LINTHICUM, Md., Aug. 7, 2006 (PRIMEZONE) -- Dialysis Corporation of America (Nasdaq:DCAI) announced its financial results for the second quarter of 2006. Operating revenues for the second quarter were $14,458,000 compared to $11,141,000 for the same period last year, a 30% increase. Net income for the quarter was $595,000 or $.06 per share ($.06 diluted per share) compared to $444,000 or $.05 per share ($.05 diluted per share) for the same period last year, representing a 34% increase in net income. Operating revenues for the first half of 2006 were $27,675,000 compared to $21,754,000 for the same period last year, a 27% increase. Net income for the first half of 2006 was $1,114,000 or $.12 per share ($.12 diluted per share) compared to $769,000 or $.09 per share ($.08 diluted per share) for the same period last year, representing a 45% increase in net income.
Stephen Everett, President and Chief Executive Officer, commented, "The second quarter of 2006 resulted in continued growth for our company, with results in both operations and finance meeting expectations. As to be expected with the opening of new centers, Medicare provider numbers for 2 centers were pending at the end of the quarter, along with 5 Medicaid provider numbers. Both of the Medicare provider numbers and one of the Medicaid provider numbers were subsequently obtained in the third quarter. The centers that were newly opened during the past six months have successfully added patients beyond projections, and we completed final preparations for two centers that opened at the beginning of the third quarter. Second quarter pre-tax costs associated with the opening of new centers approximated $379,000, compared with $468,000 of such pre-tax costs for the first quarter of 2006. Additionally, non-cash stock compensation expense of $36,000 was included in our results for the quarter."
Dialysis Corporation of America currently owns or manages 32 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 2 new centers under development in Georgia 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, 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 the company's dialysis facilities can mature to provide profitability, the extensive 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 SEC, particularly as described in the company's annual report on Form 10-K for the fiscal year ended December 31, 2005. The historical results contained in this press release are not necessarily indicative of future performance of the company.
The company's press releases, corporate profile, corporate governance materials, quarterly and current reports, and other filings with the SEC are available on 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 Six Months Ended
June 30, June 30,
------------------------ ------------------------
2006 2005 2006 2005
----------- ----------- ----------- -----------
Operating revenues:
Sales
Medical services
revenue $14,066,900 $11,021,524 $26,938,553 $21,505,625
Product sales 214,168 -- 453,630 --
----------- ----------- ----------- -----------
Total sales
revenues 14,281,068 11,021,524 27,392,183 21,505,625
Other income 176,999 119,902 282,867 248,297
----------- ----------- ----------- -----------
14,458,067 11,141,426 27,675,050 21,753,922
----------- ----------- ----------- -----------
Operating costs
and expenses:
Cost of sales
Cost of medical
services 8,651,984 6,724,869 16,489,941 13,267,470
Cost of product
sales 131,936 -- 275,611 --
----------- ----------- ----------- -----------
Total cost of
sales revenues 8,783,920 6,724,869 16,765,552 13,267,470
Selling, general
and administrative
expenses
Corporate 1,616,541 1,295,212 3,019,128 2,412,935
Facility 2,147,134 1,747,932 4,188,207 3,463,833
----------- ----------- ----------- -----------
Total 3,763,675 3,043,144 7,207,335 5,876,768
Stock compensation
expense 36,386 -- 170,902 --
Depreciation and
amortization 540,898 411,106 1,086,008 821,243
Provision for
doubtful accounts 237,499 204,649 392,913 452,643
----------- ----------- ----------- -----------
13,362,378 10,383,768 25,622,710 20,418,124
----------- ----------- ----------- -----------
Operating income 1,095,689 757,658 2,052,340 1,335,798
Other income
(expense)
Interest income
on officer/
director note -- 1,421 -- 2,713
Interest expense
on note and
advances payable
to parent -- (54,875) -- (89,811)
Other income,
net 66,293 44,538 133,274 76,393
----------- ----------- ----------- -----------
66,293 (8,916) 133,274 (10,705)
----------- ----------- ----------- -----------
Income before
income taxes,
minority interest
and equity in
affiliate
earnings 1,161,982 748,742 2,185,614 1,325,093
Income tax
provision 442,411 310,105 859,385 618,908
----------- ----------- ----------- -----------
Income before
minority interest
and equity in
affiliate earnings 719,571 438,637 1,326,229 706,185
Minority interest
in income of
consolidated
subsidiaries (224,233) (89,131) (404,514) (152,401)
Equity in
affiliate
earnings 100,062 94,689 192,468 214,798
----------- ----------- ----------- -----------
Net income $ 595,400 $ 444,195 $ 1,114,183 $ 768,582
=========== =========== =========== ===========
Earnings per share:
Basic $ .06 $ .05 $ .12 $ .09
=========== =========== =========== ===========
Diluted $ .06 $ .05 $ .12 $ .08
=========== =========== =========== ===========
Basic weighted
average shares
outstanding 9,527,692 8,661,859 9,415,582 8,599,837
=========== =========== =========== ===========
Diluted weighted
average shares
outstanding 9,561,302 9,239,268 9,546,823 9,144,429
=========== =========== =========== ===========
DIALYSIS CORPORATION OF AMERICA AND SUBSIDIARIES
SUPPLEMENTAL OPERATING DATA
Six Months Ended
June 30,
------------------
2006 2005 Y/Y Change %
------- ------- ------------
Operating data:
Treatments:
Consolidated 94,130 78,615 19.7%
Managed 8,452 7,565 11.7%
------- -------
Total treatments 102,582 86,180 19.0%
Patient revenue per
treatment $286.18 $273.56 4.6%
Non-acquired growth data:
Non-acquired treatment growth 15% 27%
Non-acquired revenue per
treatment change 3% (6%)
Non-acquired patient revenue
growth 19% 20%
Key clinical metrics:
Treatment adequacy (% of pts
with Kt/V greater than 1.2) 95.75% 94.21%
Anemia management (% of pts
with Hgb greater than 11) 80.63% 80.40%
Venous access (% of pts
with AVF) 46.32% 43.43%