Exhibit 99.6
Birner Dental Management Services, Inc.
3801 East Florida Avenue, Suite 508
Denver, Colorado 80210
303-691-0680
FOR IMMEDIATE RELEASE
May 6, 2004
BIRNER DENTAL MANAGEMENT SERVICES, INC.
ANNOUNCES 55% EARNINGS INCREASE
FOR THE 1Q '04 VERSUS 1Q `03
DENVER, COLORADO, May 6, 2004...Birner Dental Management Services, Inc. (NASDAQ
SmallCap Market: BDMS), operators of PERFECT TEETH dental practices, announced
results for the quarter ended March 31, 2004. The Company reported net income of
$429,000, or $.33 per share of common stock on a diluted basis for the quarter
ended March 31, 2004, up 55.0% compared to net income of $277,000, or $.18 per
share of common stock on a diluted basis for the quarter ended March 31, 2003.
The Company's earnings before interest, taxes depreciation and amortization
(EBITDA) for the quarter ended March 31, 2004 was $1.3 million, up $109,000 or
9.4%, compared to EBITDA of $1.2 million for the quarter ended March 31, 2003.
Total dental group practice revenue increased $803,000 to $11.7 million, or
7.4%, for the quarter ended March 31, 2004 compared to total group practice
revenue of $10.9 million for the quarter ended March 31, 2003. The Company did
not add any incremental practices during either comparable period, consequently
the increase of 7.4% in total group practice revenue is also same-store sales
growth. For the quarter ended March 31, 2004, net revenue increased $364,000 to
$8.1 million, or 4.7% when compared to net revenue of $7.7 million for the
corresponding period in 2003.
During the quarter ended March 31, 2004 the Company repurchased approximately
42,000 shares of Common Stock for approximately $545,000.
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 March 31, 2004 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 March 31, 2004 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 Thursday,
May 6, 2004, 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 May 6th, the rebroadcast number is
1-800-839-0860 with the pass code of 1280. This rebroadcast will be available
through May 20, 2004.
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:
Birner Dental Management Services, Inc.
Dennis Genty
Chief Financial Officer
(303) 691-0680
BIRNER DENTAL MANAGEMENT SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Quarters Ended March 31,
--------------------------------
2003 2004
----------- -----------
NET REVENUE (a) $ 7,728,758 $ 8,092,359
DIRECT EXPENSES:
Clinical salaries and benefits 3,010,839 3,052,005
Dental supplies 444,597 464,135
Laboratory fees 599,502 630,196
Occupancy 863,708 887,558
Advertising and marketing 97,939 146,950
Depreciation and amortization 582,027 472,344
General and administrative 751,240 823,134
----------- -----------
6,349,852 6,476,322
----------- -----------
Contribution from dental offices 1,378,906 1,616,037
CORPORATE EXPENSES:
General and administrative 799,838 818,089
Depreciation and amortization 79,982 56,597
----------- -----------
Operating income 499,086 741,351
Interest expense, net 52,803 26,324
----------- -----------
Income before income taxes 446,283 715,027
Income tax expense 169,586 286,011
----------- -----------
Net income $ 276,697 $ 429,016
=========== ===========
Net income per share of Common Stock:
Basic $ .20 $ .36
=========== ===========
Diluted $ .18 $ .33
=========== ===========
Weighted average number of shares of Common Stock
and dilutive securities:
Basic 1,407,292 1,188,651
=========== ===========
Diluted 1,534,001 1,296,610
=========== ===========
a) Total dental group practice revenues less amounts retained by group
practices. Dental practice revenues were $10,912,581 for the quarter
ended March 31, 2003 compared with $11,715,637 for the quarter ended
March 31, 2004.
BIRNER DENTAL MANAGEMENT SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
December 31, March 31,
2003 2004
------------- ------------
(Unaudited)
CURRENT ASSETS:
Cash and cash equivalents $ 1,110,786 $ 932,773
Accounts receivable, net of allowance for doubtful accounts
of $215,838 and $208,010, respectively 2,673,041 3,051,749
Deferred tax asset 121,475 121,475
Prepaid expenses and other assets 736,424 651,455
------------- ------------
Total current assets 4,641,726 4,757,452
PROPERTY AND EQUIPMENT, net 2,680,169 2,458,145
OTHER NONCURRENT ASSETS:
Intangible assets, net 14,732,349 14,542,270
Deferred charges and other assets 155,461 154,613
------------- ------------
Total assets $ 22,209,705 $21,912,480
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable and accrued expenses $ 3,990,467 $ 4,702,347
Income taxes payable 190,883 285,294
Current maturities of long-term debt 351,847 358,578
------------- ------------
Total current liabilities 4,533,197 5,346,219
LONG-TERM LIABILITIES:
Deferred tax liability, net 349,801 349,801
Long-term debt, net of current maturities 2,735,576 1,743,394
Other long-term obligations 179,884 179,266
------------- ------------
Total liabilities 7,798,458 7,618,680
SHAREHOLDERS' EQUITY:
Preferred Stock, no par value, 10,000,000 shares
authorized; none outstanding - -
Common Stock, no par value, 20,000,000 shares
authorized; 1,203,511 and 1,185,010 shares issued and
outstanding, respectively 12,428,363 11,970,776
Retained earnings 1,982,884 2,323,024
------------- ------------
Total shareholders' equity 14,411,247 14,293,800
------------- ------------
Total liabilities and shareholders' equity $ 22,209,705 $ 21,912,480
============= ============
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 March 31,
------------------------------
2003 2004
------------- -------------
RECONCILIATION OF EBITDA:
Net Income $ 276,697 $ 429,016
Depreciation and Amortization 582,027 472,344
Depreciation and Amortization - Corporate 79,982 56,597
Interest Expense, Net 52,803 26,324
Income Tax Expense 169,586 286,011
------------- -------------
EBITDA $ 1,161,095 $ 1,270,292
============= =============