DENVER, Aug. 13 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.
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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.
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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 Disclosures
This 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 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 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.
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.
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.
For Further Information Contact: Birner Dental Management Services, Inc. Dennis Genty Chief Financial Officer (303) 691-0680
SOURCE Birner Dental Management Services, Inc.
