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NASHVILLE, Tenn.--(BUSINESS WIRE)--Nov. 3, 1998--Renal Care Group, Inc. today
announced financial results for the third quarter and nine months ended
September 30, 1998.
Mr. Sam Brooks, president and chief executive officer of Renal Care Group, Inc., said, "Our strong financial performance continues in large part because we remain focused on quality patient outcomes and we continue to execute our disciplined growth strategy. Dialysis patients in our facilities have lower mortality and spend less time in hospitals as compared with national averages. This improved quality of life has many positive implications, which include enhancing our financial performance, strengthening of our relationships with nephrologists affiliated with the Company's dialysis centers and increasing our recognition by owners of dialysis facilities considering a relationship with a national company."
Revenues for the third quarter ended September 30, 1998, increased 79% to $96.8 million compared with revenues of $54.0 million for the same period in 1997. Net income increased 81% to $9.4 million, or $0.22 per share, compared with net income of $5.2 million, or $0.14 per share, in the same period last year.
Revenues for the nine months ended September 30, 1998, increased 76% to $266.8 million compared with revenues of $151.8 million for the same period in 1997. Net income before nonrecurring merger costs increased 80% to $25.4 million, or $0.60 per share, compared with net income before nonrecurring costs of $14.1 million, or $0.40 per share, in the same period last year.
Same-store treatment and revenue growth were 10.5% and 19.8%, respectively, for the quarter ended September 30, 1998.
In the third quarter, the Company completed a three-for-two stock split effected in the form of a 50% stock dividend. One additional share of common stock was issued for every two shares held by shareholders of record at the close of business on August 7, 1998. The additional shares were distributed on August 24, 1998.
The Company announced that it had completed transactions to purchase substantially all the assets of Southeast Texas Kidney Center of Port Arthur, Texas, and to enter into a joint venture arrangement to operate a dialysis facility in Beaumont, Texas. Collectively, the facilities serve 150 patients.
Also during the third quarter, the Company acquired outpatient dialysis programs in Kalamazoo, Michigan, and Anniston, Alabama, totaling 300 patients and executed a definitive agreement to acquire a 100-patient dialysis program in Columbus, Indiana. In addition, a definitive agreement was signed with a nephrology group in Akron, Ohio, to form a joint venture that will build two facilities for dialysis patients treated by the physician practice.
In October, the Company acquired Vivra Health Advantage, the wound and diabetes treatment care division of Vivra Specialty Partners. Vivra Health Advantage will become part of Renal Care Group's wholly owned subsidiary, Integrated Wound Care Systems, Inc.
In closing, Mr. Brooks said, ``It is a tribute to all our physicians and associates for Renal Care Group to be named once again to the Forbes magazine's list of '200 Best Small Companies in America.' As we enter the final few months of the calendar year, we are pleased with our accomplishments during 1998 and with the momentum we are building for 1999. This confidence in the future is due not only to improvement in our financial and operational results to date, but also by our outpacing of projections for growth attributed to mergers, acquisitions and joint ventures.''
Renal Care Group, Inc. is a nephrology services company that focuses 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 11,100 patients through 158 owned outpatient dialysis centers in 19 states, in addition to providing acute dialysis services in 93 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 Nine Months Ended
September 30, September 30,
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1998(1) 1997 1998(1) 1997
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Net revenues $ 96,807 $ 54,038 $266,780 $151,813
Operating costs and expenses 75,100 43,323 208,671 123,072
Depreciation and amortization 4,811 2,238 13,286 6,343
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Income from operations 16,896 8,477 44,823 22,398
Interest income (expense), net (906) 88 (2,248) 591
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Income before merger costs,
minority interest and taxes 15,990 8,565 42,575 22,989
Minority interest 1,045 290 2,200 508
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Net income before merger costs
and income taxes 14,945 8,275 40,375 22,481
Income taxes 5,530 3,062 14,939 8,353
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Net income before
merger costs $ 9,415 $ 5,213 $ 25,436 $ 14,128
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Diluted earnings per share
before merger costs $ 0.22 $ 0.14 $ 0.60 $ 0.40
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Net income after merger costs $ 9,415 $ 5,213 $ 24,806 $ 13,939
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Diluted earnings per share
after merger costs $ 0.22 $ 0.14 $ 0.58 $ 0.40
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Weighted average shares
outstanding 42,850 36,172 42,500 34,965
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(1) Adjusted to reflect a three-for-two stock split announced on
July 23, 1998, which was effective for shareholders of record at
the close of business on August 7, 1998.
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