Date: Thu, 18 Dec 1997 15:03:14 GMT Server: Apache/1.2.0 Connection: close Content-Type: text/html
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PRESS RELEASE
AT THE COMPANY | AT THE FINANCIAL RELATIONS BOARD |
VICTOR M.G. CHALTIEL, CEO OR JOHN E. KING, CFO AT (310) 792-2600 |
DANIEL SAKS, GENERAL INFORMATION MOIRA CONLON, INVESTOR CONTACT STEVEN SEILER, MEDIA CONTACT AT (310) 442-0599 KATHY BRUNSON, INVESTOR CONTACT AT (312) 266-7800 |
TOTAL RENAL CARE DOUBLES SECOND-QUARTER REVENUE,
TRIPLES EARNINGS, AND INCREASES EPS BY 83 %
ON MORE SHARES
COMPANY CONTINUES WAVE OF STRATEGIC ACQUISITIONS AND STARTUPS
ANCILLARY SERVICES ALSO CONTRIBUTE
Recent Highlights:
Revenues more than doubled in the quarter, climbing 110 % to $64.6 million from $30.7 million in the corresponding period of 1995. Net income tripled to $5.7 million, or 22 cents per share, based on 26.6 million weighted average shares outstanding. The Company posted net income of $1.9 million, or 12 cents per share, based on 15.5 million weighted average shares outstanding in the second quarter of 1995. All 1995 figures are restated to reflect a change in the Company's fiscal year-end to December 31 from May 31.
"We continue our overall aggressive, disciplined expansion strategy to increase our market presence in geographic areas that we currently serve through acquisitions, de novo developments, and hospital alliances, and to develop a meaningful presence in new geographic areas by acquiring networks of centers," stated Victor M.G. Chaltiel, TRL Chairman, President and Chief Executive Officer.
Fast Growth for a Leading Position
"With our strategic, aggressive yet disciplined program of dialysis-center startups and acquisitions, we're expanding our share and consolidating our leading position in the increasing number of markets in which we compete," said Chaltiel.
For the first six months, revenues rose 104.1 % to $114.8 million from $56.3 million in 1995. Net income for the first six months was up 245 % to $10 million, or 40 cents per share, based on 24.9 million weighted average shares outstanding, versus $2.9 million, or 19 cents per share, based on 15.4 million shares a year ago.
The Company has increased its number of treatment facilities through acquisitions and start-ups from 54 at the end of the calendar 1995 second quarter to 114 at the end of the second quarter of 1996 and 120 as of August 1, 1996. Twelve centers have been added since the Company completed a secondary equity offering in April. Primarily as a result of this expansion, TRL now serves approximately 9,000 patients with end-stage renal disease (ERSD) versus 7,600 at the end of the first quarter in 1996. The Company is the nation's third-largest provider of dialysis services.
Earnings Rise Faster Than Revenues
Net income is gaining at a faster rate than revenue for several reasons, according to Chaltiel.
"In addition to benefiting from our start-up and acquisition strategy, we're achieving an increasing contribution from ancillary programs such as laboratory and pharmacy services," he said. "Also, with our July 22 bond buy-back and the proceeds from our equity offerings, our interest expense has declined significantly. While continuing to add critical resources, we are keeping our overhead under control and spreading these expenses over a larger revenue base."
"The Company's laboratory, relocated to central Florida in the first quarter 1996, now serves most of TRL's dialysis centers, except our more recent acquisitions. Our lab provides a unified data base of clinical outcomes in a state-of-the-art setting," Chaltiel said. "Lab tests add about $13 in revenue per dialysis treatment, or currently about $12 million per year on an annualized basis."
"The benefit to earnings of our recent acquisitions will begin to be fully realized in the third quarter," Chaltiel concluded.
Repurchase of 12 % Discount Notes
With the recent purchase of 43% of its outstanding 12% Senior Subordinated Discount Notes, the Company has now retired 62% of this debt. In August 1994, the Company completed a $100 million offering of the Discount Notes.
Torrance, California-based Total Renal Care Holdings, Inc. is the third largest provider of integrated dialysis services in the U.S. for patients suffering from chronic kidney failure. The Company owns and operates high-quality, free-standing kidney dialysis centers and home peritoneal dialysis programs in 16 states, Washington, D.C. and Guam and also provides high-quality acute hemodialysis services to inpatients on behalf of 81 hospitals. TRL has increased its number of outpatient dialysis facilities to 120 with 1,759 stations, and provides services to approximately 9,000 patients. The Company additionally operates ESRD laboratory and pharmacy facilities, as well as vascular access management and transplant services programs.
