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