TLC Vision Corp. (TLCV) filed Quarterly Report for the period ended 2009-09-30.
TLC Vision Corp. is the largest provider of laser vision correction in North America. The companny's core business strategy is providing excimer laser eye surgery in partnership with its network of more than 6,000 affiliated doctors. TLC has an integrated approach in providing eye care, which includes secondary care facilities, managed care, buying groups and information technologies. Tlc Vision Corp. has a market cap of $9.97 million; its shares were traded at around $0.1972 with and P/S ratio of 0.04. Tlc Vision Corp. had an annual average earning growth of 20.3% over the past 5 years.
Highlight of Business Operations:
Revenues from refractive centers for the three months ended September 30, 2009 were $22.2 million, a decrease of $6.3 million (22%) from revenues of $28.5 million for the three months ended September 30, 2008. The decrease in revenues from centers resulted primarily from lower center procedure volume, which accounted for a decrease in revenues of approximately $5.0 million. The remaining revenue decline of $1.3 million was the result of decreased revenue per procedure. For the three months ended September 30, 2009, majority-owned center procedures were approximately 13,100, a decrease of 3,200 from 16,300 procedures for the three months ended September 30, 2008. The procedure decline was attributable to the weakened U.S. economy, which has negatively impacted consumer discretionary spending.
The cost of revenues from refractive centers for the three months ended September 30, 2009 was $17.5 million, a decrease of $4.7 million (21%) from cost of revenues of $22.2 million for the three months ended September 30, 2008. This decrease was attributable to a $1.5 million cost of revenue decline related to lower procedure volume, $2.7 million in fixed cost reductions and $0.5 million in decreased variable costs per procedure. Gross margin for centers was 21.1% during the three months ended September 30, 2009, down from prior year gross margin of 22.0% as the Company’s cost saving initiatives nearly outweighed the revenue decline caused by the refractive center procedure decline.
Other operating expenses increased to $6.5 million for the three months ended September 30, 2009 from other operating income of $0.1 million for the three months ended September 30, 2008. The $6.6 million unfavorable change was primarily related to $4.1 million of financial and legal advisor expenses and a $1.6 million loss incurred on the divestiture of three ambulatory surgical center investments, each incurred during the three months ended September 30, 2009.
Revenues from refractive centers for the nine months ended September 30, 2009 were $85.1 million, a decrease of $41.4 million (33%) from revenues of $126.5 million for the nine months ended September 30, 2008. The decrease in revenues from refractive centers resulted primarily from lower center procedure volume, which accounted for a decrease in revenues of approximately $37.7 million. The remaining revenue decline of $3.7 million was the result of decreased revenue per procedure. For the nine months ended September 30, 2009, majority-owned center procedures were approximately 50,500, a decrease of 23,100 from 73,600 procedures for the nine months ended September 30, 2008. The procedure decline was attributable to the weakened U.S. economy, which has negatively impacted consumer discretionary spending.
The cost of revenues from refractive centers for the nine months ended September 30, 2009 was $65.1 million, a decrease of $23.9 million (27%) from cost of revenues of $89.0 million for the nine months ended September 30, 2008. This decrease was attributable to a $12.9 million cost of revenue decline related to lower procedure volume, $10.7 million in fixed cost reductions and $0.3 million in decreased variable costs per procedure. Gross margin for centers was 23.5% during the nine months ended September 30, 2009, down from prior year gross margin of 29.7% as the Company’s cost saving initiatives could not outweigh the revenue decline caused by the refractive center procedure decline.
Other operating expenses increased to $14.6 million for the nine months ended September 30, 2009 from other operating income of $0.7 million for the nine months ended September 30, 2008. The $15.3 million unfavorable change was primarily related to center closing costs of $0.7 million, employee severance expense of $2.6 million, $9.1 million of financial and legal advisor expenses and a $1.6 million loss incurred on the divestiture of three ambulatory surgical center investments, all incurred during the nine months ended September 30, 2009.
Rate This Article: |
  |