-----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, WhPBmK7SN3m58zrkz3LyeLFwWdxYrUZOLc5bWEQfDGqlE2RMafbOd7aPO+N1yUsA Hq9V37HKM9BeYmAoAYjVew== 0000906318-96-000073.txt : 19961118 0000906318-96-000073.hdr.sgml : 19961118 ACCESSION NUMBER: 0000906318-96-000073 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19960930 FILED AS OF DATE: 19961114 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: 96665611 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 September 30, 1996. [ ]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 Rd., Cincinnati, OH 45236 (Address of principal executive offices) (513) 792-9292 (Issuer's telephone number) (Former name, former address and former fiscal year, if changed since last report.) Check whether the 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 such 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 required 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___ No ___ APPLICABLE ONLY TO CORPORATE ISSUERS: State the number of shares outstanding of each of the issuers classes of common equity, as of the latest practicable date: 19,617,875 at October 31, 1996. Transitional Small Business Disclosure Format (check one): Yes ___ No X LCA-VISION INC. INDEX Page No. Facing Sheet 1 Index 2 Part I. Financial Information Item 1. Financial Statements. Unaudited Condensed Consolidated Balance Sheet September 30, 1996 3 Unaudited Condensed Consolidated Statements of Operations for the Three and Nine Months ended September 30, 1996 and 1995 4 Unaudited Condensed Consolidated Statements of Cash Flows for the Nine Months ended September 30, 1996 and 1995 5 Notes to Unaudited Condensed Consolidated Financial Statements 6 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 9 Part II. Other Information 12 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 14 LCA-VISION INC Condensed Consolidated Balance Sheet September 30, 1996 (unaudited)
ASSETS Current Assets Cash and cash equivalents $ 802,847 Accounts receivable, net of allowance for doubtful accounts of $206,975 2,283,440 Supplies inventory, prepaid expenses and other 1,103,902 ---------- Total current assets 4,190,189 Property and equipment, net 8,644,793 Investment in unconsolidated affiliates 364,760 Other assets 783,344 ---------- Total assets $13,983,086 ========== LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Accounts payable $ 546,411 Bank line of credit 1,940,000 Accrued liabilities 1,084,879 Current portion of long-term debt 636,757 Deferred revenue 623,245 ---------- Total current liabilities 4,831,292 Long-term debt, net of current portion 5,056,870 Notes payable to shareholders 4,021,672 ---------- Total liabilities 13,909,834 Shareholders' Equity Preferred stock - authorized 10,000,000 shares, $.001 par value 6,751 shares issued and outstanding 7 Common stock - authorized 110,000,000 shares, $.001 par value 19,617,875 shares issued and outstanding 78,471 Paid-in capital 3,077,642 Retained (deficit) (3,103,147) Translation adjustment 20,279 ----------- Total shareholders' equity 73,252 Total liabilities and shareholders' equity $13,983,086 ===========
The Notes to Consolidated Financial Statements are an integral part of this statement. LCA-VISION INC. Condensed Consolidated Statements of Operations Three and Nine months ended September 30, 1996 and 1995 (unaudited)
Three Months Ended Nine Months Ended September 30, September 30, 1996 1995 1996 1995 Net revenue $ 3,243,075 $3,625,792 $10,454,551 $10,164,162 Direct operating expenses 1,641,601 1,375,830 4,994,386 4,378,993 Selling, general & administrative 1,931,506 1,888,294 6,132,880 4,501,413 Pre-opening expenses 0 0 87,444 0 Depreciation and amortization 386,926 232,686 1,169,336 728,947 --------- --------- ---------- ---------- Operating profit (loss) (716,958) 128,982 (1,929,495) 554,809 Equity in income (loss) of unconsolidated affiliates (230,024) 80,462 (734,366) 80,462 Interest expense (198,701) (63,564) (541,187) (145,201) Interest income 17,079 48,260 65,116 116,295 Other income (expense) 3,025 (10,650) 69,370 (10,745) Gain on sale of investment in unconsolidated affiliate 0 0 545,903 0 --------- --------- --------- ---------- Income (loss) before income taxes (1,125,579) 183,490 (2,524,659) 595,620 Income taxes (benefit) (34,413) (154,500) 43,180 (154,500) --------- --------- --------- ---------- Net income (loss) $(1,091,166) $ 337,990 $(2,567,839) $ 750,120 =========== ========= ========== ========== Net income (loss) per share $ (0.06) $ (0.13) =========== ========== If the Company had been subject to income taxes, net income would be: Historical net income $ 337,990 $ 750,120 provision for income taxes 224,227 380,836 ---------- ---------- Net income $ 113,763 $ 369,284 ========== ========== Pro forma net income per share $ 0.09 $ 0.35 ========= ========== Average shares outstanding 19,617,821 1,066,837 19,617,821 1,066,837
