-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, FOAc5heGJuEG3Y5FojSW2y8HApAkbqHL3qKuW8QZMMkuartzT2cs9hEYhDH7Ap1S 8hO61hV/haSeB+4T01DsKQ== 0000906318-97-000043.txt : 19970515 0000906318-97-000043.hdr.sgml : 19970515 ACCESSION NUMBER: 0000906318-97-000043 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970331 FILED AS OF DATE: 19970514 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: LCA VISION INC CENTRAL INDEX KEY: 0001003130 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-NURSING & PERSONAL CARE FACILITIES [8050] IRS NUMBER: 112882328 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10QSB SEC ACT: 1934 Act SEC FILE NUMBER: 000-27610 FILM NUMBER: 97603511 BUSINESS ADDRESS: STREET 1: 7840 MONTGOMERY RD CITY: CINCINNATI STATE: OH ZIP: 45236 BUSINESS PHONE: 5137929292 MAIL ADDRESS: STREET 1: 7840 MONTGOMERY ROAD CITY: CINCINNATI STATE: OH ZIP: 45236 10QSB 1 U.S. SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 Form 10-QSB (Mark One) [ X ] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the quarterly period ended March 31, 1997. [ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT. For the transition period from __________ to __________ Commission file number 0-27610 LCA-Vision Inc. (Exact name of small business issuer as specified in its charter) Delaware 11-2882328 (State or other jurisdiction of (IRS Employer incorporation or organization) Identification No.) 7840 Montgomery Road, Cincinnati, Ohio 45236 (Address of principal executive offices) (513) 792-9292 (Issuer's telephone number) (Former name, former address and formal fiscal year, if changes since last report.) Check whether then issuer (1) filed all reports required to be filed by Section 3 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to filing requirements for the past 90 days. Yes X No APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS: Check whether the registrant filed all documents and reports to be filed by sections 12, 13 or 15(d) of the Exchange Act after the distribution of securities under a plan confirmed by a court. Yes X No APPLICABLE ONLY TO CORPORATE ISSUERS: State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date: 19,599,231 shares as of May 9, 1997. Transitional Small Business Disclosure Format (check one): Yes No X LCA-VISION INC. INDEX Signatures Page No. Facing Sheet 1 Index 2 Part I. Financial Information Item 1. Financial Statements Unaudited Condensed Consolidated Balance Sheet, March 31, 1997 3 Unaudited Condensed Consolidated Statements of Operations for the Three Months ended March 31, 1997 and 1996 4 Unaudited Condensed Consolidated Statements of Cash Flows for the Three Months ended March 31, 1997 and 1996 5 Notes to Unaudited Condensed Consolidated Financial Statements 6 Item 2. Management's Discussion Analysis of Financial Condition and Results of Operations 10 Part II. Other Information 14 Item 1. Legal Proceedings Item 2. Changes in Securities Item 3. Defaults upon Senior Securities Item 4. Submission of Matters to a Vote of Security Holders Item 5. Other Information Item 6. Exhibits and Reports on Form 8-K Signatures 15 LCA-VISION INC. Condensed Consolidated Balance Sheet March 31, 1997 (unaudited)
ASSETS Current assets $ 840,705 Cash and cash equivalents Accounts receivable, net of allowance for doubtful accounts of $100,236 1,065,565 Supplies inventory, prepaid expenses and other 1,115,905 Total current assets 3,022,175 Property and equipment, net 9,312,263 Investment in unconsolidated affiliates 208,832 Other assets 1,138,901 Total assets $ 13,682,171 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable $ 559,171 Bank line of credit 5,492,000 Accrued liabilities and other 953,530 Current portion of long-term debt 821,992 Deferred revenue 241,700 Total current liabilities 8,068,393 Long-term debt, net of current portion 4,737,612 Note payable to shareholder 1,500,000 Total liabilities 14,306,005 Shareholders' equity Preferred stock (Note 5) 2,521,679 Common stock - authorized 110,000,000 shares, $.001 par value; 19,599,231 shares issued and outstanding 78,931 Paid-in capital 3,227,682 Retained deficit (6,426,486) Treasury stock - 10,909 shares (30,000) Translation adjustment 4,360 Total shareholders' equity (623,834) Total liabilities and shareholders' equity $ 13,682,171
The Notes to Condensed Consolidated Financial Statements are an integral part of this statement. LCA-VISION INC. Condensed Consolidated Statements of Operations for the Three Months Ended March 31, 1997 and 1996 (unaudited)
