Dynacq Healthcare, Inc. Announces Financial Results for the Fiscal Quarter Ended May 31, 2008.HOUSTON -- Dynacq Healthcare, Inc. (DYII) today reported financial results for the third fiscal quarter ended May 31, 2008. For the fiscal quarter ended May 31, 2008, the Company had income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the of $1.2 million, or $0.07 per share, compared to $2.9 million, or $0.18 per share, in the fiscal quarter ended May 31, 2007. All per share amounts are calculated on a fully diluted basis. The decline in income from continuing operation of $1.7 million, or 58%, was primarily due to a change in the Company's revenue recognition method to recognize the lower reimbursement amounts payable for workers' compensation workers' compensation, payment by employers for some part of the cost of injuries, or in some cases of occupational diseases, received by employees in the course of their work. cases as a result of the Texas Workers' Compensation (TWCC TWCC Texas Workers' Compensation Commission ) Fee Guidelines effective March 1, 2008. The Company's revenue recognition method for the corresponding third fiscal quarter of prior year ended May 31, 2007 was based on the trailing twelve months In commerce, the trailing twelve months (TTM) is a moving measurement (for example, an average or a sum) over the 12 previous months, using the most recent data available. Also sometimes known as last twelve months (LTM). average collection ratio. Results of Operations Net patient service revenues for the quarter increased by $1.6 million, or 13%, from $12.6 million in 2007 to $14.2 million in 2008. The increase in revenues is primarily due to an increase in inpatient cases and additional revenues of $1.3 million recognized based on settlements reached with insurance carriers for Medical Dispute Resolution (MDR MDR, n See multidrug resistance. MDR, n the abbreviation for minimum daily requirement, specifically the Minimum Daily Requirements for Specific Nutrients compiled by the United States Food and Drug Administration. ) 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 with dates of service ranging from 2001 to 2005, offset by the reduction in net revenue recognized on workers' compensation cases based on the new TWCC Fee Guidelines effective March 1, 2008. Net income for the quarter ended May 31, 2008 was $1 million, or $0.06 per share, versus $2.6 million, or $0.17 per share, in the quarter ended May 31, 2007. Net patient service revenues for the nine months ended May 31, 2008 increased by $17.3 million, or 54%, from $31.8 million in 2007 to $49.1 million in 2008. The increase in revenues includes additional revenues of $5.8 million on closed MDR accounts receivable, offset by the reduction in net revenue recognized on workers' compensation cases based on the new TWCC Fee Guidelines effective March 1, 2008. Income from continuing operations for the nine months ended May 31, 2008 was $8.3 million, or $0.50 per share, versus $2.2 million, or $0.14 per share, in the same period in 2007. Net income was $10.8 million, or $0.65 per share, for the nine months ended May 31, 2008 versus $573,000, or $0.04 per share, for the same period in 2007. Recent Developments The DeAn Joint Venture, which was formed for the purpose of constructing, owning and operating a hospital in Shanghai, China, had entered into land use agreements with the Chinese government Ever since Republic of China founded in January 1st, 1912, China has had several regional and national governments. List
The Company has formed a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , Dynacq Huai Bei Healthcare, Inc., a Chinese corporation, to provide healthcare management services in China, and has entered into a management agreement with RuiAn City Department of Health to manage the operations, human resources The fancy word for "people." The human resources department within an organization, years ago known as the "personnel department," manages the administrative aspects of the employees. and financials of the RuiAn Hospital in China effective June 1, 2008. Additional Information Dynacq Healthcare, Inc. ("www.dynacq.com") is a holding company. Its subsidiaries provide surgical healthcare services and related ancillary services through hospital facilities. Certain statements included in this press release, which are not historical facts, are 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. . Such forward-looking statements are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions 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. These forward-looking statements represent our expectations or beliefs, intentions, future events, future performance, business prospects and involve certain risks and uncertainties, including those described in our public filings with the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Securities and Exchange Commission, also including, but not limited to, changes in interest rates, competitive pressures, changes in customer mix, changes in third party reimbursement rates, financial stability of major customers, changes in government regulations or the interpretation of these regulations, changes in supplier relationships, growth opportunities, cost savings, revenue enhancements, synergies and other benefits anticipated from acquisition transactions, difficulties relative to integrating acquired business, the accounting and tax treatments of acquisitions, and asserted and unasserted claims, which could cause actual results to differ materially from those indicated in the forward-looking statements. The forward-looking statements by their nature involve substantial risks and uncertainties, certain of which are beyond our control, and actual results may differ materially depending on a variety of important factors. You are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date herein. The risks and uncertainties that may cause these forward-looking statements to prove to be incorrect include, without limitation, adverse effects of litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. or regulatory actions, inability to negotiate desired terms with proposed joint venture partners, and favorable regulatory determinations for availability of financing options and other transactions. |
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