnishing the
information contained in this Form is also thereby furnishing the information to
the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.] Yes |_| No |X|
Exhibits Attached:
1. Quarterly Report to Shareholders dated April 9, 1998.
SIGNATURE
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, thereunto duly authorized.
TLC The Laser Center Inc.
Date: April 29, 1998 By: Ronald J. Kelly
----------------------
Ronald J. Kelly,
Deputy General Counsel
TLC The Laser Center Inc. 3
[TLC LOGO]
TLC THE LASER CENTER INC.
[PHOTO OMITTED]
THIRD
QUARTER
REPORT
NINE MONTHS ENDED FEBRUARY 28, 1998
<PAGE>
Message to Shareholders
The fiscal quarter ending February 28, 1998 results were characterized by record
revenues and improved Earnings Before Interest, Taxes, Depreciation and
Amortization (EBITDA). All were driven primarily by strong growth in the number
of refractive laser procedures performed.
Third quarter gross revenues were $36.5 mil-lion, up from $10.2 million
for the fiscal 1997 comparative quarter. Third quarter net revenues more than
tripled to $24.1 million from the same period a year ago. The increasing revenue
is primarily due to continuing growth in the number of procedures at existing
sites. Over 9,300 paid refractive laser procedures were performed at TLC clinics
in the third quarter, compared to 2,209 from the same quarter a year ago.
TLC's net loss for the quarter was $3.3 million, or $0.12 per share,
versus $3.4 million, or $0.16 per share for the corresponding period a year ago.
The net loss includes $3.1 million in amortization, $654,000 in taxes, and
$618,000 in interest. As a result, TLC generated positive EBITDA of $1.1 million
for the third quarter, compared to EBITDA of negative $2.2 million for the same
period a year ago.
ELIAS VAMVAKAS
[LOGO] PRESIDENT AND CHIEF EXECUTIVE OFFICER
APRIL 9, 1998
<PAGE>
TLC's NEGOTIATIONS WITH BEACONEYE SUCCESSFUL
In March, TLC launched a take-over bid for all the common shares of BeaconEye
Inc. The transaction, valued at approximately $16 million, will add 11
refractive centers to TLC's network. Thus far, approximately 97% of the
BeaconEye shares have been tendered and paid for pursuant to TLC's offer.
TLC ADDED TO TSE 300 AND TSE 200 INDEXES
The Toronto Stock Exchange has added TLC's common shares to both the TSE 300
Composite Index and the TSE 200 Index. TLC is included in the
Biotechnology/Pharmaceuticals subgroup.
REFRACTIVE CLINIC PROCEDURES
[GRAPHIC OMITTED]
<PAGE>
<TABLE>
<CAPTION>
CONSOLIDATED STATEMENT OF INCOME
- ----------------------------------------------------------------------------------------------------------------------------
(IN THOUSANDS OF CANADIAN DOLLARS, EXCEPT PER SHARE AMOUNTS) THREE MONTHS ENDED FEB. 28 NINE MONTHS ENDED FEB. 28
- ----------------------------------------------------------------------------------------------------------------------------
1998 1997 1998 1997
----------------------------------------------------------
<S> <C> <C> <C> <C>
Net Revenues $24,148 $6,474 $56,173 $16,814
- ----------------------------------------------------------------------------------------------------------------------------
Expenses
Operating 21,711 7,102 50,262 16,695
Interest and other 618 153 1,919 486
Depreciation and amortization 3,075 1,055 8,630 2,470
- ----------------------------------------------------------------------------------------------------------------------------
25,404 8,310 60,811 19,651
- ----------------------------------------------------------------------------------------------------------------------------
LOSS FROM OPERATIONS BEFORE START-UP AND DEVELOPMENT EXPENSES (1,256) (1,836) (4,638) (2,837)
Start-up and development expenses 1,388 1,582 4,531 3,911
- ----------------------------------------------------------------------------------------------------------------------------
LOSS BEFORE INCOME TAXES AND NON-CONTROLLING INTEREST (2,644) (3,418) (9,169) (6,748)
- ----------------------------------------------------------------------------------------------------------------------------
Income taxes
Current 654 27 742 110
- ----------------------------------------------------------------------------------------------------------------------------
654 27 742 110
- ----------------------------------------------------------------------------------------------------------------------------
