2014

Birner Dental Management Services, Inc. Announces Earnings for 2Q 2011

DENVER, Aug. 15, 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 and six months ended June 30, 2011. For the quarter ended June 30, 2011, revenue increased $670,000, or 4.3%, to $16.4 million. The Company's earnings before interest, taxes, depreciation, amortization, non-cash expense associated with stock-based compensation and discontinued operations ("Adjusted EBITDA") decreased $196,000, or 12.0%, to $1.4 million for the quarter ended June 30, 2011.  Net income for the quarter ended June 30, 2011 increased $149,000, or 68.6%, to $365,000 compared to $217,000 for the same period of 2010.  Earnings per share increased 66.7%, to $0.19 for the quarter ended June 30, 2011 compared to $0.11 for the quarter ended June 31, 2010.  The quarter ended June 30, 2010 was impacted by a loss from discontinued operations of $202,000, or $0.11 per share, net of tax benefit.

For the six months ended June 30, 2011, revenue increased $1.3 million, or 4.0%, to $33.5 million.  The Company's Adjusted EBITDA decreased $752,000, or 20.9%, to $2.9 million for the six months ended June 30, 2011.  Net income for the six months ended June 30, 2011 increased 0.1% to $752,000 compared to $751,000 for the same period of 2010.  Earnings per share remained constant at $.39 for the six months ended June 30, 2011 and 2010.  The six months ended June 30, 2010 was impacted by a loss from discontinued operations of $296,000, or $0.16 per share, net of tax benefit.

Although the Company's Perfect Teeth dental offices generated strong financial results in the quarter and six months ended June 30, 2011, the performance of Vantage Dental Implant Center negatively affected the Company's Adjusted EBITDA and earnings.  The Company anticipates this to continue through 2011.

During the first six months of 2011, the Company had capital expenditures of $1.2 million, purchased 2,500 shares of its Common Stock for approximately $48,000 and paid out approximately $741,000 in dividends to its shareholders while decreasing total bank debt outstanding by approximately $907,000.  

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 111 dentists.  The Company operates its dental offices under the PERFECT TEETH® name. The Company also operates one Vantage Dental Implant Center in Denver, Colorado.

The Company previously announced it would conduct a conference call to review results for the quarter ended June 30, 2011 on Monday, August 15, 2011 at 9:00 a.m. MDT. 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 1-888-298-3451 and refer to Confirmation Code 7138488 approximately five minutes prior to the scheduled time. If you are unable to join the conference call on August 15, the rebroadcast number is 1-888-203-1112 with the pass code of 7138488.  This rebroadcast will be available through August 29, 2011.

Non-GAAP Disclosures

This press release includes a non-GAAP financial measure with respect to Adjusted EBITDA.  Please see the last page of this release 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 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 and future performance of 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


Six Months Ended




June 30,


June 30,




2010


2011


2010


2011












REVENUE:

$  15,746,655


$   16,416,545


$  32,193,537


$  33,491,748












DIRECT EXPENSES:










Clinical salaries and benefits

9,054,028


9,237,249


18,475,360


18,949,321



Dental supplies

662,489


697,738


1,244,855


1,499,282



Laboratory fees

699,383


793,852


1,415,933


1,509,330



Occupancy

1,289,934


1,328,738


2,587,601


2,679,129



Advertising and marketing

289,932


607,916


481,339


1,185,260



Depreciation and amortization

592,864


609,586


1,158,130


1,227,779



General and administrative

1,286,005


1,430,725


2,597,500


3,034,563




13,874,635


14,705,804


27,960,718


30,084,664













Contribution from dental offices

1,872,020


1,710,741


4,232,819


3,407,084












CORPORATE EXPENSES:










General and administrative

1,071,158

(1)

1,058,674

(1)

2,255,326

(2)

2,077,735

(2)


Depreciation and amortization

22,323


31,420


43,947


51,003












OPERATING INCOME

778,539


620,647


1,933,546


1,278,346



Interest expense, net

44,183


21,589


97,019


46,295












INCOME FROM CONTINUING OPERATIONS










  BEFORE INCOME TAXES

734,356


599,058


1,836,527


1,232,051



Income tax expense

315,771


233,633


789,707


480,500












INCOME FROM CONTINUING OPERATIONS

418,585


365,425


1,046,820


751,551












DISCONTINUED OPERATIONS (Note 9):










Operating (loss) attributable to assets disposed of

(85,418)


-


(250,125)


-



(Loss) recognized on dispositions

(268,598)


-


(268,598)


