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NASHVILLE, Tenn.--(BUSINESS WIRE)--Oct. 30, 2002--Renal Care Group, Inc. (NYSE:RCI - News) today announced results for the third quarter and nine months ended September 30, 2002.
Mr. Sam Brooks, chairman and chief executive officer of Renal Care Group, commented, "Again, we have focused intensely on achieving superior clinical outcomes by providing optimal care for our patients, while exercising fiscal discipline to control costs. Our team of highly motivated associates continues to demonstrate Renal Care Group's best practices through continuous quality improvements, education and technology. These fundamental factors underpin our long-term strategy for consistent and steady growth in earnings per share for our investors."
For the third quarter ended September 30, 2002, Renal Care Group's revenues increased 19.9% to $231.5 million compared with revenues of $193.1 million for the same period in 2001. Net income for the third quarter of 2002 rose 17.8% to $23.4 million from $19.9 million in the same period last year. Earnings per share for the third quarter of 2002 increased 17.9% to $0.46 compared with earnings per share of $0.39 in the same quarter of last year. For the quarter ended September 30, 2002, same-market treatments increased 5.9%, and same-market revenue increased 12.3% compared with the same quarter of last year.
For the nine months ended September 30, 2002, Renal Care Group's revenues increased 19.8% to $660.4 million compared with revenues of $551.4 million for the same period in 2001. Net income for the nine months ended September 30, 2002, rose 20.7% to $67.6 million from $56.0 million in the same period last year. Earnings per share for the nine months ended September 30, 2002, increased 17.9% to $1.32 compared with earnings per share of $1.12 in the nine months ended September 30, 2001. For the nine months ended September 30, 2002, same-market treatments increased 5.8%, and same-market revenue increased 12.8% compared with the same nine-month period of last year.
In closing, Mr. Dirk Allison, Renal Care Group's chief financial officer, added, "We have exceeded our original plan for share repurchases. This, along with strong operating performance, has had a positive impact on earnings per share. As a result, we are raising our guidance by $0.01 for fourth quarter to $0.48 per share. Additionally, as we have done in the past, we are disclosing our key clinical and financial performance goals for 2003. Should there be any material changes to these benchmarks throughout the year, we will make an announcement to that effect."
Fiscal 2003 Corporate Goals:
Hematocrit Level 75% of patients over 33%
Urea Reduction Rate 85% of patients over 70%
Revenues $1.0 - $1.1 billion
EBITDA $230 - $250 million
EBITDA % 23.0% - 23.5%
Earnings per Share $2.05 - $2.08
Same-Market Treatment Growth 5% - 6%
Same-Market Revenue Growth 9% - 13%
Patients 22,000 - 23,000
Treatments 3.1 - 3.4 million
Capital Expenditures $65 - $75 million
Acquisition Target 800 - 1,200 patients
Renal Care Group will hold a conference call to discuss operational results on Thursday, October 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 specialized dialysis services company that provides care to patients with kidney disease. The Company currently treats nearly 20,000 patients in 260 owned outpatient dialysis facilities, in addition to providing acute dialysis services at 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 the drug 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 reports on Form 10-Q for the quarters ended March 31, 2002, and June 30, 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 Nine Months Ended
September 30, September 30,
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2002 2001 2002 2001
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Net revenue $ 231,542 $ 193,149 $ 660,389 $ 551,382
Operating costs
and expenses:
Patient care costs 151,722 125,020 432,184 357,166
General and
administrative
expenses 19,686 16,430 56,033 47,222
Provision for
doubtful accounts 6,008 5,215 17,228 14,885
Depreciation and
amortization 10,402 9,997 29,697 28,121
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Total cost
and expenses 187,818 156,662 535,142 447,394
Income from operations 43,724 36,487 125,247 103,988
Interest expense, net 569 198 880 2,470
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Income before
minority interest
and taxes 43,155 36,289 124,367 101,518
Minority interest 5,364 4,104 15,381 10,956
--------- --------- --------- ---------
Income before income
taxes 37,791 32,185 108,986 90,562
Income taxes 14,361 12,288 41,421 34,591
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Net income $ 23,430 $ 19,897 $ 67,565 $ 55,971
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Diluted earnings per
share $ 0.46 $ 0.39 $ 1.32 $ 1.12
========= ========= ========= =========
Weighted average
shares outstanding 50,518 50,904 51,036 50,187
Patients 19,955 17,973 19,955 17,973
Treatments 773,257 675,121 2,227,230 1,976,595
Same-market
treatment growth 5.9% 5.1% 5.8% 5.4%
Same-market revenue
growth 12.3% 14.5% 12.8% 13.3%
Patient revenue per
treatment $ 298 $ 282 $ 294 $ 275
RENAL CARE GROUP, INC.
Consolidated Balance Sheets
(in thousands)
Sept. 30, Dec. 31,
2002 2001
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ASSETS: (Unaudited)
Current assets:
Cash and cash equivalents $ 39,802 $ 27,423
Accounts receivable, net 142,474 127,056
Other current assets 47,191 58,828
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Total current assets 229,467 213,307
Property, plant and equipment, net 198,038 175,925
Intangibles and other assets, net 279,912 261,817
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TOTAL ASSETS $ 707,417 $ 651,049
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LIABILITIES AND STOCKHOLDERS' EQUITY:
Total current liabilities $ 125,716 $ 109,260
Long-term debt 2,805 3,776
Other liabilities 40,578 27,762
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Total liabilities 169,099 140,798
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Stockholders' equity:
Common stock, $.01 par value, 90,000 shares
authorized, 50,632 and 49,597 shares issued,
respectively 507 496
Treasury stock, 2,098 and 100 shares,
respectively (65,755) (3,059)
Additional paid-in capital 300,487 277,300
Retained earnings 303,079 235,514
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Total stockholders' equity 538,318 510,251
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TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 707,417 $ 651,049
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Contact:
Renal Care Group, Inc., Nashville
R. Dirk Allison, 615/345-5500
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