Loss before non-controlling interest (3,298) (3,445) (9,911) (6,858)
Non-controlling interest 21 -- 141 --
- ----------------------------------------------------------------------------------------------------------------------------
NET LOSS FOR THE PERIOD $(3,277) $(3,445) $(9,770) $(6,858)
==========================================================
LOSS PER SHARE $(0.12) $(0.16) $(0.36) $(0.36)
Weighted average number of common shares outstanding 27,459,333 21,519,647 27,192,930 19,065,859
Supplementary disclosure
Gross revenues of all owned and managed clinics
Refractive clinics revenue $27,474 $5,196 $60,743 $12,304
Secondary care clinics physician group revenue 9,011 4,990 22,510 14,966
- ----------------------------------------------------------------------------------------------------------------------------
Gross revenues 36,485 10,186 83,253 27,270
- ----------------------------------------------------------------------------------------------------------------------------
Less:
Provision for contractual allowances and adjustments 5,762 2,110 13,941 6,599
Amounts retained by physician groups 7,055 1,602 14,738 3,857
- ----------------------------------------------------------------------------------------------------------------------------
12,817 3,712 28,679 10,456
- ----------------------------------------------------------------------------------------------------------------------------
Net revenues of all owned and managed clinics 23,668 6,474 54,574 16,814
Other 480 -- 1,599 --
- ----------------------------------------------------------------------------------------------------------------------------
Net revenues $24,148 $6,474 $56,173 $16,814
- ------------------------------------------------------------------==========================================================
</TABLE>
<PAGE>
CONSOLIDATED
BALANCE SHEET
- -------------------------------------------------------------------
(IN THOUSANDS OF CANADIAN DOLLARS) Febrary 28, May 31,
- -------------------------------------------------------------------
1998 1997
---------------------
Assets
Current assets
Cash and short-term deposits $ 5,536 $ 20,977
Accounts receivable 7,687 4,056
Income taxes recoverable -- 46
Prepaids and sundry 5,889 2,316
- -------------------------------------------------------------------
Total current assets 19,112 27,395
Goodwill 35,784 34,401
Capital assets 44,479 34,006
Assets under capital lease 11,703 10,213
Other 988 1,431
Deferred income taxes 57 55
- -------------------------------------------------------------------
Total assets $112,123 $107,501
=====================
Liabilities
Current liabilities
Accounts payable and accrued liabilities $ 6,516 $ 9,725
Current portion of long-term debt 2,458 1,810
Current portion of obligations under
capital lease 3,213 2,377
Current portion of term bank loan -- 40
Income taxes payable 167 --
Deferred income taxes 62 61
- -------------------------------------------------------------------
Total current liabilities 12,416 14,013
Long-term debt 7,955 6,627
Obligations under capital lease 11,170 9,283
Term bank loan -- 23
Deferred charges 2,779 2,230
- -------------------------------------------------------------------
Total liabilities 34,320 32,176
- -------------------------------------------------------------------
Non-controlling interest 9,105 463
- -------------------------------------------------------------------
Shareholders' equity
Capital stock 96,158 92,552
Deficit (27,460) (17,690)
- -------------------------------------------------------------------
Total shareholders' equity 68,698 74,862
- -------------------------------------------------------------------
Total liabilities and shareholders' equity $112,123 $107,501
- ----------------------------------------------=====================
- -------------------------------------------------------------------
CONSOLIDATED
STATEMENT OF DEFICIT
- -------------------------------------------------------------------
(IN THOUSANDS OF CANADIAN DOLLARS)
- -------------------------------------------------------------------
NINE MONTHS ENDED FEBRUARY 28 1998 1997
---------------------
Balance, beginning of period $(17,690) $ (3,741)
Net loss for the period (9,770) (6,858)
- -------------------------------------------------------------------
Balance, end of period $(27,460) $(10,599)
- ----------------------------------------------=====================
TLC THE LASER CENTER INC.
