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NASHVILLE, Tenn.--(BUSINESS WIRE)--July 30, 1999--Renal Care Group, Inc. today announced a 40% increase in earnings per share for the second quarter ended June 30, 1999.
Mr. Sam Brooks, president and chief executive officer of Renal Care Group, Inc., said, "This is the 14th consecutive quarter in which we have met or exceeded analyst expectations since our IPO in February 1996. Our record for earnings growth is a testament to our ability to forge strong relationships with physicians, successfully integrate acquisitions, and add value through improving financial performance and quality of patient care."
Revenues for the second quarter ended June 30, 1999, increased 44% to $128.5 million compared with revenues, prior to restatement for a pooling-of-interest transaction, of $89.5 million for the same period in 1998. Net income before nonrecurring merger costs increased 52% to $12.9 million, or $0.28 per share, compared with net income of $8.5 million, or $0.20 per share, in the same period last year.
Revenues for the six months ended June 30, 1999, increased 47% to $249.4 million compared with revenues of $170.0 million for the same period in 1998. Net income before nonrecurring merger costs increased 55% to $24.8 million, or $0.53 per share, compared with net income of $16.0 million, or $0.38 per share, in the same period last year.
As restated to give effect to the merger with Dialysis Centers of America, which, for accounting purposes, was treated as a pooling-of-interests, revenues for the second quarter ended June 30, 1999, increased 25% to $128.5 million as compared with $102.5 million for the same period in 1998. Net income before nonrecurring merger costs increased 39% to $12.9 million, or $0.28 per share, compared with net income of $9.3 million, or $0.20 per share, in the same period of last year.
Revenues for the six months ended June 30, 1999, increased 28% to $249.4 million compared with revenues of $194.1 million for the same period in 1998, also restated for the merger with Dialysis Centers of America. Net income before nonrecurring merger costs increased 51% to $24.8 million, or $0.53 per share, compared with net income of $16.4 million, or $0.36 per share, in the same period last year.
Same-store treatment and revenue growth were 8.7% and 16.4%, respectively, for the three months ended June 30, 1999. The Company's days revenues in accounts receivable were 67 days at June 30, 1999, which remains well below the industry average.
In closing, Mr. Brooks said, "By every measure, the first six months have been excellent, and we expect this strong momentum to continue into the second half of the year. We are working with a full pipeline of potential acquisitions and believe that some of these discussions will bear fruit in the latter part of the year."
Renal Care Group, Inc. is a nephrology services company that focuses on providing care to patients with kidney disease, including patients suffering from chronic kidney failure. The Company treats approximately 13,900 patients through 179 dialysis centers, in addition to providing acute dialysis services in 102 hospitals. Over 3,800 associates provide services in the Company's 22-state network.
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 June 30,
-----------------------------
As
Previously
Restated(1) Reported
1999 1998 1998
------- -------- --------
Net revenue $128,496 $102,549 $ 89,510
Operating costs and expenses 98,303 80,442 70,081
Depreciation and amortization 6,527 5,218 4,538
-------- -------- --------
Income from operations 23,666 16,889 14,891
Interest expense 1,288 1,436 780
-------- -------- --------
Income before merger costs,
minority interest and taxes 22,378 15,453 14,111
Minority interest 1,744 608 608
-------- -------- --------
Net income before merger
costs and income taxes 20,634 14,845 13,503
Income taxes 7,738 5,549 4,996
-------- -------- --------
Net income before merger costs $12,896 $9,296 $8,507
======== ======== ========
Diluted earnings per share
before merger costs $0.28 $0.20 $0.20
======== ======== ========
Net income after merger costs $12,896 $9,107 $8,318
========= ======== ========
Diluted earnings per
share after merger costs $0.28 $0.20 $0.19
========= ======== ========
Weighted average
shares outstanding 46,600 45,860 42,675
========= ======== ========
Six Months Ended June 30,
------------------------------
As
Previously
Restated(1) Reported
1999 1998 1998
-------- -------- --------
Net revenue $249,357 $194,091 $169,973
Operating costs and expenses 191,045 154,102 133,571
Depreciation and amortization 12,690 9,831 8,475
-------- -------- --------
Income from operations 45,622 30,158 27,927
Interest expense 2,693 2,682 1,342
-------- -------- --------
Income before merger costs,
minority interest and taxes 42,929 27,476 26,585
Minority interest 3,244 1,155 1,155
-------- -------- --------
Net income before merger
costs and income taxes 39,685 26,321 25,430
Income taxes 14,882 9,922 9,409
-------- -------- --------
Net income before merger costs $24,803 $16,399 $16,021
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Diluted earnings per share
before merger costs $0.53 $0.36 $0.38
======== ======== ========
Net income after merger costs $21,003 $15,769 $15,391
======== ======== ========
Diluted earnings per share
after merger costs $0.45 $0.35 $0.36
======== ======== ========
Weighted average shares
outstanding 46,500 45,488 42,300
======== ======== ========
(1) Restated amounts give effect to the merger with DCA which
was effective January 29, 1999, and was accounted for as a
pooling of interests.
Contact:
Renal Care Group Inc., Nashville
Ronald Hinds, 615/345-5500
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