Birner Dental Management Services, Inc. Announces Earnings For 1Q 2014 PR Newswire DENVER, May 13, 2014 DENVER, May 13, 2014 /PRNewswire/ --Birner Dental Management Services, Inc. (NASDAQ Capital Market: BDMS),operators of PERFECT TEETH® dental practices, announced results for the quarter ended March 31, 2014. For the quarter ended March 31, 2014, revenue increased $202,000, or 1.2%, to $16.8 million compared to $16.6 million for the quarter ended March 31, 2013. The Company's earnings before interest, taxes, depreciation, amortization, and non-cash expense associated with stock-based compensation ("Adjusted EBITDA") decreased $189,000, or 13.3%, to $1.2 million compared to $1.4 million for the quarter ended March 31, 2013, but increased from $633,000 for the quarter ended December 31, 2013. Net income for the quarter ended March 31, 2014 decreased $192,000, or 79.6%, to $49,000 compared to $241,000 for the quarter ended March 31, 2013. Earnings per share decreased to $0.03 for the quarter ended March 31, 2014 compared to $0.13 for the quarter ended March 31, 2013. Since the beginning of the fourth quarter of 2012, the Company has opened four de novo offices: in Tucson, Arizona in the fourth quarter of 2012; in Erie, Colorado in the fourth quarter of 2012; in Loveland, Colorado in July 2013; and in Monument, Colorado in December 2013. The Company has leased space for three additional de novo offices: in Fort Collins, Colorado, which is anticipated to open in May 2014; in Scottsdale, Arizona, which is anticipated to open in the third quarter of 2014; and in Albuquerque, New Mexico, which is anticipated to open in 2015. The Company is also evaluating and negotiating leases for additional sites throughout its markets. Additionally, the Company has relocated and modernized an office in Albuquerque, New Mexico, which opened in March 2014, and has significantly upgraded and converted to digital radiography one of its offices in Colorado Springs, Colorado, which was completed in April 2014. Fred Birner, Chief Executive Officer of the Company, stated that "We were encouraged by the substantial rebound in Adjusted EBITDA in the first quarter of 2014 from the fourth quarter of 2013 and continue to believe the Company is moving in the right direction and making good progress with our previously discussed initiatives and the continued progress of the four de novo offices." During the quarter ended March 31, 2014, the Company had capital expenditures of $1.1 million, paid approximately $408,000 in dividends to its shareholders and increased total bank debt outstanding by approximately $963,000. The Company's outstanding bank debt increased because of the Company's development of de novo offices and its commitment to upgrading its existing offices through extensive remodels and office relocations and to converting 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 66 dental offices, of which 37 were acquired and 29 were de novo developments. The Company currently has 118 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, 2014 on Tuesday, May 13, 2014 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 1-800-344-6491 and refer to Confirmation Code 9115588 approximately five minutes prior to the scheduled time. If you are unable to join the conference call on May 13, 2014, the rebroadcast number is 1-888-203-1112 with the pass code of 9115588. This rebroadcast will be available through May 27, 2014. 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, 2013 2014 REVENUE: Dental practice revenue $ 15,163,445 $ 15,472,734 Capitation revenue 1,440,857 1,333,664 16,604,302 16,806,398 DIRECT EXPENSES: Clinical salaries and benefits 9,712,539 9,893,366 Dental supplies 706,649 691,692 Laboratory fees 760,376 804,003 Occupancy 1,457,577 1,458,394 Advertising and marketing 362,827 229,925 Depreciation and amortization 819,881 967,263 General and administrative 1,210,900 1,429,905 15,030,749 15,474,548 Contribution from dental 1,573,553 1,331,850 offices CORPORATE EXPENSES: General and administrative 1,104,988 ^(1) 1,169,145 ^(1) Depreciation and amortization 46,253 54,640 OPERATING INCOME 422,312 108,065 Interest expense, net 26,716 27,194 INCOME BEFORE INCOME TAXES 395,596 80,871 Income tax expense 154,282 31,540 NET INCOME $ 241,314 $ 49,331 Net income per share of Common $ $ 0.03 Stock - Basic 0.13 Net income per share of Common $ $ 0.03 Stock - Diluted 0.13 Cash dividends per share of $ $ 0.22 Common Stock 0.22 Weighted average number of shares of Common Stock and dilutive securities: Basic 1,845,375 1,854,455 Diluted 1,857,088 1,864,708 Corporate expenses - general and administrative includes $131,008 of ^(1) stock-based compensation expense pursuant to ASC Topic 718 for the quarter ended March 31, 2013 and $100,430 of stock-based compensation expense pursuant to ASC Topic 718 for the quarter ended March 31, 2014. BIRNER DENTAL MANAGEMENT SERVICES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) December 31, March 31, ASSETS 2013 2014 CURRENT ASSETS: Cash and cash equivalents $ 469,827 $ 299,990 Accounts receivable, net of allowance for doubtful accounts of approximately $420,000 and $420,000, 3,250,319 3,797,658 respectively Notes receivable 34,195 34,195 Deferred tax asset 272,523 298,019 Income tax receivable 176,935 - Prepaid expenses and other 455,158 789,115 assets Total current assets 4,658,957 5,218,977 PROPERTY AND EQUIPMENT, net 10,126,399 10,469,987 OTHER NONCURRENT ASSETS: Intangible assets, net 9,292,868 9,067,725 Deferred charges and other 165,661 165,661 assets Notes receivable 109,501 102,804 Total assets $ 24,353,386 $ 25,025,154 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 2,548,240 $ 1,986,186 Accrued expenses 1,641,509 1,572,880 Accrued payroll and related 2,192,495 2,734,138 expenses Income taxes payable - 292,146 Total current liabilities 6,382,244 6,585,350 LONG-TERM LIABILITIES: Deferred tax liability, net 3,030,205 2,752,344 Long-term debt 8,091,790 9,054,728 Other long-term obligations 965,959 938,437 Total liabilities 18,470,198 19,330,859 SHAREHOLDERS' EQUITY: Preferred Stock, no par value, 10,000,000 shares authorized; none outstanding - - Common Stock, no par value, 20,000,000 shares authorized; 1,852,565 and 1,860,089 shares issued and outstanding, 779,758 950,753 respectively Retained earnings 5,103,430 4,743,542 Total shareholders' equity 5,883,188 5,694,295 Total liabilities and $ 24,353,386 $ 25,025,154 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, 2013 2014 RECONCILIATION OF EBITDA: Net income $241,314 $49,331 Add back: Depreciation and amortization - Offices 819,881 967,263 Depreciation and amortization - Corporate 46,253 54,640 Stock-based compensation expense 131,008 100,430 Interest expense, net 26,716 27,194 Income tax expense 154,282 31,540 Adjusted EBITDA $1,419,454 $1,230,398 SOURCE Birner Dental Management Services, Inc. Website: http://www.bdms-perfectteeth.com
Birner Dental Management Services, Inc. Announces Earnings For 1Q 2014
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