Exhibit 99.1
DYNACQ INTERNATIONAL REPORTS CONTINUED STRONG GROWTH IN SECOND QUARTER
Fiscal Year 2003 Results
HOUSTON-- (BUSINESS WIRE)--April 14, 2003--Dynacq International Inc.
(Nasdaq:DYII - News) today reported growth in overall financial performance in
the second quarter ended February 28, 2003 for fiscal year 2003. Net revenues
increased to $21,128,000 from $14,965,000, or 41%, from the corresponding prior
year quarter. Basic earnings per share increased to $0.28 from $0.24, or 17%,
and fully diluted earnings per share increased to $0.27 from $0.24, or 13%, from
the corresponding prior year quarter.
During the second quarter of Fiscal 2003, Dynacq has maintained steady financial
growth comparable to the first quarter of 2003. Dynacq's flagship facility, the
Vista Hospital in Pasadena, Texas continued its growth performance in the second
quarter ending February 28, 2003 for fiscal year 2003. Net operating revenue at
Vista Hospital increased to $19,809,000 from $14,392,000, or 38%, from the
corresponding prior year quarter, and increased from $16,981,000, or 17%, from
the first quarter for fiscal year 2003.
Dynacq's new hospital in Baton Rouge, Louisiana, was operational for about five
weeks of the quarter with operating revenue of $584,000 versus $2,219,000 in
start-up and operating expenses for the quarter. As anticipated revenue flow
begins to exceed the expenses, the Company expects this hospital to positively
impact future earnings.
Comparing six months ended February 28, 2003 to the same period in 2002, net
revenues increased 36% to $39,061,000 from $28,713,000 for the corresponding
prior year period. Basic earnings per share, before cumulative effect of a
change in accounting principle, increased 19% to $0.56 from $0.47 and fully
diluted earnings per share increased 15% to $0.54 from $0.47 for the
corresponding prior year period. During the first quarter of Fiscal 2003, Dynacq
recorded a one-time gain of $528,000, net of tax, related to a write-off of
negative goodwill associated with the adoption of SFAS 142, Goodwill and Other
Intangible Assets, as a cumulative effect of a change in accounting principle.
The basic and diluted earnings per share after this one-time gain for the six
months ended February 28, 2003 were $0.60 and $0.57, respectively.
Dynacq Chairman and CEO, Chiu M. Chan said, "The continued strong growth of our
Houston facilities combined with the start-up of our new hospital in Baton
Rouge, Louisiana reflects the ongoing success of our management and clinical
teams in implementing our strategic growth plan."
"I am also pleased to announce the plans for a new Surgical Hospital in Slidell,
Louisiana. A Dynacq subsidiary purchased land in Slidell in February of 2003,
and a partnership with physicians has been formed. Construction planning and
compliance with Louisiana state regulations has begun," Chan added.
Dynacq International Inc. (www.dynacq.com) provides surgical healthcare services
and related ancillary services through surgical hospital facilities and
outpatient surgical centers. Dynacq specializes in creating surgical facilities
that are models of quality patient care, efficiency, technology, clinical skills
and profitability.
Summarized selected financial data:
Three months ended Six months ended
February 28, February 28,
------------------ ----------------
2003 2002 2003 2002
---- ---- ---- ----
Operating Data:
Net patient service revenue $ 21,127,507 $ 14,964,580 $ 39,061,433 $ 28,712,539
Operating expenses 13,134,832 9,144,671 23,575,906 17,259,067
------------ ------------ ------------ ------------
Operating income 7,992,675 5,819,909 15,485,527 11,453,472
Other income, net 118,981 61,081 256,738 161,332
Minority interest (1,084,595) (506,634) (1,828,102) (1,037,266)
Income tax provision (2,845,566) (1,832,329) (5,547,002) (3,657,896)
Cumulative effect of a change in
accounting principle, net of tax - - 528,153 -
------------ ------------ ------------ ------------
Net income $ 4,181,495 $ 3,542,027 $ 8,895,314 $ 6,919,642
============ ============ ============ ============
Basic earnings per common share:
Income before cumulative effect of
a change in accounting principle $ 0.28 $ 0.24 $ 0.56 $ 0.47
Cumulative effect of a change in
accounting principle - - 0.04 -
------------ ------------ ------------ ------------
$ 0.28 $ 0.24 $ 0.60 $ 0.47
============ ============ ============ ============
Diluted earnings per common share:
Income before cumulative effect of
a change in accounting principle $ 0.27 $ 0.24 $ 0.54 $ 0.47
Cumulative effect of a change in
accounting principle - - 0.03 -
------------ ------------ ------------ ------------
$ 0.27 $ 0.24 $ 0.57 $ 0.47
============ ============ ============ ============
Weighted average
common shares (basic) 14,871,621 14,781,959 14,853,439 14,781,959
Weighted average
common shares (diluted) 15,634,609 14,811,651 15,598,822 14,811,651
Statement of Cash Flows Data:
Cash provided by operating activities $ 11,867,186 $ 6,332,918
Cash used by investing activities (15,105,118) (2,492,868)
Cash provided (used) by financing activities 585,891 (2,549,988)
February 28, August 31,
2003 2002
------------ ------------
Balance Sheet Data:
Cash and cash equivalents $ 4,931,715 $ 7,583,756
Accounts receivable, net 26,248,934 24,340,971
Other current assets 3,250,449 1,679,555
Property and equipment, net 30,982,893 16,715,425
Other assets 796,673 758,914
------------ ------------
Total assets $ 66,210,664 $ 51,078,621
------------ ------------
Current liabilities $ 7,580,870 $ 3,111,015
Other liabilities 4,721,476 3,399,233
Total stockholders' equity 53,908,318 44,568,373
------------ ------------
Total liabilities and stockholders' equity $ 66,210,664 $ 51,078,621
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Certain statements contained in this press release may constitute
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. These statements include, without limitation,
Dynacq's ability to continue growing, the Baton Rouge hospital to positively
impact future earnings, continued strong growth of our Houston facilities,
starting construction of its new hospital in Slidell, continued successful
partnership with physicians, and Dynacq's ability to continue to provide high
quality healthcare services and facilities. Although the Company believes its
expectations are based on reasonable assumptions within the bounds of its
knowledge of its business and operations, there can be no assurance that actual
results will not differ materially from its expectations. Such forward-looking
statements involve a number of known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or achievements of the
Company to be materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements. More
detailed information about factors that may cause actual results to materially
differ is contained in the Company's filings with the Securities and Exchange
Commission. The words "looking forward," "believe," "expect," "likely" and
similar expressions identify forward-looking statements. Readers are cautioned
not to place undue reliance on these forward-looking statements, which speak
only as of the date that such statements were made. The Company undertakes no
obligation to update any forward-looking statements contained in this press
release.
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Contact:
Dynacq International Inc., Houston
Emily D. Rodgers, 713/378-3092
Fax: 713/378-3166
emily@dynacq.com