|
NASHVILLE, Tenn.-- Renal Care Group, Inc. (Nasdaq/NM:RCGI - news) today announced results for the fourth quarter and year ended December 31, 2000.
Mr. Sam Brooks, president and chief executive officer of Renal Care Group, Inc., said, ``At Renal Care Group, financial success and quality patient care are compatible. We have demonstrated that the better the care, the healthier the patient, and the healthier the patient, the better our company performs. This convergence of interests makes our business unique and very gratifying for our associates, stockholders and more than 16,000 patients.''
For the quarter ended December 31, 2000, Renal Care Group's revenues increased 19% to $164.2 million compared with revenues of $137.8 million for the same period in 1999, prior to the restatement for a pooling-of-interests transaction. Prior to giving effect to the pooling-of-interests transaction and the previously announced settlement involving the Company's laboratory subsidiary, net income rose 16% to $16.4 million, and earnings per share increased 10% to $0.34 compared with earnings per share of $0.31 in the same quarter of last year. Same-store treatment and same-store revenue growth were 6.1% and 12.3%, respectively, for the quarter ended December 31, 2000.
For the year ended December 31, 2000, Renal Care Group's revenues increased 20% to $624.6 million compared with revenues of $520.6 million for the same period in 1999, prior to the restatement for the pooling-of-interests transaction. Prior to giving effect to the pooling-of-interests transaction, the lab settlement, merger costs and the previously announced non-recurring restructuring charge related to the writing off of the Company's wound care business, net income rose 20% to $62.7 million, or $1.31 per share, compared with earnings per share of $1.12 last year.
The 1999 results referred to above are prior to the restatement for the pooling-of-interests transaction in which Renal Care Group merged with Renal Disease Management by Physicians, Inc. That transaction was effective April 1, 2000. In addition, as previously announced, Renal Care Group recorded a one-time restructuring charge of approximately $9 million as a result of writing off its wound care business in the third quarter of 2000. As also previously announced, the Company has entered into an agreement in principle to settle claims arising out of alleged inadequacies in physician documentation related to lab tests performed by its laboratory subsidiary, RenaLab. The terms of the settlement provide that RenaLab will repay $1.98 million. The settlement is subject to finalizing the terms of a corporate integrity agreement for the lab.
Mr. Brooks added, ``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 predictability and the 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.''
In closing, R. Dirk Allison, chief financial officer of the Company added, ``In response to the recent implementation of the Securities and Exchange Commission's Regulation FD, Renal Care Group is publicly disclosing our corporate goals for the fiscal year ending December 31, 2001. Renal Care Group intends to update these goals if material changes occur.''
FISCAL 2001 GOALS:
Corporate Hematocrit Level 90% over 30%
Corporate Urea Reduction Ratio 70% over 70%
Revenues (in millions) $690 to $710
EBITDA (in millions) $165 to $175
EBITDA margin 23.5% to 24.5%
Earnings per share $1.50 to $1.52
Same store treatment growth 5% to 7%
Same store revenue growth 9% to 12%
Patients at December 31, 2001 18,250 to 18,750
Treatments 2,700,000
Capital expenditures (in millions) $40 to $45
Acquisition target 500 to 700 patients
Renal Care Group will hold a conference call to discuss this press release on Wednesday, March 7, 2001, 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 or www.streetevents.com.
Renal Care Group, Inc. is a dialysis services company that provides care to patients with kidney disease. The Company treats approximately 16,500 patients through 201 dialysis centers, in addition to providing acute dialysis services in 112 hospitals. Over 5,000 associates provide services in the Company's 24-state network.
Certain statements in this press release, particularly the statements of Mr. Allison confirming the Company's goals for 2001, 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, including risks related to: compliance with health care and other applicable laws; the integration of acquired companies; changes in the Medicare and Medicaid programs; risks related to EPO; payment reductions by private insurers, hospitals or managed care organizations; changes in the health care delivery, financing or reimbursement systems; and the risk that the lab settlement may not be finalized. These and other factors affecting the company are discussed in more detail in Renal Care Group'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 and its quarterly reports on Form 10-Q for the quarters ended March 31, 2000, June 30, 2000 and September 30, 2000. Copies of these filings are available from Renal Care Group upon request.
RENAL CARE GROUP, INC.
