EX-99 3 prq.txt PRESS RELEASE Press Release Dialysis Corporation of America Reports Third Quarter 2007 Results Linthicum, Maryland, Wednesday, November 7, 2007 - Dialysis Corporation of America (NASDAQ-DCAI) announced its financial results for the third quarter of 2007. * Operating revenues for the third quarter were $19,173,000 compared to $16,586,000 for the same period last year, a 16% increase. * Net income for the third quarter was $927,000 or $.10 per share ($.10 diluted per share) compared to $814,000 or $.09 per share ($.08 diluted per share) for the same period last year, a 14% increase. * Operating revenues for the first nine months of 2007 were $54,549,000 compared to $44,261,000 for the same period last year, a 23% increase. * Net income for the first nine months of 2007 was $2,064,000 or $.22 per share ($.21 diluted per share) compared to $1,929,000 or $.20 per share ($.20 diluted per share) for the same period last year, a 7% increase. Stephen Everett, President and Chief Executive Officer, commented, "The quarter proved to be in line with our expectations and slightly ahead on a revenue per treatment basis, in spite of a small decrease in EPO usage on a per treatment basis. Simultaneously, our balance sheet is in great shape with both improved DSO and reduced borrowings. Our year over year planned increase in administrative costs was largely offset with decreases in new center start-up costs, and non-cash stock and option expenses. We are very pleased with our current position as we prepare to enter 2008. " Financial results for the period included: (i) pre-tax costs associated with the opening of new centers of $82,000 for the third quarter of 2007 compared to $324,000 for the same period last year, and $400,000 for the first nine months of 2007 compared to $1,171,000 for the same period last year; and (ii) non-cash stock and option compensation expense of $53,000 for the third quarter of 2007 compared to $122,000 for the same period last year and $254,000 for the first nine months of 2007 compared to $293,000 for the same period last year. Dialysis Corporation of America owns and operates freestanding kidney hemodialysis centers located in Georgia, Maryland, New Jersey, Ohio, Pennsylvania, South Carolina and Virginia, and provides in-hospital dialysis services on a contract basis to certain hospitals located in those states. The company provides patients with their choice of a full range of quality in-center, acute or at home hemodialysis services. The company has three new centers under development in Indiana, Ohio and South Carolina, and is engaged in negotiations for development of additional centers, as well as reviewing other potential growth opportunities. 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, 2006. 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, ------------------------- ------------------------- 2007 2006 2007 2006 ---- ---- ---- ---- Operating revenues: Sales Medical services revenue $18,819,993 $16,280,763 $53,534,708 $43,219,316 Product sales 272,029 223,651 803,620 677,281 ----------- ----------- ----------- ----------- Total sales revenues 19,092,022 16,504,414 54,338,328 43,896,597 Other income 80,910 82,010 210,319 364,877 ----------- ----------- ----------- ----------- 19,172,932 16,586,424 54,548,647 44,261,474 ----------- ----------- ----------- ----------- Operating costs and expenses: Cost of sales Cost of medical services 11,167,118 9,895,768 32,463,826 26,385,709 Cost of product sales 162,990 144,635 488,695 420,246 ----------- ----------- ----------- ----------- Total cost of sales revenues 11,330,108 10,040,403 32,952,521 26,805,955 Selling, general and administrative expenses Corporate 2,130,059 1,676,894 5,671,979 4,696,022 Facility 2,715,047 2,329,274 8,307,960 6,517,481 ----------- ----------- ----------- ----------- Total 4,845,106 4,006,168 13,979,939 11,213,503 Stock compensation expense 52,509 122,070 253,984 292,972 Depreciation and amortization 672,873 618,169 1,963,835 1,704,177 Provision for doubtful accounts 450,254 345,436 1,159,434 738,349 ----------- ----------- ----------- ----------- 17,350,850 15,132,246 50,309,713 40,754,956 ----------- ----------- ----------- ----------- Operating income 1,822,082 1,454,178 4,238,934 3,506,518 Other (expense) income, net (46,770) 