e8-k

-----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, CN7q1cglJEKnt91crSxphD8lYxr0fAvQ8OAKMKP/+7gTaS4Oms4EhOznfwtaVPin 5zZszAbU6/AcL5EVVgeGUA== 0000950144-02-004799.txt : 20020507 0000950144-02-004799.hdr.sgml : 20020507 ACCESSION NUMBER: 0000950144-02-004799 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20020507 ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: FILED AS OF DATE: 20020507 FILER: COMPANY DATA: COMPANY CONFORMED NAME: RENAL CARE GROUP INC CENTRAL INDEX KEY: 0000920052 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-MISC HEALTH & ALLIED SERVICES, NEC [8090] IRS NUMBER: 621622383 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-16733 FILM NUMBER: 02635345 BUSINESS ADDRESS: STREET 1: 2100 WEST END AVENUE STREET 2: SUITE 800 CITY: NASHVILLE STATE: TN ZIP: 37203 BUSINESS PHONE: 6153455500 8-K 1 g76017e8-k.htm RENAL CARE GROUP, INC. e8-k

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): May 7, 2002

RENAL CARE GROUP, INC.
(Exact name of registrant as specified in its charter)


Delaware	0-27640	62-1622383

(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

2100 West End Avenue, Suite 800, Nashville, Tennessee 37203

(Address, including zip code, of principal executive offices)

(615) 345-5500

(Registrant’s telephone number, including area code)

Item 7. Financial Statements and Exhibits.


(c)	Exhibits.

	99.1	Slide presentation to be used at analyst and shareholder meetings between May 7, 2002 and June 30, 2002.

Item 9. Regulation FD Disclosure.

Beginning on or about May 7, 2002 and continuing through no later than June 30, 2002, one or more officers of Registrant will make slide presentations to a number of shareholders of Registrant, as well as potential investors and investment analysts. The slide presentation contains, among other things, forward-looking information about Registrant and its business. The slides that the Registrant will use in these presentations are attached to this Current Report on Form 8-K as Exhibit 99.1.

Certain statements in the slide presentation constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect management’s expectations and are based on currently available information. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of Renal Care Group to differ materially from those expressed or implied by the forward-looking statements, including risks related to: the integration of acquired businesses; compliance with health care and other applicable laws; changes in the Medicare and Medicaid programs; payment reductions by private insurers, hospitals or managed care organizations; reductions in reimbursement for Epogen; increases in the price of Epogen or shortages of Epogen; competition; and changes in the health care delivery, financing or reimbursement systems. These and other factors affecting the company are discussed in more detail in Renal Care Group’s reports filed with the Securities and Exchange Commission, including without limitation, Renal Care Group’s annual report on Form 10-K for the year ended December 31, 2001.

The information in this current report on Form 8-K is furnished pursuant to Item 9 and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section. This current report on Form 8-K will not be deemed an admission as to the materiality of any information in the report that is required to be disclosed solely by Regulation FD. The Registrant undertakes no duty to update the information in this report and warns readers that the information included in this report will become stale after June 30, 2002.

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.


	RENAL CARE GROUP, INC.

