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NASHVILLE, Tenn.--(BUSINESS WIRE)--April 29, 2003--Renal Care Group, Inc. (NYSE:RCI - News) today announced results for the first quarter ended March 31, 2003.
Gary Brukardt, president and chief executive officer of Renal Care Group, Inc., commented, "We are pleased to report excellent results again this quarter. Renal Care Group's strong financial performance was tempered by the sad news that Sam Brooks, our chairman and one of our founders, died of cancer on March 20, 2003. We lost a strong leader and good friend. Mr. Brooks was widely respected for his integrity, business acumen and dedication. We will surely miss his daily presence, but we remain committed to Renal Care Group's mission of providing optimal care for our patients as we move forward and continue to grow the Company."
For the first quarter ended March 31, 2003, Renal Care Group's revenues increased 17.2% to $242.1 million compared with revenues of $206.7 million for the same period in 2002. Prior to giving effect to the previously announced retirement package for Mr. Brooks that is discussed below, non-GAAP net income for the quarter rose 16.9% to $25.1 million compared with GAAP net income of $21.5 million in the same period in 2002. Prior to giving effect to the retirement package for Mr. Brooks, non-GAAP net income per share for the quarter increased 21.4% to $0.51 compared with GAAP net income per share of $0.42 in the same quarter of last year. After giving effect to the retirement package for Mr. Brooks, GAAP net income was $21.8 million, and GAAP net income per share was $0.44. A reconciliation between the non-GAAP results discussed in this paragraph and the Company's GAAP results is included in the Unaudited Consolidated Income Statements accompanying this press release.
In January of this year, the Company announced that its Board of Directors had approved a retirement package for Mr. Brooks who was, at that time, its chairman, chief executive officer and president. The retirement package called for Mr. Brooks, or his estate, to receive ten annual payments of $650,000. As a result, Renal Care Group, Inc. took a non-recurring, after-tax charge of $3.4 million, or $0.07 per share, against its earnings in the first quarter of 2003. The Company has decided to present non-GAAP net income and net income per share information above to give investors a means of comparing the Company's operational performance in the quarter ended March 31, 2003 to its performance in the same period in 2002 before the impact of the non-recurring charge related to the retirement package for Mr. Brooks.
Mr. Dirk Allison, executive vice president and chief financial officer, said, "Renal Care Group's operating performance for the first quarter confirms our positive outlook for 2003 as we continue to meet our goals. Exclusive of the non-recurring charge for the retirement package provision, we posted a 21% increase in non-GAAP net income per share for the first quarter as compared to first quarter last year. Our same-market treatment growth was 5.5% and same-market revenue growth was 10.2%."
Renal Care Group will hold a conference call to discuss this press release
on Wednesday, April 30, 2003, at 11:00 a.m. Eastern 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 treats over 20,600 patients at more than 270 owned outpatient dialysis facilities, in addition to providing acute dialysis services at approximately 120 hospitals. Over 6,500 associates provide services across the Company's 27-state network. More information about Renal Care Group, Inc. may be found at www.renalcaregroup.com.
Certain statements in this press release, particularly those of Mr. Brukardt and Mr. Allison, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements which are usually preceded by words like expect, plan, intend, will and the like, include statements regarding our financial outlook for 2003 and any other statements that necessarily depend on future events. 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: executive succession and dependence on executive officers; compliance with health care and other applicable laws; the integration of acquired companies; changes in the Medicare and Medicaid programs; risks related to the drug Epogen (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 most recent annual report on Form 10-K and any quarterly reports on Form 10-Q filed after that annual report. Copies of these filings are available from Renal Care Group upon request.
RENAL CARE GROUP, INC.
Unaudited Consolidated Income Statements
(in thousands, except per share and operating data)
Three Months Ended
March 31,
2003 2002
------------------------------- -------
GAAP(1) Difference Non-GAAP(2) GAAP(1)
-------- ---------- ----------- -------
Net revenue $242,143 $ - $242,143 $206,678
Operating costs and expenses:
Patient care costs 157,477 - 157,477 134,712
General and
administrative expenses 26,288 (5,430) 20,858 17,560
Provision for doubtful
accounts 6,412 - 6,412 5,484
Depreciation and
amortization 10,298 - 10,298 9,362
-------- ---------- ---------- -------
Total cost and
expenses 200,475 (5,430) 195,045 167,118
Income from operations 41,668 5,430 47,098 39,560
Interest expense, net 285 - 285 173
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Income before minority
interest and income taxes 41,383 5,430 46,813 39,387
Minority interest 6,308 - 6,308 4,710
-------- ---------- ---------- -------
Income before income taxes 35,075 5,430 40,505 34,677
Provision for income taxes 13,323 2,063 15,386 13,184
-------- ---------- ---------- -------
Net income $ 21,752 $ 3,367 $ 25,119 $ 21,493
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Diluted net income per share $ 0.44 $ 0.07 $ 0.51 $ 0.42
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Weighted average shares
outstanding 49,430 49,430 49,430 51,222
======== ========== ========== ========
Operating Data:
Patients 20,683 20,683 19,226
Treatments 783,841 783,841 707,483
Same-market treatment growth 5.5% 5.5% 5.8%
Same-market revenue growth 10.2% 10.2% 13.9%
Patient revenue per treatment $ 308 $ 308 $ 290
(1) Reflects operating results based on U.S. Generally Accepted
Accounting Principles (GAAP).
(2) Non-GAAP amounts exclude a Board-approved retirement package for
Sam Brooks in the first quarter of 2003 and the related tax
effect.
RENAL CARE GROUP, INC.
Condensed Consolidated Balance Sheets
(in thousands, except per share data)
March 31, December 31,
2003 2002
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ASSETS: (unaudited)
Current assets:
Cash and cash equivalents $ 44,115 $ 38,359
Accounts receivable, net 160,418 152,440
Other current assets 43,214 55,062
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Total current assets 247,747 245,861
Property, plant and equipment, net 209,436 202,972
Goodwill, intangibles and other assets, net 290,538 291,290
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TOTAL ASSETS $747,721 $740,123
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LIABILITIES AND STOCKHOLDERS' EQUITY:
Total current liabilities $132,997 $135,380
Long-term debt 2,735 10,161
Other liabilities 47,382 50,694
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Total liabilities 183,114 196,235
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Stockholders' equity:
Common stock, $.01 par value, 90,000 shares
authorized,
51,310 and 51,176 shares issued,
respectively 513 512
Treasury stock, 3,135 and 2,983 shares,
respectively (98,333) (93,953)
Additional paid-in capital 312,701 309,355
Retained earnings 349,726 327,974
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Total stockholders' equity 564,607 543,888
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TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $747,721 $740,123
========== ==========
Contact:
Renal Care Group, Inc., Nashville
R. Dirk Allison, 615/345-5500
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