Exhibit (99)(i)
Press Release
For: Dialysis Corporation of America
Address: 1302 Concourse Drive
Linthicum, Maryland 21090
Telephone: (410) 694-0500
Contact: Stephen W. Everett
President and CEO
For Immediate Release
Dialysis Corporation of America
Reports
Third Quarter 2005 Results
Linthicum, Maryland, Wednesday, November 9, 2005 - Dialysis Corporation of
America (NASDAQ-DCAI) announced financial results for the third quarter of
2005. Operating revenues for the third quarter of 2005 were $11,481,000
compared to $10,979,000 for the same period last year. Net income for the
quarter was $537,000 or $.06 per share ($.06 diluted per share) compared to
$776,000 or $.09 per share ($.09 diluted per share) for the same period last
year, beating analyst estimates for the third quarter by $.02. Operating
revenues for the first three quarters of 2005 were $33,235,000 compared to
$29,194,000 for the same period last year. Net income for the first three
quarters of 2005 was $1,306,000 or $.15 per share ($.14 diluted per share)
compared to $1,452,000 or $.18 per share ($.17 diluted per share) for the
same period last year.
Stephen Everett, President and Chief Executive Officer, commented, "The third
quarter of 2005 proved to be another highlight for our growing company. We
opened two new dialysis centers, began construction on two more, and
completed the merger with our former parent company, Medicore, Inc. Our
financial health continues to be strong, even with the ongoing industry-wide
reimbursement pressure from private payors and the costs associated with the
opening of new centers, approximately $291,000 for the quarter, which were
the principal factors in the reduced earnings for the third quarter. As we
enter the fourth quarter of 2005, the company has opened another new center
in October, and completed the establishment of a $15,000,000 revolving line
of credit with Keybank. It is also gratifying to beat analyst estimates for
our company as we continue to see increased institutional interest, and the
recent recognition by Forbes Magazine as one of the top 20 small companies in
the country."
Separately, the company reiterates that its Vice President of Finance and
Chief Financial Officer had requested a leave of absence to address personal
private matters, which leave was granted by the company. The reasons for
such request had nothing to do with the business or operations of the
company.
Dialysis Corporation of America currently owns or manages 26 free-standing
operating kidney hemodialysis centers in Georgia, Maryland, New Jersey, Ohio,
Pennsylvania, South Carolina and Virginia providing patients with a full
range of quality in-center and at-home dialysis services, as well as
providing in-hospital services. The company has four new centers under
development in Georgia, Pennsylvania and South Carolina.
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, maintaining
continued growth and profitability, certain delays beyond the company'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 our facilities can mature to provide profitability, regulation of
dialysis operations, government rate determination for Medicare
reimbursement, pricing pressure from private payors, and other risks detailed
in the company's filings with the Securities and Exchange Commission,
particularly as described in the company's annual report on Form 10-K/A1 for
the fiscal year ended December 31, 2004. The historical results contained in
this press release are not necessarily indicative of future performance of
the company.
Other Dialysis Corporation of America press releases, our corporate profile,
corporate governance materials, quarterly and current reports, and the most
recent annual report on Form 10-K/A1 for the year ended December 31, 2004,
and other filings with the Securities and Exchange Commission are available
through Dialysis Corporation of America's internet home page:
http://www.dialysiscorporation.com.
