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DENVER, Aug. 13 /PRNewswire-FirstCall/ -- Birner Dental Management Services, Inc. (Nasdaq: BDMS), operators of PERFECT TEETH dental practices, announced results for the quarter and six months ended June 30, 2009. For the quarter ended June 30, 2009, total dental group practice revenue increased $300,000, or 2.0%, to $15.2 million. Net revenue increased $93,000, or 1.1%, to $8.9 million. The Company\'s earnings before interest, taxes, depreciation, amortization and non-cash expense associated with stock-based compensation ("Adjusted EBITDA") increased $164,000, or 10.0%, to $1.8 million from $1.6 million. Net income for the quarter ended June 30, 2009 increased $69,000, or 15.4%, to $520,000 compared to $450,000 for the same period of 2008. Earnings per share increased 33.0%, to $.27 for the quarter ended June 30, 2009 compared to the quarter ended June 30, 2008. For the six months ended June 30, 2009, total dental group practice revenue increased $387,000, or 1.3%, to $30.6 million. Net revenue increased $187,000, or 1.1%, to $17.9 million. The Company\'s Adjusted EBITDA increased $378,000, or 11.0%, to $3.8 million from $3.4 million. Net income for the six months ended June 30, 2009 increased $229,000, or 23.6%, to $1.2 million compared to $968,000 for the same period of 2008. Earnings per share increased 43.4%, to $.63 for the six months ended June 30, 2009 compared to $.44 for the six months ended June 30, 2008. The increase in net revenue of $93,000 in the quarter ended June 30, 2009 consisted of an increase in same store net revenue from specialty dentistry of $126,000 along with a de novo office the Company opened in May 2008 generating an additional $63,000 in net revenue offset by a decrease in same store net revenue from general dentistry of $95,000. The increase in net revenue of $187,000 in the six months ended June 30, 2009 consisted of an increase in same store net revenue from specialty dentistry of $221,000 along with a de novo office the Company opened in May 2008 generating an additional $102,000 in net revenue offset by a decrease in same store net revenue from general dentistry of $136,000. Despite a slight increase in net revenue for the quarter and six months ended June 30, 2009 compared to the quarter and six months ended June 30, 2008, the Company believes it continues to experience a general weakness in the economy in its markets. During 2008, the Company implemented cost containment measures that favorably affected the Company\'s profitability in the quarter and six months ended June 30, 2009 compared to the same periods of 2008. Fred Birner, Chief Executive Officer stated, "We are very pleased with the operating performance achieved by the Company in the quarter, particularly in light of the weak economic environment." During the second quarter of 2009, the Company signed a new lease for a de novo office in the Albuquerque, New Mexico market. The Company expects this office to open in the second half of 2010. During the first six months of 2009, the Company had capital expenditures of $193,000, purchased 13,688 shares of its Common Stock for approximately $170,000, paid $633,000 in dividends to its shareholders and decreased total bank debt outstanding by $2.1 million. Birner Dental Management Services, Inc. acquires, develops, and manages geographically dense dental practice networks in select markets in Colorado, New Mexico, and Arizona. The Company currently manages 61 dental offices, of which 35 were acquired and 26 were de novo developments. At June 30, 2009, the Company had 116 general and specialty dentists affiliated with the organization. The Company operates its dental offices under the PERFECT TEETH name. The Company previously announced it would conduct a conference call to review results for the quarter and six months ended June 30, 2009 on Thursday, August 13, 2009 at 9:00 a.m. MT. In addition to current financial and operating results, the teleconference may include discussion of management\'s expectation of future financial and operating results. To participate in this conference call, dial in to 1-866-244-4629 and refer to "Birner Dental Management Services, Inc." approximately five minutes prior to the scheduled time. If you are unable to join in on the conference call on August 13, the rebroadcast number is 1-888-266-2081 with the pass code of 1384024. This rebroadcast will be available through August 27, 2009. Non-GAAP DisclosuresThis press release includes certain non-GAAP financial measures with respect to total dental group practice revenue and Adjusted EBITDA. The non-GAAP financial measures included in this press release may be different from, and therefore may not be comparable to, similar measures used by other companies. Please see the last page of this release for more information on the reconciliation of total dental group practice revenue and Adjusted EBITDA to GAAP measures. Forward-Looking StatementsCertain of the matters discussed herein may contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from expectations. These include statements regarding the Company\'s cash flow, growth prospects, performance in 2009 and other future periods and the current economic environment. These statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performances, or achievements expressed or implied by the forward-looking statements. These and other risks and uncertainties are set forth in the reports filed by the Company with the Securities and Exchange Commission. The Company disclaims any obligation to update these forward-looking statements.
For Further Information Contact:
Birner Dental Management Services, Inc.