1997 1996 Net revenue $ 2,762,415 $ 3,685,704 Direct operating expenses 1,871,295 1,733,918 General and administrative expenses 1,879,124 2,081,439 Pre-opening expenses 162,605 87,444 Depreciation and amortization 413,380 361,996 Operating loss (1,563,989) (579,093) Equity in loss of unconsolidated affiliates (9,745) (325,922) Interest expense (235,780) (163,577) Interest income 19,150 26,904 Other 6,061 2,201 Gain on sale of investment of unconsolidated affiliate 0 545,903 Loss before income taxes (1,784,303) (493,584) Income taxes 30,528 Net loss (1,784,303) (524,112) Accrued dividend - Class B preferred stock (49,969) 0 Account applicable to loss per common share $(1,834,272) $ ( 524,112) Net loss per common share $ (0.09) $ (0.03) Average common shares outstanding 19,596,398 19,685,321
The Notes to Condensed Consolidated Financial Statements are an integral part of this statement. LCA-VISION INC. Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 1997 and 1996 (unaudited)
1997 1996 Cash flows (used) by operating activities: Net loss $( 1,784,303) $ (524,112) Adjustments to reconcile net loss to net cash used by operation activities: Depreciation and amortization 413,380 361,996 Equity in earnings of affiliate 9,745 325,992 Gain on sale of investment in unconsolidated affiliate (545,903) Write down of intangible assets 106,772 Changes in operating assets and liabilities (Increase) decrease in: Accounts receivable (115,174) (370,521) Other current assets 83,578 22,089 Increase (decrease) in: Accounts payable (219,288) (166,515) Other current liabilities 84,506 433,903 Deferred revenue 11,693 170,625 Net cash used by operating activities (1,515,863) (185,744) Cash flows from investing activities: Purchase of property and equipment (247,695) (945,750) Investment in unconsolidated affiliates (806,939) Net cash used in investing activities (247,695) (1,750,689) Cash flows from financing activities: Proceeds from sales of common stock 50,500 Repayment of long-term debt and capital lease obligations (202,170) (30,578) Repayment of notes payable shareholders (187,705) Borrowings from bank line of credit 2,054,000 602,000 Other (22,093) 10,377 Net cash from financing activities 1,880,237 394,094 Increase (decrease) in cash 116,679 (1,542,339) Cash and cash equivalents, beginning of period 724,026 2,587,151 Cash and cash equivalents, end of period 840,705 1,044,812
The Notes to Condensed Consolidated Financial Statements are an integral part of this statement. LCA-VISION INC. Notes to Condensed Consolidated Financial Statements for the Three Months Ended March 31, 1997 and 1996 (unaudited) 1. Description of Business Organization On September 29, 1995, LCA-Vision Inc. (LCA-Vision or the Company) merged with Laser Centers of America, Inc. (LCA). At the time of the merger, two shareholders together owned 92% of the outstanding voting stock of LCA-Vision and 100% of LCA's. Shareholders' equity was restated to reflect the capital structure of LCA-Vision at the time of the merger. Immediately prior to the merger, LCA distributed $6,390,772 to its shareholders which represented a portion of the subchapter S corporation earnings previously included in the taxable income of its shareholders. The proceeds of the distribution were used by the shareholders to acquire shares of LCA-Vision common stock for $2 million and to loan the remainder to LCA-Vision, receiving two promissory notes. Business LCA-Vision is a leading developer and operator of free-standing laser refractive surgery centers. The Company also manages laser and minimally invasive surgery programs for hospitals and medical centers. The laser refractive surgery centers operated by the Company provide the facilities, equipment and support services for performing various corrective eye surgeries that employ state-of the-art laser technologies. The surgeries performed in the Company's centers primarily include photorefractive keratectomy (PRK) for treatment of myopia (nearsightedness). As of March 31, 1997, the Company had fifteen laser refractive surgery facilities in the United States, two in Ontario, Canada, and one in Helsinki, Finland. The Company opened two centers in January 1997 Albany, New York and Mountain View, California and one center in March 1997 - Warren, Ohio. The Company manages 26 multi-specialty laser surgery programs at various medical facilities on a contract basis. The Company structures its contractual arrangements to match compensation with the value of the specific services it provides. The Company is generally paid on a fixed amount for the initial work performed to render a center operational and then receives compensation to service a center on an ongoing basis. Compensation is generally fixed based on procedures performed; based on increased surgical volume or reduced surgical costs; or a combination of such. Contracts may also compensate the Company for conducting the education and marketing programs of the surgical center and its staff including doctors. 