DENVER, May 14 /PRNewswire-FirstCall/ -- Birner Dental Management Services, Inc. (Nasdaq: BDMS), operators of PERFECT TEETH dental practices, announced results for the quarter ended March 31, 2009. Total dental group practice revenue increased $87,000, or 0.6%, to $15.3 million. Net revenue increased $94,000, or 1.0%, to $9.0 million. The Company's earnings before interest, taxes, depreciation, amortization and non-cash expense associated with stock-based compensation ("Adjusted EBITDA") increased $214,000, or 11.9%, to $2.0 million from $1.8 million. Net income for the quarter ended March 31, 2009 increased $159,000 or 30.8% to $677,000 compared to $518,000 for the same period of 2008. Earnings per share increased 52.8%, to $.36 for the quarter ended March 31, 2009 compared to $.24 for the quarter ended March 31, 2008.
The increase in net revenue of $94,000 in the quarter ended March 31, 2009 consisted of an increase in same store net revenue from specialty dentistry of $94,000 along with a de novo office the Company opened in May 2008 producing $45,000 in net revenue offset by a decrease in same store net revenue from general dentistry of $46,000. Despite a slight increase in net revenue for the quarter ended March 31, 2009 compared to the quarter ended March 31, 2008, the Company believes it continues to experience a general weakness in the economy in its markets
The increase in total dental group practice revenue and net revenue in the 2009 quarter versus the 2008 quarter was accomplished with two fewer revenue producing days in the quarter ended March 31, 2009 compared to the quarter ended March 31, 2008. In addition, cost containment measures implemented by the Company during 2008 favorably affected the Company's profitability in the 2009 quarter relative to the 2008 quarter. Fred Birner, Chief Executive Officer stated, "We are very pleased with the operating performance achieved by the Company in the quarter particularly in light of the weak economic environment."
During the first quarter of 2009, the Company had capital expenditures of $100,000, purchased 6,106 shares of its Common Stock for approximately $69,000, distributed $317,000 in dividends to its shareholders, and decreased total bank debt outstanding by $1.4 million.
Birner Dental Management Services, Inc. acquires, develops, and manages geographically dense dental practice networks in select markets in Colorado, New Mexico, and Arizona. The Company currently manages 61 dental offices, of which 35 were acquired and 26 were de novo developments. At March 31, 2009, the Company had 113 general and specialty dentists affiliated with the organization. The Company operates its dental offices under the PERFECT TEETH name.
The Company previously announced it would conduct a conference call to review results for the quarter ended March 31, 2009 on Thursday, May 14, 2009 at 9:00 a.m. MT. In addition to current financial and operating results, the teleconference may include discussion of management's expectation of future financial and operating results. To participate in this conference call, dial in to 1-866-283-8244 and refer to "Birner Dental Management Services, Inc." approximately five minutes prior to the scheduled time. If you are unable to join in on the conference call on May 14, the rebroadcast number is 1-888-266-2081 with the pass code of 1357183. This rebroadcast will be available through May 28, 2009.
This press release includes certain non-GAAP financial measures with respect to total dental group practice revenue and Adjusted EBITDA. The non-GAAP financial measures included in this press release may be different from, and therefore may not be comparable to, similar measures used by other companies. Please see the last page of this release for more information on the reconciliation of total dental group practice revenue and Adjusted EBITDA to GAAP measures.
Certain of the matters discussed herein may contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from expectations. These include statements regarding the Company's cash flow, growth prospects, performance in 2009 and other future periods and the current economic environment. These statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performances, or achievements expressed or implied by the forward-looking statements. These and other risks and uncertainties are set forth in the reports filed by the Company with the Securities and Exchange Commission. The Company disclaims any obligation to update these forward-looking statements.
For Further Information Contact: Birner Dental Management Services, Inc. Dennis Genty Chief Financial Officer (303) 691-0680
BIRNER DENTAL MANAGEMENT SERVICES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) Quarters Ended March 31, 2008 2009 NET REVENUE: $8,946,997 (1) $9,040,511 (1) DIRECT EXPENSES: Clinical salaries and benefits 2,667,975 2,576,545 Dental supplies 594,185 539,149 Laboratory fees 652,713 637,962 Occupancy 1,185,680 1,213,926 Advertising and marketing 107,449 84,932 Depreciation and amortization 601,014 617,610 General and administrative 1,170,015 1,161,960 6,979,031 6,832,084 Contribution from dental offices 1,967,966 2,208,427 CORPORATE EXPENSES: General and administrative 941,104 (2) 975,189 (2) Depreciation and amortization 23,469 22,389 Operating income 1,003,393 1,210,849 Interest expense 77,628 42,415 Income before income taxes 925,765 1,168,434 Income tax expense 408,208 491,408 Net income $517,557 $677,026 Net income per share of Common Stock - Basic $0.25 $0.36 Net income per share of Common Stock - Diluted $0.24 $0.36 Cash dividends per share of Common Stock $0.17 $0.17 Weighted average number of shares of Common Stock and dilutive securities: Basic 2,111,085 1,860,320 Diluted 2,200,230 1,883,528 (1) Total dental group practice revenue less amounts retained by dental offices. Dental group practice revenue was $15,254,252 for the three months ended March 31, 2008, and $15,341,714 for the three months ended March 31, 2009. (2) Corporate expense - general and administrative includes $173,413 related to stock-based compensation expense in the three months ended March 31, 2008, and $164,178 related to stock-based compensation expense in the three months ended March 31, 2009.
