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Nashville, Tennessee (February
26, 2002) — Renal Care Group, Inc. (NYSE:RCI) today announced results
for the fourth quarter and year ended December 31, 2001.
Mr. Sam Brooks, president
and chief executive officer of Renal Care Group, said, "Renal Care
Group has concluded another outstanding year. We are pleased that our
strong operating performance continues to generate consistent and predictable
financial results as well as high-quality care for our patients. We are
proud of the fact that fulfilling our obligations to our patients allows
us to deliver exceptional value to our shareholders at the same time.
Six years of solid financial results and improvements in the quality of
care are a clear indication that our strategy is on target."
For the fourth quarter ended
December 31, 2001, Renal Care Group's revenues increased 24.1% to $203.7
million compared with revenues of $164.2 million for the same period in
2000. Net income rose 25.6% to $20.6 million from $16.4 million in the
same period last year. Earnings per share increased 17.6% to $0.40 compared
with earnings per share of $0.34 in the same quarter of last year. The
net income and earnings per share amounts noted above for the fourth quarter
ended December 31, 2000, are prior to giving effect to a settlement involving
the Company's laboratory subsidiary. Giving effect to the settlement,
net income for the fourth quarter ended December 31, 2000, was $14.9 million
and earnings per share were $0.31. For the quarter ended December 31,
2001, same-store treatment growth was 5.4% and same-store revenue growth
was 14.6%.
For the year ended December
31, 2001, revenues increased 20.9% to $755.1 million compared with revenues
of $624.6 million for the same period in 2000. Net income rose 22.2% to
$76.6 million from $62.7 million in the year 2000. Earnings per share
increased 16.0% to $1.52 compared with earnings per share of $1.31 in
the year 2000. The net income and earnings per share amounts noted above
for the year ended December 31, 2000, are prior to giving effect to the
lab settlement, certain merger expenses, and a loss on disposal related
to writing off the Company's wound care business. Giving effect to the
settlement, merger expenses, and the write-off, net income for the year
ended December 31, 2000, was $51.5 million and earnings per share were
$1.07. For the year ended December 31, 2001, same-store treatment growth
was 5.4% and same-store revenue growth was 13.7%.
Mr. Brooks added, "By
every measure, Renal Care Group had an outstanding year. We continue to
deliver value to our shareholders, patients and associates. Even better,
we have built a solid foundation and culture to create an environment
that fosters high quality care, strong financial performance and disciplined
growth. We are very excited about the future of our company and our leadership
position in the industry."
Renal Care Group will hold a conference call to discuss this press release
on Wednesday, February 27, 2002, 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.companyboardroom.com.
Renal Care Group, Inc. is
a dialysis services company that provides care to patients with kidney
disease. The Company currently treats approximately 18,800 patients through
approximately 240 owned outpatient dialysis facilities, in addition to
providing acute dialysis services to 120 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, 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 ended March 31, 2001, June 30, 2001,
and September 30, 2001. Copies of these filings are available from Renal
Care Group upon request.
RENAL CARE GROUP, INC.
Consolidated Statements of Earnings
(In thousands, except per share data and operating data)
Three Months Ended Year Ended
December 31, December 31,
------------------ -------------------
2001 2000 2001 2000
-------- -------- -------- --------
Net revenue $203,700 $164,241 $755,082 $624,555
Operating costs and expenses:
Patient care costs 132,105 106,087 489,271 402,009
General and
administrative expense 17,308 14,425 64,530 57,104
Provision for
doubtful accounts 5,405 4,437 20,290 16,949
Depreciation and
amortization 10,824 8,587 38,945 32,321
-------- -------- --------- ---------
Total cost and expenses 165,642 133,536 613,036 508,383
Income from operations 38,058 30,705 142,046 116,172
Interest expense 166 1,027 2,636 5,015
-------- -------- --------- ---------
Income before special
charges, minority interest
and income taxes (1) 37,892 29,678 139,410 111,157
Minority interest 4,522 3,157 15,478 10,012
-------- -------- --------- ---------
Income before special
charges and income taxes (1) 33,370 26,521 123,932 101,145
Income taxes 12,740 10,085 47,331 38,455
-------- -------- --------- ---------
Net income before special
charges (1) $20,630 $16,436 $76,601 $62,690
======== ======== ========= =========
Diluted earnings per share
before special charges (1) $0.40 $0.34 $1.52 $1.31
======== ======== ========= =========
Net income $20,630 $14,862 $76,601 $51,459
======== ======== ========= =========
Diluted earnings per share $0.40 $0.31 $1.52 $1.07
======== ======== ========= =========
Weighted average shares
outstanding 51,170 48,490 50,433 47,948
======== ======== ========= =========
Patients 18,763 16,558 18,763 16,558
Treatments 709,586 626,300 2,686,181 2,418,619
Same-Store Treatment Growth 5.4% 6.1% 5.4% 7.1%
Same-Store Revenue Growth 14.6% 12.3% 13.7% 12.4%
Patient Revenue Per Treatment $285 $257 $278 $251
(1) For the three months ended December 31, 2000, excluding the
impact of the settlement involving the Company's laboratory
subsidiary. For the year ended December 31, 2000, excluding the
impact of the lab settlement, a restructuring charge related to
the write-off of the Company's wound care business and certain
merger expenses.
RENAL CARE GROUP, INC.
Consolidated Balance Sheets
(In thousands)
Dec. 31, Dec. 31,
2001 2000
--------- ---------
ASSETS:
Current assets:
Cash and cash equivalents $27,423 $29,902
Accounts receivable, net 127,056 122,816
Other current assets 58,225 55,274
--------- ---------
Total current assets 212,704 207,992
Property, plant and equipment, net 175,925 139,573
Intangibles and other assets, net 263,025 233,592
--------- ---------
TOTAL ASSETS $651,654 $581,157
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY:
Total current liabilities $110,468 $100,592
Long-term debt 3,776 58,316
Other liabilities 27,159 28,127
--------- ---------
Total liabilities 141,403 187,035
--------- ---------
Stockholders' equity:
Common stock, $.01 par value, 90,000 shares
authorized, 49,597 and 47,091 shares issued
and outstanding, respectively 496 471
Additional paid-in capital 277,300 234,738
Retained earnings 235,514 158,913
Common stock in treasury, at cost, 100
and 0 shares, respectively (3,059) --
--------- ---------
Total stockholders' equity 510,251 394,122
--------- ---------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $651,654 $581,157
========= =========
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