-----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, I/uwppkUO7oLp3vxeSyipAeSS/0sBePpTUMVrROlMQ7dEteDh5dTvMKAxWF7Mk1y GJNFSDlBkHXOWqUBRlg+Mw== 0000950144-03-005955.txt : 20030501 0000950144-03-005955.hdr.sgml : 20030501 20030501164035 ACCESSION NUMBER: 0000950144-03-005955 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030501 ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030501 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: 03677282 BUSINESS ADDRESS: STREET 1: 2100 WEST END AVENUE STREET 2: SUITE 800 CITY: NASHVILLE STATE: TN ZIP: 37203 BUSINESS PHONE: 6153455500 8-K 1 g82509e8vk.htm RENAL CARE GROUP, INC. - FORM 8-K RENAL CARE GROUP, INC. - FORM 8-K
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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 1, 2003
   

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.)

2525 West End Avenue, Suite 600, Nashville, Tennessee 37203

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

(615) 345-5500

(Registrant’s telephone number, including area code)

 

SIGNATURES
INDEX TO EXHIBITS
EX-99.1 SLIDE PRESENTATION

Table of Contents

Item 7.   Financial Statements and Exhibits.

      (c)      Exhibits.

     
99.1   Slide presentation to be used at analyst and shareholder meetings between May 1, 2003 and June 30, 2003.

Item 9.    Regulation FD Disclosure.

      Beginning on or about May 1, 2003 and continuing through no later than June 30, 2003, 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 the drug 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, 2002.

      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, 2003.

 

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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: April 30, 2003        

 

