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Nashville,
Tennessee (September 20, 2000)—Renal Care Group, Inc. (Nasdaq/NM: RCGI)
today announced that it expects to be able to sustain a 15% growth rate
in earnings per share over the next three to five years. Also, in
order to focus exclusively on its primary business of providing dialysis
services, the Company announced that it would write-off its wound care
business. In connection with writing off this business, the Company
expects to record a one-time restructuring charge of approximately $9
million in the third quarter of 2000.
The Company also announced that it expects to report earnings per share
of approximately $1.32 for 2000, an increase of 18% compared with 1999.
Earnings per share in the second half of 2000 will be affected moderately
by expenses associated with the Company's previously announced water treatment-related
episode in Youngstown, Ohio, as well as the Company's decision to decrease
its merger and acquisition activities in the second half of 2000 in light
of increasing acquisition pricing. The Company expects to generate
earnings per share of approximately $0.33 for the third quarter and approximately
$0.34 for the fourth quarter of 2000.
Sam A. Brooks, chairman and chief executive officer of Renal Care Group,
said, "Although the operational base of our company has expanded
dramatically, we believe that we can maintain a growth rate of 15% in
earnings per share for the next three to five years. This view is
based on the inherent predictability and recurring nature of the dialysis
business, our proven strength in integrating acquisitions and a galvanized
management team that is totally dedicated to delivering quality care and
improving patient outcomes, while remaining focused on building shareholder
value. We also see positive trends on the legislative horizon for
next year.
"Further, in order to focus all our resources on our core business
of dialysis services," Mr. Brooks commented, "we will write
off our investment in our non-core wound care business. It has not
contributed significantly to profitability. This decision is consistent
with our ongoing process of evaluating our non-dialysis businesses as
they relate to our core focus."
In closing, Mr. Brooks said, "I have never been more confident about
our business or the future of the dialysis industry. At Renal Care
Group, financial success and quality patient care are compatible concepts.
We have demonstrated that the better the care, the healthier the patient;
and the healthier the patient, the better our company performs.
In my long career in healthcare, I have not encountered any other business
where the goals of the stockholder are so directly aligned with the needs
of the patient. This convergence of interests makes ours a unique
and very special business for our associates, stockholders and our more
than 15,900 patients."
Renal Care Group will hold a conference call to discuss this press release
on Thursday, September 21, 2000, at 8:00 a.m. Central 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 193 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.
Contact:
R. Dirk
Allison
Chief Financial Officer
615-345-5500
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 10K for the year ended
December 31, 1999 and Renal Care Group's quarterly reports on From 10-Q
for the quarters ended March 31, 2000 and June 30, 2000. Copies
of these filings are available from Renal Care Group upon request. |
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