Dialysis Corporation of America Reports Fourth Quarter and Year Ended December 31, 2009 Results
LINTHICUM, Md., March 10 /PRNewswire-FirstCall/ -- 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.
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
======= =======
DIALYSIS CORPORATION OF AMERICA AND SUBSIDIARIES
SUPPLEMENTAL OPERATING DATA
Year Ended December 31,
----------------------- Year-to-year
2009 2008 Change %
---- ---- --------
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 11% 9%
growth
Quarter Ended December 31, Quarter-to-
-------------------------- Quarter
2009 2008 Change %
---- ---- --------
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%
SOURCE Dialysis Corporation of America
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