LINTHICUM, Md., Nov. 9, 2006 (PRIMEZONE) -- Dialysis Corporation of America (Nasdaq:DCAI) announced its financial results for the third quarter of 2006. Operating revenues for the third quarter were $16,586,000 compared to $11,481,000 for the same period last year, a 44% increase. Net income for the quarter was $814,000 or $.09 per share ($.08 diluted per share) compared to $537,000 or $.06 per share ($.06 diluted per share) for the same period last year, representing a 52% increase in net income. Operating revenues for the first nine months of 2006 were $44,261,000 compared to $33,235,000 for the same period last year, a 33% increase. Net income for the first nine months of 2006 was $1,929,000 or $.20 per share ($.20 diluted per share) compared to $1,306,000 or $.15 per share ($.15 diluted per share) for the same period last year, representing a 48% increase in net income.
Stephen Everett, President and Chief Executive Officer, commented, "We are pleased with our results for the third quarter of 2006, which have again demonstrated our commitment to building Dialysis Corporation of America, including opening two new centers during the quarter, while increasing shareholder value. We are currently developing three additional centers and have a solid pipeline of new opportunities that are being explored."
Financial results for the period included operating revenues of approximately $698,000 for our Toledo, Ohio subsidiary, which has been consolidated for financial recording purposes since August 1, pre-tax costs associated with the opening of new centers of $324,000 for the third quarter of 2006 and $1,171,000 for the first nine months of 2006. Non-cash stock compensation expense of $122,000 was included in our results of operations for the third quarter with such costs totaling $293,000 for the first nine months of 2006. Additionally, we incurred costs of $163,000 during the third quarter and $177,000 for the first nine months of 2006 for review and implementation costs related to Sarbanes-Oxley Section 404 compliance, which was offset by $215,000 of non-recurring revenues associated with litigation settlements.
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 three 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 Nine Months Ended
September 30, September 30,
------------------------ ------------------------
2006 2005 2006 2005
----------- ----------- ----------- -----------
Operating revenues:
Sales
Medical services
revenue $16,280,763 $11,372,722 $43,219,316 $32,878,347
Product sales 223,651 -- 677,281 --
----------- ----------- ----------- -----------
Total sales
revenues 16,504,414 11,372,722 43,896,597 32,878,347
Other income 82,010 108,321 364,877 356,618
----------- ----------- ----------- -----------
16,586,424 11,481,043 44,261,474 33,234,965
----------- ----------- ----------- -----------
Operating costs and
expenses:
Cost of sales
Cost of medical
services 9,895,768 7,178,936 26,385,709 20,446,406
Cost of product
sales 144,635 -- 420,246 --
----------- ----------- ----------- -----------
Total cost of
sales revenues 10,040,403 7,178,936 26,805,955 20,446,406
Selling, general
and administrative
expenses
Corporate 1,676,894 889,797 4,696,022 3,302,732
Facility 2,329,274 1,793,585 6,517,481 5,257,418
----------- ----------- ----------- -----------
Total 4,006,168 2,683,382 11,213,503 8,560,150
Stock compensation
expense 122,070 -- 292,972 --
Depreciation and
amortization 618,169 422,858 1,704,177 1,244,101
Provision for
doubtful accounts 345,436 222,130 738,349 674,773
----------- ----------- ----------- -----------
15,132,246 10,507,306 40,754,956 30,925,430
----------- ----------- ----------- -----------
Operating income 1,454,178 973,737 3,506,518 2,309,535
Other income
(expense)
Interest income
on officer/directo
note -- 1,578 -- 4,291
Interest expense on
note and advances
payable to parent -- (67,780) -- (157,591)
Other income,
net 255,166 50,857 388,440 127,250
----------- ----------- ----------- -----------
255,166 (15,345) 388,440 (26,050)
----------- ----------- ----------- -----------
Income before
income taxes,
minority and other
equity interests
and equity in
affiliate earnings 1,709,344 958,392 3,894,958 2,283,485
Income tax
provision 504,933 352,202 1,364,318 971,110
----------- ----------- ----------- -----------
Income before
minority and other
equity interests
and equity in
affiliate earnings 1,204,411 606,190 2,530,640 1,312,375
Minority and other
equity interests
in income of
consolidated
subsidiaries (414,482) (128,230) (818,996) (280,631)
Equity in affiliate
earnings 24,459 59,024 216,927 273,822
----------- ----------- ----------- -----------
Net income $ 814,388 $ 536,984 $ 1,928,571 $ 1,305,566
=========== =========== =========== ===========
Earnings per share:
Basic $ .09 $ .06 $ .20 $ .15
=========== =========== =========== ===========
Diluted $ .08 $ .06 $ .20 $ .15
=========== =========== =========== ===========
Weighted average
shares
outstanding:
Basic 9,549,079 8,715,136 9,460,570 8,957,843
=========== =========== =========== ===========
Diluted 9,599,004 9,171,192 9,565,308 9,499,951
=========== =========== =========== ===========
DIALYSIS CORPORATION OF AMERICA AND SUBSIDIARIES
SUPPLEMENTAL OPERATING DATA
Nine Months Ended September, 30,
---------------------------------
2006 2005 Y/Y Change %
----------- ----------- -----------
Operating data:
Treatments:
Consolidated 148,607 120,088 23.7%
Managed 11,669 11,538 1.1%
----------- ----------- -----------
Total treatments 160,000 131,626 21.8%
Patient revenue per treatment $ 290.83 $ 273.79 6.2%
Non-acquired growth data:
Non-acquired treatment growth 9% 3%
Non-acquired revenue per
treatment change 9% (6)%
Non-acquired patient revenue
growth 18% (3)%
Key clinical metrics:
Treatment adequacy (% of pts 95.69% 94.64%
with Kt/V greater than 1.2)
Anemia management (% of pts
with Hgb greater than 11) 80.43% 80.31%
Venous access (% of pts
with AVF) 47.01% 42.89%