Birner Dental Management Services, Inc. Announces Results For Fourth Quarter And Year Ended 2017

On December 28, 2017, following discussions and negotiations with Guaranty Bank and Trust Company (the "Bank") which is the lender under the Company's Loan and Security Agreement (the "Credit Facility"), and a number of potential investors and lenders, the  Company entered into a Security Purchase Agreement (the "Securities Purchase Agreement") and completed a private placement of $5 million of convertible senior subordinated secured notes (the "Notes") and 10 attached shares of Series A Convertible Preferred Stock with Palm Active Dental, LLC and Palm Global Small Cap Master Fund LP (the "Palm Investors"). The Company used approximately $2.6 million of the net proceeds under the Securities Purchase Agreement to repay the Bank as described below.  The balance of the net proceeds is being used for vendor payments, working capital, capital expenditures, and other general corporate purposes.  The Notes and attached shares of Series A Convertible Preferred Stock are convertible into shares of Series B Convertible Preferred Stock, which in turn are convertible into shares of the Company's common stock at a price of $5.00 per share.  Each share of Series A Preferred Stock entitles the holder to 100,000 votes per share. As a result of the investments by the Palm Investors, the Palm Investors beneficially own approximately 34.8% of the Company's common stock and have commensurate voting rights.

Also on December 28, 2017, the Company and the Bank entered into the Fifth Amendment to Loan and Security Agreement ("Fifth Amendment"), under which the Company repaid approximately $1.5 million under the term loan portion and $1.1 million under the revolving line of credit portion of the Credit Facility and the Bank waived all then-existing defaults, default interest, fees, and penalties under the Credit Facility. Among other things, the Fifth Amendment extends the maturity date of the loans under the Credit Facility to March 31, 2023, increases the availability to $2.0 million under the revolving line of credit and modifies the repayment terms of the term loan and the EBITDA, leverage ratio and other financial covenants under the Credit Facility.

In connection with the investment by the Palm Investors, two Palm representatives, Joshua S. Horowitz and Bradley Tirpak, were appointed to the Company's board of directors, replacing Brooks G. O'Neil and Dennis N. Genty, the Company's Chief Financial Officer, both of whom resigned from the board.

During the year ended December 31, 2017, the Company had capital expenditures of approximately $627,000, and decreased total bank debt by approximately $3.4 million including $2.6 million from the $5.0 million private placement completed December 28, 2017. The Company has recently contracted to upgrade three of its offices to digital radiography and plans to upgrade at least three more offices in the near future. The Company believes that this ongoing office modernization project is one of the keys to enhancing the Company's recruiting efforts and its patient's experience.

Birner Dental Management Services, Inc. acquires, develops, and manages geographically dense dental practice networks in select markets in Colorado, New Mexico, and Arizona.  As of December 31, 2017, the Company managed 68 dental offices under the PERFECT TEETH® name.

The Company previously announced it would conduct a conference call to review results for the year and quarter ended December 31, 2017 on Monday, April 2, 2018 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 1-888-312-9863 and refer to Confirmation Code 5742256 approximately five minutes prior to the scheduled time. If you are unable to join the conference call on April 2, 2018, the rebroadcast number is 1-888-203-1112 with the pass code of 5742256.  This rebroadcast will be available through April 16, 2018.

Non-GAAP Disclosures

This press release includes a non-GAAP financial measure with respect to Adjusted EBITDA.  Please see below for more information regarding Adjusted EBITDA and a reconciliation of Adjusted EBITDA to net loss.

Forward-Looking Statements

Certain of the matters discussed herein may contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from expectations. These include statements of belief regarding the Company's prospects and performance in future periods, including the impact of dentist recruitment, turnover and dentist count and office upgrades.  These statements involve known and unknown risks, uncertainties and other factors which may cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.  These and other risks and uncertainties are set forth in the reports filed by the Company with the Securities and Exchange Commission. The Company disclaims any obligation to update these forward-looking statements.

For Further Information Contact:
Birner Dental Management Services, Inc.
Dennis Genty  
Chief Financial Officer
(303) 691-0680

BIRNER DENTAL MANAGEMENT SERVICES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
		Quarters Ended				Years Ended
		December 31,				December 31,
		2016		2017		2016		2017
REVENUE:
	Dental practice revenue	$ 13,158,048		$ 13,732,425		$ 57,167,491		$ 56,647,595
	Capitation revenue	1,133,585		996,093		4,594,803		4,064,809
		14,291,633		14,728,518		61,762,294		60,712,404
DIRECT EXPENSES:
	Clinical salaries and benefits	8,638,093		9,123,033		37,202,203		37,521,910
	Dental supplies	633,233		666,074		2,820,462		2,641,069
	Laboratory fees	840,567		913,539		3,489,225		3,600,542
	Occupancy	1,566,735		1,568,387		6,279,180		6,409,158
	Advertising and marketing	168,260		134,015		658,487		619,642
	Depreciation and amortization	967,136		825,901		3,993,299		3,573,983
	General and administrative	1,338,422		1,470,000		5,477,903		5,484,758
		14,152,446		14,700,949		59,920,759		59,851,062
	Contribution from dental offices	139,187		27,569		1,841,535		861,342
CORPORATE EXPENSES:
	General and administrative	820,535	(1)	970,983	(1)	3,516,657	(2)	3,850,624	(2) Werbung Mehr Nachrichten zur Birner Dental Management Services Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 11:11 - dpa-AFX Geldreserven von Berkshire Hathaway wachsen weiter 04.05.24 - dpa-AFX SPD-Europapolitiker bei Angriff in Dresden schwer verletzt 04.05.24 - dpa-AFX Explosionen in Charkiw und Belgorod nach russischem Luftangriff Neuer Gesetzesentwurf    Cannabisaktien sollten nun den S&P um 60% outperformen! weiterlesen» Anzeige wo-site-teaser-box-16854_site-teaser-box_2024-05-05_09%253A00%253A00_2024-05-06_09%253A00%253A59