LCA-Vision Names Michael J. Celebrezze Chief Executive Officer
CINCINNATI, Jan. 7, 2013 /PRNewswire/ -- LCA-Vision Inc.
(NASDAQ: LCAV), a leading provider of laser vision correction
services under the LasikPlus® brand, announces
that Michael J. Celebrezze has been
named Chief Executive Officer, effective immediately. The
company also announces initiatives that are expected to reduce
annual operating expenses by approximately $5 million and lower the number of laser vision
correction procedures per year necessary to reach cash-flow
breakeven from its Lasik business (excluding restructuring costs)
to approximately 58,000 from the prior estimate of 68,000.
Mr. Celebrezze has served as LCA-Vision's Chief Financial
Officer since December 2008, and as
co-leader of the company with Chief Operating Officer David L. Thomas since September 2009. Mr.
Thomas left the company effective December
31, 2012 and will pursue a new role as a co-founder of a
science and technology company. In addition, LCA-Vision has
promoted Amy Kappen to Chief
Financial Officer from Vice President, Corporate Controller and
Bharat Kakar to Senior Vice President of Operations and Marketing
from Vice President of Operations and Patient Experience, with both
promotions effective immediately.
"The Board has been impressed with the co-leadership of
Mike Celebrezze and Dave Thomas, and the many actions they have
taken to improve the company's operations and financial position in
the face of chronic, adverse economic conditions," said
E. Anthony Woods, Chairman of the
Board of LCA-Vision. "We have benefitted from Dave's
extensive knowledge and experience, and we are grateful for his
dedication and service. The Board has full confidence in
Mike's ability to lead LCA-Vision, and we wish Dave the very best
in his new endeavor."
Mr. Thomas said, "I had the extraordinary opportunity at
LCA-Vision as part of an outstanding team to evaluate and implement
improvements that impacted nearly every aspect of the
business. I am confident that I am leaving the company under
the leadership of a solid and competent management team."
Restructuring Initiatives
"For the past two quarters our revenues have declined versus the
same period of the prior year on lower-than-expected procedure
volume, and we have also experienced some loss in market
share. This is disappointing, particularly following seven
consecutive quarters of year-over-year growth in same-store
procedures, and four consecutive quarters of year-over-year growth
in total procedures and market share gains," said Mr. Celebrezze.
"Overall weakness in the U.S. economy that has deterred
consumer discretionary spending over the past several years
continues to impact negatively LCA-Vision and our industry, and we
have little clarity on when the economic environment might
change. We are taking actions aimed at better aligning our
expenses with current procedure volume and improving our business
in the current environment, while allowing us to maintain our focus
on providing the highest quality patient experiences and
outcomes.
"We believe these initiatives to further reduce expenses and
improve our business, together with our strong balance sheet and
ongoing commitment to monitor costs closely, put LCA-Vision in a
solid position to face the future," he added. "We estimate
one-time restructuring and impairment charges associated with the
restructuring plan will be approximately $2.1 million, with approximately $1.8 million recorded in 2012 and the remaining
$300,000 to be recorded in
2013. These costs will impact cash flow in 2013 and
beyond."
Initiatives to support the reduction in the number of procedures
to reach cash-flow breakeven include the following:
- Improvement in marketing and advertising, including revised
media channels, expanded social media and digital reach, and
increased focus on public relations and referral programs.
- Elimination of 31 full-time-equivalent positions, with
approximately half due to terminations and half related to
reductions in hours. The terminations include both corporate
and center-level positions, and were completed in 2012.
- Closure of the vision center in Seattle, Washington.
- Relocation of the call center to the company's headquarters
facility in the first quarter of 2013.
- Conversion of the LasikPlus® vision centers
in Woodbridge, New Jersey and
Chandler, Arizona to the company's
satellite model to provide pre-operative and post-operative exams
for patient referrals to nearby full-service
LasikPlus® vision centers. LCA-Vision will
consider opening new LasikPlus® satellite centers
in markets where management has confidence that incremental patient
volume can be achieved.
- Renegotiation of agreements with major suppliers.
The company intends to continue expanding the partner network of
optometrists and other eye health professionals for patient
referrals and to continue investing in its Visium Eye Institute™ to
grow its cataract practice.
Forward-Looking Statements
This news release contains
forward-looking statements based on current expectations, forecasts
and assumptions of LCA-Vision that are subject to risks and
uncertainties. The forward-looking statements in this release are
based on information available to the company as of the date
hereof. Actual results could differ materially from those stated or
implied in the forward-looking statements due to risks and
uncertainties associated with its business. In addition to
the risk factors discussed in the company's Form 10-K and other
filings with the Securities and Exchange Commission, there are a
number of other risks and uncertainties associated with its
business including, without limitation, the success of the
restructuring plan described above in lowering costs and raising
gross profits, the successful execution of cost-effective marketing
strategies to drive patients to its vision centers; the impact of
low consumer confidence and discretionary spending; competition in
the laser vision correction industry; the company's ability to
attract patients; the possibility of adverse outcomes or long-term
side effects of laser vision correction and negative publicity
regarding laser vision correction; the company's ability to operate
profitable vision centers and retain qualified personnel during
periods of lower procedure volumes; the company's success in
expanding its services into the cataract and intraocular lens (IOL)
market; additional regulatory requirements, such as for Medicare,
related to cataract and IOL procedures; the continued availability
of non-recourse third-party financing for its patients on terms
similar to what it has paid historically; and the future value of
revenues financed by the company and its ability to collect on such
financings, which will in turn depend on a number of factors,
including the consumer credit environment and the company's ability
to manage credit risk related to consumer debt, bankruptcies and
other credit trends.
Further, the Food and Drug Administration's (FDA) advisory board
on ophthalmic devices currently is reviewing concerns about
post-LASIK quality of life matters, and the FDA is recruiting
participants for two studies on LASIK outcomes and quality of life.
The FDA or another regulatory body could take legal or regulatory
action against the company or others in the laser vision correction
industry. The outcome of this review or legal or regulatory action
potentially could impact negatively the acceptance of LASIK. In
addition, the acceptance rate of new technologies and our ability
to implement successfully new technologies on a national basis
create additional risk.
Except to the extent required under the federal securities laws
and the rules and regulations promulgated by the Securities and
Exchange Commission, the company assumes no obligation to update
the information included in this news release, whether as a result
of new information, future events or circumstances, or
otherwise.
About LCA-Vision
Inc./LasikPlus®
LCA-Vision Inc., a leading
provider of laser vision correction services, owns and operates 55
LasikPlus® vision centers in the United States: 51 full-service
LasikPlus® fixed-site laser vision correction
centers and four pre- and post-operative
LasikPlus® satellite centers.
Earning Trust Every Moment;
Transforming Lives Every Day.
For Additional Information
Investor Relations Contact:
Jody Cain
LHA
310-691-7100 – jcain@lhai.com
@LHA_IR_PR
SOURCE LCA-Vision Inc.