Birner Dental Management Services, Inc. Announces Earnings For 1Q 2013

    Birner Dental Management Services, Inc. Announces Earnings For 1Q 2013

PR Newswire

DENVER, May 9, 2013

DENVER, May 9, 2013 /PRNewswire/ --Birner Dental Management Services, Inc.
(NASDAQ Capital Market: BDMS), operators of PERFECT TEETH® dental practices,
announced results for the quarter ended March 31, 2013. For the quarter ended
March 31, 2013, revenue increased $405,000, or 2.5%, to $16.6 million. The
Company's earnings before interest, taxes, depreciation, amortization, and
non-cash expense associated with stock-based compensation ("Adjusted EBITDA")
decreased $27,000, or 1.9%, to $1.4 million. Net income for the quarter ended
March 31, 2013 decreased $67,000, or 21.9%, to $241,000 compared to $309,000
for the quarter ended March 31, 2012. Earnings per share decreased to $0.13
for the quarter ended March 31, 2013 compared to $0.17 for the quarter ended
March 31, 2012.

As previously announced, in January 2013, the Company changed the operating
strategy of its Vantage Dental Implant Center ("Vantage"). Vantage will no
longer provide All-on-4™ services to its patients, and the Company has
converted Vantage into a traditional Perfect Teeth specialty office providing
oral surgery and endodontic services. For the quarter ended March 31, 2012,
revenue from All-on-4™ services was approximately $200,000. The Company had
no revenue from these services in the quarter ended March 31, 2013 because of
the change in operating strategy.

The Company has signed a lease for a de novo office in the Loveland, Colorado
market and anticipates this office will open early in the third quarter of
2013.

During the quarter ended March 31, 2013, the Company had capital expenditures
of $492,000, paid out approximately $405,000 in dividends to its shareholders
and decreased total bank debt outstanding by approximately $674,000. During
the quarter ended March 31, 2013, the Company converted two of its offices to
digital radiography.

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 65 dental offices, of
which 37 were acquired and 28 were de novo developments. The Company
currently has 123 dentists. 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 ended March 31, 2013 on Thursday, May 9, 2013 at 9:00
a.m. MT. In addition to current operating results, the teleconference may
include discussion of management's expectations of future financial and
operating results. To participate in this conference call, dial in to
1-888-556-4997 and refer to Confirmation Code 9998560 approximately five
minutes prior to the scheduled time. If you are unable to join the conference
call on May 9, the rebroadcast number is 1-888-203-1112 with the pass code of
9998560. This rebroadcast will be available through May 23, 2013.

Non-GAAP Disclosures

This press release includes a non-GAAP financial measure with respect to
Adjusted EBITDA. Please see below for more information regarding Adjusted
EBITDA and a reconciliation of Adjusted EBITDA to net income.

Forward-Looking Statements

Certain 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 potential de novo offices and the Company's prospects and
performance in future periods. These statements involve known and unknown
risks, uncertainties and other factors which may cause the Company's actual
results, performance or achievements to be materially different from any
future results, performance 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
                                   March 31,
                                   2012                  2013
REVENUE:                           $  16,199,687        $  16,604,302
DIRECT EXPENSES:
 Clinical salaries and benefits    9,137,850             9,712,539
 Dental supplies                   676,992               706,649
 Laboratory fees                   753,456               760,376
 Occupancy                         1,365,316             1,457,577
 Advertising and marketing         675,562               362,827
 Depreciation and amortization     649,562               819,881
 General and administrative        1,209,468             1,210,900
                                   14,468,206            15,030,749
 Contribution from dental offices  1,731,481             1,573,553
CORPORATE EXPENSES:
 General and administrative       1,167,494        ^(1) 1,104,988        ^(1)
 Depreciation and amortization     35,289                46,253
OPERATING INCOME                   528,698               422,312
 Interest expense, net             22,480                26,716
INCOME BEFORE INCOME TAXES         506,218               395,596
 Income tax expense                197,424               154,282
NET INCOME                         $    308,794      $    241,314
 Net income per share of Common    $               $      
 Stock - Basic                     0.17                 0.13
 Net income per share of Common    $               $      
 Stock - Diluted                   0.17                 0.13
 Cash dividends per share of       $               $      
 Common Stock                      0.22                 0.22
 Weighted average number of shares
 of

 Common Stock and dilutive
 securities:
 Basic                             1,847,024             1,845,375
 Diluted                           1,859,522             1,857,088

     Corporate expenses - general and administrative includes $232,765 of
^(1) stock-based compensation expense pursuant to ASC Topic 718 for the
     quarter ended March 31, 2012 and $131,008 of stock-based compensation
     expense pursuant to ASC Topic 718 for the quarter ended March 31, 2013.





BIRNER DENTAL MANAGEMENT SERVICES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
                                   December 31,         March 31,
ASSETS                             2012                  2013
CURRENT ASSETS:
 Cash and cash equivalents         $     1,112,511  $       808,886
 Accounts receivable, net of
 allowance for doubtful

 accounts of approximately
 $304,000 and $288,000,            2,614,152             3,355,086
 respectively
 Notes Receivable                  165,718               160,317
 Deferred tax asset                205,693               243,641
 Income Tax Receivable             442,630               -
 Prepaid expenses and other assets 482,297               827,848
 Total current assets              5,023,001             5,395,778
PROPERTY AND EQUIPMENT, net        7,894,333             7,745,186
OTHER NONCURRENT ASSETS:
 Intangible assets, net            10,193,488            9,968,346
 Deferred charges and other assets 158,316               158,316
 Total assets                      $    23,269,138   $    23,267,626
LIABILITIES AND SHAREHOLDERS'
EQUITY
CURRENT LIABILITIES:
 Accounts payable                 $     1,919,457  $     1,896,828
 Accrued expenses                  1,640,076             1,583,816
 Accrued payroll and related       1,718,417             2,450,713
 expenses
 Income taxes payable              -                     84,517
 Current maturities of long-term   400,000               400,000
 debt
 Total current liabilities         5,677,950             6,415,874
LONG-TERM LIABILITIES:
 Deferred tax liability, net       2,997,808             2,916,643
 Long-term debt, net of current    6,074,042             5,400,000
 maturities
 Other long-term obligations       1,547,369             1,585,880
 Total liabilities                 16,297,169            16,318,397
SHAREHOLDERS' EQUITY:
 Preferred Stock, no par value,
 10,000,000 shares
 authorized; none outstanding      -                     -
 Common Stock, no par value,
 20,000,000 shares authorized;

 1,842,402 and 1,851,598 shares
 issued and outstanding,           329,236               471,392
 respectively
 Retained earnings                 6,642,733             6,477,837
 Total shareholders' equity        6,971,969             6,949,229
 Total liabilities and             $    23,269,138   $    23,267,626
 shareholders' equity

Reconciliation of Adjusted EBITDA

Adjusted EBITDA is not a U.S. generally accepted accounting principle ("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, and the
Company uses Adjusted EBITDA for this purpose. 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, interest expense, net and income tax expense to net
income as in the table below.



                                            Quarters
                                            Ended March 31,
                                            2012        2013
RECONCILIATION OF EBITDA:
 Net income                                 $308,794    $241,314
 Add back:
  Depreciation and amortization - Offices   649,562     819,881
  Depreciation and amortization - Corporate 35,289      46,253
  Stock-based compensation expense          232,765     131,008
  Interest expense, net                     22,480      26,716
  Income tax expense                        197,424     154,282
Adjusted EBITDA                             $1,446,314  $1,419,454



SOURCE Birner Dental Management Services, Inc.

Website: http://www.bdms-perfectteeth.com
 
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