-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, CBRKJGHctO7KTurTcdSm2gGJaGSGReWfPXFFBj7G18DPkFl7A8g3K71iNjPzfe0P kvH7JMIFqWPgYwq9ucUqAA== 0001028212-06-000029.txt : 20061113 0001028212-06-000029.hdr.sgml : 20061110 20061113093111 ACCESSION NUMBER: 0001028212-06-000029 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20061113 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20061113 DATE AS OF CHANGE: 20061113 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DIALYSIS CORP OF AMERICA CENTRAL INDEX KEY: 0000201653 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-HOSPITALS [8060] IRS NUMBER: 591757642 STATE OF INCORPORATION: FL FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-08527 FILM NUMBER: 061205724 BUSINESS ADDRESS: STREET 1: 27 MILLER AVENUE CITY: LEMOYNE STATE: PA ZIP: 17043 BUSINESS PHONE: 7177306164 MAIL ADDRESS: STREET 1: 27 MILLER AVENUE CITY: LEMOYNE STATE: PA ZIP: 17043 8-K 1 dca8kpr4q.txt DIALYSIS CORPORATION OF AMERICA FORM 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 __________ FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported) November 13, 2006 (November 9, 2006) __________ DIALYSIS CORPORATION OF AMERICA (Exact name of registrant as specified in its charter) Florida 0-8527 59-1757642 (State or other jurisdiction (Commission (IRS Employer of incorporation) File Number) Identification No.) 1302 Concourse Drive, Suite 204, Linthicum, MD 21090 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (410) 694-0500 Not Applicable (Former name or former address, if changed since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 2.02 Results of Operations and Financial Condition. On November 9, 2006, Dialysis Corporation of America issued a press release announcing the financial results for its third quarter ended September 30, 2006. A copy of the November 9, 2006 press release is attached as an exhibit to this Current Report and is incorporated herein by reference. The information furnished pursuant to Item 2.02, including the Exhibit (99)(i), shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed to be incorporated by reference in any filing under the Securities Act of 1933. Item 9.01 Financial Statements and Exhibits (d) Exhibits (99) Additional exhibits (i) Press Release dated November 9, 2006. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. DIALYSIS CORPORATION OF AMERICA /s/ Stephen W. Everett By------------------------------------ STEPHEN W. EVERETT President and Chief Executive Officer Dated: November 13, 2006 EXHIBIT INDEX Exhibit Number ------- (99)(i) Press Release dated November 9, 2006. EX-99.1 2 ex99.txt EXHIBIT 99.1 - PRESS RELEASE Press Release Dialysis Corporation of America Reports Third Quarter 2006 Results Linthicum, Maryland, Thursday, November 9, 2006 - 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. CONTACT: For additional information, you may contact Stephen Everett, President and CEO of Dialysis Corporation of America, 1302 Concourse Drive, Suite 204, Linthicum, MD 21090; Telephone No. (410) 694-0500. - more - 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/director 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 =========== =========== =========== ===========
- more - 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 with Kt/V greater than 1.2) 95.69% 94.64% Anemia management (% of pts with Hgb greater than 11) 80.43% 80.31% Venous access (% of pts with AVF) 47.01% 42.89%
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