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NASHVILLE, Tenn., Nov 2, 2000 (BW HealthWire) -- Renal Care Group, Inc. (RCGI)
today announced results for the third quarter and nine months ended September
30, 2000.
Mr. Sam Brooks, president and chief executive officer of Renal Care Group, Inc., said, "Renal Care Group's operating performance for the third quarter ended September 30, 2000, was excellent. The Company's same-store growth is among the best in the healthcare services sector of the United States. Combining our excellent cash flow with our above industry average return on equity, Renal Care Group should be able to continue its strong growth. In addition, our management team is highly energized and focused on achieving our goals of improving both quality of care and shareholder value."
For the quarter ended September 30, 2000, revenues increased 17% to $156.5 million compared with revenues of $133.5 million for the same period in 1999, prior to the restatement for a pooling-of-interests transaction. As was previously announced, the Company recorded a one-time restructuring charge in the third quarter 2000 of approximately $9 million as a result of writing off its wound care business. Net income increased 19% to $15.8 million, before the restructuring charge. Earnings per share increased 14% to $0.33 compared with earnings per share of $0.29 in the same quarter of last year. Including the restructuring charge, net income was $9.8 million, or $0.20 per share, for the third quarter of 2000.
For the nine months ended September 30, 2000, revenues increased 20% to $460.3 million compared with revenues of $382.8 million for the same period in 1999, prior to the restatement for a pooling-of-interests transaction. Net income increased 21% to $46.3 million, before the $9 million restructuring charge in the third quarter of 2000. Earnings per share increased 18% to $0.97 compared with earnings per share of $0.82 in the same nine-month period last year. Including the restructuring charge, net income was $36.6 million, or $0.77 per share, for the nine months ended September 30, 2000.
As restated to give effect to the merger with Renal Disease Management by Physicians, Inc. of Youngstown, Ohio, which was treated as a pooling-of-interests for accounting purposes, revenues for the third quarter ended September 30, 2000, increased 13% to $156.5 million as compared with $138.8 million for the same period in 1999. Net income before the restructuring charge and merger costs increased to $15.8 million, or $0.33 per share, compared with net income of $13.3 million, or $0.28 per share, in the same period in the prior year, an increase of 18% in earnings per share. As restated for the merger with Renal Disease Management by Physicians, revenues for the nine months ended September 30, 2000, increased 15% to $460.3 million as compared with $399.3 million for 1999. Net income before the restructuring charge and merger costs for the nine months ended September 30, 2000, increased 20% to $46.3 million, or $0.97 per share, compared with net income of $38.4 million, or $0.82 per share last year, an increase of 18% in earnings per share.
Same-store treatment and same-store revenue growth were 6.7% and 11.6%, respectively, for the quarter ended September 30, 2000.
On October 2, 2000, the Company announced that its Board of Directors authorized management of the Company to invest up to $50 million to repurchase shares of the Company's common stock. To date, the Company has not purchased any stock under this program.
The Company also confirmed that it expects to report earnings per share of $0.34 for the fourth quarter of 2000. In addition, the Company anticipates generating earnings per share growth of approximately 15% in 2001, with an estimated range of $1.50 to $1.52 for the year ended December 31, 2001.
Renal Care Group will hold a conference call to discuss this press release on Friday, November 3, 2000, at 11:00 a.m. Eastern time. A listen-only simulcast, as well as a 30-day replay, of the conference call to discuss this press release will be available online at the Company's website at www.renalcaregroup.com, www.streetevents.com or www.vcall.com.
Renal Care Group, Inc. is a dialysis services company that provides care to patients with kidney disease. The Company treats approximately 15,900 patients through 194 dialysis centers, in addition to providing acute dialysis services in 108 hospitals. Over 5,000 associates provide services in the Company's 23-state network.
Certain statements in this press release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect management's expectations and are based upon currently available information. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of Renal Care Group to differ materially from those expressed in or implied by the forward-looking statements. These factors are discussed in more detail in the Company's reports filed with the Securities and Exchange Commission, including without limitation Renal Care Group's annual report on Form 10-K for the year ended December 31, 1999. Copies of these filings are available from Renal Care Group upon request.
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RENAL CARE GROUP, INC.
