Dynacq CFO Responds.Business Editors BIOWIRE2K HOUSTON--(BW HealthWire)--Jan. 16, 2002 Chief Financial Officer of Dynacq International Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :DYII) offers clarification to issues raised in January 15th investors conference call, as follows: Question regarding reserve for bad debt? Net revenue reported as upper line revenue is net of contractual adjustments from third party payers, most of which are insurance companies, in compliance with the American Institute of Certified See certification. Public Accountants' healthcare industry guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. . Accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying reported on the consolidated balance sheets consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. is net of the contractual adjustments and the reserve for uncollectibles. The change in the reserve for uncollectibles accounts from patients' co-pay or deductibles is reported as a separate line item in the consolidated statements of operations as "Provision for uncollectible accounts Uncollectible account An account which cannot be collected by a company because the customer is not able to pay or is unwilling to pay. ," which for the three months ended 11/30/01 is $41,670. Question regarding comparison of net revenue and net income between first quarter ended 11/30/01 and fourth quarter ended 8/31/01? Net revenue of $13.8 million in first quarter ended 11/30/01 increased by $1 million or 8% from the fourth quarter ended 8/31/01. Net income of $3.4 million in first quarter ended 11/30/01 decreased by $0.1 million or 3% from the fourth quarter ended 8/31/01 primarily due to certain tax savings achieved in fourth quarter ended 8/31/01. Question regarding the reporting of the $240,000 being paid to Halcyon hal·cy·on n. 1. A kingfisher, especially one of the genus Halcyon. 2. A fabled bird, identified with the kingfisher, that was supposed to have had the power to calm the wind and the waves while it nested on the sea to acquire two thirds of its minority interest? The payment of $240,000 was included in the $590,000 allocated to the "Due to Related Party" in the consolidated statements of cash flow. Question regarding why the Company was able to buy back two thirds of the Halcyon minority interest in the Hospital for $240,000? The buy back provision valuing the purchase price at book value was set forth in the agreement negotiated and executed by the parties in July 1998. Certain statements in this release are forward-looking. Although the Company believes its expectations are based on reasonable assumptions within the bounds of its knowledge of its 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 , there can be no assurance that actual results will not differ materially from its expectations. For factors that may cause results to differ materially from expectations and underlying assumptions, see reports the Company files with the Securities and Exchange Commission. For more information, please see our web-site at http://www.dynacq.com or contact Dick Schey of Schey Advertising/Public Relations at 713/522-8300 or by e-mail at raschey@sbcglobal.net. |
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