WAKEFIELD, Mass.--(BW HealthWire)--May 11, 1998--American Dental Partners, Inc. (NASDAQ:ADPI) today reported first quarter earnings for the period ended March 31, 1998.
Comparing the first quarter of 1998 with the same period in 1997:
-- Net revenue grew to $18.2 million from
of 63%.
-- Earnings from operations increased to $1.2 million from $145,000.
-- Net earnings increased to $469,000 from $172,000.
-- Diluted net earnings (loss) per share increased to $0.06 from
($0.06).
Gregory A. Serrao, Chairman, President and Chief Executive Officer of American Dental Partners said, "We are pleased with our first quarter results, which were driven by an increase in the number of new affiliates as well as the expansion and improved operating performance of our existing affiliates. We continue to attract outstanding dental groups to the Company, which is the main contributor to our success."
In January 1998, the Company completed an affiliation with Associated Dental Care Providers, P.C., with operations in Phoenix and Tucson, Arizona. With this affiliation, the Company now operates six dental facilities with 51 operatories in Arizona. The Company also recently completed transactions with three dental practices in Wisconsin and Louisiana which joined existing affiliates in those markets.
Effective April 16, 1998, the Company sold 2,250,000 shares of Common Stock in an initial public offering ("IPO") at $15 per share. Effective May 4, 1998, the Company sold an additional 337,500 shares of Common Stock pursuant to the over-allotment option granted to the underwriters. Net proceeds to the Company totaled approximately $34.6 million and were used primarily to redeem the Series B Redeemable Preferred Stock and repay outstanding debt under the Company's revolving credit facility. The remaining balance will be used for general corporate purposes, including affiliations with additional dental group practices.
American Dental Partners, Inc. is one of the nation's leading dental practice management companies. The Company is affiliated with ten dental group practices and currently operates 90 dental facilities with 679 operatories located in Arizona, Louisiana, Minnesota, Pennsylvania, Texas and Wisconsin.
Note: Except for historical information, all other statements provided in this press release are "forward-looking" within the meaning of the Private Securities Litigation Reform Act of 1995. The Company's actual results may vary materially from the forward-looking statements made above due to important factors such as: a limited operating history; risks associated with the Company's acquisition strategy; management of rapid growth; dependence upon affiliated dental groups; and dependence upon service agreements and government regulation of the dental industry. These and other risk factors that could materially affect financial results are further described in the Company's Form S-1 Registration Statement (file No. 333-39981).
-0-
AMERICAN DENTAL PARTNERS, INC.
FINANCIAL HIGHLIGHTS
(in thousands, except per share amounts)
Three Months Ended
March 31,
1998 1997
(unaudited)
Net revenue $ 18,171 $ 11,226
Operating expenses:
Salaries and benefits 9,649 6,189
Lab fees and dental supplies 2,196 1,334
Office occupancy 1,609 1,008
Other operating expenses 1,645 1,366
General corporate expenses 975 735
Depreciation 556 356
Amortization of intangibles assets 333 93
Total operating expenses 16,963 11,081
Earnings from operations 1,208 145
Interest expense (income), net 439 (27)
Earnings before income taxes 769 172
Income taxes 300 --
Net earnings $ 469 $ 172
Net earnings (loss) per common share:
Basic $ 0.06 $ (0.06)
Diluted $ 0.06 $ (0.06)
Weighted average common shares outstanding:
Basic 2,429 2,213
Diluted 2,632 2,213
-0-
AMERICAN DENTAL PARTNERS, INC.
FINANCIAL HIGHLIGHTS
(in thousands)
Pro Forma
March 31, March 31, Dec. 31,
1998 1998 1997
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $11,807 $ 4,696 $ 4,675
Receivables due from affiliated
practices 3,059 3,059 3,207
Other current assets 1,651 2,531 2,119
Total current assets 16,517 10,286 10,001
Property and equipment, net 9,330 9,330 8,752
Non-current assets:
Intangible assets, net 32,381 32,381 28,975
Other assets 201 201 231
Total non-current assets 32,582 32,582 29,206
Total assets $58,429 $52,198 $47,959
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and
accrued expenses $ 7,706 $ 7,706 $ 8,468
Current maturities of debt 840 840 774
Total current liabilities 8,546 8,546 9,242
Non-current liabilities:
Long-term debt 4,917 25,467 21,253
Other liabilities 257 257 258
Total liabilities 13,720 34,270 30,753
Series A convertible preferred stock -- 8,806 8,641
Series B redeemable preferred stock -- 7,815 7,656
Stockholders' equity 44,709 1,307 909
Commitments and contingencies
Total liabilities and
stockholders' equity $58,429 $52,198 $47,959
-0-
CONTACT: American Dental Partners, Inc.
Gregory A. Serrao
781-224-0880
or
Ronald M. Levenson
781-224-0880