Now, I would like to turn the call over to Mike Celebrezze. Mike?Mike Celebrezze Thank you Jody. Good morning everyone and thank you for joining us. I’d like to welcome Marcello Celentano to this quarter’s call. Marcello is responsible for overseeing our field operations and plays a key role in supporting our network wide operational improvement effort. We are reporting significant improvements in our operational metrics and a reduction in our operating loss for the second quarter despite the fact that business continues to be negatively impacted by low consumer confidence and cautious discretionary spending. We attribute our financial and operational improvements to tangible results produced from actions taken under our priorities of cash conservation, patient acquisition and retention and organizational effectiveness. Additionally, as results of further cost reduction, improvements in our cash positions and a reduction in the number of vision centers, we believe we have lowered the number of procedures required to fund operation beyond 2012 to 61,000 procedures annually. As has been our practice throughout this difficult period, we are evaluating all aspects of our operation with the objective of managing our business effectively. At the vision center level, we continue to implement profit improvement measures that cover the full range of results. Included in our overall evaluation is review of all LASIK Plus vision center leases. Unfortunately, we’re unable to strike an appropriate balance between operating cost and revenue generation at our Birmingham, Alabama location. The Birmingham vision center lease has come up for renewal and we have decided to close this vision center late in the third quarter. We also plan to re-locate and upgrade our Rosedale, Maryland vision center later this year. We operate vision centers in two near by location that will service local patients during the expected brief downtime before the Rosedale center is re-opened. And we plan to re-locate our center in St. Louis in 2011’s first quarter with no expected operational interruption. We are also announcing the closure of our licensed facility in Savannah, Georgia. You may recall that rather than closing this vision center late last year, we entered a share arrangement with a surgeon to operate a part time private practice.
Unfortunately, we are unable to sufficiently develop the business to support the combined operation. However, our licensing arrangement in Oklahoma City is progressing well and we continue to evaluate this type of operation, as we consider future business expansion.Now, I’d like to review our 2010 second quarter financial result. 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 second quarter of 2010, revenues were $26.3 million, compared with $31.7 million for the 2009 second quarter, and adjusted revenues were $24.7 million, compared with $29.4 million for the 2009 second quarter. We performed 15,266 procedures at 62 Vision centers during the 2010 second quarter, compared with 17,864 procedures at 71 Vision centers during the 2009 second quarter. Our year-over-year same store procedure volume declined 5%, compared with a 25% year-over-year decline in the 2010 first quarter. We attribute lower procedure volume in the 2010 second quarter to a 34% year-over-year decline in pre-operative appointment bookings, which we believe is primarily due to reduced consumer confidence. A 33% year-over-year decline in spending on marketing activities and a decrease in the number of Vision centers from 71 to 62. Same store revenues decreased 9% for the second quarter, while adjusted same store revenues decreased 7%. This is a dramatic improvement from the 23% and 22% respective declines in year-over-year same store and adjusted same store revenues in the first quarter. We reported an operating loss of $5.4 million and adjusted operating loss of $6.8 million for the 2010 second quarter. Read the rest of this transcript for free on seekingalpha.com