LCA-Vision Inc. Q1 2010 Earnings Call Transcript
Many of you are probably wondering about the impact of the new healthcare legislation on our business, some of which is yet to be determined. Under the current legislation framework, LASIK remains a reimbursable expense under flexible healthcare spending accounts. However, the major impact item from the new law is that the annual maximum limits for flexible spending account will be reduced from $5000 to $2500 in 2013. As such patients will not be able to cover the entire procedure cost with pretext FSA money, which may negatively affect our business. Additionally, like other employers we are likely to see an increase in our health insurance costs as well.
Now I’d like to review our 2010 first quarter financial results. As in the past we are providing both GAAP and adjusted revenues and operating loss as a means of measuring performance. The adjusted results account for the non-cash impact of the accounting for separately priced extended warranties. A reconciliation of revenues and operating loss as reported in accordance with GAAP is provided at the end of the news release we issued this morning. For the first quarter of 2010, revenues were $34 million compared with $47.9 million for the 2009 first quarter and adjusted revenues were $32.3 million compared with $44.9 million for the 2009 first quarter.
We performed 1956 procedures at 52 vision centers during the 2010 first quarter compared with 27,859 procedures at 75 Vision centers during the 2009 first quarter. We attribute the lower procedure volumes to a 37% year-over-year decline in preoperative appointment bookings which we believe is primarily due to reduced consumer confidence, a 40% year-over-year decline in spending on marketing activities and a decrease in the number of vision centers from 75 to 52.
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