Dennis Genty
Chief Financial Officer
(303) 691-0680
BIRNER DENTAL MANAGEMENT SERVICES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Quarters Ended Six Months Ended
June 30, June 30,
-------------- ----------------
2008 2009 2008 2009
---- ---- ---- ----
NET REVENUE: $8,793,229(1) $8,886,727(1) $17,740,225(2) $17,927,238(2)
DIRECT EXPENSES:
Clinical
salaries and
benefits 2,491,642 2,421,007 5,159,616 4,997,552
Dental
supplies 624,037 584,765 1,218,222 1,123,914
Laboratory
fees 739,161 684,256 1,391,874 1,322,218
Occupancy 1,203,227 1,220,142 2,388,906 2,434,068
Advertising
and marketing 119,099 98,829 226,548 183,761
Depreciation and
amortization 602,018 612,383 1,203,033 1,229,994
General and
administrative 1,266,972 1,133,811 2,436,989 2,295,770
--------- --------- --------- ---------
7,046,156 6,755,193 14,025,188 13,587,277
Contribution
from dental
offices 1,747,073 2,131,534 3,715,037 4,339,961
CORPORATE EXPENSES:
General and
administrative 889,204(3) 1,187,732(3) 1,830,308(4) 2,162,920(4)
Depreciation
and amortization 23,186 22,161 46,654 44,551
------ ------ ------ ------
Operating
income 834,683 921,641 1,838,075 2,132,490
Interest
expense, net 58,369 26,937 135,997 69,353
------ ------ ------- ------
Income before
income taxes 776,314 894,704 1,702,078 2,063,137
Income tax
expense 326,057 375,111 734,265 866,518
------- ------- ------- -------
Net income $450,257 $519,593 $967,813 $1,196,619
======== ======== ======== ==========
Net income per
share of Common
Stock - Basic $0.21 $0.28 $0.46 $0.64
===== ===== ===== =====
Net income per
share of Common
Stock - Diluted $0.21 $0.27 $0.44 $0.63
===== ===== ===== =====
Cash dividends per
share of Common
Stock $0.17 $0.17 $0.34 $0.34
===== ===== ===== =====
Weighted average
number of shares
of Common Stock
and dilutive
securities:
Basic 2,107,415 1,855,778 2,109,250 1,858,036
========= ========= ========= =========
Diluted 2,178,816 1,890,929 2,188,583 1,887,250
========= ========= ========= =========
(1) Total dental group practice revenue less amounts retained by dental
offices. Dental group practice revenue was $14,916,479 for the
quarter ended June 30, 2008, and $15,216,028 for the quarter ended
June 30, 2009.
(2) Total dental group practice revenue less amounts retained by dental
offices. Dental group practice revenue was $30,170,730 for the six
months ended June 30, 2008, and $30,557,742 for the six months ended
June 30, 2009.
(3) Corporate expense - general and administrative includes $184,618
related to stock-based compensation expense in the quarter ended
June 30, 2008, and $252,707 related to total stock-based compensation
expense; $170,915 related to SFAS 123(R) expense and $81,792 related
to a long term incentive program expense in the quarter ended
June 30, 2009.
(4) Corporate expense - general and administrative includes $358,030
related to stock-based compensation expense in the six months ended
June 30, 2008, and $416,884 related to total stock-based compensation
expense; $335,092 related to SFAS 123(R) expense and $81,792 related
to a long term incentive program expense in the six months ended
June 30, 2009.
BIRNER DENTAL MANAGEMENT SERVICES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
December 31, June 30,
ASSETS 2008 2009
------------ --------
** (Unaudited)
CURRENT ASSETS:
Cash and cash equivalents $1,234,991 $1,201,989
Accounts receivable, net of
allowance for doubtful
accounts of $290,688 and $296,516,
respectively 2,875,732 3,411,289
Deferred tax asset 195,091 282,565
Prepaid expenses and other assets 418,653 565,195
------- -------
Total current assets 4,724,467 5,461,038
PROPERTY AND EQUIPMENT, net 3,887,919 3,187,748
OTHER NONCURRENT ASSETS:
Intangible assets, net 10,621,918 10,240,166
Deferred charges and other assets 160,289 151,956
------- -------
Total assets $19,394,593 $19,040,908
=========== ===========
LIABILITIES AND SHAREHOLDERS\' EQUITY
CURRENT LIABILITIES:
Accounts payable $1,551,851 $1,732,317
Accrued expenses 1,462,258 1,650,662
Accrued payroll and related expenses 1,714,550 2,195,580
Income taxes payable 371,569 447,469
Current maturities of long-term debt 920,000 920,000
------- -------
Total current liabilities 6,020,228 6,946,028
LONG-TERM LIABILITIES:
Deferred tax liability, net 618,913 623,910
Long-term debt, net of current
maturities 5,988,202 3,850,000
Other long-term obligations 259,678 193,585
------- -------
Total liabilities 12,887,021 11,613,523
SHAREHOLDERS\' EQUITY:
Preferred Stock, no par value,
10,000,000 shares
authorized; none outstanding - -
Common Stock, no par value,
20,000,000 shares authorized;
1,863,587 and 1,861,402 shares
issued and outstanding,
respectively - 78,450
Treasury Stock purchased in excess
of Common Stock basis (266,786) -
Retained earnings 6,817,449 7,381,216
Accumulated other comprehensive loss (43,091) (32,281)
------- -------
Total shareholders\' equity 6,507,572 7,427,385
--------- ---------
Total liabilities and shareholders\'
equity $19,394,593 $19,040,908
=========== ===========
** Derived from the Company\'s audited consolidated balance sheet
at December 31, 2008.
