-----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, FW44WZFZaBStXyeCt6CbmwnmQzJ9mrIVyOz+R7fOBBmqkEpcCbD6MRAZtf7thCeg Kj7EH3/DviZcbIJjx5yRwA== 0000950134-03-012002.txt : 20030818 0000950134-03-012002.hdr.sgml : 20030818 20030818171947 ACCESSION NUMBER: 0000950134-03-012002 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030811 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20030818 FILER: COMPANY DATA: COMPANY CONFORMED NAME: TLC VISION CORP CENTRAL INDEX KEY: 0001010610 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-SPECIALTY OUTPATIENT FACILITIES, NEC [8093] IRS NUMBER: 980151150 STATE OF INCORPORATION: A6 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-29302 FILM NUMBER: 03853815 BUSINESS ADDRESS: STREET 1: 5600 EXPLORER DRIVE STREET 2: SUITE 301 CITY: MISSISSAUGA ONTARIO STATE: A6 ZIP: 00000 BUSINESS PHONE: 3144346900 MAIL ADDRESS: STREET 1: 540 MARYVILLE CENTRE DR STREET 2: - CITY: ST LOUIS STATE: MO ZIP: 63141 FORMER COMPANY: FORMER CONFORMED NAME: TLC LASER CENTER INC DATE OF NAME CHANGE: 19960314 8-K 1 c79205e8vk.txt FORM 8-K UNITED STATES 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): August 11, 2003 TLC VISION CORPORATION (Exact name of registrant as specified in its charter) NEW BRUNSWICK 0-29302 980151150 (State or other (Commission File (I.R.S. Employer jurisdiction of Number) Identification Number) organization) 5280 SOLAR DRIVE, SUITE 300 L4W 5M8 MISSISSAUGA, ONTARIO (Zip Code) (Address of principal executive offices) Registrant's telephone number, including area code: (905) 602-2020 ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS (c) Exhibits 99.1 Earnings Press Release, dated August 11, 2003 ITEM 12. REGULATION FD DISCLOSURE On August 11, 2003, TLC Vision Corporation (the "Registrant") issued a press release announcing its financial results for the quarter ended June 30, 2003. A copy of the press release is attached as Exhibit 99.1, which is incorporated herein by reference. This information is furnished pursuant to Item 12 of Form 8-K and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, unless the Registrant specifically incorporates it by reference in a document filed under the Securities Act of 1933 or Securities Exchange Act of 1934. * * * 2 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. Dated: August 18, 2003 TLC VISION CORPORATION By: /s/ Robert W. May --------------------------------- Robert W. May General Counsel and Secretary 3 EXHIBIT INDEX Exhibit No. Description 99.1 Earnings Press Release, dated August 11, 2003 EX-99.1 3 c79205exv99w1.txt PRESS RELEASE [TLC VISION LOGO] NEWS RELEASE CONTACT: FOR IMMEDIATE RELEASE Stephen Kilmer Director of Investor Relations (905) 238-3904 Email: investor.relations@tlcvision.com TLCVISION REPORTS FINANCIAL RESULTS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2003 TORONTO, ON, AUGUST 11, 2003: TLC Vision Corporation (NASDAQ:TLCV; TSX:TLC), North America's premier eye care services company, today announced its financial results for the three and six month periods ended June 30, 2003. For comparative purposes, investors and editors should note that results for the same three and six month periods a year ago include 45 days of the operations of LaserVision which was acquired in May 2002. All dollar amounts are expressed in U.S. currency and results are reported in accordance with U.S. generally accepted accounting principles (U.S. GAAP) unless otherwise stated. Despite seasonal softness in the refractive industry and some delayed sales due to the timing of the commercial roll-out of CustomLASIK, cost savings achieved to-date through the merger resulted in improved operating results. Q2-03 paid laser procedure volumes were over 44,600 and total net revenues were $47.5 million. For the same three-month period in 2002, paid laser procedure volumes were 35,900 and total net revenues were $43.1 million. Consistent with TLCVision's diversification strategy, revenues from other healthcare services generated 24.5% of total net revenues in Q2-03 compared to 20.5% in the same three month period a year ago. On a GAAP basis, TLCVision reported a net loss of ($3.5 million) or ($0.05) per share, for Q2-03 compared to a net loss of $114 million, or ($2.22) per share, for the same period a year ago. Adjusted EBITDA for Q2-03 was positive $3.5 million, or $0.06 per share. [Adjusted EBITDA is defined as earnings before interest, taxes, depreciation and amortization ("EBITDA") excluding non-recurring items and is used to assist in understanding and comparing operating results. Reference should be made to the "Adjusted EBITDA" table that provides reconciliation between earnings (loss) as prescribed by U.S. GAAP and "Adjusted EBITDA".] For the six months ended June 30, 2003 paid laser procedure volumes were over 98,100 and total net revenues were $101.1 million. This compared to paid laser procedure volumes of 62,200 and total net revenues of $80.1 million for the comparable period of the prior year. Revenues from other healthcare services generated 23.1% of total net revenues for first half of 2003 compared to 16.4% for