<PAGE>
CONSOLIDATED STATEMENT OF
CHANGES IN FINANCIAL POSITION
- ---------------------------------------------------------------
(IN THOUSANDS OF CANADIAN DOLLARS)
- ---------------------------------------------------------------
NINE MONTHS ENDED FEBRUARY 28 1998 1997
-------------------
Operating activities
Net loss for the period $(9,770) $(6,858)
Items not affecting cash
Depreciation and amortization 8,630 2,470
Non-controlling interest (141) --
Other 31 154
- ---------------------------------------------------------------
(1,250) (4,234)
Changes in non-cash operating items
Deferred charges 549 62
Income taxes payable, net 213 (112)
Prepaid and sundry assets (3,374) (1,535)
Accounts payable and accrued liabilities (3,432) (5,594)
Accounts receivable (3,437) (131)
- ---------------------------------------------------------------
Cash provided from (used for)
operating activities (10,731) (11,544)
- ---------------------------------------------------------------
Financing activities
Capital stock issued 3,606 58,541
Obligations under capital lease, net 1,865 3,908
Long-term debt, net 588 3,798
Term bank loan (63) (30)
- ---------------------------------------------------------------
Cash provided from (used for)
financing activities 5,996 66,217
- ---------------------------------------------------------------
Investing activities
Other 43 (164)
Assets under capital lease (2,073) (3,284)
Acquisitions (3,627) (31,642)
Capital assets (5,049) (11,497)
- ---------------------------------------------------------------
Cash provided from (used for)
investing activities (10,706) (46,587)
- ---------------------------------------------------------------
Increase (decrease) in cash
and short-term deposits (15,441) 8,086
Cash and short-term deposits,
beginning of period 20,977 4,143
- ---------------------------------------------------------------
Cash and short-term deposits,
end of period $5,536 $12,229
- --------------------------------------------===================
<PAGE>
CORPORATE OFFICE
TLC The Laser Center Inc.
5600 Explorer Drive,
Suite 301,
Mississauga, Ontario
L4W 4Y2
Tel: (905) 602-2020
Fax: (905) 602-2025
INVESTOR RELATIONS CONTACT
Stephen Kilmer
Tel: 1-800-TLC-1033 or
Tel: (905) 602-2020
Fax: (905) 602-2025
Website:
http://www.lzr.com
E-mail:
investor.relations @ lzr.com
TRANSFER AGENT
The CIBC Mellon Trust Company
Tel: 1-800-387-0825
STOCK EXCHANGE LISTING
Shares of the Corporation are listed on the
Toronto Stock Exchange and NASDAQ
National Market
TRADING SYMBOLS
TSE - LZR
NASDAQ - LZRCF
FORWARD-LOOKING INFORMATION
This quarterly report may contain forward-looking information within the meaning
of Section 27A of the U.S. Securities Act of 1993 and Section 21E of the
Securities Exchange Act of 1934, and is subject to the safe harbor created by
those sections. TLC's operating results can be impacted by a number of factors,
any of which could cause actual results to vary materially from the current
results or TLC's anticipated future results. TLC's operating results can vary
substantially from period to period due to the timing of acquisitions and
expansion opportunities. This and other factors make the estimation of future
operating results uncertain. Risk factors are listed from time to time in TLC's
reports filed with the Toronto Stock Exchange and the U.S. Securities and
Exchange Commission. TLC assumes no obligation to update information contained
in this quarterly report.
<PAGE>
LASER CENTERS IN CANADA
British Columbia
Vancouver
TLC Northwest-Vancouver
(604) 689-0919
Dr. Michael Melenchuk
New Brunswick
Moncton
TLC Moncton
(506) 863-1999
Dr. Josee Visockis
Dr. Serge Richard
Ontario
London
TLC London
(519) 438-2020
Dr. Cheryl Letheren
Toronto
TLC Toronto
(416) 733-2020
Dr. Rhonda Kerzner
Windsor
TLC Windsor
(519) 250-2020
Dr. Lisa Willms
LASER CENTERS IN THE UNITED STATES
California
Brea
TLC Inland Empire
(909) 931-0044
Dr. Chang Kim
Colorado
Denver
TLC Rocky Mountain
(303) 329-9141
Dr. Jimmy Jackson
Florida
Boca Raton
TLC Boca Raton
(561) 998-2020
Dr. Salvador DeCanio Jr.
