PR Newswire: news distribution, targeting and monitoring
2014

Birner Dental Management Services, Inc. Announces Earnings for 1Q 2011

Share with Twitter Share with LinkedIn

DENVER, May 16, 2011 /PRNewswire/ -- Birner Dental Management Services, Inc. (NASDAQ Capital Market: BDMS), operators of PERFECT TEETH® dental practices and Vantage Dental Implant Center, announced results for the quarter ended March 31, 2011. For the quarter ended March 31, 2011, revenue increased $628,000, or 3.8%, to $17.1 million. The Company's earnings before, interest, taxes, depreciation, amortization, non-cash expense associated with stock-based compensation and discontinued operations ("Adjusted EBITDA") decreased $557,000, or 28.2%, to $1.4 million.  Net income for the quarter ended March 31, 2011 decreased $148,000, or 27.7%, to $386,000 compared to $534,000 for the same period of 2010.  Earnings per share decreased 28.3%, to $0.20 for the quarter ended March 31, 2011 compared to $0.28 for the quarter ended March 31, 2010.

The increase in revenue of $628,000 for the quarter ended March 31, 2011 was attributable to $393,000 in additional revenue related to two de novo offices opened in the first and fourth quarters of 2010 and an increase in same store revenue (based on 62 offices open during each full quarter) of $236,000.

While the Company's Perfect Teeth dental offices generated strong financial results in the first quarter of 2011, the performance of Vantage Dental Implant Center negatively affected the Company's Adjusted EBITDA and earnings.  The Company anticipates this to continue into 2011.

During the first quarter of  2011, the Company had capital expenditures of $720,000, purchased 2,500 shares of its Common Stock for approximately $48,000 and paid out approximately $370,000 in dividends to its shareholders while decreasing total bank debt outstanding by approximately $377,000.  

Birner Dental Management Services, Inc. acquires, develops, and manages geographically dense dental practice networks in select markets in Colorado, New Mexico, and Arizona.  The Company currently manages 64 dental offices, of which 38 were acquired and 26 were de novo developments.  The Company currently has 117 dentists.  The Company operates its dental offices under the PERFECT TEETH® name. Birner Dental also operates one Vantage Dental Implant Center in Colorado.

The Company previously announced it would conduct a conference call to review results for the quarter ended March 31, 2011 on Monday, May 16, 2011 at 9:00 a.m. MT. In addition to current operating results, the teleconference may include discussion of management's expectations of future financial and operating results. To participate in this conference call, dial in to 1-888-299-7209 and refer to Confirmation Code 1172193 approximately five minutes prior to the scheduled time. If you are unable to join the conference call on May 16, the rebroadcast number is 1-888-203-1112 with the pass code of 1172193.  This rebroadcast will be available through May 31, 2011.

Non-GAAP Disclosures

This press release includes a non-GAAP financial measure with respect to Adjusted EBITDA.  The non-GAAP financial measure included in this press release may be different from, and therefore may not be comparable to, similar measures used by other companies.  Please see the last page of this release for more information on the reconciliation of Adjusted EBITDA to GAAP measures.

Forward-Looking Statements

Certain of the matters discussed herein may contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from expectations. These include statements regarding the Company's growth prospects and performance in 2011 and other future periods, implied future results as a result of the Company's training program to improve productivity of its dentists and hygienists and results at the Vantage Dental Implant Center opened in October 2010.  These statements involve known and unknown risks, uncertainties and other factors which may cause the Company's actual results, performance or achievements to be materially different from any future results, performances, or achievements expressed or implied by the forward-looking statements.  These and other risks and uncertainties are set forth in the reports filed by the Company with the Securities and Exchange Commission. The Company disclaims any obligation to update these forward-looking statements.

For Further Information Contact:
Birner Dental Management Services, Inc.
Dennis Genty
Chief Financial Officer
(303) 691-0680

BIRNER DENTAL MANAGEMENT SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)



Quarters Ended




March 31,




2010


2011








REVENUE:

$ 16,446,882


$ 17,075,202








DIRECT EXPENSES:






Clinical salaries and benefits

9,421,333


9,712,072



Dental supplies

582,364


801,544



Laboratory fees

716,549


715,479



Occupancy

1,297,668


1,350,391



Advertising and marketing

191,407


577,344



Depreciation and amortization

565,265


618,194



General and administrative

1,311,495


1,603,838




14,086,081


15,378,862









Contribution from dental offices

2,360,801


1,696,340








CORPORATE EXPENSES:






General and administrative

1,184,167

(1)

1,019,061

(1)


Depreciation and amortization

21,624


19,583








OPERATING INCOME

1,155,010


657,696



Interest expense, net

52,836


24,705








INCOME FROM CONTINUING OPERATIONS






  BEFORE INCOME TAXES

1,102,174


632,991



Income tax expense

473,935


246,867








INCOME FROM CONTINUING OPERATIONS

628,239


386,124








DISCONTINUED OPERATIONS:






Operating (loss) attributable to assets disposed of

(164,707)


-



Income tax benefit

70,824


-








LOSS ON DISCONTINUED OPERATIONS

(93,883)


