Press Release
Dialysis Corporation of America
Reports
Fourth Quarter and Year Ended December 31, 2007 Results
Linthicum, Maryland, Thursday, March 13, 2008 - Dialysis Corporation of
America (NASDAQ-DCAI) announced its financial results for the fourth quarter
and year ended December 31, 2007. Year end patient census from owned and
managed centers approximated 1750, resulting in operating revenues for the
fourth quarter of 2007 of $19,986,000 compared to $18,199,000 for the same
period last year, a 10% increase. Net income for the quarter was $1,023,000
or $.11 per share ($.11 diluted per share) compared to $1,121,000 or $.12 per
share ($.12 diluted per share) for the same period last year. Operating
revenues for 2007 were $74,535,000 compared to $62,460,000 for the same
period last year, a 19% increase. Net income for 2007 was $3,086,000 or $.32
per share ($.32 diluted per share) compared to $3,049,000 or $.32 per share
($.32 diluted per share) for 2006.
Stephen Everett, President and Chief Executive Officer, commented, "2007
proved to be a year of successful infrastructure development in anticipation
of a more aggressive growth strategy we will be implementing over the next
few years. We are very proud to have accomplished our objectives, without
compromising either the quality of care we are providing our patients, nor
the financial performance that we set to achieve at the beginning of 2007. It
is also worth noting that we added two new centers through acquisition during
2007, as well as entered into three denovo projects, two of which opened
earlier this year. "
Financial results for 2007 included (i) pre-tax costs associated with the
opening of new centers of $209,000 for the fourth quarter of 2007 and
$608,000 for the full year; and (ii) non-cash stock compensation expense of
$217,000 was included in our results of operations for 2007.
Dialysis Corporation of America currently owns 35 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 acquired an Ohio center and a
Pennsylvania center during 2007, in addition to opening two new centers, one
in Ohio and one in 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, 2006. 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.
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DIALYSIS CORPORATION OF AMERICA AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
2007 2006 2005
---- ---- ----
Operating revenues:
Sales:
Medical services revenue $73,170,573 $61,138,963 $44,686,579
Product sales 1,077,988 891,242 206,941
----------- ----------- -----------
Total sales revenues 74,248,561 62,030,205 44,893,520
Other income 286,174 430,033 498,257
----------- ----------- -----------
74,534,735 62,460,238 45,391,777
----------- ----------- -----------
Cost and expenses:
Cost of sales revenues:
Cost of medical services 44,248,309 36,968,682 27,859,804
Cost of product sales 598,086 549,590 119,327
----------- ----------- -----------
Total cost of sales revenues 44,846,395 37,518,272 27,979,131
Selling, general and administrative expenses
Corporate 7,917,038 6,460,309 4,674,367
Facility 11,423,072 8,988,078 7,032,596
----------- ----------- -----------
Total 19,340,110 15,448,387 11,706,963
Stock compensation expense 217,474 275,438 ---
Depreciation and amortization 2,619,049 2,319,070 1,748,738
Provision for doubtful accounts 1,665,120 1,198,995 571,016
----------- ----------- -----------
68,688,148 56,760,162 42,005,848
----------- ----------- -----------
Operating income 5,846,587 5,700,076 3,385,929
Other income (expense):
Interest income officer/director note --- --- 5,527
Interest expense on note and advances
payable to parent --- --- (157,591)
Other (expense) income, net (39,637) 100,968 217,821
----------- ----------- -----------
(39,637) 100,968 65,757
----------- ----------- -----------
Income before income taxes, minority and other
equity interests and equity in affiliate earnings 5,806,950 5,801,044 3,451,686
