SOURCE: TLC Vision Corporation

March 12, 2008 06:30 ET

TLCVision Reports 2007 Same-Store Procedure Growth up 7%

Issues First Quarter 2008 EPS Guidance of $0.07

ST. LOUIS, MO--(Marketwire - March 12, 2008) - TLC Vision Corporation (NASDAQ: TLCV) (TSX: TLC), North America's premier eye care services company, today announced results for the fourth quarter and full-year ended December 31, 2007 and offered guidance for the first quarter of 2008.

Jim Wachtman, President and Chief Executive Officer of TLCVision, commented, "TLC made great strides during 2007, despite the fact that it was a year of transition and investment for the Company. Our revenues were up across all three business segments. At the same time, we completed some significant strategic goals: implemented a new refractive strategy, simplified our overall business and improved our operating discipline, refined our strategic focus, and strengthened our executive leadership team. Overall, we reinforced our position as a leading competitor for 2008 and beyond.

"During 2007 and the first quarter of 2008, we not only successfully repositioned 54 of our centers to our new refractive strategy, we also significantly increased consumer awareness of the TLC brand in the marketplace. Recent consumer awareness studies indicate an increased likelihood for consumers to consider TLC for LASIK over our competitors. Use of Tiger Woods in our consumer advertising has greatly enhanced the TLC image of trust and quality, and our direct to consumer message is well-positioned in the marketplace. As a result of our multi-pronged marketing strategy, we delivered 6.7% same-store procedure growth and 13.6% overall procedure growth in our repositioned centers, well above industry growth rates.

"Our first quarter performance for 2008 has been very strong. As we announced earlier this quarter, the Company recorded a 14.3% increase in same-store refractive center procedures for January. In addition, we anticipate first quarter 2008 same-store procedure volume will show absolute growth well in excess of industry levels. We anticipate that first quarter 2008 revenues will be approximately $89 million and first quarter 2008 EPS will be approximately $0.07 per fully diluted share. We will continue to make progress in 2008 as we now have the right strategy, the right people and the right business model in place."

Fourth Quarter 2007 Results and Highlights

--  Revenue for the fourth quarter was $66.3 million, a 5.7% increase over
    prior year revenue of $62.7 million. *Pro forma revenue, including
    revenue from discontinued operations for the three months ended
    December 31, 2007 was $67.0 million, compared to $63.5 million for the
    prior year period, an increase of 5.4%.

    -  Refractive Centers revenue increased by 4.8% to $36.3 million on the
       strength of higher center procedures (up 2.5% on a same store basis
       to 20,800 for majority-owned centers). Total center procedures
       (including minority-owned centers) increased 1.1% to 24,800.
    -  Doctor Services revenue increased 4.0% to $23.3 million.
    -  Eye Care revenue increased 18% to $6.7 million.

--  TLC opened one new de novo refractive center in Kennesaw, Georgia and
    announced the opening of its new Toronto, Ontario center in Q1 2008.
--  The Company completed the sale of its interest in Oxford Eye Surgery
    Center (Oxford, MS) on December 31, 2007. Combined with the sale of
    its Midland, TX ambulatory surgery center (sold in the third quarter
    of 2007) and the recently announced sale of its interest in the
    Rockland Surgery Center (Wilmington, DE), this reduces the number of
    stand-alone ambulatory surgery centers in the Company's portfolio to
    five.
--  Consolidated net loss for the fourth quarter was ($25.3) million ($0.51
    per diluted share), compared to a net loss of ($2.4) million from the
    prior year period. The consolidated quarterly net loss includes
    non-cash charges from the Company's interest in Occulogix, Inc.
    ($6.6 million) and impairment and restructuring charges
    ($6.5 million).
--  *Pro forma net loss before AMD, excluding the charges noted above, as
    well as normalizing interest expense and income taxes, was
    ($6.8) million, or ($0.14) per diluted share, compared to a net loss of
    ($1.9) million, or ($0.04) per diluted share, in the prior year period.
--  Fourth quarter operating cash flow was $1.5 million, or $0.03 per
    share, compared to $3.0 million, or $0.04 per share, in the prior year
    period.