	By:	/s/ R. Dirk Allison

	Name:	R. Dirk Allison

	Title:	Chief Financial Officer


Date: May 6, 2002

INDEX TO EXHIBITS


Exhibit Number		Description of Exhibits

99.1		Slide presentation to be used at analyst and shareholder meetings between May 7, 2002 and June 30, 2002

EX-99.1 3 g76017ex99-1.txt SLIDE PRESENTATION Exhibit 99.1 Slide presentation to be used at analyst and shareholder meetings between May 7, 2002 and June 30, 2002 [logo]Renal Care Group NYSE Symbol RCI Forward-Looking Statements Some of the information included in this presentation is forward-looking information and is given in reliance on the safe harbor provided by the private securities litigation reform act. These forward-looking statements involve risks and uncertainties. Our actual results could differ materially from these forward looking statements due to certain factors, including business and economic conditions and the availability of financing. These and other risks and uncertainties are discussed in RCG's reports filed with the SEC, including our annual report on form 10-K and our quarterly reports on form 10-Q. [logo]Renal Care Group KEY INVESTMENT POINTS - - Strong U.S. market growth of 5-6% annually - - Predictable and recurring revenues - - Excellent patient outcomes drive volume growth above market average - - Proven cost management - - Prudent capital structure and strong free cash flow - - Selective acquisition opportunities [logo]Renal Care Group COMPANY INFORMATION [logo]Renal Care Group COMPANY PROFILE - - Specialized provider of dialysis services - - Physician-driven heritage - - Strong regional market presence - - Cost-effective, quality care - - Commitment to quality care drives value creation - Medical outcomes improved - Financial performance enhanced [logo]Renal Care Group GROWTH IN PATIENTS [Graph showing patient growth from 5,200 in 1996 to 8,240 in 1997 to 11,380 in 1998, to 14,500 in 1999 to 16,500 in 2000, to 18,800 as of December 31, 2001] [logo]Renal Care Group CURRENT LOCATIONS 26 States Medium size [Map showing current locations in the states of Alabama, Alaska, Arizona, Arkansas, Colorado, Florida, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Michigan, Mississippi, Missouri, Nebraska, New Jersey, New Mexico, Ohio, Oklahoma, Oregon, Pennsylvania, Tennessee, Texas, Washington and Wisconsin] [logo] Corporate Office, Nashville Tennessee [character] Regional Offices [character] University Affiliations [character] Outpatient Dialysis Centers [logo] Renal Care Group STRONG REGIONAL MARKET PRESENCE [Chart showing market presence at December 31, 2000]
Market Market Share No. of Patients - ------ ------------ --------------- Indiana/Ohio 48% 3,000 South and East Texas 43% 2,230 Mississippi 49% 2,050 Phoenix, AZ 38% 1,950 S. Chicago, IL 34% 1,760 Central Arkansas 39% 660 Portland, OR/Washington 70% 1,145 Western Kansas 45% 550 Weighted Average Share 30-35%
[logo]Renal Care Group INDUSTRY OVERVIEW [logo]Renal Care Group ATTRACTIVE INDUSTRY FUNDAMENTALS - - Expanding ESRD patient population - High rates of diabetes and hypertension - Aging population - Increasing survival on dialysis - - Recurring and predictable revenues with recent increases from Medicare - - Patients qualify regardless of age - - Positive consolidation momentum [logo]Renal Care Group U.S. DIALYSIS PROVIDERS [Pie chart showing dialysis providers in the United States, reflecting market shares as follows: 27% for Fresenius; 15% for DaVita; 15% for Gambro; 7% for Renal Care Group; 18% for hospitals; 13% for other independent providers; 5% for independent chain providers; chart also shows total patients of approximately 260,000, with 80,600 patients being treated by hospital-based programs and other independent providers and with new patients of 4,000 for hospital-based programs and other independent providers] [logo]Renal Care Group OPERATING STRATEGY [logo]Renal Care Group OPERATING STRATEGY - - Optimal care drives superior financial results - Clinical objectives aligned with financial interests - - Medical Board is leveraging best practices across the Company - Benchmarking across the Company - Reviewing data and best practice implementation on quarterly basis - Continuously improving outcomes - - Above industry average clinical outcomes [logo]Renal Care Group UREA REDUCTION RATE Percent Patients with URR greater than or equal to 70% Goal = 85.0% [Graph showing percentage of RCG patients with a urea reduction rate greater than or equal to 70% on a quarterly basis from 1998 through first quarter 2002. RCG