SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 Form 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report: April 1, 2003 LanVision Systems, Inc. ----------------------- (Exact name of registrant as specified in its charter) Delaware 0-28132 31-1455414 - ------------------------------------------------------------------------------- (State or other jurisdiction (Commission (IRS Employer of incorporation) File Number) Identification No.) 5481 Creek Road, Cincinnati, OH 45242-4001 - ------------------------------------------------------------------------------- (Address of principal executive offices) Registrant's telephone number, including area code (513) 794-7100 ---------------------------- Item 12 Disclosure of Results of Operations and Financial Condition LanVision Systems, Inc. issued a News Release Dated April 1, 2003 to announce the fiscal year ended January 31, 2003 Results of Operations and Financial Condition and is attached hereto as Exhibit 99 SIGNATURES Pursuant to the requirements of the Securities Act of 1934, Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. LanVision Systems, Inc. Date: April 1, 2003 By: /s/ Paul W. Bridge, Jr. ----------------------- Paul W. Bridge, Jr. Chief Financial Officer 1
INDEX TO EXHIBITS Exhibit No. Description of Exhibit 99 News Release of LanVision Systems, Inc. Dated April 1, 2003 Fiscal year ended January 31, 2003 Earnings Press Release 2
Exhibit 99 LANVISION SYSTEMS, INC. News Release of LanVision Systems, Inc. Dated April 1, 2003 NEWS RELEASE Visit our web site at: www.lanvision.com COMPANY CONTACT: J. BRIAN PATSY President (513) 794-7100 INVESTOR RELATIONS: KIRSTEN CHAPMAN LIPPERT/HEILSHORN & ASSOCIATES (415) 433-3777 FOR IMMEDIATE RELEASE LANVISION SYSTEMS REPORTS RECORD FOURTH QUARTER AND FISCAL YEAR 2002 RESULTS ANNUAL REVENUES INCREASED 23%, OPERATING PROFIT INCREASED 43% Cincinnati, Ohio, April 1, 2003 --- LanVision Systems, Inc. (Nasdaq: LANV) today announced the financial results for the fourth quarter and fiscal year ended January 31, 2003. Revenues in the fourth quarter of fiscal 2002 were a record $3.9 million compared with $2.7 million in the fourth quarter of fiscal 2001, an increase of 44 percent. Operating profits for the fourth quarter were $955,000 compared with $684,000 in the fourth quarter of fiscal 2001, an increase of 40 percent. In eighteen of the last nineteen quarters LanVision's operating results improved over the comparable prior quarter. Net earnings for the quarter were $460,000 or $0.05 per share compared with $180,000 or $0.02 per share in the fourth quarter of fiscal 2001. For the 2002 fiscal year ended January 31, 2002, LanVision reported record revenues of $13.5 million compared with $10.9 million in fiscal 2001, an increase of 23 percent. Operating profits for the fiscal year were a record $2.9 million compared with $2.0 million in fiscal 2001, an increase of 43 percent. Net earnings for fiscal 2002 were a record $1.0 million or $0.11 per share compared with $210,000 or $0.02 per share in fiscal 2001. J. Brian Patsy, president and chief executive officer, stated, "Execution of our strategy generated results as LanVision achieved record fiscal year total revenues, operating profits and net earnings, with increasing operating profitability in each quarter of fiscal 2002. We continued to expand our strategic partnerships and introduce products to increase our recurring revenue streams. Our successes in securing new customers for 3
