Coast Dental Services Announces Results for Second Quarter, the Additions of Ten Dental Centers and Provides Stock Repurchase Update.TAMPA, Fla.--(BUSINESS WIRE)--July 22, 1999-- Coast Dental Services, Inc. (the "Company") (Nasdaq:CDEN CDEN Canadian Design Engineering Network ) announced net revenues and earnings for the quarter ended June 30, 1999. The Company reported net revenues increased 38.3% to $11,166,127 for the second quarter of 1999 as compared to $8,072,108 for the second quarter of 1998. Net income and earnings per share were $510,342 or $.07 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 for the second quarter of 1999 as compared to $999,657 or $.13 for the same period in 1998. The $.07 per diluted share was within the Company's predicted range for the quarter, which it disclosed last month. The Company continues its emphasis on its previously announced software conversion program and integration focus relative to its large percentage of newer Dental Centers. Additionally, the Company disclosed that during the second quarter, it added three (3) new 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, consolidated two (2) acquired Dental Centers in the Tampa Bay Tampa Bay, inlet of the Gulf of Mexico, 25 mi (40 km) long and 7 to 12 mi (11.3–19 km) wide, W Fla., separated from the Gulf by numerous small islands; it receives the Hillsborough River. St. market, 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) Dental Centers into two (2) newly built Dental Centers. Furthermore, as previously announced, the Company acquired eight (8) early stage Dental Centers in the Virginia Virginia, state, United States Virginia, state of the south-central United States. It is bordered by the Atlantic Ocean (E), North Carolina and Tennessee (S), Kentucky and West Virginia (W), and Maryland and the District of Columbia (N and NE). market. In further developments, the Company provided an update on its previously announced 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 since its announcement in June, it has acquired an additional 445,000 shares, bringing the total shares acquired to approximately 955,000 shares. 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, "As evidenced by our aggressive stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. activity, management continues to strongly believe that our growth strategy will enhance long term shareholder value. As previously announced, we are going to experience short term impacts on our financial performance due to our focus on de novo Dental Center development and our Company wide software conversion. We will spend the remainder of the year on this technology conversion and on enhancing our returns in our existing Dental Centers." Also commenting on the results, Chief Financial Officer, Joseph R. Smith said, "Our earnings are being impacted by the addition of 50 new Dental Centers over the last twenty-four months. We continue to see the positive ramp-up in these Dental Centers and remain confident that growth, principally through internal development of Dental Centers, is the most appropriate way at this time to achieve future increases in shareholder value. Our software conversion is proceeding on schedule. Although the previously announced impact from disruption disruption /dis·rup·tion/ (dis-rup´shun) a morphologic defect resulting from the extrinsic breakdown of, or interference with, a developmental process. due to the software conversion should continue into Q-4 1999, we expect to realize the full benefits of the new software beginning in Q-1 2000." Coast Dental Services, Inc. is a dental service organization providing management services to affiliated dental care providers in Dental Centers located in Florida, 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. , Tennessee Tennessee, state, United States Tennessee (tĕn`əsē', tĕn'əsē`), state in the south-central United States. , and Virginia. As of June 30, 1999, the Company had 122 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 press releases and 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 OPERATIONS (Unaudited)
Quarter Ended Six Months Ended
June 30, June 30,
1998 1999 1998 1999
Net revenue $ 8,072,108 $11,166,127 $15,360,487 $22,078,675
Dental Center
expenses:
Staff salaries 2,655,601 3,979,766 4,828,109 7,480,910
Dental supplies
and lab fees 1,168,428 1,755,451 2,211,942 3,435,995
Advertising 487,992 814,936 944,063 1,582,488
Rent 962,034 1,678,788 1,719,704 3,118,425
Depreciation 268,601 594,295 511,803 1,073,991
Other 206,530 328,413 396,180 652,675
Total Dental
Center
expenses 5,749,186 9,151,649 10,611,801 17,344,484
Gross profit 2,322,922 2,014,478 4,748,686 4,734,191
General and
administrative
expenses 807,683 1,133,102 1,449,018 2,138,681
Development costs 367,879 -- 935,757 --
Depreciation and
amortization 171,743 279,897 399,168 567,175
Operating
profit 975,617 601,479 1,964,743 2,028,335
Interest income
(expense) 455,279 140,184 988,919 406,109
Income before
income taxes 1,430,896 741,663 2,953,662 2,434,444
Income taxes 431,239 231,321 981,202 806,172
Income before
cumulative effect
of a change in
accounting
principle 999,657 510,342 1,972,460 1,628,272
Cumulative effect
of a change in
accounting
principle, net of
income tax of
$384,403 -- -- 633,813 --
Net income $ 999,657 $ 510,342 $ 1,338,647 $ 1,628,272
Basic earnings
per share:
Income before
cumulative
effect of a
change in
accounting
principle $ .13 $ .07 $ .26 $ .22
Cumulative
effect of a
change in
accounting
principle -- -- .08 --
Net income $ .13 $ .07 $ .18 $ .22
Diluted earnings
per share:
Income before
cumulative
effect of a
change in
accounting
principle $ .13 $ .07 $ .26 $ .22
Cumulative
effect of a
change in
accounting
principle -- -- .08 --
Net income $ .13 $ .07 $ .18 $ .22
Weighted average
number of shares
outstanding:
Basic 7,621,084 7,103,794 7,616,034 7,319,653
Diluted 7,713,029 7,103,847 7,717,675 7,319,829
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