Beacon Eye Institute Obtains $2.5 Million Financing - Loss Of $6.2 Million Reported For Quarter Ended September 26, 1997.TORONTO--(BUSINESS WIRE)--Nov. 13, 1997--Beacon Eye Inc. (BEY-T), which operates as Beacon Beacon, city (1990 pop. 13,243), Dutchess co., SE N.Y., on the E bank of the Hudson River; settled 1663, inc. in 1913 when Fishkill Landing and Matteawan villages were united. Eye Institute ("Beacon") has reached agreement with MDS MDS, n See temporomandibular pain-dysfunction syndrome. MDS 1 Maternal deprivation syndrome, see there 2 Myelodysplastic syndrome, see there Capital Corp. and a number of other institutional shareholders of Beacon with respect to the terms of a $2.5 million convertible debt financing Debt Financing When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise to repay . The financing, which has a four-month term and bears interest at 15% per annum Per annum Yearly. , is convertible, at the option of the investors, into BeaconEye Inc. common shares at a conversion price of $2.30 per share. As part of its financing plan, Beacon also is initiating a process that will permit it to undertake a rights offering. Completion of the financing is subject to certain conditions, including regulatory approval. Keith Moore
Keith Moore (born 12 October 1960) is the author and co-author of several IETF RFCs related to the MIME and SMTP protocols for electronic mail, among others: The financing is one element of the shareholder value maximization Value Maximization Increases in owners' wealth achieved by maximizing of the value of a firm's common stock. process that was announced by Beacon on October October: see month. 16, 1997. In connection with that process, and the debt financing, Beacon will be establishing a committee of its board of directors that will be composed of three directors independent of management to oversee the value enhancement process. Beacon and its financial advisor, CIBC Wood Gundy CIBC Wood Gundy was created in 1988 with the purchase of Wood Gundy Inc. by CIBC. CIBC Wood Gundy is a division of CIBC World Markets. Canadian Imperial Bank of Commerce Chief Executive Officer: Gerald T. McCaughey | FY 2006 Statistics: Net income: $2. Securities Inc., currently are in discussions with a number of industry participants with respect to various strategic alternatives. The board of directors of the company has made no determination at this time to pursue any particular transaction other than the debt financing. No assurance can be given that the company will pursue any particular course of action other than the debt financing or that the company will be able to successfully complete any course of action that it may elect to pursue. Operating Results ----------------- Revenue of $8.3 million for the nine-month period ended September September: see month. 26, 1997, was more than double the revenue of $3.5 million generated for the same period of the prior year. Revenue of $3.1 million for the three-month period ended September 26, 1997 was more than 6 percent greater than revenue of $2.9 million for the three-month period ended June June: see month. 27, 1997, and 72 percent greater than revenue of $1.8 million generated for the three-month period ended September 27, 1996. The increase in revenue reflects a 38 percent increase in the number of procedures performed in the third quarter of 1997 compared to the second quarter of 1997 (from 1,465 to 2,016 procedures) and an 89 percent increase in procedures compared to the third quarter of 1996 (from 1,066 to 2,016). The increase in revenue also reflects the provision of services to Beacon Medical Group, Inc., a California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). professional corporation which operates independently of the company (see note #2 to the attached Financial Statements). The net loss for the nine-month period ended September 26, 1997 was $17.3 million ($2.24 per share) as compared with a net loss of $17.7 million ($6.92 per share) for the same period of the prior year. The net loss for the three-month period ended September 26, 1997, was $6.2 million as compared with a net loss of $5.3 million for the three-month period ended June 27, 1997, and compared to a net loss of $8.2 million for the same period in the prior year. Operating costs operating costs npl → gastos mpl operacionales and development expenses totaling $24.9 million for the nine months ended September 26, 1997, included the