ASPeN(SM), our application-hosting services, and broadening our installed base for license sales and sales through our reseller partners illustrate the strength of our product offerings and the enhanced value proposition." Paul W. Bridge, Jr., LanVision's chief financial officer, said, "Fiscal 2002 was another year of significant improvement, and we achieved 23 percent revenue growth. In addition, we increased our ASPeN recurring revenues by 48 percent. The combined ASPeN application hosting services and maintenance services revenues accounted for 40 percent, or more than $5.0 million, of our total revenues in fiscal 2002. We expect these trends to increase in the future." Mr. Bridge continued, "LanVision also achieved record cash flow from operating activities, and used the funds to reduce long-term debt and long-term accrued interest by an additional $2.5 million. We continue to monitor our expenses and are investing prudently in the future to ensure that increased revenues produce increased operating profits." LanVision accomplished significant financial, customer, reseller and product milestones throughout 2002 and subsequent to year end. - - Extended LanVision's record of quarterly operating profitability to nine out of the last ten quarters. - - Announced the significant new reseller agreement with IDX Information Systems Corporation, which generated more than $2.5 million in LanVision revenues in the first year of the relationship. - - Announced the referral marketing agreement with 3M Health Information Systems in September. - - Signed two three-year ASPeN services agreements, one with the Children's Hospital of Columbus, Ohio and one with a research-driven cancer center to be announced at a later date. Both ASPeN opportunities have been implemented and are contributing recurring revenues. - - This week announced the General Availability of codingANYwareSM, our in-house and remote coding workflow application that re-engineers the coding, and billing process in a way that accelerates reimbursement and helps keep accounts receivable to a manageable level. - - During 2002 introduced products which enhanced the suite of applications: Announced the General availability of our new thin client second-generation web-based workflow application accessANYware(sm) which offers a wide array of functionality from a single login, including browser-based searching, retrieving, viewing and faxing, as well as chart analysis, remote chart completion and electronic signature, via the completionANYware(sm) module, and new Business Office functionality, via Folderview(sm), to scan and store Remittances, Explanation of Benefits and insurance bulletins; OCR FOR FORMS that uses Optical Character Recognition technology to scan, extract data, verify, balance, and provide an output file to help business offices increase data entry productivity; CALL CENTER SCHEDULING WORKFLOW that automatically routes the scanned or faxed physician orders to appropriate scheduling personnel; and 4
REGSCAN(TM) the registration component that allows registrars to easily and quickly scan pertinent documents such as insurance cards, clinic, or physician orders into the LanVision system. Mr. Patsy concluded, "One of our major goals for the future is to further diversify our revenue opportunities by targeting potential new partners in the clinical information systems, outsourcing, and storage management areas, as well as entering into new lines of businesses, which are complementary to our existing core competencies. Our state-of-the-art, scalable and web-enabled Medical Record Workflow technologies and services provide a competitive advantage to LanVision and its partners in the Medical Record Workflow technology marketplace and we continue to be very optimistic about our future and our ability to expand our business to achieve our goal to be the leading provider of products and services that manage the entire lifecycle of the medical record." CONFERENCE CALL INFORMATION The fourth quarter and fiscal year end conference presentation and call will be held at 10:00 a.m. Eastern Time, on Wednesday April 2, 2003. The call will feature remarks from J. Brian Patsy, President and Chief Executive Officer, Eric S. Lombardo, Executive Vice President, and Paul W. Bridge, Jr., Chief Financial Officer. To access the call, please dial 1-888-806-9460 approximately 10 minutes prior to the start of the conference. To access the presentation and webcast please go to www.lanvision.com