Income tax provision 1,614,892 2,085,874 1,426,552
----------- ----------- -----------
Income before minority and other equity interests
and equity in affiliate earnings 4,192,058 3,715,170 2,025,134
Minority and other equity interests in income
of consolidated subsidiaries (1,105,736) (919,739) (454,214)
Equity in affiliate earnings --- 253,765 328,732
----------- ----------- -----------
Net income $3,086,322 $3,049,196 $1,899,652
=========== =========== ===========
Earning per share:
Basic $.32 $.32 $.22
==== ==== ====
Diluted $.32 $.32 $.20
==== ==== ====
Weighted average shares outstanding:
Basic 9,572,893 9,484,926 8,769,399
========= ========= =========
Diluted 9,607,672 9,575,733 9,266,905
========= ========= =========
DIALYSIS CORPORATION OF AMERICA AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
December 31, December 31,
2007 2006
----------- ------------
Assets
Current assets:
Cash and cash equivalents $ 2,447,820 $ 3,491,569
Accounts receivable, net 20,159,926 15,695,302
Inventories, net 2,006,661 1,985,415
Deferred income tax asset 998,000 1,105,000
Other current assets 3,313,406 3,352,962
----------- -----------
Total current assets 28,925,813 25,630,248
----------- -----------
Property and equipment 28,766,423 27,444,679
Less accumulated depreciation and amortization 12,264,029 11,091,432
----------- -----------
16,502,394 16,353,247
----------- -----------
Deferred income taxes --- 359,295
Goodwill 8,576,893 6,681,160
Other assets 841,092 831,776
----------- -----------
Total other assets 9,417,985 7,872,231
----------- -----------
$54,846,192 $49,855,726
=========== ===========
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued expenses $10,224,199 $ 7,742,473
Income taxes payable 33,297 660,092
Current portion of long-term debt 56,000 130,000
----------- -----------
Total current liabilities 10,313,496 8,532,565
----------- -----------
Deferred income taxes 574,000 ---
Long-term debt, less current portion 7,009,419 8,618,325
----------- -----------
Total liabilities 17,896,915 17,150,890
----------- -----------
Minority interest in subsidiaries 4,942,797 3,643,347
Commitments and Contingencies
Stockholders' equity:
Common stock 95,736 95,643
Additional paid-in capital 15,587,782 15,729,206
Retained earnings 16,322,962 13,236,640
----------- -----------
Total stockholders' equity 32,006,480 29,061,489
----------- -----------
$54,846,192 $49,855,726
DIALYSIS CORPORATION OF AMERICA AND SUBSIDIARIES
SUPPLEMENTAL OPERATING DATA
Year Ended December 31, Year-to-year
----------------------- Change%
2007 2006 ------------
---- ----
Operating data:
Treatments:
Consolidated 241,189 205,750 17.2%
Managed 11,137 14,343 (22.4)%
------- -------
Total treatments 252,326 220,093 14.6%
Patient revenue per treatment $303.37 $297.15 2.1%
Same center growth data:
Same center treatment growth 6% 10%
Same center revenue per treatment change 1% 7%
Same center patient revenue growth 7% 18%
Key clinical metrics:
Treatment adequacy (% of pts with Kt/V
greater than 1.2) 95.25% 95.48%
Anemia management (% of pts with Hgb
greater than 11) 80.37% 81.23%
Venous access (% of pts with AVF) 52.98% 49.08%
Quarter Quarter-
Ended December 31, to-Quarter
---------------------- Change%
2007 2006 ------------
---- ----
Operating data:
Treatments:
Consolidated 62,817 57,143 9.9%
Managed 2,847 2,674 6.5%
------ ------
Total treatments 65,664 59,817 9.8%
Patient revenue per treatment $312.59 $313.59 (0.3)%
Same center growth data:
Same center treatment growth (4)% 14%
Same center revenue per treatment change 10% 8%
Same center patient revenue growth 5% 23%
Key clinical metrics:
Treatment adequacy (% of pts with Kt/V
greater than 1.2) 95.38% 94.86%
Anemia management (% of pts with Hgb
greater than 11) 78.74% 83.65%
Venous access (% of pts with AVF) 52.98% 49.08%
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