Table of Contents

INDEX TO EXHIBITS

     
Exhibit Number   Description of Exhibits
 
99.1   Slide presentation to be used at analyst and shareholder meetings between May 1, 2003 and June 30, 2003

  EX-99.1 3 g82509exv99w1.txt EX-99.1 SLIDE PRESENTATION Exhibit 99.1 Slide presentation to be used at analyst and shareholder meetings between May 1, 2003 and June 30, 2003 [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. These and other risks and uncertainties are discussed in more detail in RCI'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 - - Prudent capital structure and strong free cash flow - - De novo development - - Selective acquisition opportunities [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 - - Patients qualify for Medicare regardless of age - - Attractive financial returns through de novo development [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 280,000, with 87,000 patients being treated by hospital-based programs and other independent providers and with new patients of 4,300 for hospital-based programs and other independent providers] [logo]Renal Care Group COMPANY INFORMATION [logo]Renal Care Group RENAL CARE GROUP PROFILE - - Specialized provider of dialysis services - - Physician-driven heritage - - Commitment to quality care drives value creation - Improved medical outcomes - Enhanced financial performance - - Strong regional market presence - - Conservative financial management [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 in 2001, to 20,500 as of December 31, 2002] [logo]Renal Care Group CURRENT LOCATIONS 27 States Medium size [Map showing current locations (of dialysis facilities, corporate office, university affiliations and planned de novo dialysis facilities) 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, South Carolina, Tennessee, Texas, Washington and Wisconsin] [logo] Corporate Office, Nashville Tennessee [character] University Affiliations [Chicago, Illinois; Cleveland, Ohio; Denver, Colorado; Houston, Texas; Jackson, Mississippi; Lexington, Kentucky, Louisville, Kentucky; Milwaukee, Wisconsin; Nashville, Tennessee; Portland, Oregon; St. Louis, Missouri] [character] Outpatient Dialysis Centers [character] 2003 Planned De Novos [logo] Renal Care Group STRONG REGIONAL MARKET PRESENCE [Chart showing market presence at December 31, 2002]
Market Market Share No. of Patients - ------ ------------ --------------- Alaska 100.0% 226 East Texas 76.0% 815 Mississippi 62.0% 2,797 Western Kansas 51.0% 464 South Texas 42.0% 1,111 Ohio 37.0% 1,751 Memphis, TN 33.0% 457 Phoenix, AZ 32.0% 1,620 Indiana 23.0% 1,536 Target 30-35%
[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 Advisory Board sets best practices - Benchmarking across the Company - Continuously improving outcomes - - Above industry average clinical outcomes [logo]Renal Care Group UREA REDUCTION RATIO 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 1999 through first quarter 2003. 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%, Q2 74.7%, Q3 75.9%, Q4 75.6%; 2003 -- Q1 75.7%] [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 1999 through first quarter 2003. 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 76.0%, Q2 75.3%, Q3 77.3%, Q4 76.6%; 2003 -- Q1 78.2%.] [logo]Renal Care Group HOSPITALIZATION Hospital Days/Patient/Year [Bar chart showing national average hospitalization of 14.4 days per patient per year for 2000 compared to RCI "Rolling" Twelve Months ended March 31, 2003 of 12.1 days per patient per year] [logo]Renal Care Group MORTALITY [Bar chart showing national average mortality rate of 24.5% for ESRD patients for 2000 compared to RCG "Rolling" Twelve Months ended March 31, 2003 of 21.6%] [logo]Renal Care Group CHALLENGES Medicare - Annual increases - Bundling Amgen - Future mitigation Labor Costs - Foreign recruitment-Philippines - Flagship training - Education allowances [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 2003E and separate chart showing earnings per share for the first quarters of 2002 and 2003, earnings for the year 2003 exclude the impact of a retirement package for Renal Care Group's former chairman and chief executive officer, which impact earnings for the year 2003 and the first quarter of 2003. Results shown are as follows: 1996 -- $0.42; 1997 -- $0.57; 1998 -- $0.84; 1999 - -- $1.12; 2000 -- $1.31; 2001 -- $1.52; 2002 -- $1.82; 2003E $2.06 -- $2.10; Q1 2002 -- $0.42; Q1 2003 -- $0.51 (representing a 21.4% increase shown by an arrow).] [logo]Renal Care Group REVENUE ($ in millions) [Bar chart showing revenue for the years ended December 31, 1996 through 2003E and separate chart showing revenue for the fourth quarters of 2001 and 2002E, 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 -- $136 million; 1997 -- $214 million; 1998 -- $369 million; 1999 -- $521 million; 2000 -- $625 million; 2001 - $755; 2002 -- $903 million; 2003E -- $1,000-$1,100; Q1 2002 -- $207 million; Q1 2003 -- $242 million (representing a 16.9% increase shown by an arrow).] [logo]Renal Care Group EBITDA [Bar chart showing EBITDA margins for the years ended December 31, 1996 through 2003E and first quarters 2002 and 2003, all EBITDA margins reflected exclude the effect of the retirement package of approximately 200 basis points in 2003E and first quarter 2003. Results shown are as follows: 1996 -- 18.2%; 1997 -- 19.4%; 1998 -- 22.2%; 1999 -- 23.6%; 2000 -- 23.8%; 2001 -- 24.0%; 2002 -- 23.5%; 2003E - -- 23.0%-23.5%; Q1 2002 -- 23.7%; Q1 2003 -- 23.7%.] [logo]Renal Care Group DE NOVO DEVELOPMENT Total number of facilities [Bar chart showing De novo facilities constructed for the years ended December 31, 1996 through 2003E. Results shown are as follows: 1996 -- 3; 1997 -- 12; 1998 -- 9; 1999 -- 7; 2000 -- 10; 2001 -- 14; 2002 -- 20; 2003E -- 20-25.] [logo]Renal Care Group NUMBER OF PATIENTS ADDED THROUGH ACQUISITIONS [Bar chart showing the number of patients budgeted to be added through acquisitions in the year 2002 and the number actually added in the year 2002 and the number of patients added through acquisitions year to date for 2003. The results are as follows: 2002 Budgeted Goal - 1,000; 2002 Actual - 1,200 and 2003 - - 425 (representing a 20% increase in 2002 actual over 2002 budgeted shown by an arrow).] [logo]Renal Care Group SHARE REPURCHASE [Bar chart showing the number of shares repurchased for the years ended December 31, 2001 through 2003E. Results shown are as follows: 2001 -- 100,000 shares or $3.1 million; 2002 -- 2,883,000 shares or $90.8 million; 2003E $50-$70 million;] [logo]Renal Performance of Early Acquisitions (1996-97)
When Acquired(1) 2002 ----------- ------- Patients 4,365 6,240 Patients with URR greater than or equal to 70% 48% 76% Patients with Hct greater than or equal to 30% 79% 92% Revenues (in millions) $132.7 $260.0 EBITDA 20.0% 24.8% Days Sales Outstanding 81 59
[logo]Renal Care Group FREE CASH FLOW ($ in millions)
2002 2003E ---- ----- EBITDA $210 $ 245 Taxes $ 30 $ 55 CapEx Maintenance $ 42 $ 40 De novo $ 20 $ 35 ---- ----- Free Cash Flow $120 $ 115 ---- -----
[logo]Renal Care Group Free Cash Priorities - De novo development - Selective acquisitions - Share repurchase program [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 - - Prudent capital structure and strong free cash flow - - De novo development - - Selective acquisition opportunities [logo]Renal Care Group [logo]Renal Care Group NYSE Symbol RCI -----END PRIVACY-ENHANCED MESSAGE-----