Birner Dental Management Services, Inc. Announces Earnings For 2Q 2013 PR Newswire DENVER, Aug. 13, 2013 DENVER, Aug. 13, 2013 /PRNewswire/ -- Birner Dental Management Services, Inc. (NASDAQ Capital Market: BDMS), operators of PERFECT TEETH® dental practices, announced results for the quarter and six months ended June 30, 2013. For the quarter ended June 30, 2013, revenue increased $661,000, or 4.2%, to $16.4 million. The Company's earnings before interest, taxes, depreciation, amortization, and non-cash expense associated with stock-based compensation ("Adjusted EBITDA") increased $197,000, or 17.9%, to $1.3 million for the quarter ended June 30, 2013. Net income for the quarter ended June 30, 2013 increased $37,000, or 26.3%, to $180,000 compared to $142,000 for the quarter ended June 30, 2012. Earnings per share increased to $0.10 for the quarter ended June 30, 2013 compared to $0.08 for the quarter ended June 30, 2012. For the six months ended June 30, 2013, revenue increased $1.1 million, or 3.3%, to $33.0 million. The Company's Adjusted EBITDA increased 170,000, or 6.7%, to $2.7 million for the six months ended June 30, 2013. Net income for the six months ended June 30, 2013 decreased $30,000, or 6.7%, to $421,000 compared to $451,000 for the six months ended June 30, 2012. Earnings per share decreased to $0.23 for the six months ended June 30, 2013 compared to $0.24 for the six months ended June 30, 2012. Since the beginning of the fourth quarter of 2012, the Company has opened three de novo offices: in Tucson in the fourth quarter of 2012; in Erie, Colorado in the fourth quarter of 2012; and in Loveland, Colorado on July 29, 2013. The Company has leased space for two additional de novo offices: in Monument, Colorado anticipated to open in the fourth quarter of 2013; and in Fort Collins, Colorado anticipated to open in the third quarter of 2014. The Company is also evaluating and negotiating leases on additional sites throughout its markets. Additionally, the Company has signed new leases for the relocation and modernization of two of its offices: in Denver anticipated to open in the third quarter of 2013; and in Albuquerque anticipated to open in the fourth quarter of 2013. During the six months ended June 30, 2013, the Company completed a remodel of one of its offices and converted two additional offices to digital radiography. During the first six months of 2013, the Company had capital expenditures of approximately $1.5 million, paid out approximately $812,000in dividends to its shareholders and decreased total bank debt outstanding by approximately $185,000. 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 66 dental offices, of which 37 were acquired and 29 were de novo developments. The Company currently has 124 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 June 30, 2013 on Tuesday, August 13, 2013 at 9:00 a.m. MDT. 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 1-888-337-8198 and refer to Confirmation Code3829976 approximately five minutes prior to the scheduled time. If you are unable to join the conference call on August 13, the rebroadcast number is 1-888-203-1112 with the pass code of 3829976. This rebroadcast will be available through August 27, 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 Six Months Ended June 30, June 30, 2012 2013 2012 2013 REVENUE: $ $ $ $ 15,775,428 16,436,292 31,975,115 33,040,596 DIRECT EXPENSES: Clinical salaries and 8,951,275 9,693,407 18,089,124 19,405,946 benefits Dental supplies 712,490 731,596 1,389,482 1,438,245 Laboratory fees 798,072 798,331 1,551,528 1,558,708 Occupancy 1,370,243 1,453,961 2,735,560 2,911,538 Advertising and 702,101 215,408 1,377,664 578,237 marketing Depreciation and 685,394 838,363 1,334,956 1,658,244 amortization General