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LCA-Vision
Makes Major Cash Saving Changes |
With refractive surgery procedure volumes and
revenues down sharply in 2008’s second quarter LCA-Vision
revealed this week it has reduced its work force, cut back
on advertising expenditures and reduced the number of new
surgery centers it plans to open and/or relocate during the
rest of this year.
In addition, the company said its chief marketing officer,
Jim Brenner, has resigned; no replacement has been named
yet. Brenner, who joined LCA-Vision in May 2007, had
responsibilities for the company’s marketing, managed care
and call center departments.
According to interim chief financial officer Michael
Celebrezze, who took over last month after previous CFO Alan
Buckey resigned, LCA-Vision reduced its work force by
another 25 percent in the last few months, following a 16
percent staff reduction earlier this year. Celebrezze said
the company will record a one time severance charge of
approximately $700,000 during the third quarter; the
year-to-date staff reduction is expected to reduce its
annualized labor expenses by about $14.2 million, however,
he said.
In addition to the staff reductions, LCA-Vision initiated a
company-wide freeze on salaries, and eliminated a number of
open positions. “In an effort to transition to a more
variable cost structure, we are evolving toward a flexible
work force by adding part-time personnel to replace open
full-time positions where possible,” Celebrezze noted. As
of June 30, the company had 109 part-time employees, up from
51 part-time employees as of a year earlier.
In the third quarter, LCA-Vision will reduce its national
and local media expenditures by 40 percent to 45 percent
compared to last year’s Q3, spending between $9.0 million
and $10.5 million. Expenditures are also being reduced by
halting 2008 new center openings after the third quarter,
reducing the number of center relocations planned for this
year from five to three, and limiting new laser purchases by
moving under-utilized excimer lasers to centers opening in
Q3.
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