LCA-Vision (LCAV) Talks About Its Tough Q3 Quarter

October 2, 2008 4:53 PM EDT

LCA-Vision Inc. (Nasdaq: LCAV) provided commentary on business metrics during the third quarter of 2008.

"The number of scheduled appointments at our LasikPlus(R) vision centers during the third quarter was well below prior-year numbers, yet we saw modest improvements in appointment show rates, conversion rates and treatment show rates compared with the immediately preceding quarter. We attribute these improvements to the initial impact of our revised call center and LasikPlus(R) vision center incentive plans, employee sales and conversion-effectiveness training, and other initiatives intended to drive procedure volume. As anticipated, we will report a decline in our average price per procedure, excluding the impact of deferred revenue, reflecting the rollout of market-level pricing. We expect that decline will be approximately $100 per procedure, compared with the second quarter of 2008," said Steven C. Straus, Chief Executive Officer of LCA-Vision. "As a result of the decline in appointment volume, total procedure volume for the third quarter of 2008 will be down by 52% compared with the third quarter of 2007."

He added, "As previously announced, we have taken measures to aggressively manage our expenses and conserve cash. Among these, during the third quarter of 2008 we reduced the size of our workforce by 25%. We also lowered marketing spend to approximately $9 million, versus $15.5 million for the second quarter of 2008 and $17.2 million for the third quarter of 2007. While the steep decline in marketing spending is impacting scheduled appointments, we believe this to be an appropriate level given the current economic climate."

LCA-Vision plans to report financial results for the third quarter of 2008 before market open on Tuesday, October 28, 2008.

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