Birner Dental Management Services, Inc. (NASDAQ Capital Market: BDMS),operators of PERFECT TEETH® dental practices, announced results for the quarter and six months ended June 30, 2014. For the quarter ended June 30, 2014, revenue increased $440,000, or 2.7%, to $16.9 million.
The Company's earnings before interest, taxes, depreciation, amortization, and non-cash expense associated with stock-based compensation ("Adjusted EBITDA") decreased $212,000, or 16.4%, to $1.1 million for the quarter ended June 30, 2014. Net income/(loss) for the quarter ended June 30, 2014 decreased $239,000, or 133.0%, to $(59,000) compared to $180,000 for the quarter ended June 30, 2013. Earnings/(loss) per share decreased to $(0.03) for the quarter ended June 30, 2014 compared to $0.10 for the quarter ended June 30, 2013.
For the six months ended June 30, 2014, revenue increased $642,000, or 1.9%, to $33.7 million. The Company's Adjusted EBITDA decreased $401,000, or 14.8%, to $2.3 million for the six months ended June 30, 2014. Net income/(loss) for the six months ended June 30, 2014 decreased $431,000, or 102.4%, to $(10,000) compared to $421,000 for the six months ended June 30, 2013. Earnings/(loss) per share decreased to $(0.01) for the six months ended June 30, 2014 compared to $0.23 for the six months ended June 30, 2013.
Since the beginning of the fourth quarter of 2012, the Company has opened five de novo offices: in Tucson, Arizona in the fourth quarter of 2012; in Erie, Colorado in the fourth quarter of 2012; in Loveland, Colorado in July 2013; in Monument, Colorado in December 2013; and in Fort Collins, Colorado in May 2014. The Company has leased space for four additional de novo offices: in Scottsdale, Arizona, which is anticipated to open in the third quarter of 2014; and in Albuquerque, New Mexico, Westminster, Colorado and Commerce City, Colorado, which are anticipated to open in 2015. The Company is also evaluating and negotiating leases for additional sites throughout its markets.
At the end of the second quarter of 2014, the Company made certain expense reductions to more align its cost structure with the Company's revenue growth. The Company will continue to make additional expense reductions throughout the remainder of 2014. However, none of these cost reductions will affect planned de novo developments or remodels and upgrades of the Company's networks. In line with this strategy, the Company recently completed the consolidation of two of the Denver offices to achieve greater operating efficiencies.
During the first six months of 2014, the Company had capital expenditures of approximately $3.1 million, paid approximately $817,000 in dividends to its shareholders and increased total bank debt outstanding by approximately $489,000. During the six months ended June 30, 2014, the Company completed remodels and/or relocations of three of its offices and converted four additional offices to digital radiography.
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 67 dental offices, of which 37 were acquired and 30 were de novo developments. The Company currently has 119 dentists. The Company operates its dental offices under the PERFECT TEETH® name.
The Company previously announced it would conduct a conference call to review results for the quarter ended June 30, 2014 on Wednesday, August 13, 2014 at 9:00 a.m. MT. In addition to current operating results, the teleconference may include discussion of management's expectations of future financial and operating results. To participate in this conference call, dial in to 1-800-768-6569 and refer to Confirmation Code 8290231 approximately five minutes prior to the scheduled time. If you are unable to join the conference call on August 13, 2014, the rebroadcast number is 1-888-203-1112 with the pass code of 8290231. This rebroadcast will be available through August 27, 2014.
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