Press Release
Dialysis Corporation of America
Reports
Fourth Quarter and Year Ended December 31, 2009 Results
Linthicum, Maryland, Thursday, March 10, 2010 - Dialysis Corporation of
America (NASDAQ-DCAI) announced its financial results for the fourth quarter
and year ended December 31, 2009.
* Year end patient census was approximately 2,000.
* Operating revenues for the fourth quarter of 2009 were $25.6 million
compared to $23.7 million for the same period last year, an 8%
increase.
* Operating income was $2.3 million for the fourth quarter of 2009
compared to $2.2 million for the same period last year, a 3%
increase.
* Net income attributable to the company for the quarter was $1.0
million or $0.11 per basic and diluted share compared to $858,000 or
$0.09 per basic and diluted share for the same period last year.
* Operating revenues for 2009 were $98.9 million compared to $86.8
million for 2008, a 14% increase.
* Operating income was $6.8 million for 2009 compared to $6.2 million
for 2008, a 9% increase.
* Net income for 2009 was $2.9 million or $0.30 per basic and diluted
share compared to $2.8 million or $0.30 per basic and diluted share
for 2008.
Items impacting comparability between 2008 and 2009 include:
* Net income attributable to noncontrolling interest increased in 2009
by approximately $414,000 compared with 2008, due to facilities with
noncontrolling minority interests experiencing better overall
operating results in 2009.
* Pre-tax costs associated with opening new centers were $263,000 for
2009 compared to $641,000 for 2008.
* Non-cash stock compensation expense was $287,000 for 2009 compared to
$221,000 for 2008.
* A $265,000 grant to the University of Cincinnati was provided in
2009, while no such amount was payable during 2008.
Stephen Everett, President and Chief Executive Officer, commented, "We are
very pleased with our company's performance throughout 2009. This past year
has proven to be one of clinical and operational enhancements as we prepare
our company for a "bundled payment environment" that will begin in 2011.
Between our facility-wide rollout of a new electronic, clinical and billing
system, and our furthering of the relationship we have established with the
University of Cincinnati via a commitment to research on behalf of patients
with kidney failure, DCA is continuing to be well situated as a leader within
our industry. Additionally, we developed two new centers in Ohio, and
integrated a new center in Maryland that was purchased at the end of 2008.
Our committed staff of exceptional caregivers, administrative personnel, and
physicians have positioned DCA for continued growth and success throughout
2010."
Significant markers and noteworthy items for 2009 include:
* Our continued focus and enhancement on billing and collection
functions resulted in a decrease in accounts receivable days
outstanding (DSO) by 6 days in 2009.
* The installation and use of our new Clinical Information System has
assisted in recording and reporting clinical results in an
increasingly regulated industry, while providing improved
efficiencies at operating levels.
* Our commitment to the University of Cincinnati's School of Medicine
through a three year grant agreement, has demonstrated our continued
focus on the overall care of patients with chronic renal failure.
* With two new centers under development in Ohio, and another acquired
in Maryland at the end of 2008, the company has been successful in
continuing its focus in these two strategically important markets.
