LINTHICUM, Md., May 16, 2005 (PRIMEZONE) -- Dialysis Corporation of America (Nasdaq:DCAI) announced financial results for the first three months of 2005. Operating revenues for the first quarter of 2005 were $10,612,000 compared to $8,627,000 for the same period last year. Net income for the quarter was $324,000 or $.04 per share ($.04 diluted per share) compared to $288,000 or $.04 per share ($.03 diluted per share) for the same period last year.
Stephen Everett, President and Chief Executive Officer, stated, "We are pleased with the continued growth and financial performance of our company. Operating revenues increased 23% and net income increased 13% for the quarter compared to the same period last year. Our ongoing positive operating results from existing centers continue to offset the costs of new centers opened during 2004 and five currently under construction. We are also in negotiations pertaining to 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 23 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 opened five new centers and acquired two centers during 2004 and has five new centers under development in South Carolina, Maryland, and Ohio. As previously announced, the company is also in the process of acquiring its parent company, Medicore (Nasdaq:MDKI) through a merger transaction anticipated to be completed this summer.
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, maintaining continued growth and profitability, receipt of satisfactory tax and fairness opinions and shareholder approval relating to the merger of Medicore with our company, 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 mature 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 Exchange Commission, particularly as described in the company's annual report on Form 10-K for the fiscal year ended December 31, 2004. 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 material, quarterly and current reports, and the most recent annual report on Form 10-K for the year ended December 31, 2004, 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 STATEMENTS OF INCOME
(UNAUDITED)
Three Months Ended
March 31,
------------------
2005 2004
---- ----
Operating revenues:
Medical service revenue $10,484,101 $8,409,524
Other income 128,395 217,045
---------- ---------
10,612,496 8,626,569
---------- ---------
Operating costs and expenses:
Cost of medical services 6,542,601 5,162,222
Selling, general and
administrative expenses 3,243,761 2,795,470
Provision for doubtful accounts 247,994 148,295
---------- ---------
10,034,356 8,105,987
---------- ---------
Operating income 578,140 520,582
Other income (expense):
Interest income on officer/director
note 1,292 961
Interest expense on note and
advances payable to parent (34,936) (3,018)
Other income, net 31,855 22,294
---------- ---------
(1,789) 20,237
Income before income taxes,
minority interest and equity in
affiliate earnings 576,351 540,819
Income tax provision 308,803 216,108
---------- ---------
Income before minority interest and
equity in affiliate earnings 267,548 324,711
Minority interest in income of
consolidated subsidiaries (63,270) (55,832)
Equity in affiliate earnings 120,109 19,033
---------- ---------
Net income $ 324,387 $ 287,912
========== =========
Earnings per share:
Basic $ .04 $ .04
========== =========
Diluted $ .04 $ .03
========== =========