Reconciliation of Total Dental Group Practice Revenue and Adjusted EBITDA Total dental group practice revenue is the revenue generated at the Company\'s offices from professional services provided to its patients. Amounts retained by dental offices represent compensation expense to the dentists, dental hygienists and dental assistants and is subtracted from total dental group practice revenue to arrive at net revenue. The Company reports net revenue in its financial statements to comply with Emerging Issues Task Force Issue No. 97-2, Application of SFAS No. 94 (Consolidation of All Majority Owned Subsidiaries) and APB Opinion No. 16 (Business Combinations) to Physician Practice Management Entities and Certain Other Entities With Contractual Management Arrangements. Total dental group practice revenue is a non-GAAP measure that is disclosed because it is a critical component for management\'s evaluation of office performance. However, investors should not consider this measure in isolation or as a substitute for operating income, cash flows from operating activities or any other measure for determining the Company\'s operating performance or liquidity that is calculated in accordance with U.S. generally accepted accounting principles ("GAAP"). The table below reconciles total dental group practice revenue to net revenue.
Quarters Ended Six Months Ended
June 30, June 30,
-------------- ----------------
2008 2009 2008 2009
---- ---- ---- ----
Total dental group
practice revenue $14,916,479 $15,216,028 $30,170,730 $30,557,742
Less - amounts
retained by
dental Offices (6,123,250) (6,329,301) (12,430,505) (12,630,504)
---------- ---------- ----------- -----------
Net revenue $8,793,229 $8,886,727 $17,740,225 $17,927,238
========== ========== =========== ===========
Adjusted EBITDA is not a GAAP measure of performance or liquidity. However, the Company believes that it may be useful to an investor in evaluating the Company\'s ability to meet future debt service, capital expenditures and working capital requirements. Investors should not consider Adjusted EBITDA in isolation or as a substitute for operating income, cash flows from operating activities or any other measure for determining the Company\'s operating performance or liquidity that is calculated in accordance with GAAP. In addition, because Adjusted EBITDA is not calculated in accordance with GAAP, it may not necessarily be comparable to similarly titled measures employed by other companies. A reconciliation of Adjusted EBITDA to net income can be made by adding depreciation and amortization expense - offices, depreciation and amortization expense - corporate, stock-based compensation expense related to SFAS 123(R), interest expense, net and income tax expense to net income as in the table below.
Quarters Six Months
Ended June 30, Ended June 30,
-------------- --------------
2008 2009 2008 2009
---- ---- ---- ----
RECONCILIATION OF
ADJUSTED EBITDA:
Net income $450,257 $519,593 $967,813 $1,196,619
Add back:
Depreciation and
amortization -
Offices 602,018 612,383 1,203,033 1,229,994
Depreciation and
amortization -
Corporate 23,186 22,161 46,654 44,551
Stock-based
compensation expense 184,618 252,707 358,030 416,884
Interest expense, net 58,369 26,937 135,997 69,353
Income tax expense 326,057 375,111 734,265 866,518
------- ------- ------- -------
Adjusted EBITDA $1,644,505 $1,808,892 $3,445,792 $3,823,919
========== ========== ========== ==========
Adjusted EBITDA is not a GAAP measure of performance or liquidity. However, the Company believes that it may be useful to an investor in evaluating the Company\'s ability to meet future debt service, capital expenditures and working capital requirements. Investors should not consider Adjusted EBITDA in isolation or as a substitute for operating income, cash flows from operating activities or any other measure for determining the Company\'s operating performance or liquidity that is calculated in accordance with GAAP. In addition, because Adjusted EBITDA is not calculated in accordance with GAAP, it may not necessarily be comparable to similarly titled measures employed by other companies. A reconciliation of Adjusted EBITDA to net income can be made by adding depreciation and amortization expense - offices, depreciation and amortization expense - corporate, stock-based compensation expense related to SFAS 123(R), interest expense, net and income tax expense to net income as in the table below.
Source: PRNewsWire
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