Date: Thu, 18 Dec 1997 15:02:48 GMT Server: Apache/1.2.0 Connection: close Content-Type: text/html
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PRESS RELEASE
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:
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)
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
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 |