Full-Year 2007 Results

--  Revenue for the twelve months ended December 31, 2007 was $298.4
    million, compared to $277.8 million for the prior year period, an increase
    of 7.4%. *Pro forma revenue, including revenue from discontinued operations
    for the twelve months ended December 31, 2007 was $301.9 million, compared
    to $281.8 million for the prior year period, an increase of 7.1%.
--  Consolidated net loss was ($43.5) million ($0.74 per fully diluted
    share) compared to net income of $11.5 million, or $0.17 per fully diluted
    share, for the prior year period, and reflects the impact of the non-cash
    charges from the Company's interest in Occulogix, Inc. ($12.5 million) and
    impairment and restructuring charges ($21.0 million).
--  *Pro forma net loss before AMD, excluding the charges noted above, as
    well as normalizing interest expense and income taxes, was ($1.2) million,
    or ($0.02) per diluted share, compared to net income of $12.5 million, or
    $0.21 per diluted share, in the prior year period.
--  Year-to-date operating cash flow was $31.3 million, or $0.53 per
    share, compared to $38.4 million, or $0.55 per share, in the prior year
    period. The primary reason for the decrease was the incremental investment
    in the Refractive Centers business.
--  As previously announced, the Company completed a recapitalization in
    June, prior to a general downturn in the overall financial markets in the
    second half of 2007.  The recapitalization allowed TLC to return $115
    million in immediate value to shareholders.
    

Wachtman continued, "While we are concerned about the current trends in the overall consumer economy, we remain encouraged about TLC's market position and strategy and believe that the steps we have taken throughout 2007 will continue to drive increased market penetration and above-average industry growth going forward."

* Pro-forma results are presented to facilitate a comparison of current year and prior year results. The calculations of pro-forma results are not specified by United States generally accepted accounting principles. Our calculations of pro-forma results may not be comparable to similarly-titled measures of other companies. A reconciliation of reported net income to pro-forma net income for both the quarter and twelve months is included in the attached Consolidated Statements of Operation.

Conference Call

TLCVision invites all interested parties to participate in a conference call during which time the financial and operating results will be discussed. The call will be held today, at 9:00 a.m. Eastern Standard Time. To participate, please dial 866-852-2121 or 416-641-6119 (international callers). The call will be broadcast live on the Company's web site at www.tlcv.com under the "Webcasts" link in the Investor Relations section.

A replay of the conference call will be available until March 26, 2008. To access the replay, dial 800-408-3053 or 416-695-5800 (international callers) and enter the pass code: 3251532. The call will also be archived on the Company's web site at www.tlcv.com under the "Webcasts" link in the Investor Relations section.

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, Section 21E of the U.S. Securities Exchange Act of 1934 and Canadian Provincial Securities Laws, 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. We caution that all forward-looking information is inherently uncertain and that actual results may differ materially from the assumptions, estimates or expectations reflected in the forward-looking information. A number of factors could cause actual results to differ materially from those in forward-looking statements, including but not limited to economic conditions, the level of competitive intensity for laser vision correction, the market acceptance of laser vision correction, concerns about potential side effects and long term effects of laser vision correction, the ability to maintain agreements with doctors on satisfactory terms, quarterly fluctuation of operating results that make financial forecasting difficult, the volatility of the market price of our common shares, profitability of investments, successful execution of our direct-to-consumer marketing programs, the ability to open new centers, the reliance on key personnel, medical malpractice claims and the ability to maintain adequate insurance therefore, claims for federal, state and local taxes, compliance with industry regulation, compliance with U.S. and Canadian healthcare regulations, disputes regarding intellectual property, many of which are beyond our control.

Therefore, should one or more of theses risks materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary significantly from what we currently foresee. Accordingly, we warn investors to exercise caution when considering any such forward-looking information herein and to not place undue reliance on such statements and assumptions. We are under no obligation (and we expressly disclaim any such obligation) to update or alter any forward-looking statements or assumptions whether as a result of new information, future events or otherwise, except as required by law.

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. TLCVision assumes no obligation to update the information contained in this press release.

