TLC Vision Reports Fiscal 2002 Financial Results

Business Wire, August 19, 2002

Business Editors & Health/Medical Writers

TORONTO, Ontario--(BW HealthWire)--Aug. 19, 2002

TLC Vision Corporation (Nasdaq:TLCV) (TSX:TLC), today announced its fourth quarter and annual financial results for the period ending May 31, 2002. TLC Vision was created through the merger of TLC Laser Eye Centers Inc. and Laser Vision Centers, Inc. that was completed on May 15, 2002. Accordingly, these results include 16 days of operations of the former Laser Vision Centers, Inc. All dollar amounts are expressed in U.S. currency and results are reported in accordance with U.S. generally accepted accounting principles (U.S. GAAP).

Including the 16 days of combined operations with LaserVision, paid laser procedure volumes totaled more than 28,800 in Q4-02. This compares to 28,900 reported for the same quarter a year ago and 24,800 for Q3-02. Total net revenues in Q4-02 were $38.7 million, compared to $40 million for Q4-01 and $34.3 million for Q3-02.

In Q4-02 the Company recorded charges totaling $108.9 million. These charges result from the write-down of intangible assets and goodwill, the cumulative effect of the change in accounting principle related to the adoption of FASB 141 and 142, a reduction in the carrying value of capital assets, a write-down in investments and restructuring. Including these charges, the net loss for Q4-02 was $115 million or $2.70 per share which compares to a net loss of $5 million or $0.13 per share for the same quarter a year ago. The net loss for the fiscal 2002 year, which included $134.3 million in charges, was $161.9 million or $4.13 per share compared to the previous fiscal year's net loss of $37.8 million or $1.00 per share.

Despite a weak operating environment throughout fiscal 2002, TLC Vision maintained a strong financial position with more than $45 million in cash.

Elias Vamvakas, TLC Vision's Chairman & CEO, commented that "while the charges associated with the merger are included in these financial results, due to the timing of the transaction, the anticipated synergies expected from the merger are not. The post-merger integration is progressing well and we look forward to reporting on a full three months of combined operations in our next quarterly report."

About TLC Vision

TLC Vision Corporation is North America's premier eye surgery company. TLC Vision enjoys a number of valuable assets including an affiliated network of more than 12,500 optometrists and 1,000 ophthalmic surgeons, access to some of the newest clinical technologies, proven patient education and marketing programs, state-of-the art information systems, a strong operations management culture and a number of well established corporate brands. The Company's common shares trade on the NASDAQ National Market under the symbol 'TLCV' and on the Toronto Stock Exchange under the symbol 'TLC'. Visit TLC Vision's web site at http://www.tlcv.com.

Forward Looking Statements

This press release contains certain forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934, which statements can be identified by the use of forward looking terminology, such as "may", "will", "expect", "intend", "anticipate", "estimate", "predict", "plans" or "continue" or the negative thereof or other variations thereon or comparable terminology referring to future events or results. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of numerous factors, including the timing of expenditures, effects of competition, changes to pricing, acquisitions and expansion opportunities, any of which could cause actual results to vary materially from current results or TLC Vision's anticipated future results. See the Company's reports filed with the Canadian Securities Regulators and the U.S. Securities and Exchange Commission from time to time for cautionary statements identifying important factors with respect to such forward looking statements, including certain risks and uncertainties, that could cause actual results to differ materially from results referred to in forward looking statements. TLC Vision assumes no obligation to update the information contained in this press release.

TLC Vision Corporation
Consolidated Statement of Loss
(U.S. dollars, in thousands except per share amounts)

                                   Three months       Twelve Months
                                   Ended May 31,       Ended May 31,
                                 2002      2001      2002      2001
-------------------------------------------------------------------

Revenues
  Refractive                  $31,516   $36,387  $115,908  $161,219
  Other healthcare services     7,218     3,676    18,843    12,787
-------------------------------------------------------------------
Total Revenues                 38,734    40,063   134,751   174,006

Cost of Revenues
  Refractive                   22,759    22,808    83,737    99,910
  Other healthcare services     5,225     2,304    11,499    10,106
  Reduction in carrying
   value of capital assets        915         -     2,553         -
-------------------------------------------------------------------

Total Cost of Revenues         28,899    25,112    97,789   110,016
-------------------------------------------------------------------

Gross Margin                    9,835    14,951    36,962    63,990

Selling, general and
 administrative                14,352    12,575    52,475    67,802

Interest, net                     364      (261)      761    (2,543)

Depreciation and
 amortization                   2,029     3,873    11,430    14,805

Impairment of intangibles      81,720              81,720

Write down in the fair
 value of investments           4,502              26,082

Restructuring and other
 charges                        6,652     3,126     8,750    19,075
-------------------------------------------------------------------

                              109,619    19,313   181,218    99,139

Loss before income taxes
 and non-controlling
 interests                    (99,784)   (4,362) (144,256)  (35,149)

Income taxes                     (789)     (567)   (1,784)   (2,239)

Non-controlling interests         798       (71)     (635)     (385)
-------------------------------------------------------------------

Net loss for the period       (99,775)   (5,000) (146,675)  (37,773)

Cumulative effect of
 accounting change            (15,174)        -   (15,174)        -
-------------------------------------------------------------------

Net loss for the period
 after the cumulative
 effect of accounting
 change                     $(114,949)  $(5,000)$(161,849) $(37,773)
-------------------------------------------------------------------
-------------------------------------------------------------------

Net loss for the period
 per share - basic
 and diluted                $   (2.34)  $ (0.13) $  (3.74) $  (1.00)

Net loss for the period
 after the cumulative
 effect of accounting
 change - basic
 and diluted                $   (2.70)  $ (0.13) $  (4.13) $  (1.00)

Weighted average number of
 common shares outstanding     42,627    38,026    39,215    37,779



TLC Vision Corporation
Consolidated Balance Sheet
(U.S. dollars, in thousands)

                                                 As at May 31,
ASSETS                                     2002                2001
-------------------------------------------------------------------
Current Assets
  Cash and cash equivalents            $ 45,074            $ 47,987
  Other current assets                   37,110              20,514
-------------------------------------------------------------------

Total Current Assets                     82,184              68,501

Non-current assets
  Fixed assets, net                      68,133              52,345
  Intangibles, net                       85,705              92,802
  Other assets                            9,503              24,790
-------------------------------------------------------------------

Total Assets                           $245,525            $238,438
-------------------------------------------------------------------
-------------------------------------------------------------------

LIABILITIES
Current Liabilities
Accounts payable and
 accrued liabilities                   $ 56,332            $ 24,895
Current portion of
 long-term debt and
 capital leases                           8,626               6,769
-------------------------------------------------------------------

Total Current Liabilities                64,958              31,664

Non-current liabilities                  15,892               8,930

Non-controlling interests                 9,651              10,738

STOCKHOLDERS' EQUITY                    155,024             187,106
-------------------------------------------------------------------

Total Liabilities and
 Stockholders' Equity                  $245,525            $238,438
-------------------------------------------------------------------
-------------------------------------------------------------------