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Birner Dental Management Services, Inc. Announces Earnings For 1Q 2012

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DENVER, May 10, 2012 /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, 2012.  For the quarter ended March 31, 2012, revenue decreased $876,000, or 5.1%, to $16.2 million. The Company's earnings before interest, taxes, depreciation, amortization, and non-cash expense associated with stock-based compensation ("Adjusted EBITDA") increased $26,000, or 1.9%, to $1.4 million.  Net income for the quarter ended March 31, 2012 decreased $77,000, or 20.0%, to $309,000 compared to $386,000 for the quarter ended March 31, 2011.  Net income was negatively affected by an increase of $190,000 in stock-based compensation expense pursuant to ASC Topic 718.  Earnings per share decreased to $0.17 for the quarter ended March 31, 2012 compared to $0.20 for the quarter ended March 31, 2011.

During the quarter ended March 31, 2012, the Company had capital expenditures of $854,000, purchased 31,459 shares of its Common Stock for approximately $513,000 and paid out approximately $409,000 in dividends to its shareholders while increasing total bank debt outstanding by approximately $549,000

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 110 dentists.  The Company operates its dental offices under the PERFECT TEETH® name. Birner Dental also manages the 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, 2012 on Thursday, May 10, 2012 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 1-888-504-7958 and refer to Confirmation Code 3845523 approximately five minutes prior to the scheduled time. If you are unable to join the conference call on May 10, the rebroadcast number is 1-888-203-1112 with the pass code of 3845523.  This rebroadcast will be available through May 24, 2012.

Non-GAAP Disclosures

This press release includes a non-GAAP financial measure with respect to Adjusted EBITDA.  Please see below for more information regarding Adjusted EBITDA and a reconciliation of Adjusted EBITDA to net income.

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 prospects and performance in future periods.  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, performance 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,




2011


2012








REVENUE:

$ 17,075,202


$ 16,199,687








DIRECT EXPENSES:






Clinical salaries and benefits

9,712,072


9,137,850



Dental supplies

801,544


676,992



Laboratory fees

715,479


753,456



Occupancy

1,350,391


1,365,316



Advertising and marketing

577,344


675,562



Depreciation and amortization

618,194


649,562



General and administrative

1,603,838


1,209,468




15,378,862


14,468,206









Contribution from dental offices

1,696,340


1,731,481








CORPORATE EXPENSES:






General and administrative

1,019,061

(1)

1,167,494

(1)


Depreciation and amortization

19,583


35,289








OPERATING INCOME

657,696


528,698



Interest expense, net

24,705


22,480








INCOME BEFORE INCOME TAXES

632,991


506,218



Income tax expense

246,867


197,424








NET INCOME

$ 386,124


$ 308,794









Net income per share of Common Stock - Basic

$ 0.21


$ 0.17









Net income per share of Common Stock - Diluted

$ 0.20


$ 0.17









Cash dividends per share of Common Stock

$ 0.20


$ 0.22









Weighted average number of shares of






Common Stock and dilutive securities:






Basic

1,852,001


1,847,024









Diluted

1,918,207


1,859,522








(1)

Corporate expense - general and administrative includes $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 and $232,765 of stock-based compensation expense pursuant to ASC Topic 718 for the quarter ended March 31, 2012.

 

BIRNER DENTAL MANAGEMENT SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS








December 31, 


March 31,

ASSETS

2011


2012



**


(Unaudited)

CURRENT ASSETS:





Cash and cash equivalents

$          923,878


$           728,668


Accounts receivable, net of allowance for doubtful





accounts of $301,945 and $282,107, respectively

2,855,726


3,329,131


Deferred tax asset

197,327


197,327


Prepaid expenses and other assets

639,116


935,662







Total current assets

4,616,047


5,190,788






PROPERTY AND EQUIPMENT, net

5,789,521


6,185,637






OTHER NONCURRENT ASSETS:





Intangible assets, net

11,095,926


10,868,916


Deferred charges and other assets

165,267


162,559


Notes receivable

155,419


145,306







Total assets

$     21,822,180


$      22,553,206






LIABILITIES AND SHAREHOLDERS' EQUITY









CURRENT LIABILITIES:





Accounts payable 

$       2,111,155


$        2,002,479


Accrued expenses

1,973,593


1,723,537


Accrued payroll and related expenses

1,731,273


2,495,908


Income taxes payable

115,038


272,462







Total current liabilities

5,931,059


6,494,386






LONG-TERM LIABILITIES:





Deferred tax liability, net

2,309,279


2,309,279


Long-term debt, net of current maturities

4,251,068


4,800,000


Other long-term obligations

1,504,684


1,501,264







Total liabilities

13,996,090


15,104,929






SHAREHOLDERS' EQUITY:





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





authorized; none outstanding

-


-


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





1,837,519 and 1,848,118 shares issued and outstanding, respectively

368,186


88,165


Retained earnings

7,457,904


7,360,112







Total shareholders' equity

7,826,090


7,448,277







Total liabilities and shareholders' equity

$     21,822,180


$      22,553,206







**  Derived from the Company's audited consolidated balance sheet at December 31, 2011.

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 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,





2011


2012

RECONCILIATION OF EBITDA:





Net income

$386,124


$308,794


Add back:






Depreciation and amortization - Offices

618,194


649,562



Depreciation and amortization - Corporate

19,583


35,289



Stock-based compensation expense

124,433


232,765



Interest expense, net

24,705


22,480



Income tax expense

246,867


197,424








Adjusted EBITDA

$1,419,906


$1,446,314

SOURCE Birner Dental Management Services, Inc.



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

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