HANOVER, Md., May 17, 2004 (PRIMEZONE) -- Dialysis Corporation of America (Nasdaq:DCAI) announced financial results for the first quarter ended March 31, 2004. Operating revenues for the quarter were $8,627,000 compared to $6,811,000 for the same period in 2003. Net income for the quarter was $288,000 or $.04 per share ($.03 diluted per share) compared to $156,000 or $.02 per share ($.02 diluted per share) in the same period last year. Earnings per share for 2003 have been adjusted to reflect a two-for-one stock split effected January 28, 2004.
Stephen Everett, President and Chief Executive Officer, stated, "We are very pleased with our continued growth as reflected in our first quarter operating results. Our 27% increase in operating revenues compared to last year and our increased profitability, despite initial operating costs of three new dialysis centers we opened in the first part of 2004 and another center under development, reflect the success of our stringent development process. We anticipate the development of additional dialysis centers in strategic locations and additional contracts for in-hospital services during 2004, further strengthening our foundation and positioning DCA for future growth and profitability beyond 2004."
Dialysis Corporation of America currently owns or manages 19 free-standing kidney hemodialysis centers in Georgia, Maryland, New Jersey, Ohio, Pennsylvania, South Carolina and Virginia providing patients with a full range of quality in-center, and at-home dialysis services, as well as providing in-hospital services in many of its markets. The company expects to open a new Maryland center, presently under development, during the second quarter of 2004.
This release contains forward-looking statements that are subject to risks and uncertainties that could cause actual results and plans to differ materially from those anticipated. Those factors include, but are not limited to, 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 our facilities can expand to provide profitability, regulation of dialysis operations, government rate determination for Medicare reimbursement, and other risks detailed in the company's filings with the Securities and Exchange Commission, particularly as described in the company's annual report on Form 10-K for the fiscal year ended December 31, 2003. 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, and the most recent annual report on Form 10-K for the year ended December 31, 2003, and our quarterly reports for fiscal 2003, are available on Dialysis Corporation of America's internet home page: http://www.dialysiscorporation.com.
DIALYSIS CORPORATION OF AMERICA AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(UNAUDITED)
Three Months Ended
March 31,
--------------------------
2004 2003
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Operating revenues:
Medical service revenue $8,409,524 $6,737,951
Other income 217,045 73,060
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8,626,569 6,811,011
Operating cost and expenses:
Cost of medical services 5,162,222 4,202,613
Selling, general and
administrative expenses 2,795,470 2,148,446
Provision for doubtful
accounts 148,295 95,898
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8,105,987 6,446,957
Operating income 520,582 364,054
Other income (expense):
Interest income on
officer/director note 961 1,128
Interest (expense) on note
payable to parent (3,018) ---
Other income, net 22,294 13,093
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Income before income
taxes, minority interest
and equity in affiliate
earnings 540,819 378,275
Income tax provision 216,108 183,265
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Income before minority
interest and equity in
affiliate earnings 324,711 195,010
Minority interest in income
of consolidated
subsidiaries (55,832) (54,786)
Equity in affiliate earnings 19,033 15,419
---------- -----------
Net income $ 287,912 $ 155,643
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Earnings per share:
Basic $.04 $.02
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Diluted $.03 $.02
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