U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
Form 10-Q
(Mark One)
[ X ]
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934.
For the quarterly period ended June 30, 2003.
[ ]
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 registrant as specified in its charter) | ||
Delaware | 11-2882328 | |
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) | |
7840 Montgomery Road, Cincinnati, Ohio 45236 | ||
(Address of principal executive offices) | ||
(513) 792-9292 | ||
(Registrant's telephone number, including area code) | ||
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Sections 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant 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 [ ]
Indicate by check mark whether the registrant is an accelerated filer (as defined in rule 12B-2 of the Securities Act of 1934).
Yes [ ]
No [X ]
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: 10,743,109 shares as of April 18, 2003.
#
LCA-Vision Inc.
INDEX
Facing Sheet
1
Index
2
Part I.
Financial Information
Item 1.
Financial Statements
Condensed Consolidated Balance Sheets as of June 30, 2003
and December 31, 2002
3
Condensed Consolidated Statements of Income for the Three
Months and Six Months Ended June 30, 2003 and 2002
4
Condensed Consolidated Statements of Cash Flows for the Six Months Ended
June 30, 2003 and 2002
5
Notes to Condensed Consolidated Financial Statements
6
Item 2.
Management’s Discussion and Analysis of Financial Condition and
Results of Operations
8
Item 3.
Quantitative and Qualitative Disclosures About Market Risk
10
Item 4.
Controls and Procedures
10
Part II.
Other Information
11
Item 1.
Legal Proceedings
11
Item 2.
Changes in Securities and Use of Proceeds
11
Item 3.
Defaults Upon Senior Securities
11
Item 4.
Submission of Matters to a Vote of Security Holders
11
Item 5.
Other Information
11
Item 6.
Exhibits and Reports on Form 8-K
11
Signatures
12
#
LCA-Vision Inc. | |||
Condensed Consolidated Balance Sheets | |||
(Dollars in thousands except per share data) | |||
| |||
Assets | June 30, 2003 (1) | December 31, 2002 | |
Current Assets | |||
Cash and cash equivalents | $ 23,090 | $ 18,298 | |
Accounts receivable less allowance for doubtful accounts of $816 and $231 | 1,981 | 393 | |
Receivables from vendors | 592 | 337 | |
Prepaid expenses, inventory and other | 1,307 | 1,462 | |
Total current assets | 26,970 | 20,490 | |
Property and equipment | 38,441 | 37,301 | |
Accumulated depreciation and amortization | (22,014) | (18,868) | |
Property and equipment, net | 16,427 | 18,433 | |
Goodwill, net | 275 | 275 | |
Deferred compensation plan assets | 283 | 127 | |
Investment in unconsolidated businesses | 404 | 263 | |
Other assets, net | 433 | 408 | |
Total assets | $ 44,792 | $ 39,996 | |
Liabilities and Shareholders' Investment | |||
Current liabilities | |||
Accounts payable | $ 2,104 | $ 3,855 | |
Accrued liabilities and other | 5,930 | 3,660 | |
Debt maturing in one year | 4 | 10 | |
Total current liabilities | 8,038 | 7,525 | |
Deferred compensation liability | 294 | 129 | |
Minority equity interest | 381 | 230 | |
| |||
Shareholders' investment |
| ||
Common stock ($0.001 par value; 13,110,306 and 13,110,306 shares and |
| ||
10,743,109 and 10,743,109 shares issued and outstanding, respectively) | 13 | 13 | |
Contributed capital | 91,474 | 91,474 | |
Warrants | 1,982 | 1,982 | |
Notes receivable from shareholders | (1,209) | (1,532) | |
Common stock in treasury, at cost (2,367,197 shares and 2,367,197 shares) | (15,462) | (15,462) | |
Accumulated deficit | (40,788) | (44,338) | |
Accumulated other comprehensive loss | 69 | (25) | |
| |||
Total shareholders' investment | 36,079 | 32,112 | |
| |||
Total liabilities and shareholders' investment | $ 44,792 | $ 39,996 | |
(1) Unaudited | |||
The notes to the Condensed Consolidated Financial Statements are an integral part of this statement. | |||
#
LCA-Vision Inc. | |||||||
Condensed Consolidated Statements of Income | |||||||
(Dollars in thousands except per share data) | |||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2003 (1) | 2002 (1) | 2003(1) | 2002(1) | ||||
Revenues -- Laser refractive surgery | $ 20,224 | $ 16,268 | $ 40,206 | $ 35,076 | |||
Operating costs and expenses | |||||||
Medical professional and license fees | 3,901 | 3,548 | 7,973 | 7,325 | |||
Direct costs of services | 7,844 | 7,271 | 15,617 | 14,786 | |||
General and administrative expenses | 1,994 | 2,298 | 4,011 | 4,460 | |||
Marketing and advertising | 3,155 | 4,106 | 6,129 | 7,211 | |||
Depreciation | 1,534 | 1,492 | 3,039 | 2,950 | |||
Special charges | - | - | - | (174) | |||
Operating income (loss) | 1,796 | (2,447) | 3,437 | (1,482) | |||
Equity in earnings from unconsolidated businesses | 59 | 88 | 205 | 205 | |||
Minority equity interest | (71) | (46) | (151) | (113) | |||
Interest expense | - | - | - | (2) | |||
Interest income | 71 | 142 | 107 | 280 | |||
Other income | - | 8 | 52 | 8 | |||
Income (loss) before taxes on income | 1,855 | (2,255) | 3,650 | (1,104) | |||
| |||||||
Income tax expense | 62 | 23 | 100 | 23 | |||
Net income (loss) | $ 1,793 | $ (2,278) | $ 3,550 | $ (1,127) | |||
Income (loss) per common share | |||||||
Basic | $ 0.17 | $ (0.21) | $ 0.33 | $ (0.10) | |||
Diluted | $ 0.17 | $ (0.21) | $ 0.33 | $ (0.10) | |||
Weighted average shares outstanding | |||||||
Basic | 10,743 | 10,736 | 10,743 | 10,931 | |||
Diluted | 10,819 | 10,736 </ | |||||