About TLCVision

TLCVision is North America's premier eye care services company, providing eye doctors with the tools and technologies needed to deliver high-quality patient care. Through its centers management, and technology access service models, extensive optometric relationships, direct to consumer advertising and managed care contracting strength, TLCVision maintains leading positions in Refractive, Cataract and Eye Care markets. Information about vision correction surgery can be found on the TLC Laser Eye Centers website at www.tlcvision.com. More information about TLCVision can be found on the website at www.tlcv.com.

Note that the unaudited, interim consolidated financial statements for the three and twelve months ended December 31, 2006 include certain reclassifications to conform with the business-line and segment classifications for the three and twelve months ended December 31, 2007.

TLC VISION CORPORATION
CONSOLIDATING STATEMENTS OF OPERATIONS (UNAUDITED)
(In thousands, except per share amounts)

                   Three Months Ended              Three Months Ended
                   December 31, 2007               December 31, 2006
            ------------------------------  ------------------------------
             Results                         Results
              Before                          Before
               AMD       AMD       Total       AMD       AMD       Total
             Segment   Segment   TLCVision   Segment   Segment   TLCVision
            ---------  --------  ---------  ---------  --------  ---------
Revenues:
  Refractive
   centers  $  36,311  $      -  $  36,311  $  34,652  $      -  $  34,652
  Doctor
   services    23,321         -     23,321     22,411         -     22,411
  Eye care      6,662         -      6,662      5,646         -      5,646
            ---------  --------  ---------  ---------  --------  ---------
Total
 revenues      66,294         -     66,294     62,709         -     62,709

Cost of
 revenues
 (excluding
 amortization):
  Refractive
   centers     29,383         -     29,383     26,655         -     26,655
  Doctor
   services    17,066         -     17,066     16,529         -     16,529
  Eye care      2,940         -      2,940      2,426         -      2,426
            ---------  --------  ---------  ---------  --------  ---------
Total cost
 of
 revenues
 (excluding
 amortization) 49,389         -     49,389     45,610         -     45,610
            ---------  --------  ---------  ---------  --------  ---------

Gross
 profit        16,905         -     16,905     17,099         -     17,099
            ---------  --------  ---------  ---------  --------  ---------

General and
 admini-
 strative       8,606         -      8,606      8,550         -      8,550
Marketing
 and sales     12,389         -     12,389      7,467         -      7,467
Research
 and
 development,
 clinical and
 regulatory         -         -          -          -         -          -
Amortization
 of
 intangibles      844         -        844        865         -        865
Impairment
 of
 goodwill
 and other
 assets         4,550         -      4,550          -         -          -
Other
 expenses,
 net            1,771         -      1,771        781         -        781
            ---------  --------  ---------  ---------  --------  ---------
  Total
   operating
   costs       28,160         -     28,160     17,663         -     17,663
            ---------  --------  ---------  ---------  --------  ---------
  Operating
   loss       (11,255)        -    (11,255)      (564)        -       (564)

Loss on
 sale of
 Occulogix,
 Inc. stock         -       (34)       (34)         -         -          -
Interest
 income           227         -        227        525         -        525
Interest
 expense       (2,370)        -     (2,370)      (404)        -       (404)
Minority
 interests     (1,979)        -     (1,979)    (1,977)        -     (1,977)
(Loss)
 earnings
 from
 equity
 investments      (81)   (6,573)    (6,654)       450    (2,506)    (2,056)
            ---------  --------  ---------  ---------  --------  ---------
(Loss)
 income
 from
 continuing
 operations
 before
 income
 taxes        (15,458)   (6,607)   (22,065)    (1,970)   (2,506)    (4,476)
Income tax
 (expense)
 benefit       (3,445)        -     (3,445)     5,027         -      5,027
            ---------  --------  ---------  ---------  --------  ---------
(Loss)
 income
 from
 continuing
 operations   (18,903)   (6,607)   (25,510)     3,057    (2,506)       551
Income
 (loss)
 from
 discontinued
 operations,
 net of tax       226         -        226     (2,912)        -     (2,912)
            ---------  --------  ---------  ---------  --------  ---------

