Navigation Links
Dialysis Corporation of America Reports Fourth Quarter and Year Ended December 31, 2008 Results

LINTHICUM, Md., March 5 /PRNewswire-FirstCall/ -- Dialysis Corporation of America (Nasdaq: DCAI) announced its financial results for the fourth quarter and year ended December 31, 2008.

  • Year end patient census approximated 2,000 including the patients at a Maryland dialysis center acquired December 31, 2008.
  • Operating revenues for the fourth quarter of 2008 were $23.7 million compared to $20.0 million for the same period last year, an 18% increase.
  • Operating income was $2.2 million for the fourth quarter of 2008 compared to $1.6 million for the same period last year.
  • Net income for the quarter was $858,000 or $0.09 per basic and diluted share compared to $1.0 million or $0.11 per basic and diluted share for the same period last year.
  • Operating revenues for 2008 were $86.8 million compared to $74.5 million for 2007, a 17% increase.
  • Operating income was $6.2 million for 2008 compared to $5.8 million for 2007.
  • Net income for 2008 was $2.8 million or $0.30 per basic and diluted share compared to $3.1 million or $0.32 per basic and diluted share for 2007.

Items impacting comparability between 2007 and 2008 include:

  • 2007 included tax benefits of $325,000 relating to the prior year's net operating losses that resulted in a lower effective tax rate for 2007 than for 2008.
  • Minority interest expense increased in 2008 by approximately $330,000 compared with 2007, primarily due to certain large minority owned facilities experiencing substantially better operating results in 2008.
  • Pre-tax costs associated with opening new centers were $641,000 for 2008 compared to $608,000 for 2007.
  • Non-cash stock compensation expense was $221,000 for 2008 compared to $217,000 for 2007.

Stephen Everett, President and Chief Executive Officer, commented, "2008 was both a strategic and financial success for DCA. In these extremely difficult economic times, it is comforting to be part of both a company and industry that are more resilient than most. Our company is in very good financial shape and continues to grow and evolve in an ever changing regulatory and clinical environment. It is especially heartening to witness our talented group of caregivers continue to provide unparalleled quality clinical service to the patients who entrust us with their lives."

Significant markers and noteworthy items for 2008 include:

  • Key clinical metrics continued to show advances throughout the year, which were the results of outstanding clinical care by our caregivers, and a heightened focus on preparing for anticipated "pay for performance" initiatives in conjunction with the 2011 reimbursement bundling under Medicare.
  • We experienced a slight increase in commercial contracting over prior years, yet sustained an expected 6% increase in revenue per treatment, year over year.
  • Our continued focus and enhancement on billing and collection functions resulted in a decrease in accounts receivable days outstanding (DSO) by 9 days in 2008.
  • We completed our largest acquisition to date, which was a Maryland dialysis center serving in excess of 145 patients. The transaction was completed at the end of the year.
  • In spite of the trying global economic conditions, we successfully completed an enhanced revolving line of credit with KeyBank National Association totaling $25,000,000, with favorable terms.
  • The installation and use of our new Clinical Information System began and remains on schedule for company wide deployment. This new system is expected to assist in recording and reporting clinical results in an increasingly regulated industry, while providing improved efficiencies at the operating levels.

Dialysis Corporation of America will be hosting a conference call in conjunction with its earnings release for the fourth quarter and fiscal year ended December 31, 2008. The conference call will be held on Friday, March 6, 2009 at 10:00 a.m. EST. The call is accessible either by dialing 1-866-238-0826 (enter attendee code: 1330728), or by simulcast on the internet at, using conference ID 2135668. Participants may be asked to provide the title of the conference call, which is "Dialysis Corporation of America Fiscal Year 2008 Earnings." A replay of the conference call will be available on the company's website,, for a period of thirty days following the conference call.

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 the those states. The company provides patients with their choice of a full range of quality in-center, acute or at-home hemodialysis services.

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, increases in interest rates, the possible need for and availability of additional financing, the company's satisfying the covenants and conditions of its credit facility, certain 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, 2007. The historical results contained in this press release are not necessarily indicative of future performance of the company.

Other Dialysis Corporation of America press releases, corporate profile, corporate governance materials, quarterly and current reports, and other filings with the Securities and Exchange Commission are available on Dialysis Corporation of America's internet home page:

CONTACT: For additional information, you may contact Dialysis Corporation of America, 1302 Concourse Drive, Suite 204, Linthicum, MD 21090; Telephone Number (410) 694-0500; Attention: Investor Relations.