Unaudited Consolidated Statements of Earnings
(In thousands, except per share data)
Three Months Ended
December 31,
As
Previously
Restated(1) Reported
2000 1999 1999
--------------------------------------------- ---------- ----------
Net revenue $164,241 $142,574 $137,766
Operating costs and expenses:
Patient care costs 106,087 92,606 88,352
General and administrative expense 14,425 13,642 12,686
Provision for doubtful accounts 4,437 3,934 3,673
Depreciation and amortization 8,587 7,478 6,937
-------- -------- --------
Total cost and expenses 133,536 117,660 111,648
Income from operations 30,705 24,914 26,118
Interest expense 1,027 1,444 1,061
-------- -------- --------
Income before non-recurring
items, minority interest and taxes 29,678 23,470 25,057
Minority interest 3,157 2,174 2,174
-------- -------- --------
Net income before non-recurring
items and income taxes 26,521 21,296 22,883
Income taxes 10,085 8,811 8,696
-------- -------- --------
Net income before
non-recurring items $16,436 $12,485 $14,187
======== ======== ========
Diluted earnings per share
before non-recurring items $0.34 $0.27 $0.31
======== ======== ========
Net income after
non-recurring items $14,862 $12,485 $14,187
======== ======== ========
Diluted earnings per share
after non-recurring items $0.31 $0.27 $0.31
======== ======== ========
Weighted average shares outstanding 48,490 47,042 46,450
======== ======== ========
Patients 16,558 15,082 14,497
Treatments 626,300 577,947 555,488
Same Store Treatment Growth 6.1% 8.7% 8.7%
Same Store Revenue Growth 12.3% 13.4% 13.4%
Patient Revenue Per Treatment $257 $239 $240
Year Ended
December 31,
As
Previously
Restated(1) Reported
2000 1999 1999
--------------------------------------------- ---------- ----------
Net revenue $624,555 $541,895 $520,607
Operating costs and expenses:
Patient care costs 402,009 351,367 335,366
General and administrative expense 57,104 51,315 48,330
Provision for doubtful accounts 16,949 14,632 13,878
Depreciation and amortization 32,321 27,835 26,425
--------- ---------- ----------
Total cost and expenses 508,383 445,149 423,999
Income from operations 116,172 96,746 96,608
Interest expense 5,015 6,224 5,038
--------- ---------- ----------
Income before non-recurring
items, minority interest and taxes 111,157 90,522 91,570
Minority interest 10,012 7,768 7,768
--------- ---------- ----------
Net income before non-recurring
items and income taxes 101,145 82,754 83,802
Income taxes 38,455 31,867 31,541
--------- ---------- ----------
Net income before
non-recurring items $62,690 $50,887 $52,261
========= ========== ==========
Diluted earnings per share
before non-recurring items $1.31 $1.08 $1.12
========= ========== ==========
Net income after
non-recurring items $51,459 $47,087 $48,461
========= ========== ==========
Diluted earnings per share
after non-recurring items $1.07 $1.00 $1.04
========= ========== ==========
Weighted average shares outstanding 47,948 47,052 46,460
========= ========== ==========
Patients 16,558 15,082 14,497
Treatments 2,418,619 2,215,728 2,127,073
Same Store Treatment Growth 7.1% 8.6% 8.6%
Same Store Revenue Growth 12.4% 15.6% 15.6%
Patient Revenue Per Treatment $251 $237 $238
(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)
December 31, December 31,
2000 1999
---------- ----------
ASSETS: (Unaudited)
Current Assets:
Cash and cash equivalents $29,902 $16,104
Accounts receivable, net 122,816 103,230
Other current assets 57,574 45,127
---------- ----------
Total current assets 210,292 164,461
Property, plant and equipment, net 139,573 123,963
Intangibles and other assets, net 229,674 212,482
---------- ----------
TOTAL ASSETS $579,539 $500,906
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY:
Total current liabilities $101,019 $90,810
Long-term debt 58,316 79,690
Other liabilities 26,082 18,567
---------- ----------
Total liabilities 185,417 189,067
---------- ----------
Stockholders' equity:
Common stock, $.01 par value, 90,000
shares authorized, 46,791 and
45,320 shares issued and
outstanding respectively 468 453
Additional paid-in capital 234,741 203,932
Retained earnings 158,913 107,454
---------- ----------
Total stockholders' equity 394,122 311,839
---------- ----------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $579,539 $500,906
========== ==========
------------------------------------------------------------
Contact:
Renal Care Group, Inc.
R. Dirk Allison, 615/345-5500
|
Press Releases