start-up Start-up The earliest stage of a new business venture. of the four U.S. laser vision correction centers in Fort Lauderdale Fort Lauderdale (lô`dərdāl), residential, commercial, and resort city (1990 pop. 149,377), seat of Broward co., SE Fla., on the Atlantic coast; settled around a fort built (c.1837) in the Seminole War, inc. 1911. and Tampa, Florida “Tampa” redirects here. For other uses, see Tampa (disambiguation). Tampa is a United States city in Hillsborough County, on the west coast of Florida. It serves as the county seat for Hillsborough County.GR6. ; Atlanta Atlanta (ətlăn`tə, ăt–), city (1990 pop. 394,017), state capital and seat of Fulton co., NW Ga., on the Chattahoochee R. and Peachtree Creek, near the Appalachian foothills; inc. 1847. , Georgia Georgia, country, Asia Georgia (jôr`jə), Georgian Sakartvelo, Rus. Gruziya, officially Republic of Georgia, republic (2005 est. pop. 4,677,000), c.26,900 sq mi (69,700 sq km), in W Transcaucasia. ; and Irvine, California Irvine is an incorporated city in Orange County, California, United States. It is a planned city, mainly developed by the Irvine Company since the 1960s. Formally incorporated on December 28 1971, the 69.7 square mile (180.5 km²) city has a population of 202,079 (as of 2007). . Keith Moore stated, "We took action in the third quarter to recover share in our key markets, including the introduction of LASIK LASIK laser-assisted in-situ keratomileusis. LA·SIK n. Eye surgery in which the surface of the cornea is reshaped using a laser, performed to correct certain refractive disorders such as myopia. services and the acquisition of another center to expand our presence in the greater Toronto area The Greater Toronto Area (widely abbreviated as the GTA) is the most populous metropolitan area in Canada. The GTA is a provincial planning area with a population of 5,555,912 at the 2006 Canadian Census. . Additionally, adjustments were made to meet competitive pressures with respect to co-management fees. As a result, losses in the third quarter were higher than anticipated. "While consumer awareness of the benefits of laser vision correction is increasing, laser capacity in the industry still exceeds consumer demand. Market share and the impact on word-of-mouth referrals have become increasingly important at this stage in the development of the laser vision correction industry. We are encouraged that our actions have increased the rate of growth in the number of procedures performed. The 38 percent growth rate achieved in the third quarter was about three times the 13 percent growth rate reflected in the second quarter compared to the first quarter of 1997." Company Overview ----------------- Beacon provides facilities and services for the performance of laser vision correction including Laser-PRK, or photorefractive keratectomy Photorefractive keratectomy (PRK) A procedure that uses an excimer laser to make modifications to the cornea and permanently correct myopia. Mentioned in: Myopia, Radial Keratotomy photorefractive keratectomy , and LASIK, or laser-assisted in situ keratomileusis laser-assisted in situ keratomileusis n. LASIK. Laser-assisted in situ keratomileusis (LASIK) A type of refractive eye surgery using a laser and another instrument to change the shape of the cornea. . Both procedures are performed with an excimer laser A gas laser in which a very short electrical pulse excites a mixture containing a halogen such as fluorine and a rare gas such as argon or krypton. It produces a brief, intense pulse of ultraviolet light. which generates ultraviolet light Ultraviolet light A portion of the light spectrum not visible to the eye. Two bands of the UV spectrum, UVA and UVB, are used to treat psoriasis and other skin diseases. for reshaping the eye to correct nearsightedness nearsightedness or myopia, defect of vision in which far objects appear blurred but near objects are seen clearly. Because the eyeball is too long or the refractive power of the eye's lens is too strong, the image is focused in front of the , farsightedness farsightedness or hyperopia, condition in which far objects can be seen easily but there is difficulty in near vision. It is caused by a defect of refraction in which the image is focused behind the retina of the eye rather than upon it, either , and astigmatism astigmatism (əstĭg`mətĭz'əm), type of faulty vision caused by a nonuniform curvature in the refractive surfaces—usually the