-



Income tax benefit

152,227


-


223,051


-












LOSS ON DISCONTINUED OPERATIONS

(201,789)


-


(295,672)


-












NET INCOME

$        216,796


$       365,425


$         751,148


$         751,551












Net income per share of Common Stock - Basic










Continuing Operations

$               0.23


$               0.20


$               0.56


$                0.41



Discontinued Operations

(0.11)


-


(0.16)


-


Net income per share of Common Stock - Basic

$                0.12


$               0.20


$               0.40


$                0.41












Net income per share of Common Stock - Diluted










Continuing Operations

$               0.22


$                0.19


$               0.55


$               0.39



Discontinued Operations

(0.11)


-


(0.16)


-


Net income per share of Common Stock - Diluted

$                 0.11


$                0.19


$               0.39


$               0.39












Cash dividends per share of Common Stock

$               0.20


$               0.22


$               0.40


$               0.42












Weighted average number of shares of









Common Stock and dilutive securities:










Basic

1,858,850


1,856,506


1,863,354


1,854,266













Diluted

1,900,272


1,921,563


1,902,241


1,920,081












(1)

Corporate expense - general and administrative includes $151,432 of stock-based compensation expense pursuant to ASC Topic 718 and $84,348 related to a long-term incentive program for the quarter ended June 30, 2010 and $90,636 of stock-based compensation expense pursuant to ASC Topic 718 and $81,414 related to a long-term incentive program for the quarter ended June 30, 2011.

(2)

Corporate expense - general and administrative includes $301,761 of stock-based compensation expense pursuant to ASC Topic 718 and $168,696 related to a long-term incentive program for the six months ended June 30, 2010 and $133,655 of stock-based compensation expense pursuant to ASC Topic 718 and $162,828 related to a long-term incentive program for the six months ended June 30, 2011.



BIRNER DENTAL MANAGEMENT SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS








December 31,


June 30,

ASSETS

2010


2011



**


(Unaudited)

CURRENT ASSETS:





Cash and cash equivalents

$       406,208


$      606,020


Accounts receivable, net of allowance for doubtful





accounts of $315,333 and $325,448, respectively

3,429,373


3,314,794


Deferred tax asset

207,530


207,530


Income tax receivable

435,800


-


Prepaid expenses and other assets

598,297


877,945







Total current assets

5,077,208


5,006,289






PROPERTY AND EQUIPMENT, net

5,123,934


5,470,678






OTHER NONCURRENT ASSETS:





Intangible assets, net

11,941,931


11,539,254


Deferred charges and other assets

155,674


141,523


Notes receivable

167,420


160,344







Total assets

$  22,466,167


$ 22,318,088






LIABILITIES AND SHAREHOLDERS’ EQUITY









CURRENT LIABILITIES:





Accounts payable

$    2,163,082


$   2,166,038


Accrued expenses

2,410,689


2,112,238


Accrued payroll and related expenses

1,945,020


2,298,913


Income taxes payable

18,484


437,088


Current maturities of long-term debt

690,000


230,000


Liabilities related to discontinued operations

50,207


9,917







Total current liabilities

7,277,482


7,254,194






LONG-TERM LIABILITIES:





Deferred tax liability, net

1,265,436


1,265,436


Long-term debt, net of current maturities

3,747,017


3,300,000


Other long-term obligations

2,254,539


2,351,713







Total liabilities

14,544,474


14,171,343






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 1,860,371 shares issued and outstanding, respectively

493,638


742,621


Retained earnings

7,433,205


7,405,076


Accumulated other comprehensive loss

(5,150)


(952)







Total shareholders' equity

7,921,693


8,146,745







Total liabilities and shareholders' equity

$  22,466,167


$ 22,318,088






**  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


Six Months





Ended June 30,


Ended June 30,





2010


2011


2010


2011

RECONCILIATION OF ADJUSTED EBITDA:









Net income

$216,796


$365,425


$751,148


$751,551


Add back:










Discontinued operations











(before income tax expense)

354,016


-


518,723


-



Depreciation and amortization - Offices

592,864


609,586


1,158,130


1,227,779



Depreciation and amortization - Corporate

22,323


31,420


43,947


51,003



Stock-based compensation expense

235,780


172,050


470,457


296,483



Interest expense, net

44,183


21,589


97,019


46,295



Income tax expense

163,544


233,633


566,656


480,500












Adjusted EBITDA

$1,629,506


$1,433,703


$3,606,080


$2,853,611

























SOURCE Birner Dental Management Services, Inc.



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

More by this Source


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.