Press Release
Dialysis Corporation of America
Reports
First Quarter 2008 Results
Linthicum, Maryland, Wednesday, May 7, 2008 - Dialysis Corporation of America
(NASDAQ-DCAI) announced financial results for the first quarter of 2008.
Revenues for the first quarter were $20,485,000 compared to $16,891,000 for
the same period last year. Net income for the quarter was $449,000 or $.05
per share ($.05 diluted per share) compared to $383,000 or $.04 per share
($.04 diluted per share) for the same period last year.
Stephen Everett, President and Chief Executive Officer, commented, "We are
pleased with the continued growth and financial performance of our company.
We began the development of two new centers during the quarter, as well as
opening two centers that were under development in 2007, and acquired one
center in Georgia that we had previously been managing. We are also in
negotiations pertaining to additional development opportunities in strategic
locations, as well as potential acquisitions, all of which are in line with
our expansion plans."
Financial results for the first quarter of 2008 include: (i) pre-tax costs
associated with the opening of new centers of $176,000 for the first quarter
of 2008 compared to $206,000 for the same period last year; (ii) non-cash
stock compensation expense of $75,000 for the first quarter of 2008 compared
to $114,000 for the same period last year.
Dialysis Corporation of America will be hosting a conference call in
conjunction with its earnings release for the first quarter of 2008. The
conference call will be held on Thursday, May 8, 2008 at 10:00 a.m. EDT. The
call is accessible either by dialing 1-800-260-6066 (enter pass-code
7002477), or by simulcast on the internet at
http://www.investorcalendar.com/IC/CEPage.asp?ID=128467.
Participants may be asked to provide the title of the conference call, which
is "Dialysis Corporation of America 1st Quarter Earnings." A replay of the
conference call will be available on the company's website,
www.dialysiscorporation.com, for a period of thirty days following the
conference call.
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.
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, 2007. 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.
DIALYSIS CORPORATION OF AMERICA AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Three Months Ended March 31
--------------------------
2008 2007
----------- -----------
Operating revenues:
Sales:
Medical services revenue $20,195,002 $16,596,907
Product sales 290,086 231,060
Total sales revenues 20,485,088 16,827,967
Other income --- 62,560
----------- -----------
20,485,088 16,890,527
Operating costs and expenses:
Cost of sales revenues:
Cost of medical services 12,357,785 10,298,293
Cost of product sales 160,735 247,632
----------- -----------
Total cost of sales revenues 12,518,520 10,545,925
Selling, general and administrative expenses:
Corporate 2,388,544 1,648,523
Facility 3,082,159 2,730,323
----------- -----------
Total 5,470,703 4,378,846
Stock compensation expense 74,601 113,970
Depreciation and amortization 662,572 635,736
Provision for doubtful accounts 430,030 356,097
----------- -----------
19,156,426 16,030,574
----------- -----------
Operating income 1,328,662 859,953
Other expense, net (42,067) (9,227)
----------- -----------
Income before income taxes and minority interest 1,286,595 850,726
Income tax provision 379,738 345,772
----------- -----------
Income before minority interest 906,857 504,954
Minority interest in income of consolidated
subsidiaries (457,945) (121,734)
----------- -----------
Net income $ 448,912 $ 383,220
=========== ===========
Earnings per share:
Basic $.05 $.04
==== ====
Diluted $.05 $.04
==== ====
Weighted average shares outstanding:
Basic 9,580,096 9,569,429
========= =========
Diluted 9,614,591 9,612,101
========= ==========
- more -
DIALYSIS CORPORATION OF AMERICA AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
March 31, December 31,
2008 2007
----------- -----------
Assets
Current assets:
Cash and cash equivalents $ 3,334,134 $ 2,447,820
Accounts receivable, net 20,272,678 20,159,926
Inventories, net 2,304,772 2,006,661
Deferred income tax asset 998,000 998,000
Other current assets 2,569,683 3,313,406
----------- -----------
Total current assets 29,479,267 28,925,813
----------- -----------
Property and equipment 29,649,256 28,766,423
Less accumulated depreciation and
amortization 12,839,276 12,264,029
----------- -----------
16,809,980 16,502,394
----------- -----------
Goodwill 10,549,502 8,576,893
Other assets 847,452 841,092
----------- -----------
Total other assets 11,396,954 9,417,985
----------- -----------
$57,686,201 $54,846,192
=========== ===========
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued expenses $ 9,499,759 $10,224,199
Income taxes payable --- 33,297
Current portion of long-term debt 66,000 56,000
Acquisition liabilities 1,296,814 ---
----------- -----------
Total current liabilities 10,862,573 10,313,496
Deferred income taxes 574,000 574,000
Long-term debt, less current portion 7,837,541 7,009,419
----------- -----------
Total liabilities 19,274,114 17,896,915
----------- -----------
Minority interest in subsidiaries 5,810,080 4,942,797
Commitments and Contingencies
Stockholders' equity:
Common stock 95,801 95,736
Additional paid-in capital 15,734,332 15,587,782
Retained earnings 16,771,874 16,322,962
----------- -----------
Total stockholders' equity 32,602,007 32,006,480
----------- -----------
$57,686,201 $54,846,192
- more -
DIALYSIS CORPORATION OF AMERICA AND SUBSIDIARIES
SUPPLEMENTAL OPERATING DATA
(Unaudited)
Three Months Ended March 31, Quarter-
---------------------------- to-Quarter
2008 2007 Change %
---- ---- ----------
Operating data:
Treatments:
Consolidated 65,321 56,847 14.9%
Managed --- 2,690 (100.0)%
------ ------
Total treatments 65,321 59,537 9.7%
Patient revenue per treatment $309.17 $291.96 5.9%
Same center growth data:
Same center treatment growth 5% 9%
Same center revenue per treatment
change 9% 1%
Same center patient revenue growth 15% 10%
1st Quarter 4th Quarter
2008 2007
---- ----
Key clinical metrics:
Treatment adequacy (% of pts with
Kt/V greater than 1.2) 96.3% 95.4%
Anemia management (% of pts with
Hgb greater than 11) 80.2% 78.7%
Venous access (% of pts with AVF) 55.4% 53.0%
- end -