Unaudited Consolidated Statements of Earnings
(In thousands, except per share data)
Three Months Ended
September 30,
As
Previously
Restated(1) Reported
2000 1999 1999
-------- -------- --------
Net revenue $156,505 $138,780 $133,484
Operating costs and expenses:
Patient care costs 101,068 89,611 85,733
General and administrative expense 13,984 13,064 12,506
Provision for doubtful accounts 4,259 3,774 3,579
Depreciation and amortization 8,154 7,201 6,798
-------- -------- --------
Total cost and expenses 127,465 113,650 108,616
Income from operations 29,040 25,130 24,868
Interest expense 1,126 1,573 1,284
-------- -------- --------
Income before restructuring
charge, merger costs, minority
interest and taxes 27,914 23,557 23,584
Minority interest 2,428 2,350 2,350
-------- -------- --------
Net income before restructuring
charge, merger costs and
income taxes 25,486 21,207 21,234
Income taxes 9,695 7,953 7,963
-------- -------- --------
nbsp;
Net income before restructuring
charge and merger costs $15,791 $13,254 $13,271
======== ======== ========
Diluted earnings per share
before restructuring charge
and merger costs $0.33 $0.28 $0.29
======== ======== ========
Net income after restructuring
charge and merger costs $9,802 $13,254 $13,271
======== ======== ========
Diluted earnings per share
after restructuring charge
and merger costs $0.20 $0.28 $0.29
======== ======== ========
Weighted average shares outstanding 48,100 47,000 46,400
======== ======== ========
Patients 15,944 14,803 14,210
Treatments 603,770 564,966 543,111
Same Store Treatment Growth 6.7% 8.2% 8.2%
Same Store Revenue Growth 11.6% 15.1% 15.1%
Patient Revenue Per Treatment $253 $239 $238
Nine Months Ended
September 30,
As
Previously
Restated(1) Reported
2000 1999 1999
---------- ---------- ----------
Net revenue $460,314 $399,321 $382,841
Operating costs and expenses:
Patient care costs 295,922 258,761 247,014
General and administrative expense 42,679 37,673 35,644
Provision for doubtful accounts 12,512 10,698 10,205
Depreciation and amortization 23,734 20,357 19,488
---------- ---------- ----------
Total cost and expenses 374,847 327,489 312,351
Income from operations 85,467 71,832 70,490
Interest expense 3,988 4,780 3,977
---------- ---------- ----------
Income before restructuring
charge, merger costs, minority
interest and taxes 81,479 67,052 66,513
Minority interest 6,855 5,594 5,594
---------- ---------- ----------
Net income before restructuring
charge, merger costs and
income taxes 74,624 61,458 60,919
Income taxes 28,370 23,056 22,845
---------- ---------- ----------
Net income before restructuring
charge and merger costs $46,254 $38,402 $38,074
========== ========== ==========
Diluted earnings per share
before restructuring charge
and merger costs $0.97 $0.82 $0.82
========== ========== ==========
Net income after restructuring
charge and merger costs $36,597 $34,602 $34,274
========== ========== ==========
Diluted earnings per share
after restructuring charge
and merger costs $0.77 $0.73 $0.74
========== ========== ==========
Weighted average shares outstanding 47,600 47,100 46,500
========== ========== ==========
Patients 15,944 14,803 14,210
Treatments 1,792,319 1,637,781 1,571,585
Same Store Treatment Growth 7.5% 8.6% 8.6%
Same Store Revenue Growth 12.5% 16.3% 16.3%
Patient Revenue Per Treatment $249 $236 $237
(1) Restated amounts give effect to the merger with Renal Disease
Management by Physicians, Inc., which was effective April 1, 2000,
and was accounted for as a pooling-of-interests.
RENAL CARE GROUP, INC.
Consolidated Balance Sheets
(In thousands)
Sept. 30, Dec. 31,
2000 1999
-------- --------
ASSETS: (Unaudited)
Current Assets:
Cash and cash equivalents $33,534 $15,608
Accounts receivable, net 111,759 103,230
Other current assets 55,536 45,623
-------- --------
Total current assets 200,829 164,461
Property, plant and equipment, net 128,917 123,963
Intangibles and other assets, net 205,943 212,902
-------- --------
TOTAL ASSETS $535,689 $501,326
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY:
Total current liabilities $90,483 $88,337
Long-term debt 51,650 79,960
Other liabilities 27,474 20,770
-------- --------
Total liabilities 169,607 189,067
-------- --------
Stockholders' equity:
Common stock, $.01 par value, 90,000
shares authorized, 46,426 and 45,320
shares issued and outstanding
respectively 464 453
Additional paid-in capital 221,567 204,352
Retained earnings 144,051 107,454
-------- --------
Total stockholders' equity 366,082 312,259
-------- --------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $535,689 $501,326
======== ========
CONTACT:
Renal Care Group, Inc.
R. Dirk Allison, 615/345-5500
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