Net (loss)
 income     $ (18,677) $ (6,607) $ (25,284) $     145  $ (2,506) $  (2,361)
            =========  ========  =========  =========  ========  =========

(Loss)
 earnings
 per share
 - diluted  $   (0.37) $  (0.13) $   (0.51) $    0.00  $  (0.03) $   (0.03)
            =========  ========  =========  =========  ========  =========

Weighted
 average
 number of
 common
 shares
 outstanding
 - diluted     49,928    49,928     49,928     69,759    69,759     69,759

Calculation
 of Pro
 Forma Net
 Income and
 EPS
  Net
   (loss)
   income,
   as
   reported $ (18,677)                      $     145
    Add:
     Non-
     recurring
     costs      6,513                           5,305
      Interest
       expense
       from
       Dutch
       tender       0                          (1,779)
    Adjust
     income
     tax
     expense
     to 21%     5,275                          (5,545)
            ---------                       ---------
  Pro forma
   net
   (loss)
   income   $  (6,889)                      $  (1,874)
            =========                       =========
  Pro forma
   (loss)
   earnings
   per
   share    $   (0.14)                      $   (0.04)
            =========                       =========
Calculation
 of Pro
 Forma
 Total
 Revenues
  Total
   revenues
   as
   reported $  66,294                       $  62,709
    Add:
     Revenues
     from
     Discon-
     tinued
     Opera-
     tions        665                             832
            ---------                       ---------
  Pro forma
   total
   revenues $  66,959                       $  63,541
            =========                       =========

Note: The AMD segment includes the Company's interest in Occulogix, Inc.





TLC VISION CORPORATION
CONSOLIDATING STATEMENTS OF OPERATIONS (UNAUDITED)
(In thousands, except per share amounts)

                 Twelve Months Ended              Twelve Months Ended
                  December 31, 2007                December 31, 2006
           -------------------------------  ------------------------------
            Results                          Results
             Before                           Before
              AMD        AMD       Total       AMD       AMD       Total
            Segment    Segment   TLCVision   Segment   Segment   TLCVision
           ---------  ---------  ---------  ---------  --------  ---------
Revenues:
  Refractive
   centers $ 174,816  $       -  $ 174,816  $ 161,822  $      -  $ 161,822
  Doctor
   services   97,087          -     97,087     93,171         -     93,171
  Eye care    26,511          -     26,511     22,860         -     22,860
           ---------  ---------  ---------  ---------  --------  ---------
Total
 revenues    298,414          -    298,414    277,853         -    277,853
           ---------  ---------  ---------  ---------  --------  ---------

Cost of
 revenues
 (excluding
 amortization):
  Refractive
   centers   126,804          -    126,804    114,883         -    114,883
  Doctor
   services   70,281          -     70,281     66,662         -     66,662
  Eye care    11,999          -     11,999      9,733     1,659     11,392
           ---------  ---------  ---------  ---------  --------  ---------
Total cost
 of
 revenues
 (excluding
 amorti-
 zation)     209,084          -    209,084    191,278     1,659    192,937
           ---------  ---------  ---------  ---------  --------  ---------

Gross
 profit
 (loss)       89,330          -     89,330     86,575    (1,659)    84,916
           ---------  ---------  ---------  ---------  --------  ---------

General
 and
 admini-
 strative     34,819          -     34,819     32,717     1,759     34,476
Marketing
 and sales    42,979          -     42,979     27,622       169     27,791
Research
 and
 development,
 clinical and
 regulatory        -          -          -          -     1,475      1,475
Amortization
 of
 intangibles   3,398          -      3,398      3,451         -      3,451
Impairment
 of
 goodwill
 and other
 assets        7,659          -      7,659          -         -          -
Other
 expenses,
 net           2,753          -      2,753         25       849        874
           ---------  ---------  ---------  ---------  --------  ---------
  Total
   operating
   costs      91,608          -     91,608     63,815     4,252     68,067
           ---------  ---------  ---------  ---------  --------  ---------
  Operating
   (loss)
   income     (2,278)         -     (2,278)    22,760    (5,911)    16,849

