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NASHVILLE, Tenn.--(BW HealthWire)--Oct. 30, 2001--Renal Care Group, Inc. (Nasdaq/NM:RCGI - news) today announced results for the third quarter and nine months ended September 30, 2001.
Mr. Sam Brooks, president and chief executive officer of Renal Care Group, said, "Once again, providing exceptional care for dialysis patients has translated into strong financial performance. In the third quarter, we met analysts' expectations by generating solid internal growth, successfully integrating a recent acquisition and focusing on fiscal discipline. Clearly, our financial success is driven by an experienced management team that understands the dialysis business and the importance of delivering high quality care to our patients."
For the third quarter ended September 30, 2001, Renal Care Group's revenues increased 23.4% to $193.1 million compared with revenues of $156.5 million for the same period in 2000. Net income rose 26.0% to $19.9 million from $15.8 million in the same period last year, and earnings per share increased 18.2% to $0.39 compared with earnings per share before restructuring charge of $0.33 in the same quarter of last year. For the quarter ended September 30, 2001, same-store treatment growth was 5.1% and same-store revenue growth was 14.5%.
For the nine months ended September 30, 2001, revenues increased 19.8% to $551.4 million compared with revenues of $460.3 million for the same period in 2000. Net income rose 21.0% to $56.0 million from $46.3 million in the same period last year, and earnings per share increased 15.5% to $1.12 compared with earnings per share before restructuring charge and merger costs of $0.97 in the same period of last year. For the nine months ended September 30, 2001, same-store treatment growth was 5.4% and same-store revenue growth was 13.3%.
During the third quarter, the Company acquired the outpatient and home dialysis programs of Healthcare of the Rockies, LLC of Denver, Colorado, which provides dialysis services to approximately 275 patients in two outpatient dialysis centers. The transaction expanded the Company's presence in the West, where it currently has operations in Alaska, Arizona, Idaho, New Mexico, Oregon, Texas, and Washington.
Earlier this month, the Company announced that its Board of Directors had approved plans to transfer Renal Care Group's listing to the New York Stock Exchange (NYSE). The Company has filed a listing application with the NYSE, and trading is expected to begin on Tuesday, November 13, 2001, under the ticker symbol "RCI." Until that time, the Company will continue to trade on the Nasdaq National Market.
Mr. Brooks added, "We are honored to be listing our stock on the New York Stock Exchange. It is an important event for our company because we view it as further confirmation of our operating strategy. In addition, we believe that listing on the New York Stock Exchange will broaden the liquidity of Renal Care Group shares, further enhancing the investment of our shareholders. Truly, we have come a long way since our IPO in 1996."
The Company also confirmed that it expects to report earnings per share of $0.40 for the fourth quarter of 2001. In addition, the Company anticipates generating earnings per share of $1.75 to $1.77 for the year ending December 31, 2002. This range gives effect to the anticipated change in accounting for goodwill amortization associated with the required adoption of new financial accounting standards.
In closing, R. Dirk Allison, chief financial officer of Renal Care Group, added, "Renal Care Group is publicly disclosing its corporate goals for the fiscal year ending December 31, 2002. The Company intends to update these goals if material changes occur."
FISCAL 2002 GOALS:
Corporate Hematocrit Level 75% over 33%
Corporate Urea Reduction Ratio 85% over 70%
Earnings Per Share $1.75 to $1.77
Revenues $850 - $875 million
EBITDA $200 to $210 million
EBITDA Percentage 23.5% to 24.5%
Same Store Treatment Growth 5% to 6%
Same Store Revenue Growth 10% to 14%
Patients 19,500 to 20,500
Treatments 2.8 to 3.0 million
Capital Expenditures $40 to $45 million
Acquisition Target 700 - 1,000 patients
Renal Care Group will hold a conference call to discuss this press release
on Wednesday, October 31, 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 17,900 patients through 228 owned outpatient dialysis facilities, in addition to providing acute dialysis services to 118 hospitals. Over 5,000 associates provide services across the Company's 26-state network.
Certain statements in this press release, particularly the statements of Mr. Brooks and Mr. Allison, 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: changes in the Medicare and Medicaid programs; risks related to EPO; payment reductions by private insurers, hospitals or managed care organizations; compliance with health care and other applicable laws; the integration of acquired companies; 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, and its quarterly reports on Form 10-Q for the quarters ending March 31, 2001 and June 30, 2001. 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 and operating data)
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30,
------------------ ------------------
2001 2000 2001 2000
-------- -------- -------- ---------
Net revenue $193,149 $156,505 $551,382 $460,314
Operating costs and expenses:
Patient care costs 125,020 101,068 357,166 295,922
General and administrative
expense 16,430 13,984 47,222 42,679
Provision for doubtful
accounts 5,215 4,259 14,885 12,512
Depreciation and amortization 9,997 8,154 28,121 23,734
-------- -------- -------- ---------
Total cost and expenses 156,662 127,465 447,394 374,847
Income from operations 36,487 29,040 103,988 85,467
Interest expense 198 1,126 2,470 3,988
-------- -------- -------- ---------
Income before restructuring
charge, merger costs, minority
interest and income taxes 36,289 27,914 101,518 81,479
Minority interest 4,104 2,428 10,956 6,855
-------- -------- -------- ---------
Income before restructuring
charge, merger costs and
income taxes 32,185 25,486 90,562 74,624
Income taxes 12,288 9,695 34,591 28,370
-------- -------- -------- ---------
Net income before
restructuring charge
and merger costs $19,897 $15,791 $55,971 $46,254
======== ======== ======== =========
Diluted earnings per share
before restructuring charge
and merger costs $0.39 $0.33 $1.12 $0.97
======== ======== ======== =========
Net income after restructuring
charge and merger costs $19,897 $9,802 $55,971 $36,597
======== ======== ======== =========
Diluted earnings per share
after restructuring charge
and merger costs $0.39 $0.20 $1.12 $0.77
======== ======== ======== =========
Weighted average shares
outstanding 50,904 48,100 50,187 47,600
======== ======== ======== =========
Patients 17,973 15,944 17,973 15,944
Treatments 675,121 603,770 1,976,595 1,792,319
Same-Store Treatment Growth 5.1% 6.7% 5.4% 7.5%
Same-Store Revenue Growth 14.5% 11.6% 13.3% 12.5%
Patient Revenue Per Treatment $282 $253 $275 $249
RENAL CARE GROUP, INC.
Consolidated Balance Sheets
(In thousands)
Sept. 30, Dec. 31,
2001 2000
-------- --------
ASSETS: (Unaudited)
Current assets:
Cash and cash equivalents $39,659 $29,902
Accounts receivable, net 126,432 122,816
Other current assets 60,370 63,619
-------- --------
Total current assets 226,461 216,337
Property, plant and equipment, net 160,921 139,573
Intangibles and other assets, net 246,658 233,592
-------- --------
TOTAL ASSETS $634,040 $589,502
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY:
Total current liabilities $105,178 $100,592
Long-term debt 6,927 58,316
Other liabilities 37,876 36,472
-------- --------
Total liabilities 149,981 195,380
-------- --------
Stockholders' equity:
Common stock, $.01 par value, 90,000 shares
authorized, 48,840 and 47,091 shares issued
and outstanding respectively 488 471
Additional paid-in capital 268,687 234,738
Retained earnings 214,884 158,913
-------- --------
Total stockholders' equity 484,059 394,122
-------- --------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $634,040 $589,502
======== ======== ------------------------------------------
Contact:
Renal Care Group, Nashville
R. Dirk Allison, 615/345-5500
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