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NASHVILLE, Tenn.--(BUSINESS WIRE)--Aug. 4, 1998--Renal Care Group, Inc. today announced financial results for the second quarter and six months ended June 30, 1998.
Mr. Sam A. Brooks, Jr., president and chief executive officer of Renal Care Group, Inc., said, "We are pleased to report that, for the tenth consecutive quarter, we have exceeded consensus analyst expectations. The Company's financial performance is being driven by strong internal growth and by the results we have achieved with recent acquisitions. Our operational success, improved reimbursement, and full acquisition pipeline give us confidence as we execute our disciplined growth strategy."
Revenues for the second quarter ended June 30, 1998, increased 73% to $89.5 million compared with revenues of $51.7 million for the same period in 1997. Net income before nonrecurring merger costs increased 84% to $8.5 million, or $0.30 per share, compared with net income of $4.6 million, or $0.20 per share, in the same period last year.
Revenues for the six months ended June 30, 1998, increased 74% to $170.0 million compared with revenues of $97.8 million for the same period in 1997. Net income before nonrecurring merger costs increased 80% to $16.0 million, or $0.57 per share, compared with net income of $8.9 million, or $0.39 per share, in the same period last year.
Financial results for both the second quarter and six months ended June 30, 1998, have not been adjusted to reflect a three-for-two stock split announced on July 23, 1998, which is effective for shareholders of record at the close of business on August 7, 1998.
Same-store treatment and revenue growth were 10.1% and 17.5%, respectively, for the quarter ended June 30, 1998. The Company's days revenues in accounts receivable at June 30, 1998, were 69, substantially below the industry average.
In April, the Company completed a merger with the owners of four dialysis facilities located in Missouri, Kansas, and Oklahoma which provides treatment to approximately 180 patients and acute, in-patient services to three area hospitals. Also in April, the Company completed the acquisition of a facility in Corpus Christi, Texas, that added approximately 25 additional patients to Renal Care Group's already existing South Texas patient base.
In August, the Company acquired outpatient dialysis programs of two Kalamazoo, Michigan, area hospitals serving approximately 265 patients. In addition, Renal Care Group increased its presence in Northeast Alabama with the acquisition of a facility located in Anniston, Alabama, serving approximately 35 patients.
Renal Care Group, Inc. is a nephrology services company that began operations in February 1996 to focus on the provision of care to patients with kidney disease, including patients suffering from chronic kidney failure. The Company currently provides dialysis and ancillary services to approximately 10,800 patients through 155 owned outpatient dialysis centers in 18 states, in addition to providing acute dialysis services in 88 hospitals.
This press release contains forward-looking statements that involve various risks and uncertainties. Actual results could differ materially from those contained in these forward-looking statements due to certain factors, including business and economic conditions and availability of financing. These and other risks and uncertainties are detailed in the Company's reports filed with the SEC.
RENAL CARE GROUP, INC.
audited Consolidated Statements of Earnings
(In thousands, except share data)
Three Months Ended Six Months Ended
June 30, June 30,
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1998 1997 1998 1997
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Net revenues $ 89,510 $ 51,666 $ 169,973 $ 97,775
Operating costs
and expenses 70,081 42,071 133,571 79,749
Depreciation and
amortization 4,538 2,141 8,475 4,105
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Income from operations 14,891 7,454 27,927 13,921
Interest income
(expense), net (780) 99 (1,342) 503
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Income before merger
costs, minority
interest and taxes 14,111 7,553 26,585 14,424
Minority interest 608 218 1,155 218
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Net income before
merger costs and
income taxes 13,503 7,335 25,430 14,206
Income taxes 4,996 2,714 9,409 5,291
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Net income before
merger costs $ 8,507 $ 4,621 $ 16,021 $ 8,915
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Diluted earnings per
share before merger
costs $ 0.30 $ 0.20 $ 0.57 $ 0.39
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Net income after
merger costs $ 8,318 $ 4,432 $ 15,391 $ 8,726
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Diluted earnings
per share after |
merger costs $ 0.29 $ 0.19 $ 0.55 $ 0.38
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Weighted average
shares outstanding 28,450 23,127 28,200 22,908
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