LINTHICUM, Md., Aug. 16, 2004 (PRIMEZONE) -- Dialysis Corporation of America (Nasdaq:DCAI) announced financial results for the first half of 2004. Operating revenues for the second quarter of 2004 were $9,589,000 compared to $7,503,000 for the same period last year. Net income for the quarter was $388,000 or $.05 per share ($.04 diluted per share) compared to $220,000 or $.03 per share ($.03 diluted per share) for the same period last year. Operating revenues for the first half of 2004 were $18,216,000 compared to $14,314,000 for the same period last year. Net income for the first half of 2004 was $676,000 or $.08 per share ($.08 diluted per share) compared to $375,000 or $.05 per share ($.04 diluted per share) for 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 gratified with our 28% increase in operating revenues and 77% increase in net income during the second quarter of 2004, and 27% increase in operating revenues and 80% increase in net income in the first half of 2004 compared to last year. We are particularly pleased to have achieved such positive operating results during a period when we absorbed pre-operating and initial operating costs of the four new centers we opened during the first half of 2004, understanding that these centers, along with future newly developed centers, may have a negative short term impact on future earnings. Our favorable performance reflects the continuing success of our controlled expansion program. We are pursuing development of additional dialysis centers in strategic locations and additional in-hospital services contracts, as well as considering possible acquisition opportunities."
Dialysis Corporation of America currently owns or manages 20 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. The company has a new Virginia center under development.
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, a corporate profile, corporate governance materials, and the most recent annual report on Form 10-K for the year ended December 31, 2003, and other filings with the Securities and Exchange Commission are available through 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 Six Months Ended
June 30, June 30,
---------------- ------------------
2004 2003 2004 2003
---- ---- ---- ----
Operating revenues:
Medical service
revenue $9,496,608 $7,423,946 $17,906,132 $14,161,897
Other income 92,610 79,175 309,655 152,235
---------- ---------- ------------ ----------
9,589,218 7,503,121 18,215,787 14,314,132
---------- ---------- ------------ ----------
Operating cost and
expenses:
Cost of medical
services 5,738,179 4,516,757 10,900,401 8,719,370
Selling, general
and administrative
expenses 2,901,470 2,377,810 5,696,940 4,526,256
Provision for
doubtful
accounts 200,042 159,165 348,337 255,063
---------- ---------- ------------ ----------
8,839,691 7,053,732 16,945,678 13,500,689
---------- ---------- ------------ ----------
Operating income 749,527 449,389 1,270,109 813,443
Other income
(expense):
Interest income on
officer/director
note 960 902 1,921 2,030
Interest expense
to parent (7,758) (418) (10,776) (418)
Other income,
net 21,806 23,678 44,100 36,771
---------- ---------- ------------ ----------
15,008 24,162 35,245 38,383
---------- ---------- ------------ ----------
Income before income
taxes, minority
interest and equity
in affiliate
earnings 764,535 473,551 1,305,354 851,826
Income tax
provision 277,665 201,086 493,773 384,351
---------- ---------- ------------ ----------
Income before
minority interest
and equity in
affiliate
earnings 486,870 272,465 811,581 467,475
Minority interest
in income of
consolidated
subsidiaries (130,610) (59,116) (186,442) (113,902)
Equity in
affiliate
earnings 31,362 6,214 50,395 21,633
---------- ---------- ------------ ----------
Net income $ 387,622 $ 219,563 $ 675,534 $ 375,206
========== ========== ============ ==========
Earnings per
share:
Basic $ .05 $ .03 $ .08 $ .05
========== ========== ============ ==========
Diluted $ .04 $ .03 $ .08 $ .04
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