BIRNER DENTAL MANAGEMENT SERVICES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS December 31, March 31, ASSETS 2008 2009 ** (Unaudited) CURRENT ASSETS: Cash and cash equivalents $1,234,991 $1,265,726 Accounts receivable, net of allowance for doubtful accounts of $290,688 and $280,026, respectively 2,875,732 3,132,356 Deferred tax asset 195,091 251,929 Prepaid expenses and other assets 418,653 678,046 Total current assets 4,724,467 5,328,057 PROPERTY AND EQUIPMENT, net 3,887,919 3,534,366 OTHER NONCURRENT ASSETS: Intangible assets, net 10,621,918 10,435,236 Deferred charges and other assets 160,289 151,956 Total assets $19,394,593 $19,449,615 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $1,551,851 $1,558,785 Accrued expenses 1,462,258 1,502,776 Accrued payroll and related expenses 1,714,550 2,300,634 Income taxes payable 371,569 756,650 Current maturities of long-term debt 920,000 920,000 Total current liabilities 6,020,228 7,038,845 LONG-TERM LIABILITIES: Deferred tax liability, net 618,913 619,778 Long-term debt, net of current maturities 5,988,202 4,580,000 Other long-term obligations 259,678 242,745 Total liabilities 12,887,021 12,481,368 SHAREHOLDERS' EQUITY: Preferred Stock, no par value, 10,000,000 shares authorized; none outstanding - - Common Stock, no par value, 20,000,000 shares authorized; 1,863,587 and 1,857,481 shares issued and outstanding, respectively - - Treasury Stock purchased in excess of Common Stock basis (266,786) (171,671) Retained earnings 6,817,449 7,178,704 Accumulated other comprehensive loss (43,091) (38,786) Total shareholders' equity 6,507,572 6,968,247 Total liabilities and shareholders' equity $19,394,593 $19,449,615 ** Derived from the Company's audited consolidated balance sheet at December 31, 2008.
Reconciliation of Total Dental Group Practice Revenue and Adjusted EBITDA
Total dental group practice revenue is the revenue generated at the Company's offices from professional services provided to its patients. Amounts retained by dental offices represents compensation expense to the dentists, dental hygienists and dental assistants and is subtracted from total dental group practice revenue to arrive at net revenue. The Company reports net revenue in its financial statements to comply with Emerging Issues Task Force Issue No. 97-2, Application of SFAS No. 94 (Consolidation of All Majority Owned Subsidiaries) and APB Opinion No. 16 (Business Combinations) to Physician Practice Management Entities and Certain Other Entities With Contractual Management Arrangements. Total dental group practice revenue is a non-GAAP measure that is disclosed because it is a critical component for management's evaluation of office performance. However, investors should not consider this measure in isolation or as a substitute for operating income, cash flows from operating activities or any other measure for determining the Company's operating performance or liquidity that is calculated in accordance with U.S. generally accepted accounting principles ("GAAP"). The table below reconciles total dental group practice revenue to net revenue.
Quarters Ended March 31, 2008 2009 Total dental group practice revenue $15,254,252 $15,341,714 Less - amounts retained by dental offices (6,307,255) (6,301,203) Net revenue $8,946,997 $9,040,511
Adjusted EBITDA is not a GAAP measure of performance or liquidity. However, the Company believes that it may be useful to an investor in evaluating the Company's ability to meet future debt service, capital expenditures and working capital requirements. Investors should not consider Adjusted EBITDA in isolation or as a substitute for operating income, cash flows from operating activities or any other measure for determining the Company's operating performance or liquidity that is calculated in accordance with GAAP. In addition, because Adjusted EBITDA is not calculated in accordance with GAAP, it may not necessarily be comparable to similarly titled measures employed by other companies. A reconciliation of Adjusted EBITDA to net income can be made by adding depreciation and amortization expense - offices, depreciation and amortization expense - corporate, stock-based compensation expense related to SFAS 123(R), interest expense, net and income tax expense to net income as in the table below.
Quarters Ended March 31, 2008 2009 RECONCILIATION OF ADJUSTED EBITDA: Net income $517,557 $677,026 Add back: Depreciation and amortization - Offices 601,014 617,610 Depreciation and amortization - Corporate 23,469 22,389 Stock-based compensation expense 173,413 164,178 Interest expense, net 77,628 42,415 Income tax expense 408,208 491,408 Adjusted EBITDA $1,801,289 $2,015,026
|SOURCE Birner Dental Management Services, Inc.|
Copyright©2009 PR Newswire.
All rights reserved