Birner Dental Management Services reports financial results for the quarter ended September 30, 2009

Birner Dental Management Services, Inc. (Nasdaq: BDMS), operators of PERFECT TEETH dental practices, announced results for the quarter and nine months ended September 30, 2009. For the quarter ended September 30, 2009, total dental group practice revenue decreased $285,000 or 1.9% to $14.7 million. Net revenue decreased $268,000, or 3.1%, to $8.5 million. The Company's earnings before interest, taxes, depreciation, amortization and non-cash expense associated with stock-based compensation ("Adjusted EBITDA") decreased $244,000, or 13.6%, to $1.5 million from $1.8 million. Net income for the quarter ended September 30, 2009 decreased $135,000, or 26.9%, to $366,000. Earnings per share decreased 21.9%, to $.19 for the quarter ended September 30, 2009 compared to $.24 for the quarter ended September 30, 2008.

For the nine months ended September 30, 2009, total dental group practice revenue increased $102,000, or 0.2%, to $45.2 million. Net revenue decreased $81,000, or 0.3%, to $26.4 million. The Company's Adjusted EBITDA increased $134,000, or 2.6%, to $5.4 million. Net income for the nine months ended September 30, 2009 increased $94,000, or 6.4%, to $1.6 million compared to $1.5 million for the same period of 2008. Earnings per share increased 20.2%, to $.82 for the nine months ended September 30, 2009 compared to $.69 for the nine months ended September 30, 2008.

The decrease in net revenue of $268,000 in the quarter ended September 30, 2009 consisted of a decrease in same store net revenue from general dentistry of $326,000 offset by an increase in same store net revenue from specialty dentistry of $58,000. The decrease in net revenue of $81,000 in the nine months ended September 30, 2009 consisted of a decrease in same store net revenue from general dentistry of $482,000 offset by an increase in same store net revenue from specialty dentistry of $267,000 along with a de novo office the Company opened in May 2008 generating an additional $134,000 in net revenue. The Company attributes the decrease in net revenue for the quarter and nine months ended September 30, 2009 compared to the quarter and nine months ended September 30, 2008, to a general weakness in the economy in its markets.

During the second quarter of 2009, the Company signed a new lease for a de novo office in the Albuquerque, New Mexico market. The Company expects this office to open in the first quarter of 2010.

As previously reported, the Company has entered the Tucson, Arizona market with the acquisition of assets of two dental practices that had 2008 patient revenue totaling $3.7 million. One dental practice acquisition closed in late September, 2009 while the other closed in late October, 2009. Total purchase price for these two dental practice acquisitions was $1.1 million.

During the first nine months of 2009, the Company had capital expenditures of $909,000, purchased 47,096 shares of its Common Stock for approximately $706,000, paid $950,000 in dividends to its shareholders and decreased total bank debt outstanding by $2.8 million.