approximately twenty minutes before the conference call is scheduled to begin. You will need to register as well as download and install any necessary audio software. The presentation and webcast will be available for 30 days. If you are unable to participate, a replay will be available from 1:00 p.m. ET April 2, through 12:00 a.m. ET April 4, 2003. For callers within the U.S. or Canada, the replay number is 1-888-266-2081. The replay pass code for all callers is 6438695. As soon as practicable the transcript of the conference call will be posted to the LanVision Systems, Inc. web site at www.lanvision.com. ABOUT LANVISION SYSTEMS LanVision is an application service provider (ASP) and leading supplier of Medical Record Workflow technologies and healthcare information access systems that provide hospitals, physicians, patients and payers simultaneous access to patient data from virtually any location using the Internet. The company sells its product suite either directly or through remarketing partners, such as Siemens Medical Solutions Health Services Corporation and IDX Information Systems Corporation. LanVision's Medical Record Workflow products are complementary to existing clinical and financial systems, and ensure that authenticated end users can electronically access all the various forms of healthcare information including clinician's handwritten notes, lab reports, photographs, insurance cards, et al. Web access improves physician productivity and reduces administrative costs. LanVision provides its ASPeN, ASP-based application-hosting services to several integrated delivery networks. In addition, LanVision has installed its products at leading healthcare providers including: Stanford Hospital and Clinics, the Albert Einstein and Beth Israel Medical Centers, the Medical College of Georgia, Medical University of South Carolina, and Memorial Sloan-Kettering Cancer Center. 5
For more information on LanVision and its products visit the LanVision web site at www.lanvision.com SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 STATEMENTS MADE BY LANVISION THAT ARE NOT HISTORICAL FACTS ARE FORWARD-LOOKING STATEMENTS THAT ARE SUBJECT TO RISKS AND UNCERTAINTIES. THE FORWARD-LOOKING STATEMENTS CONTAINED HEREIN ARE SUBJECT TO CERTAIN RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE REFLECTED IN THE FORWARD-LOOKING STATEMENTS, INCLUDED HEREIN. THESE RISKS AND UNCERTAINTIES INCLUDE, BUT ARE NOT LIMITED TO, THE IMPACT OF COMPETITIVE PRODUCTS AND PRICING, PRODUCT DEMAND AND MARKET ACCEPTANCE, NEW PRODUCT DEVELOPMENT, KEY STRATEGIC ALLIANCES WITH VENDORS THAT RESELL LANVISION PRODUCTS, THE ABILITY OF THE COMPANY TO CONTROL COSTS, AVAILABILITY OF PRODUCTS PRODUCED FROM THIRD PARTY VENDORS, THE HEALTHCARE REGULATORY ENVIRONMENT, HEALTHCARE INFORMATION SYSTEMS BUDGETS, AVAILABILITY OF HEALTHCARE INFORMATION SYSTEMS TRAINED PERSONNEL FOR IMPLEMENTATION OF NEW SYSTEMS, AS WELL AS MAINTENANCE OF LEGACY SYSTEMS, FLUCTUATIONS IN OPERATING RESULTS AND OTHER RISKS DETAILED FROM TIME TO TIME IN THE LANVISION SYSTEMS, INC. FILINGS WITH THE U. S. SECURITIES AND EXCHANGE COMMISSION. READERS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON THESE FORWARD-LOOKING STATEMENTS, WHICH REFLECT MANAGEMENT'S ANALYSIS ONLY AS OF THE DATE HEREOF. THE COMPANY UNDERTAKES NO OBLIGATION TO PUBLICLY RELEASE THE RESULTS OF ANY REVISION TO THESE FORWARD-LOOKING STATEMENTS, WHICH MAY BE MADE TO REFLECT EVENTS OR CIRCUMSTANCES AFTER THE DATE HEREOF OR TO REFLECT THE OCCURRENCE OF UNANTICIPATED EVENTS. (C)2003 LanVision Systems, Inc., Cincinnati, OH 45242. All rights reserved. 6
