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 January, 1998
TLC The Laser Center, Inc.
(Commission File No. 0-29302)
5600 Explorer Drive, Suite 301, Mississauga, Ontario, Canada L4W 4Y2
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(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. Second quarter earnings report dated November 30, 1997.
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: ___________________ By: _______________________________
Elizabeth A. Karmin,
Deputy General Counsel
<PAGE>
TLC THE LASER CENTER INC. 2
TLC[LOGO]
TLC THE LASER CENTER INC.
SECOND
QUARTER
REPORT
Six Months Ended November 30, 1997
<PAGE>
Message to Shareholders
The fiscal quarter ending November 30, 1997 results were characterized by
highest ever gross revenues, record net revenues, and first-time generation of
positive Earnings Before Interest, Taxes, Depreciation and Amortization
(EBITDA). All were driven primarily by strong growth in the number of refractive
laser procedures performed.
Second quarter gross revenue was a record $26.2 million, an increase of
193% over the fiscal 1997 comparative quarter. Second quarter net revenues more
than tripled to $18.2 million from the same period a year ago, and are the
highest quarterly net revenues ever reported by the Company. The increasing
revenue is primarily due to continuing strong growth in the number of procedures
at existing sites. Over 6,400 paid refractive laser procedures were performed at
TLC clinics in the second quarter, compared to 1,980 from the same quarter a
year ago.
TLC's net loss for the quarter was $2.8 million, or $0.10 per share,
versus $2.6 million, or $0.15 per share for the corresponding period a year ago.
The net loss includes $2.8 million in amortization and $820,000 in interest. As
a result, TLC generated positive EBITDA of $943,000 for the second quarter,
versus EBITDA of negative $1.6 million for the same period a year ago. This is
the first time that positive EBITDA has been generated in the Company's history.
It is an important milestone for TLC and was achieved at a very early stage of
our development and much sooner than anticipated.
Our results continue to exceed expectations. This is an extremely exciting
time for the Company as income before amortization charges is positive.
This good performance of TLC is despite the traditional weakness of this
quarter. We continue to grow our leadership position at the same time that the
laser vision correction market maintains its tremendous growth and the procedure
becomes highly recognized and widely accepted.
/s/ Elias Vamvakas
ELIAS VAMVAKAS
[LOGO] PRESIDENT AND
CHIEF EXECUTIVE OFFICER
JANUARY 13, 1998
REFRACTIVE CLINIC
PROCEDURES
(BY QUARTER)
[THE FOLLOWING DATA WAS REPRESENTED IN A BAR GRAPH]
7000
6000
5000
4000
3000
2000
1000
0
- -------------------------------------------
95 96 97 98
<PAGE>
CONSOLIDATED STATEMENT OF INCOME
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------
(in thousands of Canadian dollars, except per share amounts)
Three Months Ended Nov. 30 Six Months Ended Nov. 30
- --------------------------------------------------------------------------------------------------------
1997 1996 1997 1996
---------------------------------------------------------
<S> <C> <C> <C> <C>
Net revenues $ 18,221 $ 5,428 $ 32,025 $ 10,340
Share of loss of affiliated companies 55 (122) (32) (150)
- --------------------------------------------------------------------------------------------------------
18,276 5,306 31,993 10,190
- --------------------------------------------------------------------------------------------------------
Expenses
Operating 15,911 5,410 28,519 9,442
Financial 820 197 1,301 333
Amortization 2,838 778 5,555 1,415
- --------------------------------------------------------------------------------------------------------
19,569 6,385 35,375 11,190
- --------------------------------------------------------------------------------------------------------
LOSS FROM OPERATIONS (1,293) (1,079) (3,382) (1,000)
Development and start-up expenses 1,542 1,535 3,143 2,329
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LOSS BEFORE INCOME TAXES
AND NON-CONTROLLING INTEREST (2,835) (2,614) (6,525) (3,329)
- --------------------------------------------------------------------------------------------------------
Income taxes
Current 62 34 88 83
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62 34 88 83
- --------------------------------------------------------------------------------------------------------
Loss before non-controlling interests (2,897) (2,648) (6,613) (3,412)
Non-controlling interests 120 - 120 -
- --------------------------------------------------------------------------------------------------------
NET LOSS FOR THE PERIOD $ (2,777) $ (2,648) $ (6,493) $ (3,412)
=========================================================
LOSS PER SHARE $ (0.10) $ (0.15) $ (0.24) $ (0.18)
Weighted average number
of common shares outstanding 27,459,333 17,732,323 27,192,930 18,873,470
Supplementary disclosure
Gross revenues of all managed clinics
Refractive clinics revenue $ 19,169 $ 3,557 $ 33,269 $ 7,108
Secondary care clinics physician
group revenue 7,039 5,396 13,499 9,976
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Gross revenues 26,208 8,95 346,768 17,084
- --------------------------------------------------------------------------------------------------------
Less:
Provision for contractual allowances
and adjustments 4,377 2,429 8,179 4,489
Amounts retained by physician groups 4,051 1,096 7,683 2,255
- --------------------------------------------------------------------------------------------------------
8,428 3,525 15,862 6,744
- --------------------------------------------------------------------------------------------------------
