Press Release
Dialysis Corporation of America
Reports
Second Quarter 2009 Results
Linthicum, Maryland, Wednesday, August 5, 2009 - Dialysis Corporation of
America (NASDAQ-DCAI) announced its financial results for the second quarter
of 2009.
* Quarter end patient census was approximately 2,100.
* Quarterly Results included:
o Operating revenues were $24.7 million compared to $20.8 million
for the same period last year, a 19% increase.
o Operating income was $1.7 million compared to $1.1 million for
the same period last year.
o Net income was $709,000 or $0.07 per basic and diluted share
compared to $663,000 or $0.07 per basic and diluted share for the
same period last year.
* Results for the first half of 2009 included:
o Operating revenues were $48.2 million compared to $41.3 million
for the same period last year, a 17% increase.
o Operating income was $2.5 million compared to $2.5 million for
the same period last year.
o Net income was $0.9 million or $0.09 per basic and diluted share
compared to $1.1 million or $0.12 per basic and diluted share for
the same period last year.
Stephen Everett, President and Chief Executive Officer, commented, "Our
second quarter results were in line with internal expectations and, given the
challenges in today's economic environment, the year over year quarterly
comparisons are very solid. The construction of our two new centers in Ohio
remains on track while we continue to work with physicians in various areas
to expand our footprint in the states we currently operate, in, as well as
several new ones. Lastly, it should be noted that the deployment of our new
clinical information system is on schedule with roughly one third of our
centers currently up and running on the new system."
Financial results for the period included:
* Pre-tax costs associated with opening new centers were $133,000 for
the second quarter of 2009 compared to $62,000 for the same period
last year, and $194,000 for the first half of 2009 compared to
$238,000 for the same period last year.
* Non-cash stock compensation expense was $62,000 for the second quarter
of 2009 compared to $81,000 for the same period last year, and
$147,000 for the first half of 2009 compared to $156,000 for the same
period last year.
Dialysis Corporation of America will be hosting a conference call in
conjunction with its earnings release for the second quarter of 2009. The
conference call will be held on Thursday, August 6, 2009 at 10:00 a.m. EDT.
The call is accessible either by dialing 1-866-244-4576 (enter attendee code:
1382169), or through simulcast on the internet at
http://www.startconference.com, using conference ID 2135668. Participants
may be asked to provide the title of the conference call, which is "Dialysis
Corporation of America Second 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 owns and operates freestanding kidney
hemodialysis centers located in Georgia, Maryland, New Jersey, Ohio,
Pennsylvania, South Carolina, and Virginia, and provides in-hospital dialysis
services on a contract basis to certain hospitals located in the those
states. The company provides patients with their choice of a full range of
quality in-center, acute or at-home hemodialysis 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, increases in
interest rates, the possible need for and availability of additional
financing, the company satisfying the covenants and conditions of its credit
facility, 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 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,
2008. 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, corporate profile,
corporate governance materials, quarterly and current reports, and other
filings with the Securities and Exchange Commission are available on Dialysis
Corporation of America's internet home page: http://www.dialysiscorporation.com.
CONTACT: For additional information, you may contact Dialysis Corporation of
America, 1302 Concourse Drive, Suite 204, Linthicum, MD 21090; Telephone
Number (410) 694-0500; Attention: Investor Relations.