Gain on
 sale of
 Occulogix,
 Inc.
 stock             -        899        899          -     1,450      1,450
Interest
 income        1,621          -      1,621      1,964       366      2,330
Interest
 expense      (5,778)         -     (5,778)    (1,455)        -     (1,455)
Minority
 interests    (8,921)         -     (8,921)    (9,228)    2,715     (6,513)
Earnings
 (losses)
 from
 equity
 investments   1,029    (13,396)   (12,367)     3,173    (5,809)    (2,636)
           ---------  ---------  ---------  ---------  --------  ---------
(Loss)
 income
 from
 continuing
 operations
 before
 income
 taxes       (14,327)   (12,497)   (26,824)    17,214    (7,189)    10,025
Income tax
 (expense)
 benefit      (8,476)         -     (8,476)     3,655         -      3,655
           ---------  ---------  ---------  ---------  --------  ---------
(Loss)
 income
 from
 continuing
 operations  (22,803)   (12,497)   (35,300)    20,869    (7,189)    13,680
(Loss)
 income
 from
 discontinued
 operations,
 net of
 tax          (8,214)         -     (8,214)    (2,161)        -     (2,161)
           ---------  ---------  ---------  ---------  --------  ---------

Net (loss)
 income    $ (31,017) $ (12,497) $ (43,514) $  18,708  $ (7,189) $  11,519
           =========  =========  =========  =========  ========  =========

(Loss)
 earnings
 per share
 - diluted $   (0.53) $   (0.21) $   (0.74) $    0.27  $  (0.10) $    0.17
           =========  =========  =========  =========  ========  =========

Weighted
 average
 number of
 common
 shares
 outstanding
 - diluted    59,139     59,139     59,139     69,580    69,580     69,580

Calculation
 of Pro
 Forma Net
 Income
 and EPS
  Net
   (loss)
   income,
   as
   reported  (31,017)                          18,708
    Add:
     Non-
     recurring
     costs    20,987                            5,305
      Interest
       expense
       from
       Dutch
       tender      0                           (3,829)
    Adjust
     income
     tax
     expense
     to 21%    8,802                           (7,722)
           ---------                        ---------
  Pro
   forma
   net
   (loss)
   income     (1,228)                          12,462
           =========                        =========
  Pro
   forma
   (loss)
   earnings
   per
   share   $   (0.02)                       $    0.21
           =========                        =========
Calculation
 of Pro
 Forma
 Total
 Revenues
  Total
   revenues,
   as
   re-
   ported  $ 298,414                        $ 277,853
    Add:
     Revenues
     from
     Dis-
     continued
     Oper-
     ations    3,535                            3,973
           ---------                        ---------
  Pro
   forma
   total
   rev-
   enues   $ 301,949                        $ 281,826
           =========                        =========

Note: The AMD segment includes the Company's interest in Occulogix, Inc.






TLC VISION CORPORATION
CONSOLIDATING BALANCE SHEETS
(In thousands)

                   December 31, 2007              December 31, 2006
            ------------------------------  ------------------------------
                                             Results
             Results                         Before
              Before                           AMD        AMD
               AMD       AMD       Total     Segment    Segment    Total
             Segment   Segment   TLCVision (Unaudited)(Unaudited)TLCVision
            ---------  --------  ---------  ---------  --------  ---------
ASSETS
Current
 assets
Cash and
 cash
 equiv-
 alents     $  12,925  $      -  $  12,925  $  28,917         -  $  28,917
Short-term
 investments        -         -          -     11,575         -     11,575
Accounts
 receivable,
 net           18,076         -     18,076     19,315         -     19,315
Deferred
 tax asset          -         -          -      7,153         -      7,153
Prepaid
 expenses,
 inventory
 and other     14,882         -     14,882     13,911         -     13,911
            ---------  --------  ---------  ---------  --------  ---------
Total
 current
 assets        45,883         -     45,883     80,871         -     80,871

