LCA-Vision Inc. (NASDAQ:LCAV) closed out the trading session nicely – just shy of a quarter below the high of the day at $3.09, but after hours; this stock traded as high as $3.77 and ended the extended session up 51.43%! Investors are excited over LCAV’s Q3 results featuring a 7.5% growth in revenues and reduced operating losses! LCAV is a leading provider of laser vision correction services under the LasikPlus® brand.
Adjusted revenues and operating losses are provided as a means of measuring performance that adjusts for the non-cash impact of accounting for separately priced extended warranties. A reconciliation of revenues and operating losses as reported in accordance with U.S. Generally Accepted Accounting Principles (GAAP) is provided at the end of this news release. Management believes the adjusted information better reflects operating performance and, therefore, is more meaningful to investors.
“We are reporting significant improvements in financial and operating results, although we recognize that further improvement is needed,” said LCA-Vision Chief Financial Officer Michael J. Celebrezze. “Revenue growth reflects our first year-over-year increase in total procedure volume in four years, as well as a higher average price per procedure. The 18% increase in same-store procedure volume was significantly higher than the single-digit year-over-year increases in the past three quarters. We accomplished these results despite continued low consumer confidence levels and cautious discretionary spending by consumers. Further, our actions to control expenses resulted in a substantial reduction in our operating loss.”
Adjusted price per procedure for the third quarter of 2011 increased to $1,668, up $15 from the second quarter of 2011 and $34 from the third quarter of 2010. Marketing expense for the third quarter of 2011 was $5.3 million, bringing marketing spend per procedure to $426, up $5 from the second quarter of 2011 and down $18 from the third quarter of 2010 when the company launched its new marketing campaign.
LCA-Vision Chief Operating Officer David L. Thomas said, “Our marketing programs drove considerably more scheduled and attended pre-operative appointments compared with the prior year. Conversion and treatment show rates declined for a second consecutive quarter as we attracted many prospective patients earlier in their decision-making process; however, we are executing new training activities to improve these metrics and better educate prospective patients about the procedure.
“We face a more difficult prior-year comparison in the fourth quarter. We began this year’s fourth quarter by offering the same $500 discount promotion as last year to maximize procedure volume prior to the seasonally strong first quarter, in which we have historically benefitted from flex spending. Even with the price discount, we expect that price per procedure for the fourth quarter will be in the $1,630 to $1,650 range.
“Over the past six weeks, we have begun offering cataract surgery in two markets under our new Visium Eye Institute™ cataract brand, although we have yet to treat any cataract patients. This offering marks a major step in our business diversification programs to support future growth and profitability, and lessen our exposure to economic downturns,” added Thomas. “We now accept Medicare in these two markets and have taken a number of preparatory steps, including training staff, developing marketing materials, incorporating electronic medical record capabilities and launching a website. We are employing a multi-pronged marketing campaign for this offering that includes print advertising, direct contact with past patients and community outreach.” (Read more)
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