LANVISION SYSTEMS, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF OPERATIONS THREE MONTHS ENDED FISCAL YEAR ENDED JANUARY 31, JANUARY 31, --------------------------- ------------------------------ 2003 2002 2003 2002 ---------- ----------- ------------ ------------ REVENUES: Systems sales $ 1,531,818 $ 1,051,523 $ 5,479,143 $ 4,291,921 Services, maintenance and support 1,957,320 1,492,053 6,837,617 5,874,483 Application hosting services 458,980 198,935 1,145,356 772,442 ------------ ------------ ------------ ------------ Total revenues 3,948,118 2,742,511 13,462,116 10,938,846 OPERATING EXPENSES: Cost of systems sales 424,957 100,649 1,329,795 663,977 Cost of services, maintenance and support 743,428 711,742 2,942,139 3,050,421 Cost of application hosting services 269,731 87,815 607,244 341,616 Selling, general and administrative 927,077 621,355 3,499,915 2,708,849 Product research and development 628,027 536,491 2,195,315 2,154,949 ------------ ------------ ------------ ------------ Total operating expenses 2,993,220 2,058,052 10,574,408 8,919,812 ------------ ------------ ------------ ------------ OPERATING PROFITS 954,898 684,459 2,887,708 2,019,034 Other income (expense): Interest income 18,920 36,143 109,397 270,955 Other income (expense), net -- -- -- -- Interest (expense) (490,145) (527,263) (1,961,092) (2,066,629) ------------ ------------ ------------ ------------ Earnings before income taxes 483,673 193,339 1,036,013 223,360 Income tax provision (24,000) (13,000) (24,000) (13,000) ------------ ------------ ------------ ------------ NET EARNINGS $ 459,673 $ 180,339 $ 1,012,013 $ 210,360 ============ ============ ============ ============ Basic net earnings per common share $ 0.05 $ 0.02 $ 0.11 $ 0.02 ============ ============ ============ ============ Diluted net earnings per common share $ 0.05 $ 0.02 $ 0.11 $ 0.02 ============ ============ ============ ============ Number of shares used in per common share computations - basic net earnings 8,947,821 8,899,285 8,933,931 8,889,586 ============ ============ ============ ============ Number of shares used in per common share computations - diluted net earnings 9,197,722 9,170,016 9,285,382 9,073,720 ============ ============ ============ ============ 7
LANVISION SYSTEMS, INC. AND SUBSIDIARY CONDENSED CONSOLIDATED BALANCE SHEETS JANUARY 31, ------------------------------- ASSETS 2003 2002 ------------- ------------- Current assets: Cash and cash equivalents $ 7,242,230 $ 7,865,053 Accounts receivable, net of allowance for doubtful accounts of $400,000, respectively 1,499,767 1,451,027 Contract receivables 3,074,596 1,742,785 Other 326,180 315,043 ------------ ------------ Total current assets 12,142,773 11,373,908 Property and equipment: Computer equipment 2,351,203 1,875,590 Computer software 743,204 421,962 Office furniture, fixtures and equipment 1,153,934 1,139,457 Leasehold improvements 153,549 117,795 ------------ ------------ 4,401,890 3,554,804 Accumulated depreciation and amortization (3,137,943) (3,048,793) ------------ ------------ 1,263,947 506,011 Capitalized software development costs, net of accumulated amortization of $2,100,228 and $1,700,228, respectively 1,389,701 1,189,701 Installment receivables 433,339 267,969 Other 107,316 171,516 ------------ ------------ $ 15,337,076 $ 13,509,105 ============ ============ LIABILITIES, CONVERTIBLE REDEEMABLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 721,402 $ 230,571 Accrued compensation 308,658 235,958 Accrued other expenses 1,392,157 1,525,096 Deferred revenues 2,220,383 1,371,200 Current portion of capitalized leases 206,051 -- Current portion of long-term debt 2,000,000 2,000,000 ------------ ------------ Total current liabilities 6,848,651 5,362,825 Capitalized leases 388,320 -- Long-term debt 1,000,000 3,000,000 Long-term accrued interest 3,133,369 2,239,798 Convertible redeemable preferred stock, $0.01 par value per share, 5,000,000 shares authorized -- -- Stockholders' equity: Common stock, $0.01 par value per share, 25,000,000 shares authorized, 8,959,004 and 8,913,947 shares issued, respectively 89,590 89,139 Capital in excess of par value 34,835,639 34,787,849 Accumulated (deficit) (30,958,493) (31,970,506) ------------ ------------ Total stockholders' equity 3,966,736 2,906,482 ------------ ------------ $ 15,337,076 $ 13,509,105 ============ ============ 8