DIALYSIS CORPORATION OF AMERICA AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------------- --------------------------
2005 2004 2005 2004
---- ---- ---- ----
Operating revenues:
Medical service revenue $11,372,722 $10,857,444 $32,878,347 $28,763,576
Other income 108,321 121,173 356,618 430,828
----------- ----------- ----------- -----------
11,481,043 10,978,617 33,234,965 29,194,404
----------- ----------- ----------- -----------
Operating cost and expenses:
Cost of medical services 7,178,936 6,051,469 20,446,406 16,951,870
Selling, general and
administrative expenses 3,106,240 3,115,095 9,804,251 8,812,035
Provision for doubtful accounts 222,130 303,416 674,773 651,753
----------- ----------- ----------- -----------
10,507,306 9,469,980 30,925,430 26,415,658
----------- ----------- ----------- -----------
Operating income 973,737 1,508,637 2,309,535 2,778,746
Other income (expense):
Interest income on
officer/director note 1,578 1,074 4,291 2,995
Interest expense to former parent (67,780) (17,180) (157,591) (27,956)
Other income, net 50,857 17,717 127,250 61,817
----------- ----------- ----------- -----------
(15,345) 1,611 (26,050) 36,856
----------- ----------- ----------- -----------
Income before income taxes, minority
interest and equity in affiliate
earnings 958,392 1,510,248 2,283,485 2,815,602
Income tax provision 352,202 554,311 971,110 1,048,084
----------- ----------- ----------- -----------
Income before minority interest and
equity in affiliate earnings 606,190 955,937 1,312,375 1,767,518
Minority interest in income
of consolidated subsidiaries (128,230) (302,129) (280,631) (488,571)
Equity in affiliate earnings 59,024 122,375 273,822 172,770
----------- ----------- ----------- -----------
Net income $ 536,984 $ 776,183 $ 1,305,566 $ 1,451,717
=========== =========== =========== ===========
Earnings per share:
Basic $.06 $.09 $.15 $.18
==== ==== ==== ====
Diluted $.06 $.09 $.14 $.17
==== ==== ==== ====
See notes to consolidated financial statements.
DIALYSIS CORPORATION OF AMERICA AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
September 30, December 31,
2005 2004(A)
------------- ------------
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 3,411,895 $ 601,603
Accounts receivable, less allowance
of $1,897,000 at September 30, 2005;
$1,636,000 at December 31, 2004 9,178,065 8,592,476
Inventories, less allowance for obsolescence
of $91,000 at September 30, 2005 1,581,817 1,297,782
Deferred income tax asset 838,000 720,000
Officer loan and interest receivable 115,987 111,696
Prepaid expenses and other current assets 1,324,168 1,164,110
Prepaid and refundable income taxes 1,319,596 58,913
----------- -----------
Total current assets 17,769,528 12,546,580
----------- -----------
Property and equipment:
Land 1,369,697 376,211
Buildings and improvements 3,809,935 2,352,191
Machinery and equipment 9,543,371 8,087,349
Leasehold improvements 6,364,637 4,674,704
----------- -----------
21,087,640 15,490,455
Less accumulated depreciation and amortization 8,129,343 6,496,571
----------- -----------
12,958,297 8,993,884
----------- -----------
Deferred income taxes 2,104,042 ---
Goodwill 3,649,014 3,649,014
Other assets 1,321,801 1,300,236
----------- -----------
Total other assets 7,074,857 4,949,250
----------- -----------
$37,802,682 $26,489,714
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,413,751 $ 1,625,930
Accrued expenses 5,455,996 4,921,769
Employment contract liability 1,960,000 ---
Note payable and accrued interest payable to former parent --- 1,461,647
Current portion of long-term debt 1,029,000 513,000
Acquisition liabilities - current portion 380,298 380,298
----------- -----------
Total current liabilities 10,239,045 8,902,644
----------- -----------
Advances from former parent --- 449,117
Long-term debt, less current portion 669,310 1,585,936
Acquisition liabilities, net of current portion 380,297 380,297
Deferred income tax liability --- 559,000
----------- -----------
Total liabilities 11,288,652 11,876,994
----------- -----------
Minority interest in subsidiaries 1,677,827 1,282,924
Commitments and Contingencies
Stockholders' equity:
Common stock, $.01 par value, authorized 20,000,000 shares:
9,115,668 shares issued and outstanding at September 30, 2005; 91,157 84,858
Additional paid-in capital 15,151,688 4,957,146
Retained earnings 9,593,358 8,287,792
----------- -----------
Total stockholders' equity 24,836,203 13,329,796
----------- -----------
$37,802,682 $26,489,714
=========== ===========
(A) Reference is made to the company's Annual Report on Form 10-K for the
year ended December 31, 2004 filed with the Securities and Exchange
Commission in March, 2005, and amended on Form 10-K/A1 dated August 9,
2005.
See notes to consolidated financial statements.
-end-