DIALYSIS CORPORATION OF AMERICA 
By LINTHICUM, Md.,
-- Year end patient census approximated 2,000 including the patients at a
Maryland dialysis center acquired December 31, 2008.
-- Operating revenues for the fourth quarter of 2008 were $23.7 million
compared to $20.0 million for the same period last year, an 18%
increase.
-- Operating income was $2.2 million for the fourth quarter of 2008
compared to $1.6 million for the same period last year.
-- Net income for the quarter was $858,000 or $0.09 per basic and diluted
share compared to $1.0 million or $0.11 per basic and diluted share for
the same period last year.
-- Operating revenues for 2008 were $86.8 million compared to $74.5 million
for 2007, a 17% increase.
-- Operating income was $6.2 million for 2008 compared to $5.8 million for
2007.
-- Net income for 2008 was $2.8 million or $0.30 per basic and diluted
share compared to $3.1 million or $0.32 per basic and diluted share for
2007.
Items impacting comparability between 2007 and 2008 include:
-- 2007 included tax benefits of $325,000 relating to the prior year's
net operating losses that resulted in a lower effective tax rate for
2007 than for 2008.
-- Minority interest expense increased in 2008 by approximately $330,000
compared with 2007, primarily due to certain large minority owned
facilities experiencing substantially better operating results in 2008.
-- Pre-tax costs associated with opening new centers were $641,000 for 2008
compared to $608,000 for 2007.
-- Non-cash stock compensation expense was $221,000 for 2008 compared to
$217,000 for 2007.
Significant markers and noteworthy items for 2008 include:
-- Key clinical metrics continued to show advances throughout the year,
which were the results of outstanding clinical care by our caregivers,
and a heightened focus on preparing for anticipated "pay for
performance" initiatives in conjunction with the 2011 reimbursement
bundling under Medicare.
-- We experienced a slight increase in commercial contracting over prior
years, yet sustained an expected 6% increase in revenue per treatment,
year over year.
-- Our continued focus and enhancement on billing and collection functions
resulted in a decrease in accounts receivable days outstanding (DSO) by
9 days in 2008.
-- We completed our largest acquisition to date, which was a Maryland
dialysis center serving in excess of 145 patients. The transaction was
completed at the end of the year.
-- In spite of the trying global economic conditions, we successfully
completed an enhanced revolving line of credit with KeyBank National
Association totaling $25,000,000, with favorable terms.
-- The installation and use of our new Clinical Information System began
and remains on schedule for company wide deployment. This new system is
expected to assist in recording and reporting clinical results in an
increasingly regulated industry, while providing improved efficiencies
at the operating levels.
Dialysis Corporation of America will be hosting a conference call in conjunction with its earnings release for the fourth quarter and fiscal year ended
Dialysis Corporation of America owns and operates freestanding kidney hemodialysis centers located in
This release contains forward-looking statements that are subject to risks and uncertainties that could affect the business and prospects of the company and cause actual results and plans to differ materially from those anticipated. Those factors include, but are not limited to, increases in interest rates, the possible need for and availability of additional financing, the company's satisfying the covenants and conditions of its credit facility, certain delays beyond the company's control with respect to future business events, the highly competitive environment in the establishment and operation of dialysis centers, the ability to develop or acquire additional dialysis facilities, whether patient bases of the company's dialysis facilities can mature to provide profitability, the extensive regulation of dialysis operations, government rate determination for Medicare reimbursement, pricing pressure from private payors, and other risks detailed in the company's filings with the SEC, particularly as described in the company's annual report on Form 10-K for the fiscal year ended
Other Dialysis Corporation of America press releases, corporate profile, corporate governance materials, quarterly and current reports, and other filings with the Securities and Exchange Commission are available on Dialysis Corporation of America's internet home page: http://www.dialysiscorporation.com.
CONTACT: For additional information, you may contact Dialysis Corporation of America, 1302 Concourse Drive, Suite 204, Linthicum, MD 21090; Telephone Number (410) 694-0500; Attention: Investor Relations.
