Dialysis Corporation of America (DCAI)
Q4 2008 Earnings Call
March 06, 2009 10:00 AM ET
Andrew Jeanneret - Chief Financial Officer
Stephen W. Everett - President and Chief Executive Officer
Darren Lehrich - Deutsche Bank
Nicholas Jansen - Raymond James
Previous Statements by DCAI
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Thank you operator and welcome everyone to our 2008 fourth quarter conference call. My name is Andrew Jeanneret. With me is Steve Everett, our CEO.
I will start the call with our obligatory forward-looking statement disclosure. During our call, we may make forward-looking statements which can generally be identified by the content of such statements or the use of forward-looking terminology that includes statements that do not contain historical facts. All such forward-looking statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. For further details concerning these risks and uncertainties, please refer to our SEC filings included in our most recent quarterly report on Form 10-Q and our Annual Report on Form 10-K. Our forward-looking statements are based on information currently available to us and we undertake no obligation to update these statements, whether as a result of changes in underlying facts, information, future events or other developments.
I will now turn the call over to Steve.
Stephen W. Everett
Thanks Andrew. Good morning everyone. As you know, we announced our results for the fourth quarter and the full year of 2008 yesterday. I want to spend just a few minutes providing you with a business update before Andrew covers the financial results, and then we'll be happy to take any questions that you may have.
First, a few data points. We are now operating 37 outpatient dialysis centers, providing acute treatments in 11 hospitals and caring for approximately 2000 ESRD patients in our centers. All totaled, we provided slightly more than 272,000 dialysis treatments last year.
On the clinical front, we made several progressive steps in improving what has already been excellent quality care. Our Kt/V greater than 1.2, which is a measurement for the adequacy of dialysis, was slightly above 97%, an excellent statistic.
Our anemia management for the year resulted in hemoglobins greater than 11 to be roughly 82%, which is a nice jump over our 2007 results.
And finally, our access management continues to improve, although we still have some more work to do. The '08 results had about 56% of our patients with fistulas in place.
As a provider of life sustaining services, we know that we have an important job to do on behalf of the patients who we care for. That's what we are all about and we don't lose sight of it. We also hope and fully expect that the level of reimbursement that we receive to move more and more towards clinical outcomes-based systems. We are in very strong position for that and we expect to be rewarded when it happens.
Our new business development continues to progress well with the closing of the acquisition of our largest center to date occurring at the end of last year and the ongoing progression of deals that are at different levels of completion. In spite of the current global economic crisis that we are all facing, it appears that the physicians we are working with continue to have both the desire and the means to invest in this business, which we obviously believe is the right directional move for them.
Our long-term growth strategy remains unchanged and the '09 facility additions are on track with three to four centers potentially being added to our group in the near future.
On the administrative front, the company continues to put in place advances that both improve efficiencies and financial performance. Our Clinical Information System is on track and in place at the centers that we have intended. Importantly, we remain on schedule for rolling out the system wide in the months ahead.
As discussed during our last call, we have also completed a total facial makeover of our company from a new logo to a new website to new marketing collateral. And the reviews have been very positive and we hope the message is clear that DCA is a very professional company with one clear focus: a commitment to quality.
With that, I'll turn the call over to Andrew to discuss the financials. Andrew?
Thanks Steve. I would like to discuss our 2008 fourth quarter and annual results. Our operating revenue for the fourth quarter of 2008 was $23.7 million, an 18.4% increase over the $20.0 million in the fourth quarter of 2007. For the year, operating revenue was $86.8 million, a 16.5% increase over the $74.5 million for 2007.
Our total treatments were 70,276 for the 2008 quarter and 65,664 for the 2007 quarter, a 7% increase quarter-over-quarter. For the year, total treatments were 272,452, an 8% increase over the 252,326 for 2007. Average revenue per treatment was $333 per treatment for the fourth quarter of 2008 versus $313 a treatment for the fourth quarter of 2007. For the year, we averaged $314 a treatment, a 3.7% increase over the $303 per treatment for 2007.