Birner Dental Management Services, Inc. ( BDMS), operators of PERFECT TEETH® dental practices, announced results for the quarter ended March 31, 2010. For the quarter ended March 31, 2010, revenue increased $1.2 million, or 7.8%, to $16.5 million. The Company's earnings before interest, taxes, depreciation, amortization and non-cash expense associated with stock-based compensation ("Adjusted EBITDA") decreased $153,000, or 7.6%, to $1.9 million. Net income for the quarter ended March 31, 2010 decreased $143,000, or 21.1%, to $534,000 compared to $677,000 for the same period of 2009. Earnings per share decreased 21.9%, to $.28 for the quarter ended March 31, 2010 compared to $.36 for the quarter ended March 31, 2009.
The increase in revenue of $1.2 million for the quarter ended March 31, 2010 is primarily attributable to three offices that were acquired during the fourth quarter 2009 and one de novo office in the Albuquerque, New Mexico market that was opened in February 2010. These four new offices accounted for an additional $1.1 million in revenue.
Adjusted EBITDA and net income decreased in the 2010 quarter as a result of $162,000 of incremental expenses associated with the long-term incentive program adopted in June 2009, $110,000 of additional advertising and marketing expenses as a result of television and radio advertising programs implemented in February 2010 and $63,000 of incremental legal and accounting expenses related to responding to Securities and Exchange Commission comments pertaining to the Company's Form 10-K for the year ended December 31, 2008. Also negatively affecting Adjusted EBITDA and net income was an anticipated $55,000 loss at the de novo office opened in February 2010 due to the "start-up" expenses associated with the opening of a de novo office. The Company expects this office to be break-even to profitable in the second quarter of 2010.
During the first quarter of 2010, the Company had capital expenditures of $626,000, purchased 10,760 shares of its Common Stock for approximately $174,000 and paid out approximately $316,000 in dividends to its shareholders. During the first quarter of 2010, bank debt decreased approximately $596,000, which reduced total debt outstanding to $4.7 million at March 31, 2010.
Birner Dental Management Services, Inc. acquires, develops, and manages geographically dense dental practice networks in select markets in Colorado, New Mexico, and Arizona. The Company currently manages 65 dental offices, of which 38 were acquired and 27 were de novo developments. The Company currently has 125 dentists. The Company operates its dental offices under the PERFECT TEETH® name.
Effective May 14, 2010, the Company will close two underperforming offices in the Phoenix, Arizona market and will consolidate the patients with other Perfect Teeth offices in the area. These two offices had combined revenue of approximately $400,000 in 2009. The Company has no current plans to close any other offices in the Phoenix, Arizona market and remains committed to continuing to develop the Tucson, Arizona market.
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