-








NET INCOME

$      534,356


$      386,124








Net income per share of Common Stock - Basic






Continuing Operations

$            0.34


$            0.21



Discontinued Operations

(0.05)


-


Net income per share of Common Stock - Basic

$            0.29


$            0.21








Net income per share of Common Stock - Diluted






Continuing Operations

$            0.33


$            0.20



Discontinued Operations

(0.05)


-


Net income per share of Common Stock - Diluted

$            0.28


$            0.20








Cash dividends per share of Common Stock

$            0.20


$            0.20








Weighted average number of shares of





Common Stock and dilutive securities:






Basic

1,867,908


1,852,001









Diluted

1,903,853


1,918,207








(1)

Corporate expense - general and administrative includes $150,329 of stock-based compensation expense pursuant to ASC Topic 718 and $84,349 related to a long-term incentive program for the quarter ended March 31, 2010 and $43,019 of stock-based compensation expense pursuant to ASC Topic 718 and $81,414 related to a long-term incentive program for the quarter ended March 31, 2011.









BIRNER DENTAL MANAGEMENT SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS








December 31,


March 31,

ASSETS

2010


2011



**


(Unaudited)

CURRENT ASSETS:





Cash and cash equivalents

$       406,208


$      924,578


Accounts receivable, net of allowance for doubtful





accounts of $315,333 and $308,206, respectively

3,429,373


3,542,116


Deferred tax asset

207,530


207,530


Income Tax Receivable

435,800


-


Prepaid expenses and other assets

598,297


1,014,573







Total current assets

5,077,208


5,688,797






PROPERTY AND EQUIPMENT, net

5,123,934


5,381,006






OTHER NONCURRENT ASSETS:





Intangible assets, net

11,941,931


11,764,343


Deferred charges and other assets

155,674


155,674


Notes receivable

167,420


162,627







Total assets

$  22,466,167


$ 23,152,447






LIABILITIES AND SHAREHOLDERS’ EQUITY









CURRENT LIABILITIES:





Accounts payable

$    2,163,082


$   2,570,468


Accrued expenses

2,410,689


2,026,102


Accrued payroll and related expenses

1,945,020


2,641,733


Income taxes payable

18,484


240,351


Current maturities of long-term debt

690,000


460,000


Liabilities related to discontinued operations

50,207


30,055







Total current liabilities

7,277,482


7,968,709






LONG-TERM LIABILITIES:





Deferred tax liability, net

1,265,436


1,265,436


Long-term debt, net of current maturities

3,747,017


3,600,000


Other long-term obligations

2,254,539


2,301,520







Total liabilities

14,544,474


15,135,665






SHAREHOLDERS' EQUITY:





Preferred Stock, no par value, 10,000,000 shares





authorized; none outstanding

-


-


Common Stock, no par value, 20,000,000 shares authorized;





1,850,716 and 1,852,327 shares issued and outstanding, respectively

493,638


570,571


Retained earnings

7,433,205


7,448,864


Accumulated other comprehensive loss

(5,150)


(2,653)







Total shareholders' equity

7,921,693


8,016,782







Total liabilities and shareholders' equity

$  22,466,167


$ 23,152,447






**  Derived from the Company’s audited consolidated balance sheet at December 31, 2010.



Reconciliation of Adjusted EBITDA

Adjusted EBITDA is not a U.S. generally accepted accounting principle ("GAAP") measure of performance or liquidity. However, the Company believes that it may be useful to an investor in evaluating the Company's ability to meet future debt service, capital expenditures and working capital requirements. Investors should not consider Adjusted EBITDA in isolation or as a substitute for operating income, cash flows from operating activities or any other measure for determining the Company's operating performance or liquidity that is calculated in accordance with GAAP. In addition, because Adjusted EBITDA is not calculated in accordance with GAAP, it may not necessarily be comparable to similarly titled measures employed by other companies. A reconciliation of Adjusted EBITDA to net income can be made by adding discontinued operations before income tax expense, depreciation and amortization expense - Offices, depreciation and amortization expense – Corporate, stock-based compensation expense, interest expense, net and income tax expense to net income as in the table below.





Quarters






Ended March 31,






2010


2011


RECONCILIATION OF EBITDA:






Net income

$534,356


$386,124



Add back:







Discontinued operations








(before income tax expense)

164,707


-




Depreciation and amortization - Offices

565,265


618,194




Depreciation and amortization - Corporate

21,624


19,583




Stock-based compensation expense

234,678


124,433




Interest expense, net

52,836


24,705




Income tax expense

403,111


246,867










Adjusted EBITDA

$1,976,577


$1,419,906




























































SOURCE Birner Dental Management Services, Inc.



RELATED LINKS
http://www.bdms-perfectteeth.com

Featured Video

Journalists and Bloggers

Visit PR Newswire for Journalists for releases, photos, ProfNet experts, and customized feeds just for Media.

View and download archived video content distributed by MultiVu on The Digital Center.

Share with Twitter Share with LinkedIn
 

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

 
 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

 
 

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.

 

Online Member Center

Not a Member?
Click Here to Join
Login
Search News Releases
Advanced Search
Search
  1. PR Newswire Services
  2. Knowledge Center
  3. Browse News Releases
  4. Contact PR Newswire
  5. Send a News Release