LINTHICUM, Md., Nov. 15, 2004 (PRIMEZONE) -- Dialysis Corporation of America (Nasdaq:DCAI) announced financial results for the first nine months of 2004. Operating revenues for the third quarter of 2004 were $10,979,000 compared to $7,617,000 for the same period last year. Net income for the quarter was $776,000 or $.09 per share ($.09 diluted per share) compared to $308,000 or $.04 per share ($.04 diluted per share) for the same period last year. Operating revenues for the first nine months of 2004 were $29,194,000 compared to $21,931,000 for the same period last year. Net income for the first nine months of 2004 was $1,452,000 or $.18 per share ($.17 diluted per share) compared to $683,000 or $.09 per share ($.08 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 pleased with what was a record breaking quarter for us. Operating revenues increased 44% and net income increased 152% for the third quarter of 2004 compared to the same period last year. Operating revenues increased 33% and net income increased 112% for the first nine months of 2004 compared to the same period last year. Improved operating results from our existing centers have more than offset pre-operating and initial operating costs of new centers opened during 2004. We are reviewing additional development opportunities in strategic locations, which we expect will result in additional growth pursuant to guidelines of our controlled expansion program."
Dialysis Corporation of America currently owns or manages 22 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 opened four new centers and acquired two centers during 2004 and has two new centers under development in Virginia and Ohio.
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 Nine Months Ended
September 30, September 30,
----------------------- ------------------------
2004 2003 2004 2003
---- ---- ---- ----
Operating
revenues:
Medical
service
revenue $10,857,444 $7,535,530 $28,763,576 $21,697,427
Other income 121,173 81,581 430,828 233,816
----------- ---------- ----------- -----------
10,978,617 7,617,111 29,194,404 21,931,243
----------- ---------- ----------- -----------
Operating cost
and expenses:
Cost of
medical
services 6,051,469 4,706,470 16,951,870 13,425,840
Selling,
general
and admini-
strative
expenses 3,115,095 2,338,831 8,812,035 6,865,087
Provision for
doubtful
accounts 303,416 3,425 651,753 258,488
----------- ---------- ----------- -----------
9,469,980 7,048,726 26,415,658 20,549,415
----------- ---------- ----------- -----------
Operating income 1,508,637 568,385 2,778,746 1,381,828
Other income
(expense):
Interest income
on officer/
director note 1,074 971 2,995 3,001
Interest
expense
to parent (17,180) (521) (27,956) (939)
Other income,
net 17,717 18,636 61,817 55,407
----------- ---------- ----------- -----------
1,611 19,086 36,856 57,469
----------- ---------- ----------- -----------
Income before
income taxes,
minority
interest
and equity
in affiliate
earnings 1,510,248 587,471 2,815,602 1,439,297
Income tax
provision 554,311 230,920 1,048,084 615,271
----------- ---------- ----------- -----------
Income before
minority
interest
and equity
in affiliate
earnings 955,937 356,551 1,767,518 824,026
Minority interest
in income of
consolidated
subsidiaries (302,129) (57,027) (488,571) (170,929)
Equity in affili-
ate earnings 122,375 8,687 172,770 30,320
----------- ---------- ----------- -----------
Net income $ 776,183 $ 308,211 $ 1,451,717 $ 683,417
=========== ========== =========== ===========
Earnings per
share:
Basic $ .09 $ .04 $ .18 $ .09
=========== ========== =========== ===========
Diluted $ .09 $ .04 $ .17 $ .08
=========== ========== =========== ===========
See notes to consolidated financial statements.