and 1,235,366 1,056,742 2,444,835 2,267,645 administrative 14,454,941 14,787,808 28,923,149 29,818,563 Contribution from dental 1,320,487 1,648,484 3,051,966 3,222,033 offices CORPORATE EXPENSES: General and 1,019,259 ^(1) 1,297,830 ^(1) 2,186,754 ^(2) 2,402,819 ^(2) administrative Depreciation and 41,870 49,497 77,159 95,750 amortization OPERATING INCOME 259,358 301,157 788,053 723,464 Interest 26,299 6,798 48,778 33,513 expense, net INCOME BEFORE 233,059 294,359 739,275 689,951 INCOME TAXES Income tax 90,893 114,799 288,317 269,081 expense NET INCOME $ $ $ $ 142,166 179,560 450,958 420,870 Net income per $ $ $ $ share of Common 0.08 0.10 0.24 0.23 Stock - Basic Net income per $ $ $ $ share of Common 0.08 0.10 0.24 0.23 Stock - Diluted Cash dividends $ $ $ $ per share of 0.22 0.22 0.44 0.44 Common Stock Weighted average number of shares of Common Stock and dilutive securities: Basic 1,843,738 1,851,598 1,843,302 1,849,118 Diluted 1,852,103 1,863,855 1,853,433 1,861,020 Corporate expense - general and administrative includes $112,198 of ^(1) stock-based compensation expense pursuant to ASC Topic 718 for the quarter ended June 30, 2012 and $106,573 of stock-based compensation expense pursuant to ASC Topic 718 for the quarter ended June 30, 2013. Corporate expense - general and administrative includes $344,963 of stock-based compensation expense pursuant to ASC Topic 718 for the six ^(2) months ended June 30, 2012 and $237,581 of stock-based compensation expense pursuant to ASC Topic 718 for the six months ended June 30, 2013. BIRNER DENTAL MANAGEMENT SERVICES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) December 31, June 30, ASSETS 2012 2013 CURRENT ASSETS: Cash and cash equivalents $ 1,112,511 $ 640,978 Accounts receivable, net of allowance for doubtful accounts of approximately $304,000 and 2,614,152 3,887,377 $319,000, respectively Notes receivable 165,718 154,834 Deferred tax asset 205,693 322,060 Income tax receivable 442,630 - Prepaid expenses and other assets 482,297 729,041 Total current assets 5,023,001 5,734,290 PROPERTY AND EQUIPMENT, net 7,894,333 8,119,132 OTHER NONCURRENT ASSETS: Intangible assets, net 10,193,488 9,743,203 Deferred charges and other assets 158,316 161,912 Total assets $ 23,269,138 $ 23,758,537 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 1,919,457 $ 1,887,884 Accrued expenses 1,640,076 1,683,486 Accrued payroll and related expenses 1,718,417 2,481,401 Income taxes payable - 159,704 Current maturities of long-term debt 400,000 1,000,000 Total current liabilities 5,677,950 7,212,475 LONG-TERM LIABILITIES: Deferred tax liability, net 2,997,808 2,877,674 Long-term debt, net of current maturities 6,074,042 5,289,342 Other long-term obligations 1,547,369 1,551,037 Total liabilities 16,297,169 16,930,528 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 329,236 577,965 outstanding, respectively Retained earnings 6,642,733 6,250,044 Total shareholders' equity 6,971,969 6,828,009 Total liabilities and shareholders' equity $ 23,269,138 $ 23,758,537 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 Six Months Ended June 30, Ended June 30, 2012 2013 2012 2013 RECONCILIATION OF ADJUSTED EBITDA: Net income $142,166 $179,560 $450,958 $420,870 Add back: Depreciation and amortization 685,394 838,363 1,334,956 1,658,244 - Offices Depreciation and amortization 41,870 49,497 77,159 95,750 - Corporate Stock-based compensation 112,198 106,573 344,963 237,581 expense Interest expense, net 26,299 6,798 48,778 33,513 Income tax expense 90,893 114,799 288,317 269,081 Adjusted EBITDA $1,098,820 $1,295,590 $2,545,131 $2,715,039 SOURCE Birner Dental Management Services, Inc.
Birner Dental Management Services, Inc. Announces Earnings For 2Q 2013
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