During the quarter ended May 31, 2003, Dynacq's flagship facility, the Vista Medical Center Hospital in Pasadena, Texas, continued its steady growth performance. Net patient service revenue at the hospital increased to $21,327,000 from $15,844,000, or 35%, from the corresponding prior year quarter.
The new hospital in Baton Rouge, La., Vista Surgical Hospital of Baton Rouge, completed its first full quarter of operations. Even though this hospital did not contribute positively to the overall consolidated net income, management is encouraged by the increase in procedures performed at this location month to month within this quarter. The Company expects this hospital to be profitable in the fourth quarter and will continue to focus its resources to increase revenues at this location.
Comparing nine months ended May 31, 2003 to the same period in 2002, net revenues increased 34% to $64,668,000 from $48,297,000 for the corresponding prior year period. Net income rose 37% to $15,173,000 from $11,047,000 in the prior year period. Basic earnings per share, before cumulative effect of a change in accounting principle, increased 31% to $0.98 from $0.75 and fully diluted earnings per share increased 29% to $0.94 from $0.73 for the corresponding prior year period. During the first quarter of fiscal 2003, Dynacq recorded a one-time gain of $528,000, net of tax, related to a write-off of negative goodwill associated with the adoption of SFAS 142, Goodwill and Other Intangible Assets, as a cumulative effect of a change in accounting principle. The basic and diluted earnings per share after this one-time gain for the nine months ended May 31, 2003 were $1.02 and $0.97, respectively.
Dynacq Chairman and CEO, Chiu M. Chan, said, "I am especially pleased that the continued success of the Houston facilities has permitted the Company to achieve such strong net earnings growth, even with the expected initial earnings drag from the start-up of the new hospital in Baton Rouge, La. As the Baton Rouge facility begins to achieve profitability, the ongoing success of the management and clinical teams in implementing our strategic growth plan should accelerate."
"While establishing the Baton Rouge facility to operate on a sound basis, we are also taking steps to expand further over the next few years. We are in the early stages of development work with several locations for potential new hospitals. We want to grow at a pace strategically consistent with our strong financial performance."
Dynacq International Inc. (www.dynacq.com) provides surgical healthcare services and related ancillary services through surgical hospital facilities and outpatient surgical centers. Dynacq specializes in creating surgical facilities that are models of quality patient care, efficiency, technology, clinical skills and profitability.
-0- Summarized selected financial data:
Three months ended Nine months ended
May 31, May 31,
------------------------- -------------------------
2003 2002 2003 2002
---- ---- ---- ----
Operating Data:
Net patient
service revenue $25,606,146 $19,584,545 $64,667,579 $48,297,084
Operating expenses 14,606,451 12,589,601 38,182,357 29,848,668
------------ ------------ ------------ ------------
Operating income 10,999,695 6,994,944 26,485,222 18,448,416
Other income, net 243,481 27,353 500,219 188,685
Minority interests
in earnings (801,962) (664,690) (2,630,064) (1,701,956)
Provision for
income taxes (4,163,956) (2,230,442) (9,710,958) (5,888,338)
Cumulative effect
of a change in
accounting
principle, net
of tax - - 528,153 -
------------ ------------ ------------ ------------
Net income $6,277,258 $4,127,165 $15,172,572 $11,046,807
============ ============ ============ ============
Basic earnings per
common share:
Income before
cumulative
effect of a
change in
accounting
principle $0.42 $0.28 $0.98 $0.75
Cumulative
effect of a
change in
accounting
principle - - 0.04 -
------------ ------------ ------------ ------------
$0.42 $0.28 $1.02 $0.75
============ ============ ============ ============
Diluted earnings
per common share:
Income before
cumulative
effect of a
change in
accounting
principle $0.40 $0.27 $0.94 $0.73
Cumulative
effect of a
change in
accounting
principle - - 0.03 -
------------ ------------ ------------ ------------
$0.40 $0.27 $0.97 $0.73
============ ============ ============ ============
Weighted average
common shares
(basic) 14,875,100 14,797,989 14,860,739 14,797,989
Weighted average
common shares
(diluted) 15,573,752 15,057,681 15,555,003 15,057,681
Statement of Cash
Flows Data:
Cash provided by
operating
activities $14,035,386 $8,692,117
Cash used in
investing
activities (16,262,975) (3,747,971)
Cash used in
financing
activities (1,214,573) (3,313,727)
May 31, August 31,
2003 2002
------------ ------------
Balance Sheet
Data:
Cash and cash
equivalents $4,141,594 $7,583,756
Accounts
receivable, net 32,020,645 24,340,971
Other current
assets 3,791,620 1,679,555
Property and
equipment, net 31,565,516 16,715,425
Other assets 949,860 758,914
------------ ------------
Total assets $72,469,235 $51,078,621
------------ ------------
Current
liabilities $8,413,629 $3,111,015
Other liabilities 4,441,438 3,399,233
Total
stockholders'
equity 59,614,168 44,568,373
------------ ------------
Total liabilities
and stockholders'
equity $72,469,235 $51,078,621
============ ============
Certain statements contained in this press release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, without limitation, Dynacq's ability to continue growing, the ability of the hospital at Baton Rouge to be profitable, positively impact future earnings, achieve profitability, gain additional momentum, and contribute to net income, continued strong growth of the Houston facilities, and Dynacq's ability to continue to provide high quality healthcare services and facilities. Although the Company believes its expectations are based on reasonable assumptions within the bounds of its knowledge of its business and operations, there can be no assurance that actual results will not differ materially from its expectations. Such forward-looking statements involve a number of known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. More detailed information about factors that may cause actual results to materially differ is contained in the Company's filings with the Securities and Exchange Commission. The words "looking forward," "believe," "expect," "likely" and similar expressions identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date that such statements were made. The Company undertakes no obligation to update any forward-looking statements contained in this press release.
Contact: Dynacq International Inc., Houston
James N. Baxter, 212-666-3399
jimbaxter@dynacq.com
Source: Dynacq International Inc. |