                                          2008          2007         2006
    Operating revenues:
        Medical services revenue      $85,675,687   $73,170,573  $61,138,963
        Product sales                   1,161,206     1,077,988      891,242
          Total sales revenues         86,836,893    74,248,561   62,030,205
      Other income                            ---       286,174      430,033
                                       86,836,893    74,534,735   62,460,238
    Cost and expenses:
      Cost of sales revenues:
        Cost of medical services       51,452,299    44,248,309   36,968,682
        Cost of product sales             659,766       598,086      549,590
          Total cost of sales
           revenues                    52,112,065    44,846,395   37,518,272
      Selling, general and
       administrative expenses
        Corporate                      10,586,797     7,917,038    6,460,309
        Facility                       12,851,367    11,423,072    8,988,078
          Total                        23,438,164    19,340,110   15,448,387
      Stock compensation expense          221,166       217,474      275,438
      Depreciation and amortization     2,783,826     2,619,049    2,319,070
      Provision for doubtful accounts   2,088,248     1,665,120    1,198,995
                                       80,643,469    68,688,148   56,760,162

    Operating income                    6,193,424     5,846,587    5,700,076

    Other (expense) income, net           (48,605)      (39,637)      100,968

    Income before income taxes,
     minority and other equity
     interests and equity in affiliate
     earnings                           6,144,819     5,806,950    5,801,044

    Income tax provision                1,862,479     1,614,892    2,085,874

    Income before minority and other
     equity interests and equity in
     affiliate earnings                 4,282,340     4,192,058    3,715,170

    Minority and other equity
     interests in income of
     consolidated subsidiaries         (1,438,225)   (1,105,736)    (919,739)

    Equity in affiliate earnings              ---           ---      253,765

                Net income             $2,844,115    $3,086,322   $3,049,196

    Earning per share:
       Basic                                 $.30          $.32         $.32
       Diluted                               $.30          $.32         $.32

    Weighted average shares
       Basic                            9,579,837     9,572,893    9,484,926
       Diluted                          9,613,866     9,607,672    9,575,733

                            CONSOLIDATED BALANCE SHEETS

                                             December 31,     December 31,
                                                 2008             2007
     Current assets:
       Cash and cash equivalents               $6,543,000      $2,447,820
       Accounts receivable, net                21,493,780      20,159,926
       Inventories, net                         2,918,578       2,006,661
       Deferred income tax asset                1,185,000         998,000
       Other current assets                     2,978,049       3,313,406
                  Total current assets         35,118,407      28,925,813

     Property and equipment                    32,987,475      28,766,423
       Less accumulated depreciation and
        amortization                           14,452,018      12,264,029
                                               18,535,457      16,502,394

     Goodwill                                  16,492,401       8,576,893
     Other assets                                 932,930         841,092
                Total other assets             17,425,331       9,417,985
                                              $71,079,195     $54,846,192

     Liabilities and Stockholders' Equity
     Current liabilities:
       Accounts payable and accrued expenses  $14,717,692     $10,224,199
       Income taxes payable                        60,470          33,297
       Current portion of long-term debt           74,000          56,000
                Total current liabilities      14,852,162      10,313,496

     Deferred income taxes                      1,275,000         574,000
     Long-term debt, less current portion      14,275,798       7,009,419
                Total liabilities              30,402,960      17,896,915

     Minority interest in subsidiaries          5,412,208       4,942,797

     Commitments and Contingencies

     Stockholders' equity:
       Common stock                                95,797          95,736
       Additional paid-in capital              16,001,153      15,587,782
       Retained earnings                       19,167,077      16,322,962
                Total stockholders' equity     35,264,027      32,006,480
                                              $71,079,195     $54,846,192


                          SUPPLEMENTAL OPERATING DATA

                                Year Ended December 31,         Year-to-year
                                 2008             2007             Change %
    Operating data:
       Consolidated            272,452          241,189               13.0%
       Managed                     ---           11,137             (100.0)%
    Total treatments           272,452          252,326                8.0%

    Patient revenue per
     treatment                 $314.46          $303.37                3.7 %
    Same center growth data:
       Same center treatment
        growth                       5%               6%
       Same center revenue per
        treatment change             4%               1%
       Same center patient
        revenue growth               9%               7%

                              Quarter Ended December 31, Quarter-to-Quarter
                                  2008           2007          Change %
    Operating data:
       Consolidated             70,276          62,817            11.9%
       Managed                     ---           2,847          (100.0)%
    Total treatments            70,276          65,664             7.0%

    Patient revenue per
     treatment                 $332.62         $312.59             6.4%
    Same center growth
       Same center
        treatment growth             4%             (4)%
       Same center revenue
        per treatment change         6%             10%
       Same center patient
        revenue growth              10%              5%
    Key clinical
         Treatment adequacy
          (% of pts with Kt/V
           greater than 1.2)     97.32%          95.38%
         Anemia management
          (% of pts with Hgb
          greater than 11)       82.06%          78.74%
         Venous access (% of
          pts with AVF)          56.06%          52.98%

SOURCE Dialysis Corporation of America
Copyright©2009 PR Newswire.
All rights reserved

Related medicine news :

1. Clinical trials present better alternatives for dialysis patients
2. Nighttime Home Dialysis a Boon for Kidney Patients
3. Nations Largest Dialysis Patient Organization Recognizes the Achievements of Patients and Leaders in Kidney Care
4. WellBound Teams With Kaiser Permanente to Open New Self-Care Dialysis Center in Sacramento, CA
5. New peritoneal dialysis diagnostic discovered
6. Early intervention dramatically improves outcomes for new dialysis patients
7. Dialysis Corporation of America Announces Third Quarter 2007 Earnings Release Date
8. Renal Solutions, Inc. Announces FDA 510(k) Clearance of New Design of the Allient(R) Sorbent Hemodialysis System for Chronic and Acute Hemodialysis
9. DaVita Emergency Response Efforts Ensure Vital Treatment for More than 700 Kidney Failure Patients in Need of Life-Saving Dialysis Treatments in Areas Affected by Southern California Wildfires
10. DaVita to Open First Independent Dialysis Clinic in Fargo-Moorhead
11. Home Dialysis Clinical Research Study is Underway - Focuses on At-Home Extended Duration Treatment
Post Your Comments:
(Date:10/12/2017)... ... 2017 , ... Dr. Parsa Mohebi, the Los Angeles based ... the newly revamped Cosmetic Town journal section, featuring articles written by ... as Follicular Unit Extraction (FUE). , Dr. Mohebi says “I enjoy ...
(Date:10/12/2017)... (PRWEB) , ... October 12, 2017 , ... Leading pediatric ... peers in Washington, D.C., for the 49th Congress of the International Society of ... Vice President of the Center for Cancer and Blood Disorders at Children’s ...
(Date:10/12/2017)... (PRWEB) , ... October 12, 2017 , ... ... been named one of Michigan’s 2017 Best and Brightest in Wellness® by Best ... in Wellness® awards program on Friday, Oct. 20 from 7:30 a.m. to 2 ...
(Date:10/12/2017)... ... October 12, 2017 , ... In the United States, single-family ... some states—like New York, New Jersey, Massachusetts, Texas, Virginia, Connecticut, and California—the average ... extremely low property-tax rates, which contributes to the relatively lower cost of living ...
(Date:10/12/2017)... , ... October 12, 2017 , ... ... at the University of California Berkeley, and other leading institutions in announcing the ... power of institutions to change the way animals are raised for food. , ...
Breaking Medicine News(10 mins):
(Date:9/23/2017)... Sept. 22, 2017 Janssen Biotech, Inc. (Janssen) ... letter from the U.S. Food and Drug Administration (FDA) ... sirukumab for the treatment of moderately to severely active ... clinical data are needed to further evaluate the safety ... active RA. ...
(Date:9/19/2017)... ZirMed Inc ., a recognized leader in cloud-based revenue cycle ... ranked #1 by its users for the seventh consecutive year ... ZirMed was recognized as the top-ranked end-to-end revenue cycle management ... 200 beds and holds one of the longest #1 ranking ... ...
(Date:9/12/2017)... and NEW YORK , Sept. 12, 2017 /PRNewswire/ ... ratings for global supply chains, has published the first annual edition of ... performance of more than 20,400 companies evaluated by EcoVadis, based on Scorecard ... and 2016. ... Global CSR Risk & Performance Index ...
Breaking Medicine Technology: