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NASHVILLE, Tenn.--(BUSINESS WIRE)--March 1, 1999--Renal Care Group, Inc. today announced financial results for the fourth quarter and year ended December 31, 1998.
Mr. Sam Brooks, president and chief executive officer of Renal Care Group, Inc., said, "We have concluded our third year with strong performance in terms of revenue growth, earnings, and acquisitions. This is our 12th consecutive quarter to exceed analyst expectations. The success of our company continues to be driven by strong physician relationships, an experienced, conservative management team, and a deep and abiding commitment to the dialysis patients who receive our services."
Revenues for the fourth quarter ended December 31, 1998, increased 65% to $102.6 million compared with revenues of $62.2 million for the same period in 1997. Net income increased 72% to $10.4 million, or $0.24 per share, compared with net income of $6.0 million, or $0.16 per share, in the same period last year. Same-store treatment and revenue growth were 9.3% and 17.7%, respectively, for the quarter ended December 31, 1998.
Revenues for the year ended December 31, 1998, increased 73% to $369.4 million compared with revenues of $214.0 million for the same period in 1997. Net income before nonrecurring merger costs increased 78% to $35.8 million, or $0.84 per share, compared with net income before nonrecurring costs of $20.2 million, or $0.57 per share, in the same period last year.
Since January 1, 1999, the Company has completed acquisitions which increased by over 2,000 the number of patients it serves. These acquisitions include the Company's merger transaction with Dialysis Centers of America, a premier Chicago, Illinois-based provider operating 12 dialysis centers in Chicago and surrounding areas, which added 25 nephrologists and approximately 1,700 patients to Renal Care Group's existing network. The Company also completed acquisitions in Wisconsin and Alaska, adding another 350 patients.
In closing, Mr. Brooks said, "We have developed strong momentum in 1998 which gives us a high level of confidence for 1999. In 1998, we added 2,150 dialysis patients through acquisitions, bringing the total at year-end to 11,376 and 160 centers. Already, in 1999, we have added over 2,000 dialysis patients and 16 centers. We are deeply appreciative to our physicians and associates whose hard work, enthusiasm, and dedication to patient care have been instrumental in the success of our company."
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 13,400 patients through 176 dialysis centers, in addition to providing acute dialysis services in 103 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 Year Ended
December 31, December 31
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1998 1997 1998 1997
---- ---- ---- ----
Net revenues $ 102,592 $ 62,196 369,372 214,009
Operating costs and
expenses 78,873 49,480 287,544 172,552
Depreciation and
amortization 5,132 2,673 18,418 9,016
------- ------- ------- ------
Income from
operations 18,587 10,043 63,410 32,441
Interest income
(expense), net (828) (8) (3,076) 583
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Income before merger costs,
minority interest
and taxes 17,759 10,035 60,334 33,024
Minority interest 1,292 447 3,492 955
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Net income before
merger costs and
income taxes 16,467 9,588 56,842 32,069
Income taxes 6,093 3,549 21,032 11,902
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Net income before
merger costs $ 10,374 6,039 35,810 20,167
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Diluted earnings per share
before merger costs $ 0.24 0.16 0.84 0.57
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Net income after
merger costs $ 10,374 6,039 35,211 19,978
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Diluted earnings per share
after merger cost 0.24 0.16 0.83 0.56
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Weighted average
shares outstanding 43,230 37,485 42,650 35,595
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Contact:
Renal Care Group Inc., Nashville
Ronald Hinds, 615/345-5500
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