The Notes to Consolidated Financial Statements are an integral part of this statement. LCA-VISION INC. Condensed Consolidated Statement of Cash Flows Nine Months Ended September 30, 1996 and 1995 (unaudited)
Nine Months Ended September 30, 1996 1995 Cash flows provided by operating activities: Net income (loss) $(2,567,839) $ 750,120 Adjustments to reconcile net income(loss) to net cash provided (used) by operating activities: Depreciation and amortization 1,171,224 728,947 Deferred income tax benefit (154,500) Equity in earnings of affiliates 734,367 Gain on sale of investment in unconsolidated affiliate (545,903) Write down of intangible assets 106,772 Gain on property disposal (21,242) (104,240) Other (72,561) 139,330 Changes in operating assets and liabilities (Increase) Decrease in: Accounts receivable (398,624) 13,489 Other current assets 152,413 343,482 Increase (Decrease) in: Accounts payable (187,854) 259,205 Accrued liabilities 309,477 536,832 Deferred revenue 116,500 185,421 --------- --------- Net cash provided (used) by operating activities (1,203,270) 2,698,086 Cash flows from investing activities: Purchase of property and equipment (3,304,122) (1,305,653) Proceeds from sale of investment in affiliate 1,000,000 Proceeds from sales of equipment 34,015 288,561 Acquisition of intangibles (4,883) (60,997) Cash paid for acquisition (140,819) Investment in unconsolidated affiliates (1,079,636) ---------- ---------- Net cash used in investing activities (3,354,626) (1,218,908) Cash flows from financing activities: Repayment of long-term debt and capital lease obligations (278,862) (1,927,452) Repayment of notes payable shareholders (354,097) Proceeds from issuance of common stock 2,314,366 Borrowings under long-term debt and capital leases 1,457,550 2,963,448 Borrowings from bank line of credit 1,940,000 Distribution to shareholders (4,065,398) Other 9,000 266 --------- ---------- Net cash from financing activities 2,773,591 (714,770) --------- ---------- Increase (decrease) in cash (1,784,305) 764,408 Cash and cash equivalents, beginning of period 2,587,152 2,068,988 Cash and cash equivalents, end of period $ 802,847 $ 2,833,396
The Notes to Consolidated Financial Statements are an integral part of this statement. LCA-VISION INC. Notes to Condensed Consolidated Financial Statements Three and Nine Months Ended September 30, 1996 and 1995 (unaudited) 1. Description of Business and Basis of Presentation LCA-Vision Inc. ("LCA-Vision" or the "Company") owns and manages free-standing surgery centers that provide excimer laser refractive surgery procedures photorefractive keratectomy ("PRK") to correct myopia ("nearsightedness") in individuals. At September 30, 1996, the Company has eleven (11) laser eye surgery centers in operation: nine in the United States, five of which are wholly-owned; one in Canada; and one in Finland. The Company also establishes and provides ongoing management of laser and other minimally invasive surgery programs for healthcare systems and medical centers. At September 30, 1996, the Company provides these services to twenty-six hospitals and medical centers throughout the United States. On September 29, 1995, LCA-Vision 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. At the time of its acquisition by the LCA shareholders in July 1995, LCA-Vision was inactive and had no operations. These financial statements reflect the historical financial position and results of operation of LCA; except for shareholders' equity which has been restated to reflect the capital structure of LCA-Vision at the time of the merger. Immediately prior to the merger of LCA and LCA-Vision, LCA distributed $6,390,772 to its shareholders representing a portion of the S Corporation earnings previously included in the taxable income of the shareholders. The shareholders, utilizing the proceeds of the distribution, immediately acquired $2,000,000 of common stock of the Company for cash and lent a total of $4,390,772, receiving in return two promissory notes with interest at 6.91% which become due and payable in full on September 26, 2005. Any or all amounts due under the promissory notes may be prepaid at any time, without penalty. Principal and accrued interest owed to the shareholders was $4,237,798 at September 30, 1996. Interest expense on the notes payable shareholders was $71,018 and $216,126 for the three and nine months ended September 30, 1996, respectively. Pro Forma Data Prior to the merger, the Company elected to be treated as an S Corporation for income tax purposes. As a result, federal and certain state income taxes were paid by the shareholders. Pro forma income taxes and net income are presented as if the Company has terminated its S Corporation election effective January 1, 1995. The pro forma income taxes are based on a 38% effective rate. Pro forma net income per share reflects the recapitalization for the merger. 