EX-99.1 2 c85646exv99w1.txt EARNINGS PRESS RELEASE [TLC VISION LOGO] EXHIBIT 99.1 NEWS RELEASE CONTACT: FOR IMMEDIATE RELEASE Stephen Kilmer Vice President, Investor Relations (905) 238-3904 TLCVISION REPORTS Q1-04 FINANCIAL RESULTS TORONTO, ONTARIO--(May 10, 2004) - TLC Vision Corporation (NASDAQ:TLCV; TSX:TLC), North America's premier eye care services company, today announced its financial results for the three month period ended March 31, 2004. 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. Q1-04 total net revenues were $65.2 million, up 22% from $53.6 million in Q1-03 and up 34% from $48.5 million in the previous quarter. First quarter total paid laser procedure volumes were over 56,800. Procedure volumes include procedures of a former subsidiary that became an equity investment in 2004. Same-store year-over-year volume growth of 16% in the centers was partially offset by the closing of unprofitable centers and lower, but still positive, 4% year-over-year volume growth in the access business. The result was that Q1-04 procedure volumes were up 6% from the 53,500 reported in the same three month period a year ago and represented an increase of 47% sequentially from the 38,600 refractive procedures performed last quarter. The procedure volume mix in Q1-04 was 58% centers versus 42% access. Custom LASIK procedures represented approximately 49% of owned or managed center volumes in Q1-04. On a GAAP basis, TLCVision reported a Q1-04 net profit of $8.1 million or $0.12 per share. This represents more than a 7-fold increase from $1.1 million or $0.02 per share for the same three month period a year ago, and compares to a loss of ($2.9 million) or ($0.04) per share last quarter. First quarter 2004 adjusted EBITDA was $13.3 million, up 88% from the $7.1 million for the same period last year and an increase of 237% from $3.9 million in Q4-03. [Adjusted EBITDA is defined as earnings before interest, taxes, depreciation and amortization ("EBITDA") excluding certain non-recurring items and research and development costs and is used to assist in understanding and comparing operating results. EBITDA and Adjusted EBITDA, which are not calculated identically by all companies, are not substitutes for operating income, net income and cash flow as determined in accordance with generally accepted accounting principles. Management uses EBITDA and Adjusted EBITDA as key measures of operating performance. Reference should be made to the "Adjusted EBITDA" table that provides reconciliation between operating results as prescribed by U.S. GAAP and "Adjusted EBITDA".] Elias Vamvakas, TLCVision's Chairman & CEO, commented "I believe that our operations team did an outstanding job in preparing TLCVision to capitalize so well financially on procedure volume growth in the seasonally strong first quarter. Year-over-year growth trends improved throughout the first quarter and that momentum has so far continued into Q2. Indeed, April 2004 total paid laser procedure volumes were up more than 20% from April 2003 levels. I am very pleased with what we have accomplished thus far and am confident that we will continue to build on TLCVision's world-leading position going forward." About TLCVision TLCVision is North America's premier eye care services company. Through its subsidiaries, the company focuses on three large eye care markets - refractive surgery (surface of the eye), cataract surgery (anterior of the eye) and the development of a potential dry AMD therapy (posterior of the eye). The key drivers of TLCVision's strategy are our affiliated network of thousands of eye doctors, proven corporate and consumer marketing and education programs, and access to state of the art clinical technologies. We are supported by a strong operations management culture and superior information technology. More information about the company can be found on the TLCVision 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. /T/ TLC VISION CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (In thousands except per share amounts)
THREE MONTHS ENDED MARCH 31, --------------------------- 2004 2003 ----------- ----------- Revenues: Refractive: Centers $ 38,838 $ 30,923 Access 12,049 10,929 Other healthcare services 14,288 11,738 ----------- ----------- Total revenues 65,175 53,590 ----------- ----------- Cost of revenues: Refractive: Centers 26,152 22,543 Access 8,172 7,162 Other healthcare services 9,138 7,480 ----------- ----------- Total cost of revenues 43,462 37,185 ----------- ----------- Gross margin 21,713 16,405 ----------- ----------- General and administrative 7,901 8,019 Marketing 2,894 3,661 Research and development 374 -- Amortization of intangibles 1,012 1,672 Write down in the fair value of investments -- 203 ----------- ----------- 12,181 13,555 ----------- ----------- Operating income 9,532 2,850 Other income, net 548 368 Interest expense, net (403) (368) Minority interests (1,874) (1,541) Earnings from equity investments 399 -- ----------- ----------- Income before income taxes 8,202 1,309 Income tax expense (150) (239) ----------- ----------- Net income $ 8,052 $ 1,070 =========== =========== Earnings per share - basic $ 0.12 $ 0.02 =========== =========== Earnings per share - diluted $ 0.12 $ 0.02 =========== =========== Weighted average number of common shares outstanding - basic 66,932 64,060 Weighted average number of common shares outstanding - diluted 69,433 64,060
TLC VISION CORPORATION RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA (UNAUDITED) (In thousands except per share amounts)
THREE MONTHS ENDED MARCH 31, ----------------------------- 2004 2003 ------------ ------------ Net Income $ 8,052 $ 1,070 Interest 403 368 Taxes 150 239 Depreciation and amortization 4,557 5,554 ------------ ------------ EBITDA 13,162 7,231 Research and development 374 -- Variable stock option expense 319 -- Adjustment to fair value of investments and long-term receivables allowance, net -- 203 Other income, net (548) (368) ------------ ------------ Adjusted EBITDA $ 13,307 $ 7,066 ============ ============
TLC VISION CORPORATION CONSOLIDATED BALANCE SHEETS (In thousands) (UNAUDITED)
MARCH 31, DECEMBER 31, 2004 2003 ------------ ------------ ASSETS Current assets Cash and cash equivalents $ 37,080 $ 29,580 Short-term investments 313 748 Accounts receivable 17,959 15,617 Prepaids and other current assets 12,159 11,646 ------------ ------------ Total current assets 67,511 57,591 Restricted cash 1,369 1,376 Investments and other assets 7,518 3,102 Intangibles, net 20,548 22,959 Goodwill, net 52,728 48,829 Fixed assets 52,189 56,891 ------------ ------------ Total assets $ 201,863 $ 190,748 ============ ============ LIABILITIES Current liabilities Accounts payable $ 9,385 $ 10,627 Accrued liabilities 26,512 25,811 Current portion of long-term debt 12,305 10,285 ------------ ------------ Total current liabilities 48,202 46,723 Other long-term liabilities 2,554 2,607 Long term-debt, less current maturities 13,475 19,242 Minority interests 9,705 10,907 SHAREHOLDERS' EQUITY Capital stock 409,580 397,878 Option and warrant equity 5,047 8,143 Accumulated deficit (286,700) (294,752) ------------ ------------ Total shareholders' equity 127,927 111,269 ------------ ------------ Total liabilities and shareholders' equity $ 201,863 $ 190,748 ============ ============
/T/