DIALYSIS CORPORATION OF AMERICA
Reports Record Sales and Earnings for 2004
Linthicum, Maryland, March 30, 2005 - Dialysis Corporation of America
(NASDAQ-DCAI) announced financial results for the year December 31, 2004.
Revenues for the year were $40,986,000 compared to $29,997,000 for 2003, an
increase of 37%. Net income for 2004 was $2,214,000 compared to $1,150,000
for 2003, an increase of 93%.
Financial and operating highlights include:
* Both quarterly and annual revenues achieved record highs. Quarterly
revenues were $11,686,000 compared to $7,979,000 for the fourth quarter
2003, an increase of 46%.
* Both quarterly and annual net income achieved new record levels. Net
income for the quarter increased by 63% to $762,000, compared with
$466,000 for the fourth quarter of 2003.
* Earnings per share for the quarter grew to $.09 per share ($.09 diluted)
compared with $.06 per share ($.05 diluted), while we experienced an
increase to $.27 per share ($.25 diluted) for the year from $.15 per
share ($.13 diluted) for 2003.
* Seven new dialysis centers were added to our operations during 2004, with
an additional five new centers under development at the end of the year.
Stephen Everett, President and Chief Executive Officer, stated, "2004 proved
to be a tremendous year for our company on many fronts. We achieved record
financial performance for the year, while preserving the integrity of our
operating systems and strategic initiatives, and simultaneously achieved
clinical outcomes above the national average. The opening of seven new
centers last year, in concert with the five currently under development and
our ongoing negotiations for additional outpatient centers, have positioned
us well for 2005, and beyond. As always, we expect initial operating costs
at our new centers to potentially negatively impact our near term earnings,
while providing a favorable impact as their patient bases mature. We remain
enthusiastic about the previously announced intent to merge Medicore Inc.,
our parent company, into our company. Among other things, this transaction
will provide us with additional capital resources to pursue the company's
expansion plans for the coming year."
Dialysis Corporation of America currently owns or manages 23 free standing
kidney hemodialysis centers in Pennsylvania, New Jersey, Georgia, Ohio,
Maryland, Virginia and South Carolina providing patients with a full range of
quality in-center, and at-home hemodialysis services, as well as providing
in-hospital services in many of our markets. With the completion of the five
centers under development, DCA will have 28 centers in operation.
This release contains forward-looking statements that are subject to risks
and uncertainties that could affect the business and prospects of the company
and cause actual results and plans to differ materially from those
anticipated. Those factors include, but are not limited to, growth and
profitability not being able to be maintained, receipt of satisfactory tax
and fairness opinions and shareholder approval relating to the Medicore
merger, delays beyond Dialysis Corporation of America's control with respect
to future business events, the highly competitive environment in the
establishment and operation of dialysis centers, the ability to develop or
acquire additional dialysis facilities, whether patient bases of the
company's dialysis facilities can mature to provide profitability, regulation
of dialysis operations, government rate determination for Medicare
reimbursement, and other risks detailed in the company's filings with the
SEC, particularly as described in Dialysis Corporation of America's annual
report on Form 10-K for the fiscal year ended December 31, 2004. Other
company press releases, corporate profile, corporate governance materials,
quarterly and current reports, and other filings with the SEC are available
on Dialysis Corporation of America's internet home page:
http://www.dialysiscorporation.com.
CONTACT: For additional information, you may contact Stephen Everett,
President and CEO of Dialysis Corporation of America, 1302 Concourse Drive,
Suite 204, Linthicum, MD 21090; Telephone No. (410) 694-0500.
DIALYSIS CORPORATION OF AMERICA AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Year Ended December 31,
2004
2003
2002
Operating revenues:
Medical service revenue $40,449,562 $29,676,388 $25,162,380
Other income 536,434 320,580 191,213
----------- ----------- -----------
40,985,996 29,996,968 25,353,593
----------- ----------- -----------
Cost and expenses:
Cost of medical services 23,545,586 18,220,891 15,066,551
Selling, general and administrative expenses 12,088,521 9,357,552 7,500,029
Provision for doubtful accounts 1,197,905 289,582 720,500
----------- ----------- -----------
36,832,012 27,868,025 23,287,080
----------- ----------- -----------
Operating income 4,153,984 2,128,943 2,066,513
Other income (expense):
Interest income officer/director note 4,193 3,972 4,575
Interest income parent company --- --- 2,957
Interest expense parent company (55,996) (1,633) ---
Other income, net 86,753 75,850 25,111
----------- ----------- -----------
34,950 78,189 32,643
----------- ----------- -----------
Income before income taxes, minority interest
and equity in affiliate earnings 4,188,934 2,207,132 2,099,156
Income tax provision 1,576,292 878,211 771,180
----------- ----------- -----------
Income before minority interest and equity in
affiliate earnings 2,612,642 1,328,921 1,327,976
Minority interest in income
of consolidated subsidiaries (681,385) (223,291) (155,412)
Equity in affiliate earnings 282,946 44,354 69,533
----------- ----------- -----------
Net income $ 2,214,203 $ 1,149,984 $ 1,242,097
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Earning per share:
Basic $.27 $.15 $.16
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Diluted
$.25 $.13 $.14
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