2. Stock Split On June 3, 1996, the shareholders approved a one-for-four reverse stock split of the Company's Common Stock and Preferred Stock. All references in the financial statements to share and per share data have been restated to reflect the stock split. 3. Significant Accounting Policies The September 30, 1996 and 1995 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 consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary since its date of acquisition, August 31, 1995. All significant intercompany transactions are eliminated. 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 in the financial statements and accompanying notes. Actual results could differ from these estimates. Pre-opening costs Costs associated with the opening of a new laser eye surgery center are expensed during the first full month of the Center's operation. Pre-opening costs recorded as other current assets were $145,828 at September 30, 1996. Earnings per share Net income (loss) per share is based upon the weighted average number of common shares outstanding during the periods presented. Common stock equivalents (stock options and stock appreciation rights) are anti-dilutive and are not included in the calculation. 4. Acquisition On August 31, 1995, the Company acquired the minority interest (33%) of Toronto Laservision Centre (1992), Inc. ("Centre") for approximately $140,000. The Company previously owned 67% of the Centre; however, it did not have control of the activities or the business affairs of the Centre because of the terms of a shareholders' agreement. During the period that the Company owned less than 100% of the Centre, its investment was accounted for under the equity method of accounting whereby the Company recorded its proportionate share of the Centre's income and losses as equity in income of unconsolidated affiliate. Commencing in September 1995, when the remaining 33% of the Centre was acquired, the Company consolidated the Centre's operations with those of its own operations. On October 28, 1996 the Company acquired the shares of 938051 Ontario, Inc., a Canadian corporation that owns a laser eye surgery center in Ft. Erie, Ontario, Canada, for approximately $320,000 plus the assumption of the lease for the laser. The sellers have placed $64,000 of the purchase in escrow for certain legal matters. In addition, the sellers can receive additional consideration up to $280,000 depending on future case volumes. 5. Investments in Unconsolidated Affiliates In September 1996 the Company bought a 43% interest in a new laser eye surgery center in Helsinki, Finland. The Company also has investments in three limited liability companies that own and operate PRK surgery centers. The Company accounts for its investment in these limited liability companies, as well as its investment in the Helsinki facility, using the equity method. The Company's share of losses incurred by its unconsolidated affiliates was $230,024 and $734,366 for the three and nine months ended September 30, 1996, respectively. In 1996, 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. Proceeds from the sale were received in April 1996. 6. Preferred Stock At the Annual Meeting of Stockholders held on June 3, 1996, the stockholders approved an Amendment to the Certificate of Incorporation to decrease the number of authorized shares of Class A Preferred Stock from 10,000,000 shares to 1,688 shares. The stockholders also approved an amendment to the Certificate of Incorporation which creates and authorizes the Company to issue 5,000,000 shares of an additional class of preferred stock ("Class B Preferred Stock"). The Board of Directors has discretion to determine the terms of the Class B Preferred Stock without further stockholder approval; however, in no event will the holders of Class B Preferred Stock be granted voting rights superior to the voting rights of any other existing class of stock authorized for issuance by the Company. 7. Related Party Transactions LCA-Vision provides certain administrative services to two ambulatory surgery centers, and leases the facility space for one, that have as their majority owner the Company's principal stockholder. For the three and nine months ended September 30, 1996, the Company recorded rent and service income of $0and $324,968, respectively, and has an account receivable from the surgery centers of $387,571 at September 30, 1996. Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. In July 1995, the stockholders of Laser Centers of America, Inc. ("LCA") acquired control of an inactive corporation, Maxoil Incorporated, which then changed its name to LCA-Vision Inc. ("LCA- Vision" or the "Company"). LCA-Vision was inactive and non- operational at the time of its acquisition by the LCA stockholders in July 1995. On August 31, 1995, the Company acquired the minority interest of Toronto Laservision Centre (the "Centre"). LCA previously owned 67% of the Centre; however, it did not have control of the activities or the business affairs of the Centre and, accordingly, recorded its investment using the equity method until August 31, 1995. The operations of the Centre since August 31, 1995, are included in the consolidated financial statements of the Company. The Centre provides corrective eye surgery using laser technology. On September 29, 1995, LCA merged with LCA-Vision. At the time of the merger, two stockholders together owned 92% of the outstanding voting stock of LCA-Vision and 100% of LCA. Immediately prior to the merger of LCA and LCA-Vision, LCA issued a dividend of $6.4 million to its stockholders representing a portion of the S Corporation earnings previously included in the taxable income of the stockholders. Prior to the merger, the LCA stockholders, utilizing the proceeds of their dividends, purchased $2 million worth of LCA-Vision Common Stock at $2.00 per share and loaned approximately $4.4 million to LCA-Vision for which the stockholders received long-term promissory notes for the principal amount of the loan plus interest at 6.91%. The promissory notes become due and payable on September 26, 2005, but any and all amounts due under the promissory notes may be prepaid without penalty at any time. Liquidity and Capital Resources LCA-Vision's principal capital requirements include working capital for the financing of accounts receivable from its hospital surgery management contracts, the continuing development of marketing programs for its laser eye surgery centers, and the equipping and furnishing new laser eye surgery centers. The Company has historically financed its operations through bank borrowings and internally-generated funds. At September 30, 1996, the Company has $950,017 in cash and temporary investments which it plans to use to maintain its existing business and for expansion into the refractive eyecare center business. The Company also has an $8 million bank line of credit for use in meeting its working capital requirements. At September 30, 1996, there were borrowings of $1,940,000 outstanding under this line of credit; the assets of the Company serve as collateral for these borrowings. The Company expects the laser eye surgery centers to become its primary business focus. Each center costs between $1 and $2 million to equip and furnish the actual cost varies depending on the configuration of each center, costs incurred for leasehold improvements, costs of furnishing, and equipment costs. The Company has been able to finance the costs of the lasers through a leasing company. The remaining costs have been funded through working capital or by forming operating companies with another investor(s)--principally hospitals and certain physicians. At September 30, 1996, the Company had cash and cash equivalents of $802,847. The Company had negative working capital of $641,103 at September 30, 1996. This is due primarily to the use of its line of credit to fund the expansion of its laser eye surgery business. Net cash used to purchase property and equipment and to invest in unconsolidated affiliates was $3,354,626; of which $1,940,000 was funded by borrowings under the line of credit. Cash used by operating activities for the nine months ended September 30, 1996 was $1,203,270. Cash used in operating activities was principally the funding of the anticipated losses from the expansion of the laser eye surgery business. At September 30, 1996, the Company had cash and cash equivalents of $802,847. Since December 1, 1995, the Company has opened nine (9) laser eye surgery centers (two in December)--five wholly-owned and four with investors. Five new wholly-owned centers -Columbus, Ohio; Palo Alto, California; Clearwater, Florida; Buffalo, New York; and Albany, New York--are slated to open by December 31, 1996. This will raise the total to nineteen (19) laser eye surgery centers in operation at December 31, 1996. In anticipation of this and future expansion, management is actively exploring financing options including: expanded use of the line of credit; public offering or private placement of equity or debt; lease financing of capital equipment; or some combination of these. To assist in evaluating the Company's options and in raising the necessary capital, the Company has retained the services of a large New York-based investment banking firm. Results of Operations Net revenue for the three months ended September 30, 1996 and 1995, were $3,243,075 and $3,625,792 , respectively. Net revenues for the nine months ended September 30, 1996 and 1995, were $10,454,551 and $10,164,162, respectively. Even though the number of hospitals under management contract has declined since June 30, 1995, the decline in revenues from this source has been offset in large part due primarily to the rollout of laser eye surgery centers and the acquisition