cornea, less frequently the lens—of the eye. and improve natural vision reducing the need to wear glasses or contact lenses contact lenses contact npl → verres mpl de contact contact lenses contact npl → Kontaktlinsen pl contact lenses npl . Beacon now operates 11 laser vision correction centers with locations in Toronto Toronto (tərŏn`tō), city (1998 est pop. 2,400,000), provincial capital, S Ont., Canada, on Lake Ontario. Toronto is the largest city in Canada and since the 1970s has been one of the fastest-changing cities in North America, experiencing and Markham, Ontario Markham (2006 Population 261,573[0]) is located in York Region, directly north of Toronto, and is part of Toronto's CMA. It is larger than many Canadian cities. Despite its qualifications regarding population, it has not had the title of city conferred upon it by the ; San Antonio San Antonio (săn ăntō`nēō, əntōn`), city (1990 pop. 935,933), seat of Bexar co., S central Tex., at the source of the San Antonio River; inc. 1837. , Austin Austin. 1 City (1990 pop. 21,907), seat of Mower co., SE Minn., on the Cedar River, near the Iowa line; inc. 1868. The commercial and industrial center of a rich farm region, it is noted as home to the Hormel meatpacking company, whose Spam Town museum , Dallas/Fort Worth, and Houston, Texas “Houston” redirects here. For other uses, see Houston (disambiguation). Houston (pronounced /'hjuːstən/) is the largest city in the state of Texas and the ; Denver Denver, city (1990 pop. 467,610), alt. 5,280 ft (1,609 m), state capital, coextensive with Denver co., N central Colo., on a plateau at the foot of the Front Range of the Rocky Mts., along the South Platte River where Cherry Creek meets it; inc. 1861. , Colorado Colorado, state, United States Colorado (kŏlərăd`ə, –răd`ō, –rä`dō), state, W central United States, one of the Rocky Mt. states. ; Fort Lauderdale and Tampa, Florida; Atlanta, Georgia; and Irvine, California. -0-
Consolidated statements of operations and deficit
Nine months ended
Year Sep 26 Sep 27
1996 ($ 000) 1997 1996
----------------------------------------------------------------------
Operations
$4,991 Revenues $ 8,250 $ 3,497
14,376 Operating expenses 20,103 8,943
------ ---------------------
Operating loss before development
(9,385) expenses (11,853) (5,446)
15,222 Development expenses 4,767 12,409
------- ----------------------
(24,607) Operating loss (16,620) (17,855)
68 Interest income (expense) (617) 168
-------- ----------------------
(24,539) Loss before income taxes (17,237) (17,687)
- Income taxes 30 -
-------- ----------------------
$ (24,539) Net loss for the period $(17,267) $(17,687)
$ (7.27) Loss per share $ (2.24) $ (6.92)
-------- ----------------------
-----------------------------------------------------------------------
Deficit
$ (12,531) Balance -- beginning of period $(37,070) $(12,531)
(24,539) Net loss for the period (17,267) (17,687)
-------- ----------------------
$ (37,070) Balance -- end of period $(54,337) $(30,218)
--------- ----------------------
Consolidated balance sheets
December 31 September September
1996 ($ 000) 26, 1997 27, 1996
-----------------------------------------------------------------------
Assets
Current assets
$8,669 Cash $ 2,994 $ 5,344
637 Accounts receivable 1,363 231
1,167 Prepaid expenses 2,408 1,196
------- ---------------------
10,473 6,765 6,771
------- ---------------------
Capital assets
25,705 Cost 30,288 17,857
(1,972) Depreciation & amortization (4,941) (1,229)
------- ---------------------
23,733 25,347 16,628
------- ---------------------
Other assets
- Goodwill 722 -
1,281 Cash collateral deposits 1,291 -
863 Deposit on excimer lasers - 1,059
51 Deferred charge 159 -
------- ---------------------
2,195 2,172 1,059
------- ---------------------
$ 36,401 $ 34,284 $ 24,458
------- ---------------------
Liabilities
Current liabilities
Accounts payable and accrued
$8,759 liabilities $ 3,576 $ 5,058
665 Current portion - capital leases 1,569 -
& notes payable
68 Current portion of deferred income 68 -
------ ---------------------
9,492 5,213 5,058
- Shareholder advances - 2,500
3,579 Capital leases & notes payable 8,067 -
less current portion
203 Deferred income less current portion 153 -
------ ---------------------
13,274 13,433 7,558
------ ---------------------
Shareholders' equity/(deficiency)
Capital stock
57,697 Issued and full-paid common shares 71,760 47,118
2,500 Special shares 3,428 -
(37,070) Deficit (54,337) (30,218)
