LCAVision Inc. (LCAV, Financial) filed Quarterly Report for the period ended 2009-06-30.
LCA-Vision Inc. provides laser vision correction at affordable prices. LCAVision Inc. has a market cap of $95.2 million; its shares were traded at around $5.12 with and P/S ratio of 0.4. LCAVision Inc. had an annual average earning growth of 44.2% over the past 5 years.
The restructuring charge for the second quarter of 2009 resulted from closing four of our vision centers and substantially reducing the use of microkeratomes to reduce costs and increase operational efficiencies. In June, we closed our Alpharetta, Georgia; Las Vegas, Nevada; Scarsdale, New York and Charlotte, North Carolina vision centers. The restructuring charges were $1,554,000, which included $1,103,000 of asset impairment charges, $498,000 of employee separation benefits, and $350,000 of contract termination costs. Partially offsetting the second quarter charge was a benefit of $397,000 due to a change in estimate to previously recognized contract termination costs related to our vision centers closed in 2008 after successful renegotiations with the lessors.
Medical professional and license fees in the six months ended June 30, 2009 decreased by $8,260,000, or 31.7%, from the six months ended June 30, 2008. The decrease was due to lower physician fees of $5,095,000 and license fees of $2,787,000 associated with decreased revenues. The amortization of the deferred medical professional fees attributable to prior years was $535,000 in the six months ended June 30, 2009 and $1,054,000 in the six months ended June 30, 2008. Comparing the six months ended June 30, 2009 to the six months ended June 30, 2008, we have experienced a significant increase in IntraLase usage, which has increased our license fee expense.
The restructuring charge for the six months ended June 30, 2009 resulted from closing four of our vision centers and substantially reducing the use of microkeratomes to reduce costs and increase operational efficiencies. In June, we closed our Alpharetta, Georgia; Las Vegas, Nevada; Scarsdale, New York and Charlotte, North Carolina vision centers. The restructuring charges were $2,455,000, which included $1,189,000 of asset impairment charges, $541,000 of employee separation benefits, and $725,000 of lease obligations. Partially offsetting the charge was a benefit of $397,000 due to a change in estimate to previously recognized contract termination costs related to our vision centers closed in 2008 after successful renegotiations with the lessors.
Net investment income in the six months ended June 30, 2009 decreased $1,111,000, or 71.0%, due to a decrease in investment income of $252,000, other-than-temporary impairment of $365,000 related to our auction rate securities and equity investments, and a decrease of $494,000 in patient financing income.
Cash flows generated from operating activities, a major source of our liquidity, amounted to $12,522,000 and $5,757,000 for the six months ended June 30, 2009 and 2008, respectively. The $6,765,000 increase was primarily due to receipt of our 2008 income tax refund and deferred license fees from our revised laser contracts, partially offset by lower earnings. Our cost control and cash conservation measures are having the desired results as we continue to take actions that we believe are prudent given the current economic environment. Among these, we reduced headcount in the vision centers, national call center and corporate offices during 2009 and 2008, reduced marketing spend significantly, and are reducing costs in all other discretionary areas. We also are managing closely working capital with particular focus on ensuring timely collection of outstanding patient receivables and the management of our trade payable obligations. Patient receivables decreased $1,394,000 in the six months ended June 30, 2009. At June 30, 2009, working capital (excluding debt due within one year) amounted to $61,392,000 compared to $62,519,000 at December 31, 2008. Liquid assets (cash and cash equivalents, short-term investments, and accounts receivable) amounted to 210.2% of current liabilities, compared to 200.8% at Dec
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LCA-Vision Inc. provides laser vision correction at affordable prices. LCAVision Inc. has a market cap of $95.2 million; its shares were traded at around $5.12 with and P/S ratio of 0.4. LCAVision Inc. had an annual average earning growth of 44.2% over the past 5 years.
Highlight of Business Operations:
Medical professional and license fees in the second quarter of 2009 decreased by $4,273,000, or 37.9%, from the second quarter of 2008. The decrease was due to decreased physician fees of $2,056,000 and license fees of $1,822,000 associated with decreased revenues. The amortization of the deferred medical professional fees attributable to prior years was $2,294,000 in the second quarter of 2009 and $4,947,000 in the second quarter of 2008. Comparing the second quarter of 2009 to the second quarter of 2008, we have experienced a significant increase in IntraLase usage, which has increased our license fee expense.The restructuring charge for the second quarter of 2009 resulted from closing four of our vision centers and substantially reducing the use of microkeratomes to reduce costs and increase operational efficiencies. In June, we closed our Alpharetta, Georgia; Las Vegas, Nevada; Scarsdale, New York and Charlotte, North Carolina vision centers. The restructuring charges were $1,554,000, which included $1,103,000 of asset impairment charges, $498,000 of employee separation benefits, and $350,000 of contract termination costs. Partially offsetting the second quarter charge was a benefit of $397,000 due to a change in estimate to previously recognized contract termination costs related to our vision centers closed in 2008 after successful renegotiations with the lessors.
Medical professional and license fees in the six months ended June 30, 2009 decreased by $8,260,000, or 31.7%, from the six months ended June 30, 2008. The decrease was due to lower physician fees of $5,095,000 and license fees of $2,787,000 associated with decreased revenues. The amortization of the deferred medical professional fees attributable to prior years was $535,000 in the six months ended June 30, 2009 and $1,054,000 in the six months ended June 30, 2008. Comparing the six months ended June 30, 2009 to the six months ended June 30, 2008, we have experienced a significant increase in IntraLase usage, which has increased our license fee expense.
The restructuring charge for the six months ended June 30, 2009 resulted from closing four of our vision centers and substantially reducing the use of microkeratomes to reduce costs and increase operational efficiencies. In June, we closed our Alpharetta, Georgia; Las Vegas, Nevada; Scarsdale, New York and Charlotte, North Carolina vision centers. The restructuring charges were $2,455,000, which included $1,189,000 of asset impairment charges, $541,000 of employee separation benefits, and $725,000 of lease obligations. Partially offsetting the charge was a benefit of $397,000 due to a change in estimate to previously recognized contract termination costs related to our vision centers closed in 2008 after successful renegotiations with the lessors.
Net investment income in the six months ended June 30, 2009 decreased $1,111,000, or 71.0%, due to a decrease in investment income of $252,000, other-than-temporary impairment of $365,000 related to our auction rate securities and equity investments, and a decrease of $494,000 in patient financing income.
Cash flows generated from operating activities, a major source of our liquidity, amounted to $12,522,000 and $5,757,000 for the six months ended June 30, 2009 and 2008, respectively. The $6,765,000 increase was primarily due to receipt of our 2008 income tax refund and deferred license fees from our revised laser contracts, partially offset by lower earnings. Our cost control and cash conservation measures are having the desired results as we continue to take actions that we believe are prudent given the current economic environment. Among these, we reduced headcount in the vision centers, national call center and corporate offices during 2009 and 2008, reduced marketing spend significantly, and are reducing costs in all other discretionary areas. We also are managing closely working capital with particular focus on ensuring timely collection of outstanding patient receivables and the management of our trade payable obligations. Patient receivables decreased $1,394,000 in the six months ended June 30, 2009. At June 30, 2009, working capital (excluding debt due within one year) amounted to $61,392,000 compared to $62,519,000 at December 31, 2008. Liquid assets (cash and cash equivalents, short-term investments, and accounts receivable) amounted to 210.2% of current liabilities, compared to 200.8% at Dec
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