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DIALYSIS CORPORATION OF AMERICA AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
------------------------ ------------------------
2009 2008 2009 2008
Operating revenues:
Sales:
Medical services revenue $ 24,461 $ 20,519 $ 47,629 $ 40,714
Product sales 252 317 541 607
---------- ---------- ---------- ----------
Total sales revenues 24,713 20,836 48,170 41,321
---------- ---------- ---------- ----------
Operating costs and expenses:
Cost of sales revenues:
Cost of medical services 15,093 12,662 29,524 25,020
Cost of product sales 155 173 315 334
---------- ---------- ---------- ----------
Total cost of sales revenues 15,248 12,835 29,839 25,354
Selling, general and administrative
expenses:
Corporate 2,896 2,447 5,886 4,835
Facility 3,478 2,999 7,079 6,081
---------- ---------- ---------- ----------
Total 6,374 5,446 12,965 10,916
Stock compensation expense 62 81 147 156
Depreciation and amortization 756 680 1,482 1,342
Provision for doubtful accounts 543 649 1,214 1,079
---------- ---------- ---------- ----------
22,983 19,691 45,647 38,847
---------- ---------- ---------- ----------
Operating income 1,730 1,145 2,523 2,474
Other (expense) income, net (11) 13 (25) (29)
---------- ---------- ---------- ----------
Income before income taxes 1,719 1,158 2,498 2,445
Income tax provision 658 305 900 685
---------- ---------- ---------- ----------
Net income 1,061 853 1,598 1,760
Less: net income attributable to
noncontrolling interests 352 190 710 648
---------- ---------- ---------- ----------
Net income attributable to
the company $ 709 $ 663 $ 888 $ 1,112
========== ========== ========== ==========
Earnings per share:
Basic $.07 $.07 $.09 $.12
==== ==== ==== ====
Diluted $.07 $.07 $.09 $.12
==== ==== ==== ====
Weighted average shares outstanding:
Basic 9,596,664 9,579,766 9,593,792 9,579,931
========= ========= ========= =========
Diluted 9,617,231 9,613,663 9,612,175 9,614,819
========= ========= ========= =========
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DIALYSIS CORPORATION OF AMERICA AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
June 30, December 31,
2009 2008
-------- ---------
(unaudited)
Assets
Current assets:
Cash and cash equivalents $ 5,365 $ 6,543
Accounts receivable, net 21,368 21,494
Inventories, net 2,598 2,919
Deferred income tax asset 1,185 1,185
Other current assets 1,828 2,978
-------- --------
Total current assets 32,344 35,119
-------- --------
Property and equipment 33,277 32,987
Less: accumulated depreciation and amortization 15,150 14,452
-------- --------
18,127 18,535
-------- --------
Goodwill 16,492 16,492
Other assets 880 933
-------- --------
Total other assets 17,372 17,425
-------- --------
$ 67,843 $ 71,079
======== ========
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued expenses $ 14,607 $ 14,717
Income taxes payable 109 61
Current portion of long-term debt 77 74
-------- --------
Total current liabilities 14,793 14,852
Deferred income taxes 1,275 1,275
Long-term debt, less current portion 10,235 14,276
-------- --------
Total liabilities 26,303 30,403
-------- --------
Commitments and Contingencies
Equity:
Common stock 96 96
Additional paid-in capital 16,168 16,001
Retained earnings 20,055 19,167
Treasury stock at cost (14) ---
-------- --------
Total company stockholders' equity 36,305 35,264
Noncontrolling interests 5,235 5,412
-------- --------
Total equity 41,540 40,676
-------- --------
$ 67,843 $ 71,079
======== ========
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DIALYSIS CORPORATION OF AMERICA AND SUBSIDIARIES
SUPPLEMENTAL OPERATING DATA
(Unaudited)
Three Months Ended June 30, Period-to-Period
-------------------------- Change %
2009 2008 --------
---- ----
Operating data:
Treatments 73,927 68,021 8.7%
Patient revenue per treatment $330.88 $301.66 9.7%
Same center growth data:
Same center treatment growth 1% 5%
Same center revenue per treatment change 11% (1)%
Same center patient revenue growth 12% 4%
Six Months Ended June 30, Period-to-Period
-------------------------- Change %
2009 2008 --------
---- ----
Operating data:
Treatments 145,417 133,342 9.1%
Patient revenue per treatment $327.54 $305.34 7.3%
Same center growth data:
Same center treatment growth 2% 6%
Same center revenue per treatment change 9% 2%
Same center patient revenue growth 11% 8%
2nd Quarter 1st Quarter
2009 2009
---- ----
Key clinical metrics:
Treatment adequacy (% of pts with Kt/V
greater than 1.2) 98% 97%
Anemia management (% of pts with Hgb
greater than 11) 81% 81%
Venous access (% of pts with AVF) 60% 57%
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