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-- Quarter end patient census approximated 2,000.
-- Operating revenues for the first quarter of 2009 were $23.5 million
compared to $20.5 million for the same period last year, a 15% increase.
-- Operating income was $793,000 for the first quarter of 2009 compared to
$1.3 million for the same period last year.
-- Net income attributable to the company for the quarter was $180,000 or
$0.02 per basic and diluted share compared to $449,000 or $0.05 per
basic and diluted share for the same period last year.
Items impacting comparability between the first quarter of 2009 and the first quarter of 2008 include:
-- The first quarter of 2009 included the following non-recurring items:
-- The expense for the first of three annual $265,000 contributions
pursuant to a grant agreement with the University of Cincinnati.
This expense will not be recurring during the remainder of 2009, but
is expected to recur in the first quarter of each of the next two
years.
-- Transitional costs and uncertainties surrounding some commercial
revenue associated with our new Hyattsville center in the amount of
$150,000.
-- Additional estimated bad debt expense of approximately $100,000 due
to a first quarter increase in commercial patient mix.
-- Corporate SG&A costs increased by approximately $340,000, before the
University of Cincinnati grant cost, over the same period last year,
while flat on a sequential quarterly basis.
-- Pre-tax costs associated with opening new centers were $61,000 for the
first quarter of 2009 compared to $176,000 for the same period last
year.
-- Non-cash stock compensation expense was $85,000 for the first quarter of
2009 compared to $75,000 for the same period last year.
Stephen Everett, President and Chief Executive Officer, commented, "While at first glance the net income for the quarter is below our expectations, we essentially hit our internal targets after taking into account the $515,000 of one-time items impacting operating income. Without these costs, operating income would have been approximately $1,310,000. Additionally, it should be noted that our SG&A costs are $340,000 above last year's same period due to the ongoing significant investment in our infrastructure in 2008, yet as expected are essentially flat on a sequential basis. This, along with our continued development activities, including two new denovo centers recently announced, should help pave the way for the future operational and financial growth we are expecting."
Dialysis Corporation of America will be hosting a conference call in conjunction with its earnings release for the first quarter of 2009. The conference call will be held on Wednesday, May 6, 2009 at 10:00 a.m. EDT. The call is accessible either by dialing 1-866-244-4576 (enter attendee code: 1354397), 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 First 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.
DIALYSIS CORPORATION OF AMERICA AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
(dollars in thousands, except share and per share amounts)
Three Months Ended March 31
2009 2008
---- ----
Operating revenues:
Sales:
Medical services revenue $23,168 $20,195
Product sales 289 290
--- ---
Total sales revenues 23,457 20,485
------ ------
Operating costs and expenses:
Cost of sales revenues:
Cost of medical services 14,431 12,358
Cost of product sales 160 161
--- ---
Total cost of sales revenues 14,591 12,519
Selling, general and administrative
expenses:
Corporate 2,990 2,388
Facility 3,601 3,082
----- -----
Total 6,591 5,470
Stock compensation expense 85 75
Depreciation and amortization 726 662
Provision for doubtful accounts 671 430
--- ---
22,664 19,156
------ ------
Operating income 793 1,329
Other expense, net (14) (42)
---- ----
Income before income taxes 779 1,287
Income tax provision 242 380
--- ---
Net income 537 907
Less: net income attributable to
noncontrolling interests 357 458
--- ---
Net income attributable to the
company $180 $449
==== ====
Earnings per share:
Basic $.02 $.05
==== ====
Diluted $.02 $.05
==== ====
Weighted average shares outstanding:
Basic 9,590,778 9,580,096
========= =========
Diluted 9,612,637 9,614,591
========= =========
DIALYSIS CORPORATION OF AMERICA AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
March 31, December 31,
2009 2008
---- ----
(unaudited)
Assets
Current assets:
Cash and cash equivalents $3,380 $6,543
Accounts receivable, net 20,849 21,494
Inventories, net 2,699 2,919
Deferred income tax asset 1,185 1,185
Other current assets 2,757 2,978
----- -----
Total current assets 30,870 35,119
------ ------
Property and equipment 33,561 32,987
Less: accumulated depreciation and
amortization 15,105 14,452
------ ------
18,456 18,535
------ ------
Goodwill 16,492 16,492
Other assets 908 933
--- ---
Total other assets 17,400 17,425
------ ------
$66,726 $71,079
======= =======
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued expenses $13,384 $14,717
Income taxes payable 36 61
Current portion of long-term debt 70 74
-- --
Total current liabilities 13,490 14,852
Deferred income taxes 1,275 1,275
Long-term debt, less current portion 11,260 14,276
------ ------
Total liabilities 26,025 30,403
------ ------
Commitments and Contingencies
Equity:
Common stock 96 96
Additional paid-in capital 16,086 16,001
Retained earnings 19,347 19,167
------ ------
Total company stockholders' equity 35,529 35,264
Noncontrolling interests 5,172 5,412
----- -----
Total equity 40,701 40,676
------ ------
$66,726 $71,079
======= =======
DIALYSIS CORPORATION OF AMERICA AND SUBSIDIARIES
SUPPLEMENTAL OPERATING DATA
(unaudited)
Three Months Ended March 31,
---------------------------- Quarter-to-Quarter
2009 2008 Change %
---- ---- --------
Operating data:
Treatments 71,490 65,321 9.4%
Patient revenue per
treatment $324.08 $309.17 4.8%
Same center growth
data:
Same center treatment
growth 3% 5%
Same center revenue
per treatment change 7% 9%
Same center patient
revenue growth 10% 15%
1st 4th
Quarter Quarter
2009 2008
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) 81% 82%
Venous access (% of pts with
AVF) 57% 56%
SOURCE Dialysis Corporation of America
http://www.dialysiscorporation.com
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