Coast Dental Services Announces Record Results for First Quarter, the Additions of Seventeen Dental Centers and New Chief Operating Officer and Provides Stock Repurchase Update.TAMPA, Fla.--(BW HealthWire)--April 22, 1999-- Coast Dental Services, Inc. (the "Company") (Nasdaq:CDEN CDEN Canadian Design Engineering Network ) announced net revenues and earnings for the quarter ended March 31, 1999. The Company reported net revenues increased 49.7% to $10,912,548 for the first quarter of 1999 as compared to $7,288,379 for the first quarter of 1998. Operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. increased 44.3% to $1,426,856 as compared to $989,126 for the same period in 1998 and net income and earnings per share increased 14.9% to $1,117,930 or $.15 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 income of $972,803 or $.13 per diluted share (before the previously announced cumulative effect of a change in accounting principle) for the same period in 1998. The following are highlights of the first quarter: Seven (7) New Internally Developed Dental Centers - The Company opened three (3) new Dental Centers in Florida, three (3) new Dental Centers in Atlanta, Georgia Georgia, country, Asia Georgia (jôr`jə), Georgian Sakartvelo, Rus. Gruziya, officially Republic of Georgia, republic (2005 est. pop. 4,677,000), c.26,900 sq mi (69,700 sq km), in W Transcaucasia. , one (1) new Dental Center in 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. 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. two (2) acquired Dental Centers in Nashville into two (2) newly built Dental Centers. Two (2) New Acquired Dental Centers - The Company added two (2) acquired Dental Centers in the Virginia market. These newly acquired Dental Centers had a combined purchase price of approximately $600,000 and at March 31, 1999 had an annual gross revenue run rate of approximately $1.4 million. New Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. - In March, the Company hired Ronn Kelly as its Chief Operating Officer. Mr. Kelly's experience encompasses both medical and 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" management, including Birmingham based MedPartners as a Regional Vice President of Operations and most recently with Boston based Professional Dental Associates as their Chief Operating Officer. Current Developments: The Company also announced that in the second quarter, it had acquired the operations of Mid-Coast Dental Services, Inc. ("MCDS MCDS Ministry of Community Development and Sports (Singapore) MCDS Minimum Connected Dominating Set MCDS Marin Country Day School (Corte Madera, CA) MCDS Metaphyseal Chondrodysplasia, Schmid Type ") for $780,000 cash, $145,000 in notes and the assumption of certain liabilities. MCDS's operations included managing nine Dental Centers which facilities were owned, and sub-leased to MCDS, by the Company. These Dental Centers were opened at various times throughout the last nine months in most of the major metropolitan markets of Virginia. These de novo [Latin, Anew.] A second time; afresh. A trial or a hearing that is ordered by an appellate court that has reviewed the record of a hearing in a lower court and sent the matter back to the original court for a new trial, as if it had not been previously heard nor decided. Dental Centers, while early stage, had a combined gross revenue run rate of approximately $2.1 million as of March 31, 1999. In further developments, the Company provided an update on the Company's previously announced and ongoing share repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. program. The Company indicated that thus far, of the 1.5 million shares authorized Shares authorized The maximum number of shares of stock of a company allowed in the articles of incorporation, which may be changed only by a shareholder vote. See: Issued and outstanding. shares authorized See authorized capital stock. to be repurchased, approximately 500,000 shares have been repurchased. 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, "Coast has continued to make great strides during the first quarter. We are excited about the addition of Ronn Kelly, a health care professional seasoned in directing larger business operations Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets . We are also very excited about the strategic addition of Mid-Coast in the Virginia market. The Mid-Coast opportunity provides low cost entry into a new market with geographically concentrated offices consistent with our business strategy. The Mid-Coast management team will continue to manage the Virginia operation as well as supplement our management team in Florida and elsewhere." Also commenting on the results, Chief Financial Officer, Joseph R. Smith said, "with almost a 50% gain in net revenue and a 44% increase in 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. , we are pleased with the positive results achieved in the first quarter, particularly in light of the previously announced decrease in the management fees at the end of January. We are especially excited about the progress made in the Atlanta market in the quarter. With sixteen offices open throughout the quarter and three more added during the quarter, the Atlanta region has a first quarter gross profit of approximately 8.0% in spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite the fact that the nineteen internally developed Dental Centers have been in existence an average of only seven months." Coast Dental Services, Inc. provides management services to affiliated dental care providers in Dental Centers located in Florida, Georgia, Tennessee and Virginia. As of March 31, 1999, the Company had 113 Dental Centers under management. 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-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. . The Company undertakes no obligation to publicly update or revise the forward-looking statements made in this press release to reflect events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or after the date of this press release or to reflect the occurrence of unanticipated events. - Table follows - -0-
COAST DENTAL SERVICES, INC.
CONDENSED STATEMENTS OF INCOME (Unaudited)
Quarter Ended
March 31,
-------------------------
1998 1999
Net revenue $ 7,288,379 $10,912,548
Dental Center expenses:
Staff salaries 2,172,508 3,501,144
Dental supplies and lab fees 1,043,514 1,680,544
Advertising 456,071 767,552
Rent 757,670 1,439,637
Depreciation 243,202 479,696
Other 189,650 324,262
----------- -----------
Total Dental Center expenses 4,862,615 8,192,835
----------- -----------
Gross profit 2,425,764 2,719,713
General and administrative expenses 641,335 1,005,579
Development costs 567,878 --
Depreciation and amortization 227,425 287,278
----------- -----------
Operating profit 989,126 1,426,856
Interest income (expense) 533,640 265,925
----------- -----------
Income before income taxes 1,522,766 1,692,781
Income taxes 549,963 574,851
----------- -----------
Income before cumulative effect of a
change in accounting principle 972,803 1,117,930
Cumulative effect of a change in accounting
principle, net of income tax
of $382,403 633,813 --
----------- -----------
Net income $ 338,990 $ 1,117,930
=========== ===========
Basic earnings per share:
Income before cumulative effect of a change
in accounting principle $ .13 $ .15
Cumulative effect of a change in accounting
principle .08 --
----------- -----------
Net income $ .05 $ .15
=========== ===========
Diluted earnings per share:
Income before cumulative effect of a change
in accounting principle $ .13 $ .15
Cumulative effect of a change in accounting
principle .08 --
----------- -----------
Net income $ .05 $ .15
=========== ===========
Weighted average number of shares
outstanding:
Basic 7,608,055 7,538,686
=========== ===========
Diluted 7,736,228 7,538,717
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