Orthodontic Centers Of America, Inc. Announces Delay In Filing Form 10-K And Reaffirms Guidance For Year-End 2000 Financial Results

Apr 02, 2001, 01:00 ET from Orthodonic Centers of America, Inc.

    METAIRIE, La., April 2 /PRNewswire/ -- Orthodontic Centers of America,
 Inc. (NYSE:   OCA) today announced that it will delay filing of its Annual
 Report on Form 10-K for the year ended December 31, 2000.  The Company intends
 to file with the Securities and Exchange Commission (SEC) a Notification of
 Late Filing on Form 12b-25, which provides for an automatic 15-day extension.
 The Company also reaffirmed its previously reported guidance for revised
 financial results for the year ended December 31, 2000.
     (Photo: http://www.newscom.com/cgi-bin/prnh/20000803/ORTHOLOGO)
     On March 16, 2001, the Company announced a change to its revenue
 recognition policy in response to Securities and Exchange Commission (SEC)
 Staff Accounting Bulletin No. 101, "Revenue Recognition in Financial
 Statements" (SAB 101) and related revisions to previously announced financial
 results for the year ended December 31, 2000.
     Bart F. Palmisano, Sr., Chief Executive Officer, remarked, "Given the
 recentness of this change in our accounting policy, we continue to work with
 our independent auditors to analyze the effect of this change on the Company's
 financial results and to bring the Company's normal annual audit to a proper
 close.  We fully anticipate filing our Form 10-K within the prescribed 15-day
 calendar day extension period.  Furthermore, we remain comfortable with the
 preliminary guidance we provided in our March 16, 2001 press release."
     As reported on March 16, 2001, based upon its preliminary unaudited
 analysis, the Company expects that, after applying the change in revenue
 recognition policy, its net revenue for 2000 will range from $265.4 million to
 $275.4 million, its operating income for 2000 will range from $78.9 million to
 $81.9 million, its net income for 2000, excluding a cumulative charge to
 reflect the change in accounting principle, will range from $46.6 million to
 $48.4 million, and its net income per share for 2000, excluding a cumulative
 charge to reflect the change in accounting principle, will range from $0.94 to
 $0.97.  The Company currently believes that the change in revenue recognition
 policy will result in revenue and earnings growth rates for 2001 at least
 equal to current market expectations under the pre-SAB 101 basis.
     "We look forward to sharing with our shareholders a powerful story of
 continued execution and growth," added Bart F. Palmisano, Sr.  "We believe
 that the time invested in changing our revenue recognition policy to a
 straight-line basis affords us an opportunity to bring an added degree of
 simplicity and clarity to reporting what is already a strong, fundamentally
 sound business."
     Orthodontic Centers of America, Inc., founded in 1985, is the leading
 provider of integrated business services to orthodontists.  For additional
 information on Orthodontic Centers of America, Inc., visit the Company's web
 site: http://www.4braces.com.
     The forward-looking statements in this release, including statements
 regarding revenue recognition and the Company's financial results, cash flows,
 and growth rates after applying the change in revenue recognition policy are
 made pursuant to the safe harbor provisions of the Private Securities
 Litigation Reform Act of 1995. As such, they involve risks and uncertainties,
 including failure of the Company's operating and expansion strategy, failure
 to achieve anticipated operating results or consummate proposed developments
 and acquisitions, regulatory constraints, competition, unexpected impact of
 the Company's change in revenue recognition policy, and unexpected results
 from the Company's audit that could cause actual results to differ materially
 from those projected in these forward-looking statements. A discussion of
 important factors and assumptions regarding these statements and risks
 involved is contained in the Company's recent filings with the Securities and
 Exchange Commission.
 
 

SOURCE Orthodonic Centers of America, Inc.
    METAIRIE, La., April 2 /PRNewswire/ -- Orthodontic Centers of America,
 Inc. (NYSE:   OCA) today announced that it will delay filing of its Annual
 Report on Form 10-K for the year ended December 31, 2000.  The Company intends
 to file with the Securities and Exchange Commission (SEC) a Notification of
 Late Filing on Form 12b-25, which provides for an automatic 15-day extension.
 The Company also reaffirmed its previously reported guidance for revised
 financial results for the year ended December 31, 2000.
     (Photo: http://www.newscom.com/cgi-bin/prnh/20000803/ORTHOLOGO)
     On March 16, 2001, the Company announced a change to its revenue
 recognition policy in response to Securities and Exchange Commission (SEC)
 Staff Accounting Bulletin No. 101, "Revenue Recognition in Financial
 Statements" (SAB 101) and related revisions to previously announced financial
 results for the year ended December 31, 2000.
     Bart F. Palmisano, Sr., Chief Executive Officer, remarked, "Given the
 recentness of this change in our accounting policy, we continue to work with
 our independent auditors to analyze the effect of this change on the Company's
 financial results and to bring the Company's normal annual audit to a proper
 close.  We fully anticipate filing our Form 10-K within the prescribed 15-day
 calendar day extension period.  Furthermore, we remain comfortable with the
 preliminary guidance we provided in our March 16, 2001 press release."
     As reported on March 16, 2001, based upon its preliminary unaudited
 analysis, the Company expects that, after applying the change in revenue
 recognition policy, its net revenue for 2000 will range from $265.4 million to
 $275.4 million, its operating income for 2000 will range from $78.9 million to
 $81.9 million, its net income for 2000, excluding a cumulative charge to
 reflect the change in accounting principle, will range from $46.6 million to
 $48.4 million, and its net income per share for 2000, excluding a cumulative
 charge to reflect the change in accounting principle, will range from $0.94 to
 $0.97.  The Company currently believes that the change in revenue recognition
 policy will result in revenue and earnings growth rates for 2001 at least
 equal to current market expectations under the pre-SAB 101 basis.
     "We look forward to sharing with our shareholders a powerful story of
 continued execution and growth," added Bart F. Palmisano, Sr.  "We believe
 that the time invested in changing our revenue recognition policy to a
 straight-line basis affords us an opportunity to bring an added degree of
 simplicity and clarity to reporting what is already a strong, fundamentally
 sound business."
     Orthodontic Centers of America, Inc., founded in 1985, is the leading
 provider of integrated business services to orthodontists.  For additional
 information on Orthodontic Centers of America, Inc., visit the Company's web
 site: http://www.4braces.com.
     The forward-looking statements in this release, including statements
 regarding revenue recognition and the Company's financial results, cash flows,
 and growth rates after applying the change in revenue recognition policy are
 made pursuant to the safe harbor provisions of the Private Securities
 Litigation Reform Act of 1995. As such, they involve risks and uncertainties,
 including failure of the Company's operating and expansion strategy, failure
 to achieve anticipated operating results or consummate proposed developments
 and acquisitions, regulatory constraints, competition, unexpected impact of
 the Company's change in revenue recognition policy, and unexpected results
 from the Company's audit that could cause actual results to differ materially
 from those projected in these forward-looking statements. A discussion of
 important factors and assumptions regarding these statements and risks
 involved is contained in the Company's recent filings with the Securities and
 Exchange Commission.
 
 SOURCE  Orthodonic Centers of America, Inc.