For information on Total Renal Care Holdings, Inc. via facsimile at no cost, call
1-800-PRO-INFO and dial company code 039.
[Financial Tables follow]
TOTAL RENAL CARE HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Three Months and Six Months Ended June 30, 1996 and 1995
(Unaudited)
Net operating revenues | $64,583,000 | $30,624,000 | $114,820,000 | $56,093,000 | ||||
Operating expenses: | ||||||||
Facilities | 43,318,000 | 19,498,000 | 76,647,000 | 36,420,000 | ||||
General and administrative | 4,800,000 | 2,777,000 | 8,701,000 | 5,200,000 | ||||
Provision for doubtful accounts | 1,337,000 | 687,000 | 2,333,000 | 1,266,000 | ||||
Depreciation and amortization | 3,572,000 | 1,414,000 | 6,032,000 | 2,673,000 | ||||
Total operating expenses | 53,027,000 | 24,376,000 | 93,713,000 | 45,559,000 | ||||
Operating income | 11,556,000 | 6,248,000 | 21,107,000 | 10,534,000 | ||||
Interest expense | (2,238,000) | (2,502,000) | (4,150,000) | (4,712,000) | ||||
Interest income | 1,182,000 | 117,000 | 1,613,000 | 174,000 | ||||
Income before income taxes and minority interests | 10,500,000 | 3,863,000 | 18,570,000 | 5,987,000 | ||||
Income taxes | 4,110,000 | 1,352,000 | 7,151,000 | 2,078,000 | ||||
Income before minority interests | 6,390,000 | 2,511,000 | 11,419,000 | 3,909,000 | ||||
Minority interests in income of | ||||||||
consolidated subsidiaries | 664,000 | 613,000 | 1,417,000 | 1,010,000 | ||||
Net income | $5,726,000 | $1,898,000 | $10,002,000 | $2,890,000 | ||||
Net income per common share | $0.22 | $0.12 | $0.40 | $0.19 | ||||
Weighted average number of common shares | ||||||||
and equivalents outstanding | 26,600,000 | 15,500,000 | 24,900,000 | 15,400,000 |
TOTAL RENAL CARE HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, 1996 and December 31, 1995
ASSETS | ||||||
Current Assets: | ||||||
Cash and Cash equivalents | $39,969,000 | $30,181,000 | ||||
Accounts receivable, less allowance for doubtful accounts | ||||||
of $9,752,000 and $5,668,000, respectively | 82,375,000 | 40,014,000 | ||||
Receivable from Tenet, a related company | 390,000 | 432,000 | ||||
Other current assets | 8,685,000 | 4,867,000 | ||||
Total current assets | 131,419,000 | 75,494,000 | ||||
Property and equipment, net | 44,456,000 | 25,505,000 | ||||
Note receivable from a related party | 1,678,000 | 1,379,000 | ||||
Investment in affiliate, at equity | 995,000 | 972,000 | ||||
Other long-term assets | 887,000 | 885,000 | ||||
Intangible assets, net of accumulated amortization | ||||||
of $10,348,000 and $7,353,000, respectively | 111,611,000 | 59,763,000 | ||||
$291,046,000 | $163,998,000 | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | ||||||
Liabilities | ||||||
Total current liabilities | $23,366,000 | $20,803,000 | ||||
Other long-term liabilities | 1,329,000 | 510,000 | ||||
Long-term debt and other | 58,295,000 | 56,538,000 | ||||
Minority interests | 4,541,000 | 3,343,000 | ||||
Stockholders' equity: | ||||||
Common stock, voting ($.001 par value; 55,000,000 shares | ||||||
authorized; 25,850,487 and 22,308,207 issued and | ||||||
outstanding, respectively) | 26,000 | 22,000 | ||||
Additional paid-in capital | 234,370,000 | 123,710,000 | ||||
Notes receivable from stockholders | (2,727,000) | (2,773,000) | ||||
Retained earnings (deficit) | (28,154,000) | (38,155,000) | ||||
Total stockholders' equity | 203,515,000 | 82,804,000 | ||||
$291,046,000 | $163,998,000 | |||||