results are as follows: 1999 -- Q1 66.4%, Q2 66.5%, Q3 70.0%, Q4 73.4%; 2000 - -- Q1 70.8%, Q2 71.2%, Q3 73.2%, Q4 72.5%; 2001 -- Q1 72.4%, Q2 71.7%, Q3 73.3%, Q4 74.3%; 2002 - Q1 76.4%.] [logo]Renal Care Group UREA REDUCTION RATE Percent Patients with URR greater than or equal to 65% [Bar chart showing national average percentage of patients with URR greater than or equal to 65% of 82.0% for the year 1999 compared to RCG Q1 2002 percentage of 89.2%.] [logo]Renal Care Group HEMATOCRIT Hematocrit Levels, HD + PD Pts Percent Patients with Hct greater than or equal to 33% Goal = 75.0% [Graph showing percentage of RCG patients with a hematocrit levels greater than or equal to 33% on a quarterly basis from 1998 through first quarter 2002. RCG results are as follows: 1999 -- Q1 65.9%, Q2 68.9%, Q3 70.5%, Q4 71.8%; 2000 -- Q1 72.8%, Q2 72.9%, Q3 72.5%, Q4 72.7%; 2001 -- Q1 72.7%, Q2 74.6%, Q3 75.6%, Q4 75.5%; 2002 - Q1 76.1%.] [logo]Renal Care Group HOSPITALIZATION Hospital Days/Patient/Year [Bar chart showing national average hospitalization of 14.1 days per patient per year for 1999 compared to RCG "Rolling" Twelve Months ended March 31, 2002 of 12.0 days per patient per year] [logo]Renal Care Group MORTALITY [Bar chart showing national average mortality rate of 24.5% for ESRD patients for 1999 compared to RCG "Rolling" Twelve Months ended March 31, 2002 of 22.2%] [logo]Renal Care Group FINANCIAL INFORMATION [logo]Renal Care Group EARNINGS PER SHARE [Bar chart showing earnings per share for the years ended December 31, 1996 through 2001 and separate chart showing earnings per share for the first quarters of 2001 and 2002, all earnings are prior to restatements for the Dialysis Centers of America merger and the Renal Disease Management by Physicians merger. Results shown are as follows: 1996 -- $0.42; 1997 -- $0.57; 1998 -- $0.84; 1999 -- $1.12; 2000 -- $1.31; 2001 - $1.52; Q1 2001 -- $0.36; Q1 2002 -- $0.42.] [logo]Renal Care Group REVENUE ($ in thousands) [Bar chart showing revenue for the years ended December 31, 1996 through 2001 and separate chart showing revenue for the first quarters of 2001 and 2002, all revenue reflected are prior to restatements for the Dialysis Centers of America merger and the Renal Disease Management by Physicians merger. Results shown are as follows: 1996 -- $135.9 million; 1997 -- $214.0 million; 1998 -- $369.4 million; 1999 -- $520.6 million; 2000 -- $624.6 million; 2001 - $755.1; Q1 2001 - -- $174.8 million; Q1 2002 -- $206.6.] [logo]Renal Care Group INCREASING EBITDA MARGINS [Bar chart showing EBITDA margins for the years ended December 31, 1996 through 2001 and first quarters 2001 and 2002, all EBITDA margins reflected are prior to restatements for the Dialysis Centers of America merger and the Renal Disease Management by Physicians merger. Results shown are as follows: 1996 -- 18.2%; 1997 -- 19.4%; 1998 -- 22.2%; 1999 -- 23.6%; 2000 -- 23.8%; 2001 - 24.0%; Q1 2001 - 23.8%; Q1 2002 - 23.7%.] [logo]Renal Care Group COMPLETED ACQUISITIONS 2002
Group Patients ----- -------- North Mississippi Medical 500 Mt. Carmel 115 Tenet - St. Louis 130 Bloomington, IN 110 DVD - Philadelphia 275 ----- 1,130 =====
[logo]Renal Care Group Acquisition Performance
When Acquired(1) 2001 ----------- ---- Patients 4,365 6,268 Revenues (in thousands) $ 132,700 $ 243,736 EBITDA 20.0% 25.7% Days Sales Outstanding 81 60 Patients with URR greater than or equal to 70% 48% 72% Patients with Hct greater than or equal to 30% 79% 89%
(1) All 1996 and 1997 acquisitions [logo]Renal Care Group FREE CASH FLOW ($ in thousands)
2001 2002E ---- ----- EBITDA $ 180,000 $ 205,000 CapEx 65,000 55,000 Taxes 35,000 50,000 Interest 3,000 0 Working Capital 0 20,000 Free Cash Flow 77,000 80,000
[logo]Renal Care Group Capital Structure March 31, 2002 ($ in thousands) Long-Term Debt $ 3,700 0.7% Stockholders' Equity 530,000 -------- Total Capital $533,700 ======== EBITDA = $205 million [2002E]

[logo]Renal Care Group LINE OF CREDIT STATUS March 31, 2002 Total Amount $129,500,000 Amount Outstanding $ 0 ------------ Amount Available $129,500,000 ============ Borrowing Rate 5.0%

[logo]Renal Care Group KEY INVESTMENT POINTS - - Strong U.S. market growth of 5-6% annually - - Predictable and recurring revenues - - Excellent patient outcomes drive volume growth above market average - - Proven cost management - - Prudent capital structure and strong free cash flow - - Selective acquisition opportunities [logo]Renal Care Group [logo]Renal Care Group NYSE Symbol RCI ~~-----END PRIVACY-ENHANCED MESSAGE-----~~