LCA-Vision Reports Second Quarter and Half-Year 2013 Financial Results

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CINCINNATI— LCA-Vision Inc. (NASDAQ: LCAV) announced financial and operating results for the second quarter and half year for the six months ended June 30, 2013.

Revenues for the three months ended June 30, 2013, were $22.6 million compared with $25.2 million for the same period year ago; adjusted revenues for the second quarter were $22.4 million compared with $24.5 million year ago. Procedure volume for the second quarter 2013 was 12,994 compared with 14,415 procedures for the same period year ago.

Operating income for the second quarter was $0.3 million, a $3.6 million improvement from an operating loss of $3.3 million for Q2 2012; adjusted operating income was $0.1 million, a $4.0 million improvement from an adjusted operating loss of $3.9 million for the same period year ago.

Marketing expense decreased by $1.2 million to $5.4 million from $6.6 million for the same period year ago, bringing marketing cost per eye for Q2 2013 to $413 from $460 for Q2 2012.

Revenues for the six months ended June 30, 2013 were $50.9 million compared with $61.3 million for 2012; adjusted revenues were $50.3 million compared with $59.8 million year ago.

Procedure volume for the six month period was 29,266 compared with 35,402 procedures for the same six month period 2012.

Operating income was $1.3 million, a $0.9 million improvement from operating income of $0.4 million year ago; adjusted operating income was $0.8 million, a $1.7 million improvement from an adjusted operating loss of $0.9 million.

For the six months ended June 30, 2013, marketing expense decreased by $1.6 million to $11.9 million from $13.5 million for the same period year ago, bringing marketing cost per eye to $408 compared with $381 for the same period year ago.

"We reported positive net income for the quarter due to a combination of cost savings from restructuring initiatives implemented early this year, new cost savings and our purchase of excimer lasers that we previously leased, which lowered the per-use fee for procedures performed with this equipment," said LCA-Vision CEO Michael J. Celebrezze. "As a result, we are reducing our estimate of the annual number of procedures to reach cash-flow breakeven for our LASIK business by 2,000 to 56,000, moving us closer to our goal of sustained profitability for this business.

About 1.7 percent of our second quarter procedure volume resulted from co-management, up from approximately 1 percent in the first quarter. Among the measures underway to fully establish this program, we are focused on improving vision center staff relationships with our partners and managing patient flow. Our plan is to add more partners throughout the current year and beyond," added Celebrezze.