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Nashville, Tennessee (November 1, 1999) -- Renal Care Group, Inc. (Nasdaq/NM:RCGI) today announced results for the third quarter and nine months ended September 30, 1999.
Mr. Sam Brooks, president and chief executive officer of Renal Care Group, Inc., said, "We have achieved another record quarter, the 15th consecutive quarter in which we have met or exceeded analyst consensus expectations. Just as importantly, while doing so, we have improved the quality of life of more than 14,200 dialysis patients."
Revenues for the third quarter ended September 30, 1999 increased 38% to $133.5 million compared with revenues, prior to restatement for a pooling-of-interest transaction, of $96.8 million for the same period in 1998. Net income increased 41% to $13.3 million, or $0.29 per share, compared with net income of $9.4 million, or $0.22 per share, in the same period last year.
Revenues for the nine months ended September 30, 1999, increased 44% to $382.8 million compared with revenues of $266.8 million for the same period in 1998. Net income before nonrecurring merger costs increased 50% to $38.1 million, or $0.82 per share, compared with net income before nonrecurring costs of $25.4 million, or $0.60 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 third quarter ended September 30, 1999, increased 21% to $133.5 million as compared with $110.4 million for the same period in 1998. Net income before nonrecurring merger costs increased 29% to $13.3 million, or $0.29 per share, compared with net income of $10.3 million, or $0.22 per share, in the same period of last year.
Revenues for the nine months ended September 30, 1999, increased 26% to $382.8 million compared with revenues of $304.4 million for the same period in 1998, also restated for the merger with Dialysis Centers of America. Net income before nonrecurring merger costs increased 43% to $38.1 million, or $0.82 per share, compared with net income of $26.7 million, or $0.59 per share, in the same period last year.
Same-store treatment and revenue growth were 8.2% and 15.1%, respectively, for the three months ended September 30, 1999. The Company's days revenues in accounts receivable were 64 days at September 30, 1999, which remains well below the industry average.
In closing, Mr. Brooks said, "Thus far into the fourth quarter, our expectations for another strong year have been confirmed. Our partnership with the National Kidney Foundation for patient education and Renal Care Group's inclusion in Fortune Magazine's list of 'One Hundred Fastest Growing Companies' increases our recognition as a company committed to both our patients and our shareholders."
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 14,200 patients through 181 owned outpatient dialysis centers, in addition to providing acute dialysis services in 103 hospitals. Over 3,800 associates provide services across 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 Sept. 30,
As
Previously
Restated(1) Reported
1999 1998 1998
Net revenue $133,484 $110,357 $96,807
Operating costs and expenses 101,818 85,820 75,100
Depreciation and amortization 6,798 5,497 4,811
Income from operations 24,868 19,040 16,896
Interest expense 1,284 1,557 906
Income before merger costs,
minority interest and taxes 23,584 17,483 15,990
Minority interest 2,350 1,045 1,045
Net income before merger costs
and income taxes 21,234 16,438 14,945
Income taxes 7,963 6,126 5,530
Net income before merger costs $13,271 $10,312 $9,415
Diluted earnings per share
before merger costs $0.29 $0.22 $0.22
Net income after merger costs $13,271 $10,312 $9,415
Diluted earnings per share
after merger costs $0.29 $0.22 $0.22
Weighted average
shares outstanding 46,400 46,035 42,580
Nine Months Ended Sept. 30,
As
Previously
Restated(1) Reported
1999 1998 1998
Net revenue $382,841 $304,448 $266,780
Operating costs and expenses 292,863 239,922 208,671
Depreciation and amortization 19,488 15,328 13,286
Income from operations 70,490 49,198 44,823
Interest expense 3,977 4,239 2,248
Income before merger costs,
minority interest and taxes 66,513 44,959 42,575
Minority interest 5,594 2,200 2,200
Net income before merger costs
and income taxes 60,919 42,759 40,375
Income taxes 22,845 16,048 14,939
Net income before merger costs $38,074 $26,711 $25,436
Diluted earnings per share
before merger costs $0.82 $0.59 $0.60
Net income after merger costs $34,274 $26,081 $24,806
Diluted earnings per share
after merger costs $0.74 $0.57 $0.58
Weighted average
shares outstanding 46,500 45,643 42,500
(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: Ronald Hinds
615-345-5500 |
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