Coast Dental Services, Inc. Announces Record Results for Third Quarter and Seven Additional Dental Centers.TAMPA, Fla.--(BUSINESS WIRE)--Oct. 22, 1998--Coast Dental Services, Inc. (the "Company") (Nasdaq:CDEN CDEN Canadian Design Engineering Network ) announced record results in net revenues and earnings for the quarter ended September 30, 1998. The Company reported net revenues increased 64% to $9,201,631 for the third quarter of 1998 as compared to $5,624,239 for the third quarter of 1997. Gross profit increased 42% to $2,631,944 as compared to $1,853,388 for the same period in 1997 and net income increased 66% to $1,351,104 or $0.18 per 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. share, compared to $815,361 or $0.14 per diluted share for the same period in 1997. The following are the highlights of the third quarter: Five (5) New Acquired Dental Centers - The Company entered two new markets in Florida, adding five (5) acquired Dental Centers; one in Jacksonville in August and a group of four Dental Centers in Tallahassee in September. These newly acquired Dental Centers had a combined purchase price of $5.4 million (paid in cash and notes), and an annual gross revenue run rate of approximately $6.8 million. Three (3) New Internally Developed Dental Centers - The Company continued its expansion in the Atlanta, Georgia market, by opening one (1) additional internally developed Dental Center. The Company also opened two (2) additional internally developed Dental Centers in Florida. The Company consolidated two previously acquired Dental Centers into one location and relocated re·lo·cate v. re·lo·cat·ed, re·lo·cat·ing, re·lo·cates v.tr. To move to or establish in a new place: relocated the business. v.intr. one previously acquired Dental Center to a newly constructed facility. Commenting on the results, Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Terek Diasti said, " We are very excited about our strategic and opportunistic opportunistic /op·por·tu·nis·tic/ (op?er-tldbomacn-is´tik) 1. denoting a microorganism which does not ordinarily cause disease but becomes pathogenic under certain circumstances. 2. acquisitions completed during the third quarter. In August, we added an acquired Dental Center in Jacksonville, Florida “Jacksonville” redirects here. For other uses, see Jacksonville (disambiguation). Jacksonville is the largest city in the state of Florida and the county seat of Duval County. and we plan to build internally developed Dental Centers in that market, with the first two scheduled to open in the first quarter of 1999. We also added, in September, four acquired Dental Centers consisting of the largest group dental practice 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" in Tallahassee, Florida For other uses, see Tallahassee (disambiguation). Tallahassee is the capital of the State of Florida and the county seat of Leon County. Tallahassee became the capital of Florida in 1824. As of 2006, the population recorded by the U.S. . We are excited about entering the Tallahassee market with a well-established recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. patient base. We believe that we are poised to rapidly expand our market share in Tallahassee through implementation of our operating systems Operating systems can be categorized by technology, ownership, licensing, working state, usage, and by many other characteristics. In practice, many of these groupings may overlap. and through the addition of new Dental Centers." Also commenting on the results, Chief Financial Officer, Joseph R. Smith said, "We are very pleased with the positive results achieved in the third quarter despite the threat of hurricane Georges This article is about Atlantic hurricane of 1998. For other storms of the same name, see Hurricane Georges (disambiguation). Hurricane Georges (IPA: [ʒɔʒ] that adversely effected many of our Florida Dental Centers for up to three business days. As seen by our recent additions, the opportunities in Florida for growth continue to be excellent. Our Atlanta, Georgia expansion continues to progress in a very positive manner. In less than one year in this market, we have experienced significant growth with fifteen Dental Centers currently operating at various stages of development. The new Nashville, Tennessee “Nashville” redirects here. For other uses, see Nashville (disambiguation). Nashville is the capital and the second most populous city of the U.S. state of Tennessee, after Memphis. market also continues to develop and we anticipate that this development will be further accelerate with the introduction of the Coast name and 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. in the fourth quarter." Coast Dental Services, Inc. provides management services to affiliated dental care providers in Dental Centers located in Florida, Georgia and Tennessee. As of September 30, 1998, the Company has ninety-eight (98) Dental Centers under management and is affiliated with over 100 dentists serving over 500,000 patients. SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. This press release contains statements, which may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Investors and prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors as set forth from time to time in the Company's previous filings with the SEC including its recently filed Form 10-Q Form 10-Q See 10-Q. . The Company undertakes no obligation to publicly update or revise the forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events. -0-
COAST DENTAL SERVICES, INC.
CONDENSED STATEMENTS OF OPERATIONS (Unaudited)
Quarter Ended Nine Months Ended
Sept. 30, Sept. 30,
1997 1998 1997 1998
Net revenue $5,624,239 $9,201,631 $13,560,677 $24,562,118
Dental Center expenses:
Staff salaries 1,746,135 3,115,560 4,159,867 7,943,669
Dental supplies
and lab fees 797,475 1,295,646 1,957,421 3,507,588
Advertising 326,738 539,874 833,452 1,483,937
Rent 624,100 1,126,039 1,389,972 2,845,743
Depreciation 151,909 272,951 347,350 784,754
Other 124,494 219,617 292,658 615,797
Total Dental Center
expenses 3,770,851 6,569,687 8,980,720 17,181,488
Gross profit 1,853,388 2,631,944 4,579,957 7,380,630
General and
administrative
expenses 528,056 797,486 1,279,193 2,330,580
Depreciation
and amortization 105,210 253,982 248,601 603,961
Operating profit 1,220,122 1,580,476 3,052,163 4,446,089
Interest income
(expense) 116,535 349,106 230,916 1,338,025
Income before
income taxes 1,336,657 1,929,582 3,283,079 5,784,114
Income tax expense 521,296 578,478 1,138,380 1,898,676
Net income $ 815,361 $1,351,104 $ 2,144,699 $ 3,885,438
Pro forma income
tax expense -- -- 142,021 --
Pro forma net income $ 815,361 $1,351,104 $ 2,002,678 $ 3,885,438
Basic earnings
per share $ .14 $ .18 $ .40 $ .51
Pro forma basic
earnings per share $ .14 $ .18 $ .37 $ .51
Diluted earnings
per share $ .14 $ .18 $ .39 $ .50
Pro forma diluted
earnings per share $ .14 $ .18 $ .37 $ .50
Weighted average
number of shares
outstanding:
Basic 5,794,142 7,621,758 5,371,753 7,617,963
Diluted 5,948,389 7,672,458 5,470,080 7,712,796
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