Date: Thu, 18 Dec 1997 15:02:48 GMT Server: Apache/1.2.0 Connection: close Content-Type: text/html TRC FIRST QUARTER 1996

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PRESS RELEASE

FOR FURTHER INFORMATION PLEASE CONTACT:
AT THE COMPANY
VICTOR M.G. CHALTIEL, CEO
OR JOHN KING, CFO
AT (310) 792-2600
AT THE FINANCIAL RELATIONS BOARD
JODY MARTIN, 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 HOLDINGS, INC. REPORTS OVER $50 MILLION IN NET REVENUES FOR FIRST QUARTER 1996, UP 97 PERCENT

Net Income Increases 327 Percent
Income Per Share Increases 171 Percent on More Shares Outstanding
First-Quarter Highlights:

TORRANCE, CA, May 7, 1996 -- Total Renal Care Holdings, Inc. (NYSE: TRL) today announced record net revenues and net income for the first quarter ended March 31, 1996, primarily as a continuation of the Company's aggressive, disciplined acquisition strategy combined with strong same store growth.

For the quarter ended March 31, 1996, TRL's net revenues increased 97% to $50,237,000 from $25,469,000 reported for the restated, comparable period last year. Results for the first three months of 1995 are restated due to the change in the Company's fiscal year end from May 31 to December 31. Net income grew 327% to $4,276,000, or $0.19 per share, based on 23,035,000 weighted average shares outstanding, compared with $1,001,000, or $0.07 per share, based on 15,353,000 weighted average shares outstanding for the same period last year. The increase in weighted average shares outstanding primarily resulted from the Company's initial public offering on October 30, 1995.

"Our strong financial results for this quarter reflect the successful implementation of our aggressive, yet disciplined growth strategy," stated Victor M.G. Chaltiel, TRL Chairman, President and Chief Executive Officer. "We have achieved significant accomplishments toward this goal since the beginning of the year, including acquiring Caremark's dialysis facilities, which represent our largest acquisition to date. Another notable achievement was the substantial improvement of our financial position through the recent completion of an equity offering and expansion of our credit facility, which will support our continued growth."

TRL's Managed Care Focus

"Since its inception, Total Renal Care has focused on partnering with managed care organizations to provide the highest quality treatment for End-Stage Renal Disease (ESRD) patients while controlling total costs," explained Chaltiel. "We anticipated the recent announcement by the Health Care Financing Administration, which invited managed care organizations to bid for a three-year, limited (about 1% of the total ESRD population) "demonstration project" to capitate all costs related to ESRD patients, and we have positioned our Company to partner with these organizations to offer extensive ESRD patient services. In addition to dialysis treatments, we provide ESRD-related pharmacy and laboratory services, and offer vascular access management and pre- and post-transplant service programs. We also have developed and continue to strengthen our physician networks, which enhances our managed care strategy.

"Last month, we opened the San Diego-based Mission Dialysis Center, which is serving Kaiser Permanente's 75 local ESRD patients, as well as other dialysis patients residing in that community," continued Chaltiel. "This contract represents the first of its kind developed by Kaiser Permanente, which is by far the largest private ESRD payor in the Southern California area. We believe this is a strong indication of our ability to team with managed care organizations, and we are actively pursuing additional relationships such as this one."

Expansion During the Quarter

"Through the Caremark and other acquisitions, combined with de novo developments, we added 39 additional dialysis centers treating approximately 2,000 patients during the first quarter," stated Chaltiel. "By increasing the number of facilities we operate, we achieve economies of scale related to operating multiple centers in specific geographic areas."

On March 15, 1996, the Company completed the $49.0 million acquisition of 32 outpatient dialysis facilities from Caremark International. These centers are primarily located in the Minneapolis/St. Paul area, where the Company is now established as the leading provider of dialysis services, as well as in Northern California, further strengthening its presence in that market. The Caremark acquisition also establishes TRL as the third largest dialysis provider in the U.S.

Financial Strength to Pursue Additional Expansion

TRL has the financial strength to continue its aggressive, yet disciplined acquisition strategy as a result of its recent public offering and expanded bank credit line. On April 3, 1996, TRL completed an equity offering of common stock at $33.125 per share, raising $116 million. On March 15, 1996, the Company increased its credit facility, currently unused, to $100 million. TRL also completed an initial public offering of 6.9 million shares of common stock at $15.50 per share on October 30, 1995.

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 15 states and Guam and also provides high-quality acute hemodialysis services to inpatients on behalf of 72 hospitals. TRL has increased its number of outpatient dialysis facilities to 108 with 1,554 stations, and provides services to approximately 7,700 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 Ended March 31, 1996 and 1995
(Unaudited)

1996
1995
Net operating revenues $50,237,000 $25,469,000
Operating expenses:
Facilities 33,329,000 16,922,000
General and administrative 3,901,000 2,423,000
Provision for doubtful accounts 996,000 579,000
Depreciation and amortization 2,460,000 1,259,000
Total operating expenses 40,686,000 21,183,000
Operating income 9,551,000 4,286,000
Interest expense (1,912,000) (2,219,000)
Interest income 431,000 57,000
Income before income taxes and minority interests 8,070,000 2,124,000
Income taxes 3,041,000 726,000
Income before minority interests 5,029,000 1,398,000
Minority interests in income of consolidated subsidiaries 753,000 397,000
Net income $4,276,000 $1,001,000
Net income per common share $0.19 $0.07
Weighted average number of common shares and
equivalents outstanding 23,035,000 15,353,000

Total Renal Care Holdings, Inc.

Condensed Consolidated Balance Sheets

March 31, 1996
December 31, 1995
(unaudited)
ASSETS
Current Assets:
Cash and Cash equivalents $10,555,000 $30,181,000
Accounts receivable, less allowance for doubtful accounts
of $7,972,000 and $5,668,000, respectively 69,304,000 40,014,000
Other current assets 9,054,000 5,299,000
Total current assets 88,913,000 75,494,000
Property and equipment, net 39,651,000 25,505,000
Other long-term assets 3,336,000 3,236,000
Intangible assets, net of accumulated amortization
of $8,561,000 and $7,353,000, respectively 96,267,000 59,763,000
$228,167,000 $163,998,000
LIABILITIES AND STOCKHOLDERS' EQUITY
Total current liabilities $27,809,000 $20,803,000
Deferred income taxes 417,000 510,000
Long-term debt and other 108,615,000 56,538,000
Minority interests 4,276,000 3,343,000
Stockholders' equity:
Total stockholders' equity 87,050,000 82,804,000
$228,167,000 $163,998,000