the first half of 2002. The net loss for the six months ended June 30, 2003 was ($2.4 million), or ($0.04) per share, compared to a net loss of ($117.7 million), or ($2.63) per share, for the same period last year. Adjusted EBITDA for the six months ended June 30, 2003 was positive $10.6 million, or $0.17 per share. Elias Vamvakas, TLCVision's Chairman & CEO, commented "Now into our third quarter, early indications are that U.S. patients are seeing the value in opting for CustomLASIK despite its higher price. In July, the first month of full commercial availability, CustomLASIK procedures represented approximately 25% of total volumes at our TLC Laser Eye Centers locations. Center bookings for August and September suggest that adoption rate momentum is gradually building as doctors and patients become more familiar with the new procedure and its potential for improving visual acuity and quality beyond that possible with glasses or contact lenses." ABOUT TLC VISION TLC Vision Corporation is North America's premier eye care services company. TLCVision enjoys a number of valuable assets including an affiliated network of more than 12,500 optometrists and 1,000 ophthalmic surgeons, access to some of the newest clinical technologies, proven patient education and marketing programs, state-of-the art information systems, a strong operations management culture and a number of well established corporate brands. The Company's common shares trade on the NASDAQ National Market under the symbol `TLCV' and on the Toronto Stock Exchange under the symbol `TLC'. Visit TLCVision's web site at www.tlcv.com. FORWARD LOOKING STATEMENTS This press release contains certain forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934, which statements can be identified by the use of forward looking terminology, such as "may", "will", "expect", "intend", "anticipate", "estimate", "predict", "plans" or "continue" or the negative thereof or other variations thereon or comparable terminology referring to future events or results. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of numerous factors, including the timing of expenditures, effects of competition, changes to pricing, acquisitions and expansion opportunities, any of which could cause actual results to vary materially from current results or TLCVision's anticipated future results. See the Company's reports filed with the Canadian Securities Regulators and the U.S. Securities and Exchange Commission from time to time for cautionary statements identifying important factors with respect to such forward looking statements, including certain risks and uncertainties, that could cause actual results to differ materially from results referred to in forward looking statements. TLCVision assumes no obligation to update the information contained in this press release. -30- TLC VISION CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
THREE MONTHS ENDED SIX MONTHS ENDED ------------------ ---------------- JUNE 30, JUNE 30, -------- -------- 2003 2002 2003 2002 ------- ------ ------- ------- Revenues Refractive Owned ........................................... $12,987 $9,875 $28,263 $24,449 Managed ......................................... 13,250 16,703 28,897 34,799 Access .......................................... 9,647 7,665 20,576 7,665 Other healthcare services ............................ 11,648 8,864 23,386 13,136 ------- ------- ------- ------- Total revenues ......................................... 47,532 43,107 101,122 80,049 ------- ------- ------- ------- Cost of revenues Refractive Owned ........................................... 10,819 7,346 22,716 17,887 Managed ......................................... 9,817 11,349 20,463 22,572 Access .......................................... 6,481 5,002 13,643 5,002 Reduction in fair value of capital assets ......................................... -- 915 -- 1,487 Other healthcare services ............................ 7,950 6,415 15,430 8,765 ------- ------- ------- ------- Total cost of revenues ................................. 35,067 31,027 72,252 55,713 ------- ------- ------- ------- Gross margin ......................................... 12,465 12,080 28,870 24,336 ------- ------- ------- ------- General and administrative and development 8,313 11,228 16,332 19,061 Marketing .............................................. 3,496 3,702 7,157 7,044 Amortization of intangibles ............................ 1,678 2,389 3,350 4,787 Impairment of goodwill and other intangible assets .................................. ............ -- 81,720 -- 81,720 Write down in the fair value of investments and long-term receivables ............................ (651) 4,502 (448) 5,003 Restructuring and other charges ........................ 1,720 6,340 1,720 6,991 ------- ------- ------- ------- 14,556 109,881 28,111 124,606 ------- ------- ------- ------- Operating Income (Loss) ................................ (2,091) (97,801) 759 (100,270) Other income and (expense): Other income, net .................................... 198 -- 566 -- Interest expense, net ................................ (393) (293) (761) (644) Minority interests ................................... (961) (67) (2,502) (690) ------- ------- ------- ------- Loss before income taxes and cumulative effect of accounting change .......................... (3,247) (98,161) (1,938) (101,604) Income tax expense ..................................... (206) (622) (445) (868) ------- ------ ------- ------- Loss before cumulative effect of accounting change ............................................... (3,453) (98,783) (2,383) (102,472) ------- ------ ------- ------- Cumulative effect of accounting change ................. -- (15,174) -- (15,174) Net Loss ............................................... $(3,453) $(113,957) $(2,383) $(117,646) ------- ------- ------- ------- Loss before cumulative effect of accounting change per share - basic and diluted ................. $(0.05) $(1.93) $(0.04) $(2.29) Cumulative effect of accounting change per share - basic and diluted ............................ -- (0.29) -- (0.34) ------- ------- ------- ------- Net Loss per share - basic & diluted ................... $(0.05) $(2.22) $(0.04) $(2.63) Weighted average number of common shares outstanding - basic and diluted ...................... 63,457 51,220 63,435 44,695 ======= ======= ======= =======
TLC VISION CORPORATION RECONCILIATION OF ADJUSTED EBITDA AGAINST U.S. GAAP (IN THOUSANDS EXCEPT PER SHARE AMOUNTS) (UNAUDITED)
3 MONTHS ENDED 6 MONTHS ENDED JUNE 30 JUNE 30 ------------------------------------- 2003 2003 ------------------------------------- Loss for the period $(2,383) $(3,453) Interest 393 761 Taxes 206 445 Depreciation and amortization 5,493 11,047 - ------------------------------------------------------------------------------------------------------------ EBITDA 2,639 9,870 - ------------------------------------------------------------------------------------------------------------ Restructuring and other charges 1,720 1,720 Write down in the fair value of investments and long-term receivables (651) (448) Other income, net (198) (566) ---------------------------------- Adjusted EBITDA $3,510 $10,576 ================================== Weighted average number of shares 63,457 63,435 Adjusted EBITDA per share $0.055 $0.167
TLC VISION CORPORATION NET REVENUE AFTER DOCTOR COMPENSATION SUPPLEMENTAL ANALYSIS (IN THOUSANDS) (UNAUDITED)
3 Months Ended 6 Months Ended June 30 June 30 ------------------------- ------------------------- 2002 2003 2003 2002 ------- ------- ------- ------- Revenue - Refractive $35,884 $34,243 $77,736 $66,913 Doctors Compensation (2,646) (2,393) (5,683) (5,464) ------- ------- ------- ------- Net Revenue After Doctors Comp - Refractive 33,238 31,850 72,053 61,449 Other Healthcare Service 11,648 8,864 23,386 13,136 ------- ------- ------- ------- Total Net Revenue After Doctors Compensation $44,886 $40,714 $95,439 $74,585 ------- ------- ------- -------
TLC VISION CORPORATION CONSOLIDATED BALANCE SHEETS (IN THOUSANDS)
(UNAUDITED) JUNE 30, DECEMBER 31, 2003 2002 ----------- ------------ ASSETS Current assets Cash and cash equivalents................................ $ 28,626 $ 36,081 Short-term investments................................... 1,881 1,557 Accounts receivable...................................... 17,939 14,155 Prepaids and other current assets........................ 11,065 9,820 ----------- ------------ Total current assets.................................... 59,511 61,613 Restricted cash............................................ 4,414 3,975 Investments and other assets............................... 2,614 2,442 Intangibles, net........................................... 26,145 29,326 Goodwill, net.............................................. 43,233 40,697 Fixed assets............................................... 57,908 58,003 ----------- ------------ Total assets............................................... $ 193,825 $ 196,056 =========== ============ LIABILITIES Current liabilities Accounts payable......................................... $ 9,676 $ 13,857 Accrued liabilities...................................... 31,459 28,911 Current portion of long-term debt........................ 8,351 6,322 ----------- ------------ Total current liabilities.............................. 49,486 49,090 Other long-term liabilities................................ 6,221 9,630 Long term-debt, less current maturities.................... 17,003 15,760 Minority interests......................................... 10,669 9,748 SHAREHOLDERS' EQUITY Capital stock.............................................. 390,893 388,769 Treasury stock............................................. (2,623) (2,623) Option and warrant equity.................................. 9,912 11,035 Accumulated deficit........................................ (287,736) (285,353) ----------- ------------ Total shareholders' equity................................. 110,446 111,828 ----------- ------------ Total liabilities and shareholders' equity................. $ 193,825 $ 196,056 =========== ============
-----END PRIVACY-ENHANCED MESSAGE-----