255,166 (83,978) 388,440 ----------- ----------- ----------- ----------- Income before income taxes, minority and other equity interests and equity in affiliate earnings 1,775,312 1,709,344 4,154,956 3,894,958 Income tax provision 580,885 504,933 1,447,306 1,364,318 Income before minority and other equity interests and equity in affiliate earnings 1,194,427 1,204,411 2,707,650 2,530,640 Minority and other equity interests in income of consolidated subsidiaries (267,010) (414,482) (643,886) (818,996) Equity in affiliate earnings --- 24,459 --- 216,927 ----------- ----------- ----------- ----------- Net income $ 927,417 $ 814,388 $ 2,063,764 $ 1,928,571 =========== =========== =========== =========== Earnings per share: Basic $.10 $.09 $.22 $.20 ==== ==== ==== ==== Diluted $.10 $.08 $.21 $.20 ==== ==== ==== ==== Weighted average shares outstanding: Basic 9,573,596 9,549,079 9,572,656 9,460,570 ========= ========= ========= ========= Diluted 9,604,278 9,599,004 9,609,136 9,565,308 ========= ========= ========= =========
- more - DIALYSIS CORPORATION OF AMERICA AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
September 30, December 31, 2007 2006(A) ------------ ------------ (Unaudited) Assets Current assets: Cash and cash equivalents $ 4,256,819 $ 3,491,569 Accounts receivable, less allowance of $2,380,000 at September 30, 2007; $2,512,000 at December 31, 2006 18,839,388 15,695,302 Inventories, less allowance for obsolescence of $78,000 at September 30, 2007 and December 31, 2006 2,109,336 1,985,415 Deferred income tax asset 1,105,000 1,105,000 Prepaid expenses and other current assets 2,982,418 3,178,788 Prepaid and refundable income taxes 174,174 174,174 ----------- ----------- Total current assets 29,467,135 25,630,248 ----------- ----------- Property and equipment: Land 1,333,191 1,338,191 Buildings and improvements 5,705,642 6,128,626 Machinery and equipment 13,086,893 12,056,713 Leasehold improvements 9,116,985 7,921,149 ----------- ----------- 29,242,711 27,444,679 Less accumulated depreciation and amortization 12,812,781 11,091,432 ----------- ----------- 16,429,930 16,353,247 ----------- ----------- Deferred income taxes --- 359,295 Goodwill 8,386,599 6,681,160 Other assets 1,039,787 831,776 ----------- ----------- Total other assets 9,426,386 7,872,231 ----------- ----------- $55,323,451 $49,855,726 =========== =========== Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 2,979,214 $ 1,998,125 Accrued expenses 6,126,458 5,744,348 Income taxes payable 140,557 660,092 Current portion of long-term debt 56,000 130,000 ----------- ----------- Total current liabilities 9,302,229 8,532,565 Deferred income taxes 542,138 --- Long-term debt, less current portion 9,623,126 8,618,325 ----------- ----------- Total liabilities 19,467,493 17,150,890 ----------- ----------- Minority interest in subsidiaries 4,892,600 3,643,347 Commitments and Contingencies Stockholders' equity: Common stock, $.01 par value, authorized 20,000,000 shares: 9,573,596 shares issued and outstanding at September 30, 2007; 9,564,346 shares issued and outstanding at December 31, 2006 95,735 95,643 Additional paid-in capital 15,567,219 15,729,206 Retained earnings 15,300,404 13,236,640 ----------- ----------- Total stockholders' equity 30,963,358 29,061,489 ----------- ----------- $55,323,451 $49,855,726 =========== ===========
(A) Reference is made to the company's Annual Report on Form 10-K for the year ended December 31, 2006 filed with the Securities and Exchange Commission in March, 2007. - more - DIALYSIS CORPORATION OF AMERICA AND SUBSIDIARIES SUPPLEMENTAL OPERATING DATA
Nine Months Ended September, 30, ------------------------------- 2007 2006 Y/Y Change % ---- ---- ------------ Operating data: Treatments: Consolidated 178,372 148,607 20.0% Managed 8,290 11,669 -29.0% Total treatments 186,662 160,276 16.5% Patient revenue per treatment $300.13 $290.83 3.2% Non-acquired growth data: Non-acquired treatment growth 6% 9% Non-acquired revenue per treatment change 1% 7% Non-acquired patient revenue growth 7% 16% Key clinical metrics: Treatment adequacy (% of pts with Kt/V greater than 1.2) 95.00% 95.69% Anemia management (% of pts with Hgb greater than 11) 82.02% 80.43% Venous access (% of pts with AVF) 49.83% 47.01%
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