LINTHICUM, Md., Nov. 9, 2005 (PRIMEZONE) -- Dialysis Corporation of America (Nasdaq:DCAI) announced financial results for the third quarter of 2005. Operating revenues for the third quarter of 2005 were $11,481,000 compared to $10,979,000 for the same period last year. Net income for the quarter was $537,000 or $.06 per share ($.06 diluted per share) compared to $776,000 or $.09 per share ($.09 diluted per share) for the same period last year, beating analyst estimates for the third quarter by $.02. Operating revenues for the first three quarters of 2005 were $33,235,000 compared to $29,194,000 for the same period last year. Net income for the first three quarters of 2005 was $1,306,000 or $.15 per share ($.14 diluted per share) compared to $1,452,000 or $.18 per share ($.17 diluted per share) for the same period last year.
Stephen Everett, President and Chief Executive Officer, commented, "The third quarter of 2005 proved to be another highlight for our growing company. We opened two new dialysis centers, began construction on two more, and completed the merger with our former parent company, Medicore, Inc. Our financial health continues to be strong, even with the ongoing industry-wide reimbursement pressure from private payors and the costs associated with the opening of new centers, approximately $291,000 for the quarter, which were the principal factors in the reduced earnings for the third quarter. As we enter the fourth quarter of 2005, the company has opened another new center in October, and completed the establishment of a $15,000,000 revolving line of credit with Keybank. It is also gratifying to beat analyst estimates for our company as we continue to see increased institutional interest, and the recent recognition by Forbes Magazine as one of the top 20 small companies in the country."
Separately, the company reiterates that its Vice President of Finance and Chief Financial Officer had requested a leave of absence to address personal private matters, which leave was granted by the company. The reasons for such request had nothing to do with the business or operations of the company.
Dialysis Corporation of America currently owns or manages 26 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 four new centers under development in Georgia, Pennsylvania and South Carolina.
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, 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, pricing pressure from private payors, 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/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, our corporate profile, corporate governance materials, quarterly and current reports, 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 STATEMENTS OF INCOME
(UNAUDITED)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------------ ------------------------
2005 2004 2005 2004
----------- ----------- ----------- -----------
Operating revenues:
Medical service
revenue $11,372,722 $10,857,444 $32,878,347 $28,763,576
Other income 108,321 121,173 356,618 430,828
----------- ----------- ----------- -----------
11,481,043 10,978,617 33,234,965 29,194,404
----------- ----------- ----------- -----------
Operating cost
and expenses:
Cost of medical
services 7,178,936 6,051,469 20,446,406 16,951,870
Selling, general
and
administrative 3,106,240 3,115,095 9,804,251 8,812,035
expenses
Provision for
doubtful
accounts 222,130 303,416 674,773 651,753
----------- ----------- ----------- -----------
10,507,306 9,469,980 30,925,430 26,415,658
----------- ----------- ----------- -----------
Operating income 973,737 1,508,637 2,309,535 2,778,746
Other income
(expense):
Interest income
on officer/
director note 1,578 1,074 4,291 2,995
Interest expense
to former parent (67,780) (17,180) (157,591) (27,956)
Other income, net 50,857 17,717 127,250 61,817
----------- ----------- ----------- -----------
(15,345) 1,611 (26,050) 36,856
----------- ----------- ----------- -----------
Income before
income taxes,
minority interest
and equity in
affiliate earnings 958,392 1,510,248 2,283,485 2,815,602
Income tax
provision 352,202 554,311 971,110 1,048,084
----------- ----------- ----------- -----------
Income before
minority interest
and equity in
affiliate earnings 606,190 955,937 1,312,375 1,767,518
Minority interest
in income
of consolidated
subsidiaries (128,230) (302,129) (280,631) (488,571)
Equity in
affiliate earnings 59,024 122,375 273,822 172,770
----------- ----------- ----------- -----------
Net income $ 536,984 $ 776,183 $ 1,305,566 $ 1,451,717
=========== =========== =========== ===========
Earnings per share:
Basic $ .06 $ .09 $ .15 $ .18
=========== =========== =========== ===========
Diluted $ .06 $ .09 $ .14 $ .17
=========== =========== =========== ===========
See notes to consolidated financial statements.
DIALYSIS CORPORATION OF AMERICA AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
September 30, December 31,
2005 2004(A)
----------- -----------
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 3,411,895 $ 601,603
Accounts receivable, less allowance
of $1,897,000 at September 30, 2005;
$1,636,000 at December 31, 2004 9,178,065 8,592,476
Inventories, less allowance for
obsolescence of $91,000 at
September 30, 2005 1,581,817 1,297,782
Deferred income tax asset 838,000 720,000
Officer loan and interest receivable 115,987 111,696
Prepaid expenses and other current
assets 1,324,168 1,164,110
Prepaid and refundable income taxes 1,319,596 58,913
----------- -----------
Total current assets 17,769,528 12,546,580
----------- -----------
Property and equipment:
Land 1,369,697 376,211
Buildings and improvements 3,809,935 2,352,191
Machinery and equipment 9,543,371 8,087,349
Leasehold improvements 6,364,637 4,674,704
----------- -----------
21,087,640 15,490,455
Less accumulated depreciation and
amortization 8,129,343 6,496,571
----------- -----------
12,958,297 8,993,884
----------- -----------
Deferred income taxes 2,104,042 ---
Goodwill 3,649,014 3,649,014
Other assets 1,321,801 1,300,236
----------- -----------
Total other assets 7,074,857 4,949,250
----------- -----------
$37,802,682 $26,489,714
=========== ===========
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $1,413,751 $ 1,625,930
Accrued expenses 5,455,996 4,921,769
Employment contract liability 1,960,000 ---
Note payable and accrued interest
payable to former parent --- 1,461,647
Current portion of long-term debt 1,029,000 513,000
Acquisition liabilities - current portion 380,298 380,298
----------- -----------
Total current liabilities 10,239,045 8,902,644
Advances from former parent --- 449,117
Long-term debt, less current portion 669,310 1,585,936
Acquisition liabilities, net of
current portion 380,297 380,297
Deferred income tax liability --- 559,000
----------- -----------
Total liabilities 11,288,652 11,876,994
----------- -----------
Minority interest in subsidiaries 1,677,827 1,282,924
Commitments and Contingencies
Stockholders' equity:
Common stock, $.01 par value,
authorized 20,000,000 shares:
9,115,668 shares issued and outstanding
at September 30, 2005; 8,485,815
shares issued and outstanding at
December 31, 2004 91,157 84,858
Additional paid-in capital 15,151,688 4,957,146
Retained earnings 9,593,358 8,287,792
----------- -----------
Total stockholders' equity 24,836,203 13,329,796
----------- -----------
$37,802,682 $26,489,714
=========== ===========
(A) Reference is made to the company's Annual Report on Form 10-K
for the year ended December 31, 2004 filed with the Securities
and Exchange Commission in March, 2005, and amended on
Form 10-K/A1 dated August 9, 2005.
See notes to consolidated financial statements.