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NASHVILLE, Tenn.--(BW HealthWire)--May 1, 2001--Renal Care Group, Inc. (Nasdaq/NM:RCGI - news) today announced results for the first quarter ended March 31, 2001.
For the first quarter ended March 31, 2001, Renal Care Group's revenues increased 21% to $174.8 million compared with revenues of $144.3 million for the same period in 2000, prior to restatement for a pooling-of-interests transaction. Net income rose 18% to $17.7 million from $15.1 million in the same period last year, and earnings per share increased 13% to $0.36 compared with earnings per share of $0.32 in the same quarter of last year. For the quarter ended March 31, 2001, same-store treatment growth was 6.1% and same-store revenue growth was 12.0%.
Mr. Sam Brooks, president and chief executive officer of Renal Care Group, Inc., said, "When we founded this business five years ago, one of the attractive fundamentals of the industry was recurring, predictable growth. The first quarter of 2001 represents the Company's 21st quarter of double-digit growth in revenues. We are all proud to be part of a business where clinical objectives and financial objectives are closely aligned. With 92% of our associates involved directly in patient care, it's no accident that we are industry leaders in both quality medical outcomes and financial performance."
Mr. Brooks added, "As clinical outcome measurements of Renal Care Group's patients continue to improve, so does the financial health of our company. An example of this financial health is the Company's continuing strong cash flow, which has resulted in a reduction in the Company's debt to total capital ratio."
Renal Care Group will hold a conference call to discuss this press release on Wednesday, May 2, 2001, at 10:00 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 or www.streetevents.com.
Renal Care Group, Inc. is a dialysis services company that provides care to patients with kidney disease. The Company currently treats approximately 17,000 patients through 209 owned outpatient dialysis facilities, in addition to providing acute dialysis services to more than 112 hospitals. Over 5,000 associates provide services across the Company's 25-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, 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; and changes in the health care delivery, financing or reimbursement systems. 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, 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
March 31,
As
Previously
Restated(1) Reported
2001 2000 2000
--------- -------- --------
Net revenue $174,778 $149,657 $144,297
Operating costs and expenses:
Patient care costs 113,328 95,439 92,140
General and administrative expense 15,003 14,745 13,161
Provision for doubtful accounts 4,800 4,097 3,949
Depreciation and amortization 8,852 7,772 7,404
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Total cost and expenses 141,983 122,053 116,654
Income from operations 32,795 27,604 27,643
Interest expense 999 1,496 1,191
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Income before minority
interest and taxes 31,796 26,108 26,452
Minority interest 3,130 2,169 2,169
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Net income before income taxes 28,666 23,939 24,283
Income taxes 10,952 9,091 9,229
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Net income $17,714 $14,848 $15,054
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Diluted earnings per share $0.36 $0.31 $0.32
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Weighted average shares outstanding 49,611 47,492 46,900
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Patients 17,004 15,580 14,992
Treatments 644,146 589,296 568,081
Same-Store Treatment Growth 6.1% 8.4% 8.4%
Same-Store Revenue Growth 12.0% 12.7% 12.7%
Patient Revenue Per Treatment $267 $246 $246
(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)
March 31, Dec. 31,
2001 2000
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ASSETS: (Unaudited)
Current Assets:
Cash and cash equivalents $27,785 $29,902
Accounts receivable, net 134,237 122,816
Other current assets 57,623 63,619
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Total current assets 219,645 216,337
Property, plant and equipment, net 144,475 139,573
Intangibles and other assets, net 234,361 228,974
-------- --------
TOTAL ASSETS $598,481 $584,884
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LIABILITIES AND STOCKHOLDERS' EQUITY:
Total current liabilities $98,947 $100,592
Long-term debt 49,174 58,316
Other liabilities 33,515 31,854
-------- --------
Total liabilities 181,636 190,762
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Stockholders' equity:
Common stock, $.01 par value,
90,000 shares authorized, 47,361
and 47,087 shares issued and
outstanding respectively 474 471
Additional paid-in capital 239,744 234,738
Retained earnings 176,627 158,913
-------- --------
Total stockholders' equity 416,845 394,122
-------- --------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $598,481 $584,884
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Contact:
Renal Care Group, Inc.
R. Dirk Allison, 615/345-5500
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