Castle Dental Centers Reports Record First Quarter Results; Revenues From Dental Practices Increased 39%.HOUSTON--(BUSINESS WIRE)--May 7, 1998--Castle Dental Centers, Inc. (Nasdaq/NM: CASL CASL Compact Application Solution Language (Feras Information Technologies) CASL Capital Area Soccer League (Raleigh, NC) CASL Chartered Advisor for Senior Living CASL Crosstalk Application Scripting Language ), one of the fastest-growing dental management companies in the U.S., today announced record results for the first quarter ended March 31, 1998. Revenues of affiliated dental practices Noun 1. dental practice - the practice of dentistry practice - the exercise of a profession; "the practice of the law"; "I took over his practice when he retired" increased 39% for the quarter to $14.5 million from $10.5 million for the first quarter of 1997. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the quarter rose 34% to $1.1 million compared with $803,000 for the same quarter last year. Net income for the quarter increased to $662,000 from $21,000 for the prior-year period. Earnings per share increased to $0.11 (diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. ) on 6.2 million weighted average shares outstanding compared with earnings per share of $0.01 (diluted) on 3.3 million weighted average shares outstanding for the first quarter of 1997. The 88% increase in weighted average shares outstanding resulted primarily from the Company's initial public offering in September September: see month. 1997 in which 2.8 million shares were issued. Commenting on the results, Chairman and Chief Executive Officer Jack H. Castle, Jr., said, "We're we're Contraction of we are. we're we are extremely pleased with our financial performance for the first quarter, which exceeded expectations. The 39% increase in revenues reflects the expansion of our network over the past year from 35 centers to 44 centers and strong internal growth at existing dental centers. Through the standardized standardized pertaining to data that have been submitted to standardization procedures. standardized morbidity rate see morbidity rate. standardized mortality rate see mortality rate. operating model Operating Model is a term that is used in many contexts. In essence an operating model describes how an organization operates across both business and technology domains. The Operating Model describes what is important for the organization. and proven management process we have put in place, we are creating real value in each center, resulting in increasing sales and operating efficiencies. In addition, two strategic acquisitions that we completed during the quarter position us for solid growth for the rest of 1998 and beyond." In late March, Castle completed the acquisitions of Dental World, Inc., the fourth largest dental practice management company in Houston Houston, city (1990 pop. 1,630,553), seat of Harris co., SE Tex., a deepwater port on the Houston Ship Channel; inc. 1837. Economy The fourth largest city in the nation and the largest in the entire South and Southwest, Houston is a port of entry; , and of 80% of Dental Consulting Services Noun 1. consulting service - service provided by a professional advisor (e.g., a lawyer or doctor or CPA etc.) service - work done by one person or group that benefits another; "budget separately for goods and services" L.L.C., a Los-Angeles-based dental practice management company, with a combined total of 11 offices and 40 affiliated dentists Dentists can refer to one of the following:
"The Dental World acquisition is a perfect example of our `fill-in first' strategy of pursuing profitable acquisition opportunities and developing new centers in existing markets to create a significant market presence," said Castle. "Dental Consulting Services gives us a solid base from which to expand into the high-growth Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, market. On a combined basis, these acquisitions are expected to add more than $17 million in patient revenues in 1998. We are continuing to look at attractive acquisition opportunities; and with the recent increase in our bank credit facility to $42.5 million from $25.0 million, we are sufficiently capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. to fund our expansion plans through the year." Castle Dental Centers, Inc. develops, manages and operates integrated dental networks through contractual affiliations with general, orthodontic orthodontic (ôr´th  dän´tik),adj and multi-specialty dental practices in the U.S. Including the recent acquisitions, Castle manages 55 dental centers with 165 affiliated dentists in Texas, Florida, Tennessee Tennessee, state, United States Tennessee (tĕn`əsē', tĕn'əsē`), state in the south-central United States. and California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). . Information contained in this press release, other than historical information, may be considered forward-looking in nature and is subject to various risks, uncertainties and assumptions. Among the key factors that may have a direct bearing on the operating results, performance or condition of the Company are fluctuations in the economy, the degree and nature of competition and the demand for the Company's services, changes in laws and regulations affecting the Company's business, the Company's inability at any time to complete acquisitions and integrate the operations of acquired businesses, and numerous other factors discussed in Castle Dental's filings with the Securities and Exchange Commission. -0-
CASTLE DENTAL CENTERS, INC.
Consolidated Statements of Operations
(in thousands, except per share data)
Three Months Ended
March 31,
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1998 1997
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Patient revenues of affiliated
dental practices $14,541 $10,456
Amounts retained by affiliated
dental practices 3,746 2,413
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Net revenues 10,795 8,043
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Expenses:
Clinical salaries 3,191 2,437
Dental supplies and laboratory fees 1,318 911
Rent and lease expense 759 637
Advertising and marketing 594 513
Depreciation and amortization 621 427
Other operating expenses 1,378 857
General and administrative 1,858 1,458
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Total expenses 9,719 7,240
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Operating income 1,076 803
Interest expense 124 778
Other income (22) (8)
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Income before income taxes 974 33
Provision for income taxes 312 12
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Net income $ 662 $ 21
Preferred stock accretion -- (150)
------- -------
Income (loss) attributable to
common stock $ 662 $ (129)
======= =======
Income per common share:
Basic and diluted:
Net income $ 0.11 $ 0.01(1)
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Weighted average number of common
and common equivalent shares outstanding 6,236 3,308
======= =======
(1) Per share information differs from loss attributable to common
stock divided by weighted average number of common and common
equivalent shares outstanding because accretion of the preferred
stock is added back to the loss attributable to common stock
under the if-converted method of arriving at common and common
equivalent shares outstanding.
CONTACT: Castle Dental Centers Inc., Houston John M. Slack 1. (operating system) slack - Internal fragmentation. Space allocated to a disk file but not actually used to store useful information. 2. (jargon) slack , 713/513-1400 ext. 280 |
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