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NASHVILLE, Tenn.--(BUSINESS WIRE)--May 4, 1998--Renal Care Group, Inc. today announced financial results for the first quarter ended March 31, 1998.
Mr. Sam A. Brooks, Jr., president and chief executive officer of Renal Care Group, Inc., said, "Our first quarter results continued the strong momentum we achieved last year. The strength of our financial performance reflects our acquisition success and strong same-store treatment and revenue growth. We are pleased that over 10,000 patients with end-stage renal disease now entrust us with their care and that we have exceeded consensus analyst expectations for nine consecutive quarters. Our management, physicians, and 2,600 associates are proud of their achievements in the first quarter of 1998, and we believe that this momentum will continue throughout the remainder of the year."
Revenues for the quarter ended March 31, 1998, increased 75% to $80.5 million compared with revenues of $46.1 million for the same period in 1997. Net income before nonrecurring merger costs also increased 75% to $7.5 million, or $0.27 per share, compared with net income of $4.3 million, or $0.19 per share, in the same period last year.
Same-store treatment and revenue growth were 10.2% and 17.3%, respectively, for the quarter ended March 31, 1998. The Company's days revenues in accounts receivable at March 31, 1998, were 66, substantially below the industry average.
In January, Renal Care Group completed a merger with the owners of nine dialysis facilities located in Arkansas, Oklahoma and Missouri. The facilities currently provide treatment to approximately 625 patients as well as acute, in-patient dialysis treatment services to six area hospitals. The transaction was a tax-free exchange of stock and treated as a pooling-of-interests for accounting purposes. Also in January, the Company acquired a home dialysis program in Kalamazoo, Michigan, serving approximately 70 patients.
In February, the Company announced the formation of a new venture with three providers of dialysis services in Portland, Oregon, and Vancouver, Washington. The new venture, which operates six dialysis facilities and a home dialysis program serving approximately 700 patients, provides dialysis services to persons with end-stage renal disease in Oregon and Southwest Washington. Renal Care Group is the majority owner and manages the business operations of the new venture. In addition, the Company established a joint venture with St. Luke's Hospital of Kansas City, Missouri, to provide dialysis services to an additional 100 patients.
In April, the Company completed a merger with the owners of four dialysis facilities in Missouri which provide treatment to approximately 180 patients and acute, in-patient treatment services to three hospitals. The transaction was a tax-free exchange of stock and will be treated as a pooling-of-interests. In April, the Company also completed the acquisition of a center in Corpus Christi, Texas, which provides treatment to approximately 25 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 10,200 patients through 151 owned outpatient dialysis centers in 18 states, in addition to providing acute dialysis services in 86 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.
Unaudited Consolidated Statements of Earnings
(In thousands, except share data)
Three Months Ended
March 31,
1998 1997
Net revenues $ 80,463 $ 46,109
Operating costs and expenses 63,490 37,678
Depreciation and amortization 3,937 1,964
Income from operations 13,036 6,467
Interest income (expense), net (562) 404
Income before merger costs, minority
interest and taxes 12,474 6,871
Minority interest 547 --
Net income before merger costs
and income taxes 11,927 6,871
Income taxes 4,413 2,577
Net income before merger costs $ 7,514 $ 4,294
Diluted earnings per share before
merger costs $ 0.27 $ 0.19
Net income after merger costs $ 7,073 $ 4,294
Diluted earnings per share after
merger costs $ 0.25 $ 0.19
Weighted average shares outstanding 27,900 22,687
Contact:
Renal Care Group, Nashville
Ronald Hinds, 615/345-5500 |
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