2. Significant Accounting Policies The March 31, 1997 and 1996 financial data are unaudited; however, in the opinion of the Company, such data include all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of the interim periods. Principles of Presentation The consolidated financial statements include the accounts of LCA-Vision Inc., a Delaware corporation, and its wholly-owned subsidiaries after elimination of intercompany balances and transactions. Certain reclassifications of prior year numbers have been made to conform with the current presentation. Stock Split In June 1996, the shareholders approved a one-for-four reverse stock split of the Company's common and preferred stock. The number of shares and per share data in these consolidated financial statements have been adjusted retroactively to give effect to these splits as if they had occurred at the beginning of the earliest period presented. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimated. Pre-opening Costs Cost associated with the opening of a new laser refractive surgery center are expensed during the first month of the center's operation. Investments in Unconsolidated Affiliates The equity method is used for investments in laser refractive surgery centers in which the Company has 50% or less ownership. These investments are recorded at the Company's initial investment, increased or decreased by the Company's share of the center's income or loss, less distributions received. Impact of Recently Issued Accounting Standards In February 1997, the FASB issued statement No. 128, Earnings per Share, which establishes standards for computing and presenting earnings per share. Statement 128 simplifies the standards for computing earnings per share previously found in APB Opinion No. 15, Earnings per Share, and makes them comparable to international earnings per share calculations. Statement 128 is effective for financial statements issued for periods ending after December 15, 1997, and requires restatement of all prior-period earnings per share data presented. The Company expects that adoption of Statement 128 will not have a material effect on earnings per share or prior period earnings per share data. 3. Acquisitions On October 28, 1996, the Company purchased the outstanding shares of 938051 Ontario Inc. (The Eye Laser Centre). The terms of the acquisition provided, among other things, for the Company to pay $160,000 in cash and provide a letter of credit in the amount of $64,000 to be held in escrow pending the earlier of the following: (1) dismissal of a patent infringement lawsuit filed against one of the sellers, or (2) settlement or final court determination of the lawsuit. In addition, the Company may be required to issue unregistered common stock with a total market value of $280,000 or cash totaling $224,000 based on whether The Eye Laser Centre achieves certain performance objectives. The acquisition of The Eye Laser Centre has been accounted for using the purchase method of accounting. The purchase price in excess of the net assets acquired ($124,175) has been recorded as goodwill which is being amortized over 5 years. 4. Notes Payable - Shareholders The notes payable - shareholders mature on September 25, 2005, and bear interest at 6.91%. The promissory notes can be repaid, in whole or in part, prior to maturity without penalty. In 1996, the Company repaid $354,097 of the notes. In two separate transactions in December 1996, the principal shareholders converted $2,521,672 of their notes into Class B preferred stock (note 5). At March 31, 1997, the principal and interest totaling $1,883,776 is owed. 5. Preferred Stock Preferred Stock consists of: Class A, $.001 par value 1,688 shares authorized, 1,688 shares issued ($67,510 aggregate liquidation preference) $ 7 Class B, $.001 par value, 7% dividend First Interim Series, 6 shares issued ($1,200,000 aggregate liquidation preference) 1,200,000 Second Interim Series, 6.6 shares issued ($1,321,672 aggregate liquidation preference) 1,321,672 $2,521,679 The holders of the Class B interim series preferred have the right to convert the preferred stock into common stock beginning July 1, 1997. The conversion price is the average of the closing bid prices of the Company's common stock for the 30-day period ending three (3) days prior to the date of conversion. The shares are automatically converted into any class or series of equity securities effected on or before June 30, 1997 and with gross proceeds of at least $10,000,000. In the event of a private placement that does not meet the above criteria, the holders of the securities have the right to convert on a pro rata basis. The conversion price is the price per share of the shares issued in connection with the private placement. At March 31, 1997, dividends totaling $49,969 have been accrued. 