Net revenues of all managed clinics 17,780 5,428 30,906 10,340
Other 441 - 1,119 -
- --------------------------------------------------------------------------------------------------------
Net revenues $ 18,221 $ 5,428 $ 32,025 $ 10,340
- -----------------------------------------------=========================================================
</TABLE>
1
<PAGE>
CONSOLIDATED BALANCE SHEET
- --------------------------------------------------------------------------------
(In thousands of Canadian dollars) November 30, May 31,
- ---------------------------------- 1997 1997
-------------------------------
Assets
Current
Cash and short-term deposits $ 6,495 $ 20,977
Accounts receivable 7,262 4,056
Income taxes recoverable 262 46
Prepaids and sundry 4,785 2,316
- --------------------------------------------------------------------------------
18,804 27,395
Goodwill 35,266 34,401
Capital assets 33,542 34,006
Assets under capital lease 11,568 10,213
Investment in affiliated companies 500 675
Other 415 588
Projects under development 253 168
Deferred income taxes 27 55
- --------------------------------------------------------------------------------
$100,375 $107,501
==============================
Liabilities
Current
Accounts payable and accrued liabilities $ 4,700 $ 9,725
Current portion of long-term debt 1,904 1,810
Current portion of obligations under
capital lease 3,103 2,377
Current portion of term bank loan - 40
Deferred income taxes 32 61
- --------------------------------------------------------------------------------
9,739 14,013
Long-term debt 6,029 6,627
Obligations under capital lease 11,069 9,283
Term bank loan - 23
Deferred rent and compensation 2,647 2,230
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29,484 32,176
- --------------------------------------------------------------------------------
Non-controlling interest 578 463
- --------------------------------------------------------------------------------
Shareholders' equity
Capital stock 94,496 92,552
Deficit (24,183) (17,690)
- --------------------------------------------------------------------------------
70,313 74,862
- --------------------------------------------------------------------------------
$100,375 $107,501
- --------------------------------------------------==============================
CONSOLIDATED STATEMENT OF DEFICIT
- --------------------------------------------------------------------------------
(In thousands of Canadian dollars)
- --------------------------------------------------------------------------------
Six months ended November 30 1997 1996
----------------------------
Balance, beginning of period $(17,690) $(3,741)
Net loss for the period (6,493) (3,412)
- --------------------------------------------------------------------------------
Balance, end of period $(24,183) $(7,153)
- --------------------------------------------------==============================
<PAGE>
CONSOLIDATED STATEMENT OF CHANGES IN FINANCIAL POSITION
- --------------------------------------------------------------------------------
(In thousands of Canadian dollars)
- --------------------------------------------------------------------------------
Six months ended November 30 1997 1996
----------------------------
Operating activities
Net loss for the period $ (6,493) $ (3,412)
Amortization 5,555 1,415
Share of loss from affiliates 32 150
Non-controlling interest (120) -
- --------------------------------------------------------------------------------
(1,026) (1,847)
Changes in non-cash operating items
Deferred rent and compensation 417 10
Non-controlling interest 235 -
Deferred income taxes (net) (1) (5)
Projects under development (85) (22)
Income taxes payable (216) (137)
Prepaid and sundry assets (2,469) (189)
Accounts receivable (3,206) (1,287)
Accounts payable and accrued liabilities (5,025) 100
- --------------------------------------------------------------------------------
Cash provided from (used for)
operating activities (11,376) (3,377)
- --------------------------------------------------------------------------------
Financing activities
Obligations under capital lease 2,512 (146)
Capital stock issued 1,944 23,580
Due from 20/20 Laser Centers, Inc. - (3,709)
Term bank loan (63) (20)
Long-term debt (504) 4,047
- --------------------------------------------------------------------------------
Cash provided from (used for)
financing activities 3,889 23,752
- --------------------------------------------------------------------------------
Investing activities
Other 173 (68)
Investment in affiliated companies 143 (491)
Goodwill (2,055) -
Assets under capital lease (2,545) (259)
Capital assets (2,711) (6,543)
- --------------------------------------------------------------------------------
Cash provided from (used for)
investing activities (6,995) (7,361)
- --------------------------------------------------------------------------------
Increase (decrease) in cash (14,482) 13,014
Cash and short-term deposits,
beginning of period 20,977 4,143
- --------------------------------------------------------------------------------
Cash and short-term deposits,
end of period $ 6,495 $ 17,157
- --------------------------------------------------==============================
<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) 903-4000
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
Oklahoma
Oklahoma City
TLC Oklahoma City
(405) 842-6060
Dr. Waymon Harrison
Tulsa
TLC Tulsa
(918) 491-6009
Dr. Jeff Miller
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
South Carolina
Greenville*
TLC Piedmont
(864) 297-6299
Dr. Cynthia Wike
Washington
Seattle
TLC Northwest Eye Inc.
(206) 528-6000
Rodger McCollum
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.
