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Nashville, Tennessee (August 6, 1996) - Renal Care Group, Inc. (Nasdaq/NM:RCGI) today announced financial results for the second quarter and period ended June 30, 1996, which period consisted of five months of operations. Mr. Sam A. Brooks, Jr., president and chief executive officer of Renal Care Group, Inc., said, "We are pleased with the results of our first full quarter of operations as a public company since our public offering on February 6, 1996, when our five founding dialysis companies simultaneously combined and completed an initial public offering of 4.5 million shares. The financial success we achieved in the second quarter ended June 30, 1996, reflects expansion of services at existing facilities, improvement in operations at those facilities, and the addition of patients both through internal growth and acquisitions which took place in the second quarter. We are pleased with our progress to date which is on track with our projections. We are also very excited about future opportunities to acquire additional clinics from the acquisition pipeline which is very full." Revenues for the second quarter were $23,080,000 and net income before non-recurring merger costs was $2,294,000, or $0.21 per share. On a pro forma basis, which assumes that the founding companies and acquisitions were combined during the quarter ended June 30, 1995, revenues for the second quarter of 1996 would have increased 14.6% compared with $20,133,000 for the same period in 1995. Net income, on a pro forma basis, increased 49% to $2,294,000, or $0.21 per share, compared with $1,538,000, or $0.18 per share, in the same period last year. Revenues for the five months ended June 30, 1996, were $37,972,000 and net income before non-recurring merger costs was $3,735,000, or $0.35 per share. On a pro forma basis, which assumes that the founding companies and acquisitions had been combined during the six months ended June 30, 1996 and 1995, revenues for the first six months of 1996 would have increased 12.7% to $45,350,000, compared with $40,232,000 for the same period in 1995. Net income, on a pro forma basis, increased 39% to $4,327,000, or $0.40 per share, compared with $3,121,000, or $0.36 per share, in the same period last year. During the quarter, the Company announced the completion of a merger with Mainline Suburban Dialysis of Wynnewood, Pennsylvania, which operates five dialysis facilities serving approximately 350 patients in the suburban Philadelphia area. Subsequent to the close of the quarter, the Company completed a merger with Nephrology Center, Inc., which serves 250 patients in Pensacola and Crestview, Florida. In closing, Mr. Brooks said, "As we grow in size and stature, we are becoming recognized as a nephrologist-oriented company, a reputation which is leading to increased interest from physicians who wish to ensure the viability of their practices and meet the challenges of managed care. Our early success with the prestigious Cleveland Clinic Foundation, whose 350 patient dialysis program we manage, is testimony to the growing recognition of the value of our services and our emphasis on the empowerment of nephrologists who will participate in management decisions and implementation of strategy." Renal Care Group, Inc. is a nephrology services company that was founded in June 1995 to focus on the provision of care to patients with kidney disease, including patients suffering from chronic kidney failure. The Company provides dialysis and ancillary services to approximately 3,500 owned patients through 51 outpatient dialysis centers in 13 states, in addition to acute dialysis services to 26 hospitals. |
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