EXHIBIT 20
PRESS RELEASE
FOR FURTHER INFORMATION PLEASE CONTACT:
AT THE COMPANY AT THE FINANCIAL RELATIONS BOARD
-------------- --------------------------------
VICTOR M.G. CHALTIEL, CEO DANIEL SAKS, GENERAL INFORMATION
OR JOHN E. KING, CFO MOIRA CONLON, INVESTOR CONTACT
AT (310) 792-2600 STEVE SEILER, MEDIA CONTACT
AT (310) 442-0599
KATHY BRUNSON, INVESTOR CONTACT
AT (312) 266-7800
TOTAL RENAL CARE REPORTS NET REVENUES UP 96%
AND EARNINGS (BEFORE EXTRAORDINARY ITEM) UP 163% FOR THIRD QUARTER, 1996
Earnings Per Share at 25 cents, Up 56% on 70% More Shares Outstanding
Third Quarter/Recent Highlights:
. Revenues rise 96% to $73,333,000
. Earnings (before extraordinary item) rise 163% to $6,536,000
. Addition of 15 centers, 230 stations, and over 1,700 patients since July
1, 1996 for a current total of over 9,700 patients
. Letter of intent signed for 5 more centers with 300 patients
. Secured additional managed care contracts for a current total of 111
. Repurchased all outstanding 12% Senior Subordinated Discount Notes on
September 30, 1996 (incurring a $7.7 million extraordinary charge)
. Secured a $400 million new credit line (currently at an interest rate of
6.125%) to replace former $130 million line
TORRANCE, Calif., October 25, 1996 -- Continuing the disciplined execution
of its aggressive growth strategy, Total Renal Care Holdings, Inc. (NYSE:TRL)
today announced another record for revenues, earnings (before extraordinary
item), and earnings per share for the quarter and nine months ended September
30, 1996. All figures are restated to reflect a change in the Company's fiscal
year-end to December 31 from May 31.
Revenues increased 96% to $73.3 million in the third quarter of 1996 from
$37.4 in the corresponding period of 1995. Earnings (before extraordinary item)
increased 163% to $6.5 million from $2.5 million, and earnings per share
increased 56% to $0.25 from $0.16 on 70% more shares outstanding. During the
third quarter of 1996, Total Renal Care retired the remaining $65 million
outstanding of Discount Notes at maturity incurring a $7.7 million extraordinary
charge (net of taxes).
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"Since June 30, 1996, we have continued to execute our aggressive,
disciplined growth strategy by adding 15 centers, 230 dialysis stations and over
1,700 patients since July 1, 1996, for a current total of 9,700 patients," said
Victor M.G. Chaltiel, TRL Chairman, President and Chief Executive Officer. "In
addition, we have signed letters of intent to acquire five more facilities for a
total of 300 patients. Moreover, the company has entered into a number of
additional managed care contracts for a current total of 111, including
contracts with Aetna and Maxicare in the New Orleans area to service virtually
all of their local ESRD patients."
Revenues increased 101% to $188.2 million in the first nine months of 1996,
from $93.5 million in the corresponding period of 1995. Earnings (before
extraordinary item) increased 207% to $16.5 million from $5.4 million and
earnings per share increased 80% to $0.65 from $0.35 on 65% more shares
outstanding.
On October 17, 1996, Total Renal Care significantly increased its borrowing
capacity to fund its aggressive, disciplined growth strategy by replacing its
existing $130 million bank facility with a new seven-year $400 million revolving
credit facility arranged by The Bank of New York and Donaldson, Lufkin &
Jenrette, Inc. The current interest rate on this facility is 6.125%.
Based in Torrance, Calif., Total Renal Care Holdings, Inc., is the third
largest provider of integrated dialysis services in the U.S. for patients
suffering from chronic kidney failure. The Company owns and operates
high-quality, free-standing kidney dialysis centers and home peritoneal dialysis
programs in 16 states, Washington, DC, and Guam, and also provides high-quality
acute hemodialysis services to inpatients on behalf of 82 hospitals. TRL has
increased its number of outpatient dialysis facilities to 127 with 1,855
stations and provides services to more than 9,700 patients. The Company
additionally operates ESRD laboratory and pharmacy facilities, as well as
vascular access management and transplant services programs.
For information on Total Renal Care Holdings, Inc., via facsimile at no
cost, call 1-800-PRO-INFO and dial company code 039.
(Financial Tables to follow)
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TOTAL RENAL CARE HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Three Months and Nine Months Ended September 30, 1996 and 1995
Three Months Nine Months
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1996 1995 1996 1995
----------- ----------- ------------ -----------
Net operating revenues $73,333,000 $37,415,000 $188,153,000 $93,508,000
Operating expenses:
Facilities 49,474,000 23,884,000 126,121,000 60,304,000
General and administrative 4,943,000 3,107,000 13,644,000 8,307,000
Provision for doubtful accounts 1,559,000 757,000 3,892,000 2,023,000
Depreciation and amortization 4,231,000 1,891,000 10,263,000 4,564,000
----------- ----------- ------------ -----------
Total operating expenses 60,207,000 29,639,000 153,920,000 75,198,000
----------- ----------- ------------ -----------
Operating income 13,126,000 7,776,000 34,233,000 18,310,000
Interest expense (1,719,000) (2,813,000) (5,869,000) (7,534,000)
Interest income 394,000 73,000 2,007,000 247,000
----------- ----------- ------------ -----------
Income before income taxes and minority interests
and extraordinary item 11,801,000 5,036,000 30,371,000 11,023,000
Income taxes 4,386,000 1,774,000 11,537,000 3,852,000
----------- ----------- ------------ -----------
Income before minority interests
and extraordinary item 7,415,000 3,262,000 18,834,000 7,171,000
Minority interests in income of
consolidated subsidiaries 879,000 777,000 2,296,000 1,787,000
----------- ----------- ------------ -----------
Income before extraordinary item 6,536,000 2,485,000 16,538,000 5,384,000
Extraordinary loss related to early extinguishment
of debt, net of tax 7,700,000 0 7,700,000 0
----------- ----------- ------------ -----------
Net (loss) income $(1,164,000) $ 2,485,000 $ 8,838,000 $ 5,384,000
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Earnings (loss) per common share:
Income before extraordinary item $ 0.25 $ 0.16 $ 0.65 $ 0.35
Extraordinary item $ (0.29) ---- $ (0.30) ----
----------- ----------- ------------ -----------
Net (loss) income $ (0.04) $ 0.16 $ 0.35 $ 0.35
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Weighted average number of common shares
and equivalents outstanding 26,661,000 15,690,000 25,409,000 15,427,000
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TOTAL RENAL CARE HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
September 30, 1996 and December 31, 1995
September 30, 1996 December 31, 1995
(unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $ 5,440,000 $ 30,181,000
Accounts receivable, less allowances for doubtful accounts
of $10,734,000 and $5,668,000, respectively 95,314,000 40,014,000
Receivable from Tenet, a related company 322,000 432,000
Other current assets 14,854,000 4,867,000
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Total current assets 115,930,000 75,494,000
Property and equipment, net 49,443,000 25,505,000
Note receivable from a related party 1,851,000 1,379,000
Investment in affiliate, at equity 1,018,000 972,000
Other long-term assets 899,000 885,000
Intangible assets, net of accumulated amortization
of $12,152,000 and $7,353,000, respectively 151,279,000 59,763,000
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Total assets $320,420,000 $163,998,000
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LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Liabilities:
Total current liabilities $ 30,677,000 20,803,000
Deferred income taxes 1,052,000 510,000
Long-term debt and other 79,007,000 56,538,000
Minority interests 5,326,000 3,343,000
Stockholders' equity:
Common stock, voting ($.001 par value;
55,000,000 shares authorized; 25,926,729 and
22,308,207 issued and outstanding, respectively) 26,000 22,000
Preferred stock, ($.001 par value;
5,000,000 shares authorized, none outstanding) ---- ----
Additional paid-in capital 236,433,000 123,710,000
Notes receivable from stockholders (2,783,000) (2,773,000)
Retained earnings (deficit) (29,318,000) (38,155,000)
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Total stockholder's equity 204,358,000 82,804,000
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Total liabilities and stockholders' equity $320,420,000 $163,998,000
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