------- ---------------------
23,127 20,851 16,900
------ ---------------------
$ 36,401 $ 34,284 $ 24,458
------ ---------------------
Consolidated statements of changes in financial position
Nine months ended
Year September September
1996 ($ 000) 26, 1997 27,1996
------- ----------------------
Operating activities
$ (24,539) Net loss for the period $(17,267) $(17,687)
2,060 Depreciation & amortization 2,793 873
------- ---------------------
(22,479) (14,474) (16,814)
------- ------------------
Changes in non-cash working capital
(excluding acquisition):
(557) Accounts receivable (726) (151)
(1,069) Prepaid expenses (1,231) (1,098)
8,135 Accounts payable and accrued liabilities (5,269) 4,434
------- ------------------
6,509 (7,226) 3,185
------- ------------------
(15,970) Cash used in operating activities (21,700) (13,629)
-------- -------------------
Financing activities
(16,512) Shareholder advances - (14,012)
Change in notes payable (excluding
- acquisition) 3,874 -
4,244 Capital leases (excluding acquisition) 780 -
(1,281) Cash collateral deposits (10) -
60,197 Change in capital stock 14,991 47,118
------- ------------------
46,648 Cash provided by financing activities 19,635 33,106
------- ------------------
Investing activities
(27,427) Capital assets purchased or leased (4,410) (14,629)
Sale of fixed assets leased back on
4,096 capital and operating leases 1,140 -
Acquisition of laser center (net
- of cash acquired) (1,095) -
Unamortized portion of gain on sale
271 of assets leased back - -
408 Other fixed asset disposals - -
549 Deposit on excimer lasers 863 353
------- -------------------
(22,101) Cash used in investing activities (3,502) (14,276)
-------- -------------------
Unrealized net foreign currency translation
loss on long-term monetary net assets of
(51) foreign subsidiary (108) -
------- ------------------
8,526 Cash flow of period (5,675) 5,201
Cash
143 Beginning of period 8,669 143
------- ------------------
$8,669 End of period $ 2,994 $ 5,344
------- ------------------
Notes:
(1) Figures for the nine month periods are unaudited.
(2) In June, 1997 the Company opened a laser vision correction
facility in Irvine, California. The Company provides use of the
facility and certain other services to Beacon Medical Group, Inc. a
California professional corporation ("PC") which operates
independently of the Company. In addition to payment of a service fee
for the use of facilities and certain other services, the PC purchases
marketing, advertising and administrative services from the Company.
During the nine month period ended September 26, 1997, these services
purchased by the PC and reflected as revenue by the Company totaled
$0.70 million or 81% of the total revenue for the Company.
(3) On July 22, 1997 Beacon Eye Centre Inc., a wholly owned
subsidiary of Beacon Eye Inc. issued 280,700 special share units for
gross aggregate proceeds of approximately $1.0 million. Each special
share consists of one share and one-half of one special share purchase
warrant in Beacon Eye Centre Inc. Each whole purchase warrant entitles
the holder to acquire one special share at any time prior to December
21, 1998 at an exercise price of $4.65 per special share. In addition,
the Company granted to the Underwriter a non-assignable compensation
option exchangeable at no cost to the Underwriter at any time prior to
June 20, 1998 into compensation warrants to purchase up to an
aggregate of 28,070 common shares and 14,035 common share purchase
warrants at a price of $5.00 per common share and one-half warrant.
(4) On September 24, 1997, the Company acquired a laser vision
correction center in Thornhill, Ontario, formally operated as Gimbel
Eye Centre - Toronto for $1.3 million The purchase price consisted of
$0.9 million in cash and $0.4 million of Beacon EyeInc common shares.
In addition, the Company assumed capital lease and note payable
commitments of $0.7 million The acquisition was accounted for under
the purchase method and the financial statements of the acquired
center have been consolidated in the financial statements of the
Company as of the acquisition date. The purchase price exceeded the
fair market value of the net assets acquired by $0.7 million and the
excess has been recorded as goodwill in the financial statements.
CONTACT: Beacon Eye Keith Moore, 905/897-1366 Fax: 905/897-6130 e-mail: kmoore@beaconeye.com |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion