LINTHICUM, Md., Aug. 15, 2005 (PRIMEZONE) -- Dialysis Corporation of America (Nasdaq:DCAI) announced financial results for the first half of 2005. Operating revenues for the second quarter of 2005 were $11,141,000 compared to $9,589,000 for the same period last year. Net income for the quarter was $444,000 or $.05 per share ($.05 diluted per share) compared to $388,000 or $.05 per share ($.04 diluted per share) for the same period last year. Operating revenues for the first half of 2005 were $21,754,000 compared to $18,216,000 for the same period last year. Net income for the first half of 2005 was $769,000 or $.09 per share ($.08 diluted per share) compared to $676,000 or $.08 per share ($.08 diluted per share) for the same period last year.
Stephen Everett, President and Chief Executive Officer, commented, "While we have experienced reimbursement pressure from our payors and the costs associated with the opening of new centers, the growth and financial performance of our company continues to be healthy. Operating revenues increased 16% and net income increased 14% for the quarter compared to the same period last year. Our six month results provided us with a 19% increase in operating revenues and an increase in net income of 14%, compared to the same period last year, in spite of approximately $100,000 costs incurred during the second quarter of 2005 related to our pending merger with our parent company, Medicore. At the same time, our facility expansion program is on target for the year, and well fueled for continued growth in 2006."
Dialysis Corporation of America currently owns or manages 23 free-standing operating 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 six new centers under development in Maryland, Ohio, Pennsylvania and South Carolina. As previously announced, the company is in the process of acquiring its parent company, Medicore (Nasdaq:MDKI).
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 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 and Exchange Commission, particularly as described in the company's proxy statement/prospectus relating to the merger of its parent, Medicore, Inc., with the company and in its annual report on Form 10-K/A1 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 materials, quarterly and current reports, its proxy statement/prospectus, and the most recent annual report on Form 10-K/A1 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 CONDENSED STATEMENTS OF INCOME
(UNAUDITED)
Three Months Ended Six Months Ended
June 30, June 30,
----------------------- -------------------------
2005 2004 2005 2004
---- ---- ---- ----
Operating revenues:
Medical service
revenue $11,021,524 $9,496,608 $21,505,625 $17,906,132
Other income 119,902 92,610 248,297 309,655
----------- ---------- ----------- -----------
11,141,426 9,589,218 21,753,922 18,215,787
----------- ---------- ----------- -----------
Operating cost
and expenses:
Cost of medical
services 6,724,869 5,738,179 13,267,470 10,900,401
Selling, general
and
administrative
expenses 3,454,250 2,901,470 6,698,011 5,696,940
Provision
for doubtful
accounts 204,649 200,042 452,643 348,337
----------- ---------- ----------- -----------
10,383,768 8,839,691 20,418,124 16,945,678
----------- ---------- ----------- -----------
Operating income 757,658 749,527 1,335,798 1,270,109
Other income
(expense):
Interest income
on officer/
director note 1,421 960 2,713 1,921
Interest expense
to parent (54,875) (7,758) (89,811) (10,776)
Other income,
net 44,538 21,806 76,393 44,100
----------- ---------- ----------- -----------
(8,916) 15,008 (10,705) 35,245
----------- ---------- ----------- -----------
Income before
income taxes,
minority interest
and equity in
affiliate
earnings 748,742 764,535 1,325,093 1,305,354
Income tax
provision 310,105 277,665 618,908 493,773
----------- ---------- ----------- -----------
Income before
minority interest
and equity in
affiliate earnings 438,637 486,870 706,185 811,581
Minority interest
in income of
consolidated
subsidiaries (89,131) (130,610) (152,401) (186,442)
Equity in affiliate
earnings 94,689 31,362 214,798 50,395
----------- ---------- ----------- -----------
Net income $ 444,195 $ 387,622 $ 768,582 $ 675,534
=========== ========== =========== ===========
Earnings per
share:
Basic $ .05 $ .05 $ .09 $ .08
=========== ========== =========== ===========
Diluted $ .05 $ .04 $ .08 $ .08
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