6. Investments in Unconsolidated Affiliates The Company sold its investment in Continuum Biomedical, Inc. which had been accounted for using the equity method for $1,000,000 resulting in a gain of $545,903. The gain was recorded in the first quarter of 1996, the proceeds were received in April 1996. 7. Related Party Transactions The Company's principal shareholder is the majority owner of the LCA Center for Surgery, Ltd. (Surgery, Ltd.). Surgery, Ltd. occupies a portion of the Company's office building for which the Company recorded income of $40,267 for the three months ended March 31, 1996. The Company also provided certain administrative and marketing services for which it recorded income of $15,000 for the three months ended March 31, 1996. Included in accounts receivable at March 31, 1997 is $15,564 due from Surgery, Ltd. In May, 1995, LCA and its principal shareholder acquired 45% and 35% ownership interests, respectively, in the Surgery Center of Georgia, LLC (SCG) in return for guarantees of certain debt of SCG. As part of the merger and restructuring (see Note 1), LCA distributed its interest in SCG in return for removal from the guarantees of SCG's debt. LCA-Vision recorded income of $9,000 and $24,594 for the three months ended March 31, 1997 and 1996, respectively, for administrative and marketing services provided to SCG. Included in accounts receivable at March 31, 1997, is $97,850 due from SCG. The Company provided a $60,000 advance to a former officer in 1995. The advance is supported by a promissory note due November 29, 1996, with interest payable at 8.75%. The note was extended and in January, 1997, the officer repaid $30,000 of the balance due by selling to the Company 10,909 shares of its common stock at the then market value. At March 31, 1997, principal and interest approximating $35,000 is included in prepaid expenses and other. Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. Overview LCA-Vision Inc. (LCA-Vision or the Company) is a leading developer and operator of free-standing laser refractive surgery centers and manages laser and minimally invasive surgery programs for hospitals and medical centers. The laser refractive surgery centers operated by the Company provide the facilities, equipment and support services for performing various corrective eye surgeries that employ state-of-the-art laser technologies. The surgeries performed in the Company's centers primarily include photorefractive keratectomy ("PRK") for treatment of myopia (nearsightedness). The Company also manages 26 multi-specialty laser surgery programs at various medical facilities on a contract basis. The Company structures its contractual arrangements to match compensation with the value of the specific services it provides. The Company is generally paid a fixed amount for the initial work performed to render a center operational and then receives compensation to service a center on an ongoing basis. Compensation is generally fixed based on procedures performed; based on increased surgical volume or reduced surgical costs; or a combination of such. Contracts may also compensate the Company for conducting the education and marketing programs of the surgical center and its staff including doctors. The Company derives its revenue from three primary sources: (i) fees for surgeries performed at its laser refractive surgery centers, (ii) contractual fees for managing multi-specialty laser surgery programs, and (iii) fees for marketing and education programs; management fees for operating laser refractive surgery centers of investees; and miscellaneous sources. Miscellaneous sources include product sales - lasers and laser surgery instruments - which the Company began phasing out effective December 31, 1996. The Company classifies its operating expenses into the following categories: (a) direct operating expenses which include: (i) laser refractive surgery centers -- labor, physician fees, Pillar Point royalty fees (a royalty fee paid to the manufacturers of the FDA-approved lasers of $250 per procedure), facility rent and utilities, and surgical supplies; (ii) multi-specialty laser surgery programs - - labor; and (iii) other services and products - -- labor and cost of products sold; (b) general and administrative expenses which primarily include marketing program costs, headquarters staff expenses and other overhead costs; (c) center pre-opening expenses which include direct costs incurred prior to opening a laser refractive surgery center; and (d) depreciation and amortization. Results of Operations The Company's results of operations in any period are significantly affected by the number of laser refractive surgery centers opened and operating, the number of hospitals under management contract, and the level of services contracted by hospitals and others during such period. Given the limited period of time that the laser refractive surgery centers have been opened, the Company's results of operations may not be indicative of future results. The following table reflects the Company's expansion into laser refractive surgery centers: 1997 1996 Q1 Q4 Q3 Q2 Q1 Operating at beginning of period Wholly-owned 10 6 5 4 2 Investees 5 3 3 3 1 Opened/acquired during period 3 4 1 1 2 Wholly-owned 2 2 Investees Operating at end of period Wholly-owned 13 10 6 5 4 Investees 5 5 3 3 3 The Company records the activity of its investee laser refractive surgery centers using the equity method of accounting. The following table reflects the number of hospitals under management contract for the three months ended March 31: 1997 1996 Beginning of period 26 38 End of period 26 31 The following table reflects the sources of consolidated net revenue: Three Months Ended March 31, 1997 1996 Net revenue Laser refractive surgery centers 57.4% 17.4% Multi-specialty laser surgery programs 25.3 35.9 Other 17.3 46.7 100.0% 100.0% The following table reflects the direct cost associated with the principal sources of the company's revenue: Three Months Ended March 31, 1997 1996 Direct costs Laser refractive surgery centers 87.9% 89.8% Multi-specialty laser surgery programs 39.9% 30.4% Net revenue for the three months ended March 31, 1997, decreased $923,289 compared to the three months ended March 31, 1996. 1997 net revenue was positively impacted by the opening of laser refractive surgery centers. This source of revenue offset the decline in marketing and education services provided to hospitals and surgery centers. Revenue from multi-specialty laser surgery programs declined as a result of the decreasing number of facilities under contract. In addition, the cost reduction programs instituted by health care providers negatively impacted their marketing and education expenditures. Revenue for the three months ended March 31, 1996 includes one-time income of $256,375 from the implementation of programs in hospitals and laser refractive surgery centers of investees and a contract cancellation fee. Procedures performed at laser refractive surgery centers that opened in the first three months of 1996 and have therefore, been open a full year increased 189.6%. Procedures performed at all centers in the first quarter 1997 increased 34.3% compared to total procedures performed in the fourth quarter of 1996. Centers opened in the first quarter 1997 contributed 6.9 percentage points of this overall increase. Management anticipates that the composition of future revenue will change as more laser eye surgery centers are developed and as the photorefractive keratectomy ("PRK"), a procedure in which lasers are used to permanently correct nearsightedness, becomes more widely known and accepted by ophthalmic physicians and their patients. Revenues from hospital-based multi-specialty centers will be less significant to the Company while revenues from laser eye surgery centers are expected to increase. The extent and degree of the shift in the Company's future revenues are subject to significant uncertainty. Direct operating expenses were $1,871,295 in 1997 which represents an increase of $137,377 compared to 1996. The increase in direct operating expenses is primarily a result of the Company's expansion into the laser refractive surgery business. Direct operating expenses comprise the significant fixed costs of performing the procedure as well as the costs of maintaining a facility. These costs will become a lesser percentage of revenue as procedure volume increases. Direct operating expenses related to the other sources of revenue are more variable and fluctuate generally with the level of revenue. General and administrative expenses were $1,879,124 in 1997 which represents a decrease of $202,315 compared to 1996. The decrease was due to cost controls instituted at the end of 1996. In 1997, the Company has spent approximately $470,000 for marketing and advertising programs to educate and inform individuals about PRK. Other expenses such as telephone, legal, insurance, and repairs and maintenance increase as the Company opens new refractive laser surgery centers. Depreciation and amortization increased in 1997 compared to 1996 due to the increase in property and equipment, primarily equipment for the refractive laser surgery centers. Interest expense was $235,780 in 1997 which is an increase of $72,203 compared to 1996. The increase is primarily a result of the increased borrowings related to the capitalized leases for the lasers and borrowings under the line of