of the minority interest in the Toronto center. Management anticipates that the composition of future revenue will change as more laser eye surgery centers are developed and as the photorefractive keratectomy (PRK) procedure 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. The Company's change in focus from a contract manager of laser and minimally invasive surgery programs to an owner and operator of laser eye surgery centers has resulted in increased direct operating costs and selling and administrative expenses. The primary increases are due to additional personnel needed for the laser eye surgery centers and the marketing efforts required to educate both consumers and the medical community about the PRK procedure and its benefits. It is anticipated that interest and sales should build as the public learns more about this procedure, but this educational effort results in significant marketing expenditures. Depreciation and amortization totaled $386,926 and $1,171,224 for the three and nine months ended September 30, 1996, respectively, compared to $232,686 and $728,947 for the three and nine months ended September 30, 1995, respectively. The increase in depreciation is due to the significant capital expenditures required to equip and furnish the laser eye surgery centers. Interest expense for the three and nine months ended September 30, 1996, increased $135,137 and $395,986 compared to the same periods ended September 30, 1995, as a result of the increased borrowings related to the capitalized leases for the lasers, borrowings under the line of credit, and the 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 from the sale. Income taxes for the nine months ended September 30, 1996, are the Canadian income taxes due on the profits of the Toronto laser eye surgery center. The Company is unable to utilize its operating losses against prior years' income because, prior to the merger discussed above, it was taxed as a S Corporation. As a result, federal and certain state income taxes were paid by the shareholders rather than by the Company. The pro forma provision for income taxes and pro forma net income for the three and nine month periods ended September 30, 1995, reflect the Company's results of operations for such periods as if it had not elected to be taxed as a S Corporation. The Company had a net loss of $1,091,166 for the three months ended September 30, 1996, compared to net income of $337,990 for the three months ended September 30, 1995. The Company had a net loss of $2,567,839 for the nine months ended September 30, 1996, compared to net income of $750,120 for the nine months ended September 30, 1995. The losses are due primarily to the increased costs associated with the expansion of the laser eye surgery business and the reduced number of hospital-based surgery programs the Company manages. 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 November 13, 1996 /S/ Stephen N. Joffe Stephen N. Joffe President and Chief Executive Officer Date November 13, 1996 /s/ Larry P. Rapp Larry P. Rapp Chief Financial Officer EX-11 2 Exhibit 11 LCA-VISION INC. Computation of Per Share Earnings (Loss) For the Three and Nine Months Ended September 30, 1996 and 1995
1996 1995 For the Three Months Ended September 30, Primary Earnings: Net income (loss) $(1,091,166) $ 337,990 Pro forma income tax expense $ 224,227 Pro forma net income (loss) $(1,091,166) $ 113,763 Shares: Weighted average number of common shares outstanding 19,617,821 1,066,837 Additional shares assuming exercise of stock options (a) Average common shares and equivalents as adjusted 19,617,821 1,066,837 Earnings (loss) per share $ (0.06) $ 0.09 For the Nine Months Ended September 30, Primary Earnings: Net income (loss) $(2,567,839) $ 750,120 Pro forma income tax expense $ 380,836 Pro forma net income (loss) $(2,567,839) $ 369,284 Shares: Weighted average number of common shares outstanding 19,617,821 1,066,837 Additional shares assuming exercise of stock options (a) Average common shares and equivalents as adjusted 19,617,821 1,066,837 Earnings (loss) per share $ (0.13) $ 0.35 (a) Net loss per share is based on outstanding common shares. Assuming exercise of options would be anti-dilutive since an increase in the number of shares assumed to be outstanding would reduce the amount of the loss per share.
EX-27 3
5 THIS SCHEDULE CONTAINS SUMMARY INFORMATION EXTRACTED FROM THE LCA-VISION INC. CONDENSED CONSOLIDATED BALANCE SHEET AT SEPTEMBER 30, 1996 AND THE RELATED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1996, ADN IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 9-MOS DEC-31-1996 SEP-30-1996 802847 0 2490415 206975 606220 4190189 11463284 2818491 13983086 4831292 5056870 0 7 78471 1073413 13983086 80360 3243075 81504 1641601 2318432 0 198701 (1125579) 34413 0 0 0 0 (1091166) (.06) (.06)
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