Restricted
 cash           1,101         -      1,101      1,035         -      1,035
Investments
 and other
 assets        17,524         -     17,524     24,495    14,362     38,857
Goodwill       94,346         -     94,346     96,148         -     96,148
Other
 intangible
 assets,
 net           17,020         -     17,020     20,503         -     20,503
Fixed
 assets,
 net           61,936         -     61,936     56,888         -     56,888
            ---------  --------  ---------  ---------  --------  ---------
Total
 assets     $ 237,810  $      -  $ 237,810  $ 279,940  $ 14,362  $ 294,302
            =========  ========  =========  =========  ========  =========

LIABILITIES
Current
 liabilities
Accounts
 payable    $  17,177  $      -     17,177  $  12,314         -     12,314
Accrued
 liabilities   28,115         -     28,115     20,231         -     20,231
Current
 maturities
 of
 long-term
 debt          11,732         -     11,732      8,311         -      8,311
            ---------  --------  ---------  ---------  --------  ---------
Total
 current
 liabilities   57,024         -     57,024     40,856         -     40,856

Long-term
 debt, less
 current
 maturities    98,417         -     98,417     15,122         -     15,122
Other
 long-term
 liabilities    5,023         -      5,023      4,442         -      4,442
Minority
 interests     15,224         -     15,224     14,583         -     14,583
            ---------  --------  ---------  ---------  --------  ---------
Total
 liabilities  175,688         -    175,688     75,003         -     75,003
            ---------  --------  ---------  ---------  --------  ---------

STOCKHOLDERS'
 EQUITY
Common
 stock        308,972    28,501    337,473    419,767    30,366    450,133
Option and
 warrant
 equity           837         -        837      1,806         -      1,806
Other
 comprehensive
 income          (784)        -       (784)         -         -          -
Accumulated
 deficit     (246,903)  (28,501)  (275,404)  (216,636)  (16,004)  (232,640)
            ---------  --------  ---------  ---------  --------  ---------
Total
 stockholders'
 equity        62,122         -     62,122    204,937    14,362    219,299
            ---------  --------  ---------  ---------  --------  ---------

Total
 liabilities
 and
 stockholders'
 equity     $ 237,810  $      -  $ 237,810  $ 279,940  $ 14,362  $ 294,302
            =========  ========  =========  =========  ========  =========

Note: The AMD segment includes the Company's interest in Occulogix, Inc.





TLC VISION CORPORATION
CONSOLIDATING STATEMENTS OF CASH FLOWS (UNAUDITED)
(In thousands, except per share amounts)

                Twelve Months Ended               Twelve Months Ended
                 December 31, 2007                 December 31, 2006
           -------------------------------  ------------------------------
            Results                          Results
             Before                           Before
              AMD        AMD       Total       AMD       AMD       Total
            Segment    Segment   TLCVision   Segment   Segment   TLCVision
           ---------  ---------  ---------  ---------  --------  ---------
OPERATING
 ACTIVITIES
Net (loss)
 income    $ (31,017) $ (12,497) $ (43,514) $  18,708  $ (7,189) $  11,519

Adjustments
 to
 reconcile
 net
 (loss)
 income to
 net cash
 from
 operating
 activities:
Depreciation
 and
 amortization 18,859          -     18,859     16,358        34     16,392
Reimbursements
 from
 investments
 in research
 and
 development
 arrangements      -          -          -       (300)        -       (300)
Impairment
 of
 goodwill
 and other
 assets       16,950          -     16,950      4,087         -      4,087
Minority
 interests     9,423          -      9,423      9,737    (2,715)     7,022
(Earnings)
 losses
 from
 equity
 investments  (1,029)    13,396     12,367     (3,173)    5,809      2,636
Deferred
 taxes         6,639          -      6,639     (5,241)        -     (5,241)
Excess tax
 benefits
 from
 stock-
 based
 compensation
 expense           -          -          -          -         -          -
(Gain)
 loss on
 sales and
 disposals
 of fixed
 assets          (11)         -        (11)       111        29        140
Gain on
 sale of
 subsidiary
 stock             -       (899)      (899)      (349)   (1,450)    (1,799)
Write-down
 of
 Occulogix,
 Inc.
 inventory         -          -          -          -     1,625      1,625
Loss
 (gain) on
 sale of
 business        233          -        233          -         -          -
Non-cash
 compensation
 expense       1,115          -      1,115      1,258       186      1,444
Adjustments
 to the
 fair
 values of
 long-lived
 assets
 and
 liabilities       -          -          -        294         -        294
Other            275          -        275         58        26         84
Changes in
 operating
 assets and
 liabilities,
 net of
 acquisitions
 and
 dispositions: 9,893          -      9,893     (3,190)   (1,225)    (4,415)
           ---------  ---------  ---------  ---------  --------  ---------
Cash from
 operating
 activities   31,330          -     31,330     38,358    (4,870)    33,488
           ---------  ---------  ---------  ---------  --------  ---------

