Exhibit 99.3
Birner Dental Management Services, Inc.
3801 East Florida Avenue, Suite 508
Denver, Colorado 80210
303-691-0680
FOR IMMEDIATE RELEASE
August 6, 2003
BIRNER DENTAL MANAGEMENT SERVICES, INC.
ANNOUNCES 27.5% NET INCOME INCREASE
FOR THE 2Q '03 VERSUS 2Q `02
DENVER, COLORADO, August 6, 2003...Birner Dental Management Services, Inc.
(NASDAQ SmallCap Market: BDMS), operators of PERFECT TEETH dental practices,
announced results for the quarter ended June 30, 2003. The Company reported net
income increased 27.5% to $309,000, or $.21 per share of common stock on a
diluted basis for the quarter ended June 30, 2003 compared to net income of
$242,000, or $.15 per share of common stock on a diluted basis for the quarter
ended June 30, 2002. For the quarter ended June 30, 2003, net revenue increased
$247,000 to $7.9 million, or 3.2% when compared to net revenue of $7.6 million
for the corresponding period in 2002. Total dental group practice revenue
increased $386,000, or 3.6% to $11.1 million for the quarter ended June 30, 2003
compared to total group practice revenue of $10.7 million for the quarter ended
June 30, 2002. The Company's earnings before interest, taxes depreciation and
amortization (EBITDA) for the quarter ended June 30, 2003 and 2002 was $1.2
million.
For the six months ended June 30, 2003, net income increased 22.0% to $585,000,
or $.39 per share of common stock on a diluted basis compared to net income of
$480,000, or $.29 per share of common stock on a diluted basis for the six
months ended June 30, 2002. For the six months ended June 30, 2003, net revenue
increased $208,000 to $15.6 million, or 1.4%, when compared to net revenue of
$15.4 million for the corresponding period in 2002. Total dental group practice
revenue increased $316,000, or 1.5% to $22.0 million for the six months ended
June 30, 2003 compared to $21.7 million for the six months ended June 30, 2002.
EBITDA for the six months ended June 30, 2003 and 2002 was $2.3 million,
During the quarter ended June 30, 2003 the Company utilized internally generated
funds to pay down $900,000 of its bank debt and to fund open-market purchases of
its Common Stock totaling $245,000.
Birner Dental Management Services, Inc. acquires, develops, and manages
geographically dense dental practice networks in select markets in Colorado, New
Mexico, and Arizona. As of June 30, 2003 the Company managed 54 dental offices,
of which 37 were acquired and 17 were de novo developments. The Company operates
its dental offices under the PERFECT TEETH name.
The company previously announced it would conduct a conference call to review
first quarter ended June 30, 2003 results. In addition to current operating
results, the teleconference may include discussion of management's expectation
of future financial and operating results. The call will be held on Wednesday,
August 6, 2003, at 9:00 a.m. MT. To participate in this conference call, dial in
to 1-800-937-6563 and refer to "Birner Dental Management Services, Inc."
approximately five minutes prior to the scheduled time. If you are unable to
join in on the conference call on August 6th, the rebroadcast number is
1-800-839-0860 with the pass code of 1178. This rebroadcast will be available
through August 20, 2003.
Certain of the matters discussed herein may contain forward-looking statements
that are subject to certain risks and uncertainties that could cause actual
results to differ materially from expectations. These and other risks are set
forth in the reports filed by the Company with the Securities and Exchange
Commission.
For Further Information Contact:
Summit Financial Relations, Inc.
(720) 493-0303/fax
(720) 529-6749
CONTACT: David Olson
President
BIRNER DENTAL MANAGEMENT SERVICES, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
Quarters Ended June 30, Six Months Ended June 30,
2002 2003 2002 2003
----------- ----------- ----------- ------------
NET REVENUE (a) $ 7,633,596 $ 7,880,470 $15,401,210 $15,609,228
DIRECT EXPENSES:
Clinical salaries and benefits 2,965,813 3,002,902 5,938,011 6,013,741
Dental supplies 454,698 478,576 898,959 923,173
Laboratory fees 626,007 669,624 1,220,978 1,269,126
Occupancy 860,615 870,260 1,694,885 1,733,968
Advertising and marketing 81,589 95,719 160,655 193,658
Depreciation and amortization 598,836 565,459 1,193,226 1,147,486
General and administrative 801,247 777,848 1,574,934 1,529,088
----------- ----------- ----------- ------------
6,388,805 6,460,388 12,681,648 12,810,240
----------- ----------- ----------- ------------
Contribution from dental offices 1,244,791 1,420,082 2,719,562 2,798,988
CORPORATE EXPENSES:
General and administrative 681,873 811,860 1,587,805 1,611,698
Depreciation and amortization 83,960 74,767 163,179 154,749
----------- ----------- ----------- ------------
Operating income 478,958 533,455 968,578 1,032,541
Interest expense, net 88,550 35,845 195,031 88,648
----------- ----------- ----------- ------------
Income before income taxes 390,408 497,610 773,547 943,893
Income tax expense 148,355 189,093 293,948 358,679
----------- ----------- ----------- ------------
Net income $ 242,053 $ 308,517 $ 479,599 $ 585,214
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Net income per share of Common Stock:
Basic $ .16 $ .23 $ .32 $ .43
=========== =========== =========== ============
Diluted $ .15 $ .21 $ .29 $ .39
=========== =========== =========== ============
Weighted average number of shares of Common Stock and dilutive securities:
Basic 1,503,553 1,341,461 1,505,121 1,374,195
=========== =========== =========== ============
Diluted 1,650,896 1,476,919 1,634,356 1,505,183
=========== =========== =========== ============
a) Total dental group practice revenue less amounts retained by group
practices. Dental practice revenue was $11,121,493 for the three months
ended June 30, 2003 compared with $10,735,627 for the three months ended
June 30, 2002 and was $22,034,074 for the six months ended June 30, 2003
compared to $21,717,694 for the six months ended June 30, 2002.
Although EBITDA is not a generally accepted accounting principles measure of
performance or liquidity, the Company believes that it may be useful to an
investor in evaluating its performance. However, investors should not consider
this measure in isolation or as a substitute for operating income, cash flows
from operating activities or any other measure for determining the Company's
operating performance or liquidity that is calculated in accordance with
generally accepted accounting principles. In addition, because EBITDA is not
calculated in accordance with generally accepted accounting principles, it may
not necessarily be comparable to similarly titled measures employed by other
companies. A reconciliation of EBITDA can be made by adding Depreciation and
Amortization Expense, Depreciation and Amortization Expense - Corporate,
Interest Expense, Net and Income Tax Expense to Net Income as in the table
below.
Quarters Ended June 30, Six Months Ended June 30,
=================================== =============================
2002 2003 2002 2003
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RECONCILIATION OF EBITDA:
Net Income $ 242,053 $ 308,517 $ 479,599 $ 585,214
Depreciation and
Depreciation and amortization
- Corporate 83,960 74,767 163,179 154,749
Interest Expense, Net 88,550 35,845 195,031 88,648
Income Tax Expense 148,355 189,093 293,948 358,679
------------ ------------ ----------- -----------
EBITDA $ 1,161,754 $ 1,173,681 $ 2,324,983 $ 2,334,776
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