credit offset by the reduction in loans from the principal shareholders. The $545,903 gain on the sale of investment in unconsolidated affiliate is the difference between the net selling price and the carrying value using the equity method of accounting for the investment in Continuum Biomedical, Inc. This investment was sold in the first quarter 1996 and the Company received proceeds of $1,000,000 in April, 1996 from the sale. Liquidity and Capital Resources The Company's principal capital requirements include working capital for the financing of accounts receivable from its multi-specialty laser surgery program contracts, the equipping and furnishing of its laser refractive surgery centers, the continuing development of marketing programs, and the funding of operating losses of its laser refractive surgery centers. To date, the Company has funded its capital requirements largely from internally-generated funds, lease financing, and bank borrowings. The Company has an $8 million line of credit, expiring July 1, 1997, which it has used to maintain its existing businesses and to expand its laser refractive surgery center business. Borrowings under this line of credit were $5,492,000 at March 31, 1997. The Company anticipates renewing the bank line of credit prior to its expiration. There is, however, no assurance that the bank will renew the line of credit or, if the line is renewed, on the same terms and conditions. At March 31, 1997, the Company had cash equivalents totaling $840,705 and negative working capital of $5,046,218. The negative working capital is primarily due to the use of the bank line of credit to fund the expansion of the laser refractive surgery centers and to fund their anticipated losses. Net cash used to purchase property and equipment was $247,695 and $943,750 for the three months ended March 31, 1997 and 1996, respectively. Cash used by operating activities for the three months ended March 31, 1997 and 1996 was $1,515,863 and $185,744, respectively. Cash used in operating activities was principally the funding of the anticipated operating losses of the laser refractive surgery centers. Capital of $50,500 was raised in the first quarter of 1996 through the sale of common stock in private placement transactions. With the first year cost of a laser refractive surgery center of approximately $1 million, the Company has concluded that additional capital is necessary to continue the rollout of new centers and to accelerate the operational changes underway. On March 3, 1997, the Company announced that it had engaged an investment banking firm to arrange a $12 million private placement of equity securities for the Company. The proceeds of this financing, when completed, will be used for future rollouts of new laser refractive surgery centers and for general corporate purposes. There is no assurance that the financing will be completed. Part II. Other Information Item 1. Legal Proceedings. None Item 2. Changes in Securities. None Item 3. Defaults upon Senior Securities. None Item 4. Submission of Matters to a Vote of Security Holders. None Item 5. Other Information. None Item 6. Exhibits and Reports on Form 8-K. (a) Exhibits Exhibit 11 Computation of Per Share Earnings (Loss) Exhibit 27 Financial Data Schedule (b) Reports on Form 8-K. None Signatures In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereto duly authorized. LCA-VISION INC. Date May 14, 1997 /s/ Stephen N. Joffe Stephen N. Joffe President and Chief Executive Officer Date May 14, 1997 /s/ Larry P. Rapp Larry P. Rapp Chief Financial Officer LCA-VISION INC. Computation of Per Share Loss For the Three Months Ended March 31, 1997 and 1996 1997 1996 Primary Per Share Loss Net loss available for common shareholders $(1,834,272) $ (524,112) Shares: Weighted average number of common shares outstanding 19,596,398 19,685,321 Additional shares assuming exercise of stock options (a) (a) Average common shares and equivalents as adjusted 19,596,398 19,685,321 Loss per common share $ (0.09) $ (0.03) (a) Net loss per share is based on outstanding common shares. Assuming exercise of options would be anti-dilutive as an increase in the number of shares assumed to be outstanding would further reduce the amount of the loss per share. EX-27 2
5 THIS SCHEDULE CONTAINS SUMMARY INFORMATION EXTRACTED FROM THE LCA-VISION INC. CONDENSED CONSOLIDATED BALANCE SHEET AT MARCH 31, 1997 ADN THE RELATED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 3-MOS DEC-31-1997 MAR-31-1997 840705 0 1165801 100236 268056 3022175 12754220 3441957 13682171 8068393 4737612 0 2521679 78931 (3224444) 13682171 16510 2762415 10013 1871295 2455109 0 235780 (1784303) 0 (1784303) 0 0 0 (1784303) (.09) (.09)
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