INVESTING
 ACTIVITIES
Purchases
 of fixed
 assets      (13,279)         -    (13,279)   (11,493)        -    (11,493)
Proceeds
 from
 sales of
 fixed
 assets        1,114          -      1,114        681         -        681
Distributions
 and loan
 payments
 received
 from equity
 investments   2,846          -      2,846      3,613         -      3,613
Reimbursements
 from
 investments
 in research
 and
 development
 arrangements      -          -          -        300         -        300
Acquisitions
 and equity
 investments  (4,815)         -     (4,815)    (7,839)        -     (7,839)
Proceeds
 from
 sales of
 short-term
 investments  17,375          -     17,375        400     9,925     10,325
Purchases
 of
 short-term
 investments  (5,800)         -     (5,800)    (5,425)        -     (5,425)
Proceeds
 from sale
 of
 subsidiary
 stock, net    2,000          -      2,000        230     2,226      2,456
Divestitures
 of
 business      1,619          -      1,619          -         -          -
Occulogix,
 Inc. cash
 balance
 at time
 of
 deconsol-
 idation           -          -          -          -   (14,814)   (14,814)
Other            123          -        123         59       (71)       (12)
           ---------  ---------  ---------  ---------  --------  ---------
Cash from
 investing
 activities    1,183          -      1,183    (19,474)   (2,734)   (22,208)
           ---------  ---------  ---------  ---------  --------  ---------

FINANCING
 ACTIVITIES
Restricted
 cash
 movement        (66)         -        (66)       (60)        -        (60)
Principal
 payments
 of debt
 financing
 and
 capital
 leases      (11,998)         -    (11,998)    (6,479)        -     (6,479)
Proceeds
 from debt
 financing    89,717          -     89,717        441         -        441
Capitalized
 debt
 costs        (1,960)         -     (1,960)         -         -          -
Distributions
 to minority
 interests    (9,454)         -     (9,454)    (9,197)        -     (9,197)
Proceeds
 from
 issuances
 of common
 stock         2,825          -      2,825        970         -        970
Proceeds
 from
 issuances
 of
 Occulogix,
 Inc.
 stock             -          -          -          -       233        233
Transfer
 from AMD
 segment           -          -          -      2,236    (2,236)         -
Purchases
 of
 treasury
 stock      (117,569)         -   (117,569)         -         -          -
           ---------  ---------  ---------  ---------  --------  ---------
Cash from
 financing
 activities  (48,505)         -    (48,505)   (12,089)   (2,003)   (14,092)
           ---------  ---------  ---------  ---------  --------  ---------

Net
 (decrease)
 increase in
 cash and
 cash
 equivalents
 during the
 period      (15,992)         -    (15,992)     6,795    (9,607)    (2,812)
Cash and
 cash
 equivalents,
 beginning of
 period       28,917                28,917     22,122     9,607     31,729
           ---------  ---------  ---------  ---------  --------  ---------
Cash and
 cash
 equivalents,
 end of
 period    $  12,925  $       -  $  12,925  $  28,917  $      -  $  28,917
           =========  =========  =========  =========  ========  =========

Operating
 cash flow
 per
 diluted
 share     $    0.53  $       -  $    0.53  $    0.55  $  (0.07) $    0.48

Note: The AMD segment includes the Company's interest in Occulogix, Inc.

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