EXHIBIT 99(i)
Press Release
Dialysis Corporation of America
Reports
First Quarter 2006 Results
Linthicum, Maryland, Thursday, May 11, 2006 - Dialysis Corporation of America
(NASDAQ-DCAI) announced financial results for the first quarter of 2006.
Operating revenues for the first quarter were $13,217,000 compared to
$10,612,000 for the same period last year, a 25% increase. Net income for the
quarter was $519,000 or $.06 per share ($.05 diluted per share) compared to
$324,000 or $.04 per share ($.04 diluted per share) for the same period last
year, a 60% increase.
Stephen Everett, President and Chief Executive Officer, commented, "Our
company continued to grow and thrive during the first quarter of 2006. We
opened four new centers, including the acquisition of two Maryland centers
and one Virginia center, and began, or continued, the construction of an
additional four centers. Our financial performance continues to deliver as
anticipated, despite first quarter costs of approximately $468,000 associated
with the opening of new centers. Additionally, non-cash stock compensation
expense of $135,000 was included in our results.
Dialysis Corporation of America currently owns or manages 30 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, 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 the
company's dialysis facilities can mature to provide profitability, the
extensive 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 SEC, particularly as
described in the company's annual report on Form 10-K for the fiscal year
ended December 31, 2005. The historical results contained in this press
release are not necessarily indicative of future performance of the company.
The company's 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.
- more -
DIALYSIS CORPORATION OF AMERICA AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Three Months Ended
March 31,
------------------------
2006 2005
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Operating revenues:
Sales
Medical services revenue $12,871,653 $10,484,101
Product sales 239,462 ---
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Total sales revenues 13,111,115 10,484,101
Other income 105,868 128,395
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13,216,983 10,612,496
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Operating costs and expenses:
Cost of sales
Cost of medical services 7,837,957 6,542,601
Cost of product sales 143,675 ---
----------- -----------
Total cost of sales revenues 7,981,632 6,542,601
Stock compensation expense 134,516 ---
Selling, general and administrative expenses 3,988,770 3,243,761
Provision for doubtful accounts 155,414 247,994
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12,260,332 10,034,356
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Operating income 956,651 578,140
Other income (expense)
Interest income on officer/director note --- 1,292
Interest expense on note and advances
payable to parent --- (34,936)
Other income, net 66,981 31,855
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66,981 (1,789)
Income before income taxes, minority interest
and equity in affiliate earnings 1,023,632 576,351
Income tax provision 416,974 308,803
----------- -----------
Income before minority interest and equity in
affiliate earnings 606,658 267,548
Minority interest in income
of consolidated subsidiaries (180,281) (63,270)
Equity in affiliate earnings 92,406 120,109
----------- -----------
Net income $ 518,783 $ 324,387
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Earnings per share:
Basic $.06 $.04
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Diluted $.05 $.04
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