Press Release
Dialysis Corporation of America
Reports
Third Quarter 2009 Results
Linthicum, Maryland, Wednesday, November 4, 2009 - Dialysis Corporation of
America (NASDAQ-DCAI) announced its financial results for the third quarter
of 2009.
* Quarter end patient census was approximately 2,050.
* Quarterly Results included:
o Operating revenues were $25.1 million compared to $21.9 million for
the same period last year, a 15% increase.
o Operating income was $2.0 million compared to $1.5 million for the
same period last year, a 30% increase.
o Net income was $940,000 or $0.10 per basic and diluted share
compared to $875,000 or $0.09 per basic and diluted share for the
same period last year.
* Results for the first nine months of 2009 included:
o Operating revenues were $73.3 million compared to $63.2million for
the same period last year, a 16% increase.
o Operating income was $4.5 million compared to $4.0 million for the
same period last year, a 13% increase.
o Net income was $1.8 million or $0.19 per basic and diluted share
compared to $2.0 million or $0.21 per basic and diluted share for
the same period last year.
Stephen Everett, President and Chief Executive Officer, commented, "Our third
quarter results were as we had expected, with very solid performances on all
financial fronts. Our two newest centers in Ohio remain on track for opening
within the next few months, subject to state licensure timing. On the
corporate support front, our clinical information system is slightly ahead of
schedule with expectations of completing our rollout close to this year's
end, nearly four months ahead of plan. Finally, our development activities
are active, with certain of those opportunities with physician partners being
well advanced."
Financial results for the period included:
* Pre-tax costs associated with opening new centers were $10,000 for the
3rd quarter of 2009 compared to $339,000 for the same period last
year, and $204,000 for the first nine months of 2009 compared to
$577,000 for the same period last year.
* Non-cash stock compensation expense was $70,000 for the third quarter
of 2009 compared to $82,000 for the same period last year, and
$217,000 for the first nine months of 2009 compared to $239,000 for
the same period last year.
Dialysis Corporation of America will be hosting a conference call in
conjunction with its earnings release for the third quarter of 2009. The
conference call will be held on Thursday, November 5, 2009 at 10:00 a.m.
EST. The call is accessible either by dialing 1-866-814-8476 (enter
attendee code: 1405582), 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 Third 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)
(dollars in thousands, except share and per share amounts)
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------- --------------------
2009 2008 2009 2008
---- ---- ---- ----
Operating revenues:
Sales:
Medical services revenue $ 24,798 $ 21,586 $ 72,427 $ 62,300
Product sales 323 274 864 881
-------- -------- -------- --------
Total sales revenues 25,121 21,860 73,291 63,181
-------- -------- -------- --------
Operating costs and expenses:
Cost of sales revenues:
Cost of medical services 15,315 12,805 44,839 37,825
Cost of product sales 175 158 490 493
Total cost of sales revenues 15,490 12,963 45,329 38,318
-------- -------- -------- --------
Selling, general and administrative expenses:
Corporate 2,631 2,764 8,517 7,602
Facility 3,446 3,312 10,525 9,390
-------- -------- -------- --------
Total 6,077 6,076 19,042 16,992
Stock compensation expense 70 82 217 239
Depreciation and amortization 759 709 2,241 2,050
-------- -------- -------- --------
23,134 20,330 68,781 59,178
-------- -------- -------- --------
Operating income 1,987 1,530 4,510 4,003
Other (expense) income, net 3 --- (22) (28)
-------- -------- -------- --------
Income before income taxes 1,990 1,530 4,488 3,975
Income tax provision 631 511 1,531 1,196
-------- -------- -------- --------
Net income 1,359 1,019 2,957 2,779
Less: net income attributable to
noncontrolling interests 419 144 1,129 792
-------- -------- -------- --------
Net income attributable to the company $ 940 $ 875 $ 1,828 $ 1,987
======== ======== ======== ========
Earnings per share:
Basic $.10 $.09 $.19 $.21
==== ==== ==== ====
Diluted $.10 $.09 $.19 $.21
==== ==== ==== ====
Weighted average shares outstanding:
Basic 9,600,433 9,579,743 9,596,030 9,579,868
========= ========= ========= =========
Diluted 9,626,308 9,614,084 9,618,833 9,614,162
========= ========= ========= =========
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DIALYSIS CORPORATION OF AMERICA AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
September 30, December 31,
2009 2008
------------ -----------
(unaudited)
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Assets
Current assets:
Cash and cash equivalents $ 3,035 $ 6,543
Accounts receivable, net 21,997 21,494
Inventories, net 2,947 2,919
Deferred income tax asset 1,185 1,185
Other current assets 2,333 2,978
-------- --------
Total current assets 31,497 35,119
-------- --------
Property and equipment 33,687 32,987
Less: accumulated depreciation and amortization 15,657 14,452
-------- --------
18,030 18,535
-------- --------
Goodwill 16,492 16,492
Other assets 851 933
-------- --------
Total other assets 17,343 17,425
-------- --------
$ 66,870 $ 71,079
======== ========
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued expenses $ 12,902 $ 14,717
Income taxes payable 313 61
Current portion of long-term debt 76 74
-------- --------
Total current liabilities 13,291 14,852
Deferred income taxes 1,275 1,275
Long-term debt, less current portion 9,718 14,276
-------- --------
Total liabilities 24,284 30,403
-------- --------
Commitments and Contingencies
Equity:
Common stock 96 96
Additional paid-in capital 16,238 16,001
Retained earnings 20,995 19,167
Treasury stock at cost (14) ---
-------- --------
Total company stockholders' equity 37,315 35,264
-------- --------
Noncontrolling interests 5,271 5,412
-------- --------
Total equity 42,586 40,676
$ 66,870 $ 71,079
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DIALYSIS CORPORATION OF AMERICA AND SUBSIDIARIES
SUPPLEMENTAL OPERATING DATA
(Unaudited)
Three Months Period-to-Period
Ended September 30, Change %
------------------- ---------------
2009 2008
---- ----
Operating data:
Treatments 75,985 68,925 10.2%
Patient revenue per treatment $326.34 $313.18 4.2%
Same center growth data:
Same center treatment growth 3% 6%
Same center revenue per
treatment change 6% 5%
Same center patient revenue
growth 9% 11%
Three Months Period-to-Period
Ended September 30, Change %
------------------- ---------------
2009 2008
---- ----
Operating data:
Treatments 221,402 202,176 9.5%
Patient revenue per treatment $327.13 $308.15 6.2%
Same center growth data:
Same center treatment growth 3% 6%
Same center revenue per
treatment change 10% 3%
Same center patient revenue
growth 13% 9%
3rd Quarter 2nd Quarter
2009 2008
---- ----
Key clinical metrics:
Treatment adequacy (% of pts with
Kt/V greater than 1.2) 97% 98%
Anemia management (% of pts with
Hgb greater than 11) 79% 81%
Venous access (% of pts with AVF) 61% 60%
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