Miami
TLC Miami
(305) 949-2999
Dr. Jonathon Jacobs
Georgia
TLC Atlanta
(404) 377-7475
Dr. Bruce Pope
Illinois
Westchester
TLC MEI/Westchester
(708) 562-4681
Dr. Richard Foulkes
Indiana
Indianapolis
TLC Indiana
(317) 845-2020
Dr. Brian Duvall
Maryland
Rockville
TLC Rockville
(301) 881-2020
Dr. Valerie Seligson
Massachusetts
Scituate
TLC Massachusetts
(616) 544-9292
Dr. Kristen Brown
Michigan
TLC Detroit
(248) 489-0400
Dr. Michael Wallace
Montana
Billings
TLC Big Sky
(406) 651-0202
Dr. Harvey Bonner
New Jersey
Mount Laurel
TLC Mount Laurel
(609) 778-8550
Dr. F. Lawrence Vernamonti
Fair Lawn
TLC Fair Lawn
(201) 796-4466
Dr. Richard Czernik
New York
New York
TLC Manhattan
(212) 588-0200
Dr. Jason Michaelides
Garden City
TLC Garden City
(516) 742-2020 Dr.
Lori Landrio
White Plains
TLC White Plains
(914) 997-2222
Dr. Jason Michaelides
North Carolina
Charlotte
TLC Charlotte
(704) 344-0800
Dr. Kathy Reynolds
Raleigh
TLC Raleigh/Durham
(919) 781-9400
Dr. James Fanelli
Winston-Salem
TLC Winston-Salem
(336) 765-5600
Dr. Bill Rafferty
Ohio
Ada
TLC Lima
(419) 634-8155
Dr. Duane Wires
Cleveland
TLC Cleveland
(330) 923-5676
T.B.A.
Oklahoma
Oklahoma City
TLC Oklahoma City
(405) 842-6060
Dr. Waymon Harrison
Tulsa
TLC Tulsa
(918) 491-6009
Dr. Jeff Miller
<PAGE>
Pennsylvania
Plymouth Meeting
TLC Plymouth Meeting
(610) 940-3937
Dr. David Gubman
South Carolina
Greenville
TLC Piedmont
(864) 297-6299
Dr. Cynthia Wike
Tennessee
Johnson City
TLC Tri-Cities
(423) 282-0002
Dr. Richard Phillips
Virginia
Fairfax
TLC Fairfax
(703) 560-2020
Dr. Valerie Seligson
Washington
Lynnwood
TLC Northwest Seattle
(425) 771-1200
Dr. Beth Kneib
Wisconsin
Madison
TLC Wisconsin
(608) 249-6000
Dr. Charlotte Burns
SECONDARY EYE CARE FACILITIES IN THE UNITED STATES
Illinois
Palos Heights
TLC MEI/Palos Heights
(708) 361-7788
Dr. Richard Foulkes
Westchester*
TLC MEI/Westchester
(708) 562-4681
Dr. Richard Foulkes
Michigan
Battle Creek, Chelsea, Jackson, Lansing, Ypsilanti
TLC Michigan L.L.C.
(517) 782-9436
Dr. Paul Ernest
South Carolina
Greenville*
TLC Piedmont
(864) 297-6299
Dr. Cynthia Wike
Washington
Auburn, Burlington,
Mount Vernon, Seattle,
Sequim (2 locations),
Smokey Point
TLC Northwest Eye Inc.
(206) 528-6000
Rodger McCollum
Wisconsin
Madison
TLC Madison
(608) 249-6000
Dr. Michael Shapiro
TLC NETWORKS IN CANADA
Ontario
Kitchener
(University of Waterloo)
TLC NETWORKS IN THE UNITED STATES
California
San Diego
Dr. Gary Schwab,
(619) 274-2020
Connecticut
Hartford
Dr. Jerry Hardison,
(860) 236-5831
Indiana
Seymour
Dr. Mike Frische,
(812) 523-8756
Kentucky
Benton
Dr. Joe Ellis,
(502) 527-7421
Bowling Green
Dr. John Breiwa,
(502) 842-0383
Covington
Dr. Richard Schuck,
(606) 781-2000
Nevada
Las Vegas
Dr. Tom Kroll,
(702) 737-0321
New Mexico
Albuquerque
Dr. Craig Clatanoff,
(505) 896-4554
Tennessee
Chattanooga
Dr. Daryl Mann,
(423) 855-1666
Memphis
Dr. John Sharpe,
(901) 722-3263
Nashville
T.B.A.
* Denotes a clinic that is also listed as a laser center
[TLC LOGO]
TLC THE LASER CENTER INC.