DIALYSIS CORPORATION OF AMERICA AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
2008 2007 2006
(Unaudited)
Operating revenues:
Sales:
Medical services revenue $85,675,687 $73,170,573 $61,138,963
Product sales 1,161,206 1,077,988 891,242
Total sales revenues 86,836,893 74,248,561 62,030,205
Other income --- 286,174 430,033
86,836,893 74,534,735 62,460,238
Cost and expenses:
Cost of sales revenues:
Cost of medical services 51,452,299 44,248,309 36,968,682
Cost of product sales 659,766 598,086 549,590
Total cost of sales
revenues 52,112,065 44,846,395 37,518,272
Selling, general and
administrative expenses
Corporate 10,586,797 7,917,038 6,460,309
Facility 12,851,367 11,423,072 8,988,078
Total 23,438,164 19,340,110 15,448,387
Stock compensation expense 221,166 217,474 275,438
Depreciation and amortization 2,783,826 2,619,049 2,319,070
Provision for doubtful accounts 2,088,248 1,665,120 1,198,995
80,643,469 68,688,148 56,760,162
Operating income 6,193,424 5,846,587 5,700,076
Other (expense) income, net (48,605) (39,637) 100,968
Income before income taxes,
minority and other equity
interests and equity in affiliate
earnings 6,144,819 5,806,950 5,801,044
Income tax provision 1,862,479 1,614,892 2,085,874
Income before minority and other
equity interests and equity in
affiliate earnings 4,282,340 4,192,058 3,715,170
Minority and other equity
interests in income of
consolidated subsidiaries (1,438,225) (1,105,736) (919,739)
Equity in affiliate earnings --- --- 253,765
Net income $2,844,115 $3,086,322 $3,049,196
Earning per share:
Basic $.30 $.32 $.32
Diluted $.30 $.32 $.32
Weighted average shares
outstanding:
Basic 9,579,837 9,572,893 9,484,926
Diluted 9,613,866 9,607,672 9,575,733
DIALYSIS CORPORATION OF AMERICA AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
December 31, December 31,
2008 2007
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $6,543,000 $2,447,820
Accounts receivable, net 21,493,780 20,159,926
Inventories, net 2,918,578 2,006,661
Deferred income tax asset 1,185,000 998,000
Other current assets 2,978,049 3,313,406
Total current assets 35,118,407 28,925,813
Property and equipment 32,987,475 28,766,423
Less accumulated depreciation and
amortization 14,452,018 12,264,029
18,535,457 16,502,394
Goodwill 16,492,401 8,576,893
Other assets 932,930 841,092
Total other assets 17,425,331 9,417,985
$71,079,195 $54,846,192
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued expenses $14,717,692 $10,224,199
Income taxes payable 60,470 33,297
Current portion of long-term debt 74,000 56,000
Total current liabilities 14,852,162 10,313,496
Deferred income taxes 1,275,000 574,000
Long-term debt, less current portion 14,275,798 7,009,419
Total liabilities 30,402,960 17,896,915
Minority interest in subsidiaries 5,412,208 4,942,797
Commitments and Contingencies
Stockholders' equity:
Common stock 95,797 95,736
Additional paid-in capital 16,001,153 15,587,782
Retained earnings 19,167,077 16,322,962
Total stockholders' equity 35,264,027 32,006,480
$71,079,195 $54,846,192
DIALYSIS CORPORATION OF AMERICA AND SUBSIDIARIES
SUPPLEMENTAL OPERATING DATA
Year Ended December 31, Year-to-year
2008 2007 Change %
Operating data:
Treatments:
Consolidated 272,452 241,189 13.0%
Managed --- 11,137 (100.0)%
Total treatments 272,452 252,326 8.0%
Patient revenue per
treatment $314.46 $303.37 3.7 %
Same center growth data:
Same center treatment
growth 5% 6%
Same center revenue per
treatment change 4% 1%
Same center patient
revenue growth 9% 7%
Quarter Ended December 31, Quarter-to-Quarter
2008 2007 Change %
Operating data:
Treatments:
Consolidated 70,276 62,817 11.9%
Managed --- 2,847 (100.0)%
Total treatments 70,276 65,664 7.0%
Patient revenue per
treatment $332.62 $312.59 6.4%
Same center growth
data:
Same center
treatment growth 4% (4)%
Same center revenue
per treatment change 6% 10%
Same center patient
revenue growth 10% 5%
Key clinical
metrics:
Treatment adequacy
(% of pts with Kt/V
greater than 1.2) 97.32% 95.38%
Anemia management
(% of pts with Hgb
greater than 11) 82.06% 78.74%
Venous access (% of
pts with AVF) 56.06% 52.98%
SOURCE Dialysis Corporation of America
