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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report Pursuant to Section 13 or 15(d) of
The Securities Act of 1934
Date of Report (Date of earliest event reported): June 16, 1998
COAST DENTAL SERVICES, INC.
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(Exact name of registrant as specified in its charter)
DELAWARE 000-21501 59-3136131
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(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
2502 ROCKY POINT DRIVE
SUITE 1000
TAMPA, FLORIDA 33607
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(Address of principal executive offices) (Zip Code)
Registrant's Telephone Number, Including Area Code: 813-288-1999
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ITEM 5. OTHER EVENTS.
On June 16, 1998, the Company issued a press release announcing the
status of development initiatives, a copy of which is filed herewith as Exhibit
99.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits.
The Exhibits to this Report are listed in the Exhibit Index set forth
elsewhere herein.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this Report to be signed on its behalf by
the undersigned hereunto duly authorized.
COAST DENTAL SERVICES, INC.
By: /s/ Joseph R. Smith
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Joseph R. Smith
Its: Chief Financial Officer
Dated: June 23, 1998
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INDEX TO EXHIBITS
EXHIBIT
NUMBER EXHIBIT
99 Press Release dated June 16, 1998
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EXHIBIT 99
FOR RELEASE ON JUNE 16, 1998 FOR FURTHER INFORMATION CONTACT:
JOSEPH R. SMITH, CHIEF FINANCIAL OFFICER
COAST DENTAL SERVICES, INC.
2502 ROCKY POINT DRIVE
SUITE 1000
TAMPA, FLORIDA 33607
(813) 288-1999
COAST DENTAL ANNOUNCES STATUS OF DEVELOPMENT INITIATIVES
Coast Dental discussed generally today its progress and financial
performance for the year to date. Indications were that the Company's expansion
to date has been more significant than initially planned due to strategic
opportunities existing in developing markets. The Company further explained
that such expansion which has consisted of a larger mix of internally developed
dental centers, as compared to acquisitions, has had an impact on its financial
performance to date.
Between January 1, 1998 and June 30, 1998 the Company will have added
32 additional dental centers, 21 of which will be internally developed dental
centers and 11 of which will be acquired dental centers. Due to opportunities
existing, the Company added more dental centers than was originally planned. As
a result of the increased development of internally developed dental centers
and the associated initial expenses and the normal delay in achieving
productivity at the centers, the quarter ending June 30, 1998 is now expected
to be slightly below street estimates, with an earnings per share estimated
range of $.16 to $.17. The Company believes that contrary to its competition,
which relies principally on acquisitions of dental centers, the use of
internally developed dental centers coupled with strategic acquisitions, is a
more cost effective way of developing a market.
The Company reiterated its commitment to a continued mix of internally
developed and acquired dental centers. CEO, Terek Diasti stated "We have been
very pleased with our 1998 development accomplishments to date. While the
accelerated addition of internally developed dental centers has impacted us for
the quarter, they are positioning us well to achieve our future goals at a cost
significantly below that which would be required through an expansion program
utilizing substantially all acquisitions. The acquired Dental Centers we have
brought in this year including those in Tennessee are performing up to our
expectations. There were several other opportunities for us to add additional
acquisitions in order to meet the expectations for the quarter, but we were
unable to justify the completion of those when balancing the cost to us and
analyzing the long term benefits to our shareholders. We are well positioned
with geographic concentration in good markets, a clear balance sheet and
substantial capital resources, a strong development team, and an excellent
pipeline. As such, management remains confident relative to its financial goals
and objectives for the remainder of 1998 and for 1999. We were extremely
aggressive in the addition of new Dental Centers for the year. We can now
concentrate on fully implementing the Coast Operating model in all of our new
dental centers and to be selective in acquisition opportunities existing for
us."
Coast Dental Services, Inc. provides management services to affiliated
dental care providers in Dental Centers located in Florida, Georgia and
Tennessee. As of June 30, 1998, the Company will have ninety (90) Dental
Centers under management, serving over 500,000 patients.
This press release and certain information provided periodically in
writing or orally by the Company's officers or its agents contain statements
which constitute "forward-looking statements" within the meaning of Section 27A
of the Securities Act, as amended and Section 21E of the Securities Exchange
Act of 1934. The words "expect", "believe", "goal", "plan", "intend",
"estimate" and similar expressions and variations thereof if used are intended
to specifically identify forward-looking statements. Those statements appear in
a number of places in this Press Release and include statements regarding the
intent, belief or current expectations of the company, its directors or its
officers with respect to, among other thing: the successful expansion of the
Cost Dental network in new and existing markets through the addition of
internally developed and acquired Dental Centers in accordance with the
Company's growth strategy and the Company's future performance and operating
results. Investors and prospective investors are cautioned that any such
forward-looking statements are not guarantees of future performance and involve
risks and uncertainties, and that actual results may differ materially from
those projected in the forward-looking statements as a result of various
factors. The factors that might cause such differences are set forth in the
Company's previous filings with the Securities and Exchange Commission. The
Company undertakes no obligation to publicly update or revise the
forward-looking statements made in the Press Release to reflect events or
circumstances after the date of the Press Release or to reflect the occurrence
of unanticipated events.
