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NASHVILLE, Tenn.--(BW HealthWire)--July 30, 2002--Renal Care Group, Inc.
(NYSE:RCI - News) today announced results for the second quarter and six
months ended June 30, 2002.
Mr. Sam Brooks, chairman and chief executive officer of Renal Care Group,
said, "We continue to deliver superior care to an expanding base
of dialysis patients, helping us achieve solid financial results. Our
strong second quarter and six months results confirm our outlook for another
year of solid growth."
For the second quarter ended June 30, 2002, Renal Care Group's revenues
increased 21.1% to $222.2 million compared with revenues of $183.5 million
for the same period in 2001. Net income for the second quarter of 2002
rose 23.3% to $22.6 million from $18.4 million in the same period last
year. Earnings per share for the second quarter of 2002 increased 18.9%
to $0.44 compared with earnings per share of $0.37 in the same quarter
of last year. For the quarter ended June 30, 2002, same-store treatments
increased 5.9% and same-store revenue increased 12.2% compared with the
same quarter of last year.
For the six months ended June 30, 2002, Renal Care Group's revenues increased
19.7% to $428.8 million compared with revenues of $358.2 million for the
same period in 2001. Net income for the first half of 2002 rose 22.3%
to $44.1 million from $36.1 million in the same period last year. Earnings
per share for the six months ended June 30, 2002, increased 19.4% to $0.86
compared with earnings per share of $0.72 in the six months ended June
30, 2001. For the six months ended June 30, 2002, same-store treatments
increased 5.8% and same-store revenue increased 13.0% compared with the
same six-month period of last year.
Recently, the Company announced that it had finalized a three-year $100
million credit facility and a $50 million 364-day facility. Renal Care
Group may use these credit facilities to fund working capital needs and
capital expenditures and for other general corporate purposes. The Company
also announced that its Board of Directors approved an increase in the
Company's previously announced share repurchase plan from $50 million
to up to $100 million of the Company's common stock. Through June 30,
2002, the Company had repurchased $25.3 million of the Company's common
stock. Since June 30, 2002, the Company has repurchased an additional
$15.8 million of common stock, resulting in a total of $41.1 million in
share repurchases under the plan.
In closing, R. Dirk Allison, Renal Care Group's chief financial officer,
added, "We are very pleased with our financial performance for the
first half of 2002, and we expect this trend to continue. Based on our
stock repurchase program and the Company's continuing strong operations,
we are raising our guidance for Renal Care Group's earnings per share
for the year 2002 to between $1.78 and $1.79."
Renal Care Group will hold a conference call to discuss this press release
on Wednesday, July 31, 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 more than
19,700 patients through more than 250 owned outpatient dialysis facilities,
in addition to providing acute dialysis services to more than 120 hospitals.
Over 6,000 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 Renal Care Group's annual report on Form 10-K for the year ended
December 31, 2001, and Renal Care Group's quarterly report on Form 10-Q
for the quarter ended March 31, 2002. Copies of Renal Care Group's SEC
filings are available from Renal Care Group upon request.
RENAL CARE GROUP, INC.
Unaudited Consolidated Income Statements
(in thousands, except per share data and operating data)
Three Months Ended Six Months Ended
June 30, June 30,
------------------ --------------------
2002 2001 2002 2001
-------- -------- --------- ---------
Net revenue $222,169 $183,455 $428,847 $358,233
Operating costs
and expenses:
Patient care costs 145,750 118,803 280,462 232,131
General and
administrative expense 18,787 15,778 36,347 30,781
Provision for
doubtful accounts 5,736 4,870 11,220 9,670
Depreciation and
amortization 9,933 9,296 19,295 18,148
-------- -------- --------- ---------
Total cost and expenses 180,206 148,747 347,324 290,730
Income from operations 41,963 34,708 81,523 67,503
Interest expense, net 138 1,274 311 2,273
-------- -------- --------- ---------
Income before minority
interest and taxes 41,825 33,434 81,212 65,230
Minority interest 5,307 3,722 10,017 6,852
-------- -------- --------- ---------
Net income before
income taxes 36,518 29,712 71,195 58,378
Income taxes 13,876 11,351 27,060 22,303
-------- -------- --------- ---------
Net income $22,642 $18,361 $44,135 $36,075
======== ======== ========= =========
Diluted earnings per share $0.44 $0.37 $0.86 $0.72
======== ======== ========= =========
Weighted average
shares outstanding 51,369 50,046 51,296 49,828
======== ======== ========= =========
Patients 19,704 17,237 19,704 17,237
Treatments 746,490 657,328 1,453,973 1,301,474
Same-store treatment growth 5.9% 5.0% 5.8% 5.5%
Same-store revenue growth 12.2% 13.4% 13.0% 12.7%
Patient revenue
per treatment $296 $275 $293 $271
RENAL CARE GROUP, INC.
Consolidated Balance Sheets
(in thousands)
June 30, December 31,
2002 2001
--------- ---------
ASSETS: (Unaudited)
Current assets:
Cash and cash equivalents $40,218 $27,423
Accounts receivable, net 146,286 127,056
Other current assets 47,466 58,828
--------- ---------
Total current assets 233,970 213,307
Property, plant and equipment, net 189,713 175,925
Intangibles and other assets, net 279,851 261,817
--------- ---------
TOTAL ASSETS $703,534 $651,049
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY:
Total current liabilities $120,378 $109,260
Long-term debt 2,754 3,776
Other liabilities 37,250 27,762
--------- ---------
Total liabilities 160,382 140,798
--------- ---------
Stockholders' equity:
Common stock, $.01 par value, 90,000
shares authorized, 50,068 and 49,597
shares issued, respectively 501 496
Treasury stock, 800 and 100
shares, respectively (25,282) (3,059)
Additional paid-in capital 288,284 277,300
Retained earnings 279,649 235,514
--------- ---------
Total stockholders' equity 543,152 510,251
--------- ---------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $703,534 $651,049
========= =========
Contact:
Renal Care Group Inc., Nashville
R. Dirk Allison, 615/345-5500
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