Dialysis Corporation of America will be hosting a conference call in
conjunction with its earnings release for the fourth quarter and fiscal year
ended December 31, 2009. The conference call will be held on Thursday, March
11, 2010 at 10:00 a.m. EST. The call is accessible by dialing 1-866-238-0826
(enter attendee code: 1437866). Participants may be asked to provide the
title of the conference call, which is "Dialysis Corporation of America
Fiscal Year 2009 Earnings." Participants may also access an audio simulcast
of the conference call on the internet through the company's website at
www.dialysiscorporation.com/companyinfo/investorrelations.htm. A replay of
the conference call will be available on the company's website 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's 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
(dollars in thousands, except share and per share amounts)
Year Ended December 31,
2009 2008 2007
---- ---- ----
Operating revenues:
Sales:
Medical services revenue $97,705 $85,676 $73,171
Product sales 1,190 1,161 1,078
------- ------- -------
Total sales revenues 98,895 86,837 74,249
Management fee income --- --- 286
------- ------- -------
98,895 86,837 74,535
Cost and expenses:
Cost of sales revenues:
Cost of medical services 60,341 51,452 44,248
Cost of product sales 661 660 598
------- ------- -------
Total cost of sales revenues 61,002 52,112 44,846
Selling, general and administrative expenses
Corporate 10,819 10,202 7,659
Facility 14,324 13,236 11,681
------- ------- -------
Total 25,143 23,438 19,340
Stock compensation expense 287 221 218
Depreciation and amortization 3,044 2,784 2,619
Provision for doubtful accounts 2,649 2,089 1,665
------- ------- -------
92,125 80,644 68,688
------- ------- -------
Operating income 6,770 6,193 5,847
Other expense, net (9) (49) (40)
------- ------- -------
Income before income taxes 6,761 6,144 5,807
Income tax provision 2,041 1,862 1,615
------- ------- -------
Net income 4,720 4,282 4,192
Less: net income attributable to
noncontrolling interests 1,853 1,438 1,106
------- ------- -------
Net income attributable to the company $ 2,867 $ 2,844 $ 3,086
======= ======= =======
Earning per share:
Basic $.30 $.30 $.32
==== ==== ====
Diluted $.30 $.30 $.32
==== ==== ====
Weighted average shares outstanding:
Basic 9,597,140 9,579,837 9,572,893
========= ========= =========
Diluted 9,620,479 9,613,866
9,607,672
========= ========= =========
DIALYSIS CORPORATION OF AMERICA AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
December 31, December 31,
2009 2008
----------- -----------
Assets
Current assets:
Cash and cash equivalents $ 3,236 $ 6,543
Accounts receivable, net 21,297 21,494
Inventories, net 2,985 2,919
Deferred income tax asset 1,428 1,185
Other current assets 2,292 2,978
-------- --------
Total current assets 31,238 35,119
-------- --------
Property and equipment 35,367 32,987
Less: accumulated depreciation and amortization 16,284 14,452
-------- --------
19,083 18,535
-------- --------
Goodwill 16,492 16,492
Other assets 824 933
-------- --------
Total other assets 17,316 17,425
-------- --------
$ 67,637 $ 71,079
======== ========
Liabilities and Equity
Current liabilities:
Accounts payable and accrued expenses $ 13,257 $ 14,717
Income taxes payable 25 61
Current portion of long-term debt 76 74
-------- --------
Total current liabilities 13,358 14,852
Deferred income taxes 1,824 1,275
Long-term debt, less current portion 8,199 14,276
-------- --------
Total liabilities 23,381 30,403
-------- --------
Commitments and Contingencies
Equity:
Common stock 96 96
Additional paid-in capital 16,298 16,001
Retained earnings 22,034 19,167
-------- --------
Total company stockholders' equity 38,428 35,264
Noncontrolling interests 5,828 5,412
-------- --------
Total equity 44,256 40,676
-------- --------
$ 67,637
$ 71,079
======== ========
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DIALYSIS CORPORATION OF AMERICA AND SUBSIDIARIES
SUPPLEMENTAL OPERATING DATA
Year Ended December 31, Year-to-year
---------------------- Change %
2009 2008 ------------
Operating data:
Treatments 296,082 272,452 8.7%
Patient revenue per treatment $329.99 $314.46 4.9%
Same center growth data:
Same center treatment growth 2% 5%
Same center revenue per treatment change 9%
4%
Same center patient revenue growth
11%
9%
Quarter Ended December 31, Year-to-year
------------------------- Change %
2009 2008 ------------
Operating data:
Treatments 74,680 70,276 6.3%
Patient revenue per treatment $338.49 $332.62 1.8%
Same center growth data:
Same center treatment growth --% 4%
Same center revenue per treatment change 3% 6%
Same center patient revenue growth 3% 10%
Key clinical metrics:
Treatment adequacy (% of pts with
Kt/V greater than 1.2) 97% 97%
Anemia management (% of pts with
Hgb greater than 11) 80% 82%
Venous access (% of pts with AVF)
60%
56%
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