<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) March 12, 1999
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DENTAL CARE ALLIANCE, INC.
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(Exact name of registrant as specified in its charter)
Delaware 000-23219-29 65-0555-126
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(State or other jurisdiction of (Commission (IRS Employer
incorporation or organization) File No.) Identification No.)
1343 MAIN STREET, 7TH FLOOR, SARASOTA, FLORIDA 34236
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(Address of principal executive offices) (Zip Code)
(941) 955-3150
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(Registrant's telephone number, including area code)
No Change
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(Former name, former address and former fiscal year
if changed since last report)
<PAGE>
ITEM 5. OTHER EVENTS
On March 12, 1999, Dental Care Alliance ("DCA") released its financial
numbers for the fourth quarter and year ended 1998. Additionally, InterDent,
Inc. released a Supplemental Pooled Statement of Operation for each of the
quarters and year ended 1998, which includes the combined operations of DCA
and Gentle Dental Service Corporation, accounted for as a pooling-of-interest,
for those periods. The press release containing the financial numbers of DCA
and InterDent, Inc. is attached as Exhibit 99.1 and is incorporated herein by
reference.
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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.
Dated: March 12, 1999
DENTAL CARE ALLIANCE
By /s/ Steven R. Matzkin
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Steven R. Matzkin, Chairman of the
Board of Directors, Chief Executive
Officer and President
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EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit No. Description
<S> <C>
99.1 Press Release issued March 12, 1999
</TABLE>
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[LOGO]
Contacts:
InterDent, Inc. Lippert/Heilshorn & Associates
David P. Nichols John Heilshorn ([email protected])
SVP Finance/East (212) 838-3777
(941)955-3150 Lillian Armstrong ([email protected])
(415) 433-3777
INTERDENT, INC. ANNOUNCES RESULTS FOR DENTAL CARE ALLIANCE'S
FOURTH QUARTER AND 1998 FISCAL YEAR
El Segundo, CA -- March 12, 1999--InterDent, Inc. (NASDAQ NM: DENTD) today
announced the results of Dental Care Alliance, Inc.'s ("DCA") fourth quarter
and 1998 fiscal year. As of today, March 12, 1999, DCA and Gentle Dental
Service Corporation are wholly-owned subsidiaries of InterDent, Inc.
During the fourth quarter ended December 31, 1998, DCA's revenues
increased 210% to $9,209,270 from revenues of $2,970,038 for the
corresponding period of the previous year. Of the increase in revenues,
$1,125,555 is attributable to existing practices and the balance relates to
new affiliations. Income excluding corporate restructure and merger costs
reached $1,186,874 or $0.17 per diluted share on 7,079,413 shares for the
quarter compared to $275,046 or $0.05 per diluted share on 6,006,828 shares
in the fourth quarter last year. Including the restructure and
merger-related expenses, net income was $598,924 or $0.08 per diluted share.
For the year ended December 31, 1998, revenue increased to $29,336,391
versus $7,879,078 for the 1997 fiscal year. Income for the 1998 fiscal year
excluding corporate restructuring and merger costs was $3,685,752 or $0.52
per diluted share compared to $309,805 or $0.07 per diluted share for the
1997 fiscal year. Including merger related expenses, net income for the
1998 fiscal year was $3,097,802 or $0.44 per diluted share.
Dr. Steven Matzkin, Co-chairman, president and chief dental officer of
InterDent, stated, "Both Gentle Dental and Dental Care Alliance posted strong
results for the fourth quarter and 1998 fiscal years. On a combined basis,
excluding the merger related expenses, the company would have reported
corporate EBITDA of 11.6% and facility EBITDA of 16.5%, as well as fourth
quarter annualized net patient revenues under management in excess of $200
million. This performance bodes well for InterDent, which we believe will
set a new standard in the dental management services industry."
<PAGE>
Matzkin continued, "For its part, DCA continued to execute on its growth
strategy as we worked through the details of the merger and integration plans
during the fourth quarter. Same-store growth exceeded 14 percent for the
quarter, giving us an annual same-store growth level of 14 percent. We also
completed a significant acquisition during the fourth quarter, entering the
Philadelphia market. We are looking forward to leveraging our strength in
center management into the remaining approximately 70 percent of InterDent
sites."
Dental Care Alliance managed 78 dental practices as of December 31,
1998, compared to 29 practices as of December 31, 1997.
For further information on InterDent, please refer to today's press
releases entitled, "InterDent Announces Results for Gentle Dental's Fourth
Quarter and 1998 Fiscal Year" and "InterDent Adds Seven Dental Practices in
Detroit, Michigan."
InterDent is the largest provider of dental management services in the
US. The company provides dental management services to 183 locations in
California, Oregon, Washington, Idaho, Nevada, Hawaii, Florida, Georgia,
Michigan, Pennsylvania and Indiana. As of March 11, 1999, InterDent has over
$210 million in annualized net patient revenues under management. The
company is continuing to expand by building a fully integrated support
environment utilizing advanced information technologies to enable dental
professionals to provide patients with high quality, comprehensive,
convenient and cost effective care.
This press release contains forward-looking statements that are made pursuant
to the safe harbor provisions of The Private Securities Litigation Reform Act
of 1995. The forward-looking statements involve risks and uncertainties that
could cause actual results to differ materially from the forward-looking
statements. Those risks and uncertainties include InterDent's ability to
close and absorb future acquisitions, the economic climate in the Company's
service areas, potential changes in government regulation and in the dental
insurance industry, actions by competitors, and other factors disclosed in
the Company's filings with the Securities and Exchange Commission. The
forward-looking statements should be considered in light of these risks and
uncertainties.
(Tables Follow)
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DENTAL CARE ALLIANCE, INC.
FINANCIAL HIGHLIGHTS (Unaudited)
<TABLE>
<CAPTION>
Quarter Ended Year Ended
December 31, December 31,
1998 1997 1998 1997
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<S> <C> <C> <C> <C>
Management fees........................... $8,979,224 $2,895,437 $28,641,030 $7,588,193
Consulting and licensing fees, net........ 230,046 74,601 695,361 290,885
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Total revenues ...................... 9,209,270 2,970,038 29,336,391 7,879,078
Staff salaries and benefits............... 2,566,245 727,051 8,015,757 2,021,497
Dental supplies .......................... 645,910 259,129 2,039,687 650,444
Lab fees ................................. 925,452 343,414 3,101,909 971,024
Marketing ................................ 393,633 151,488 1,127,906 414,519
Occupancy costs .......................... 1,117,964 383,161 3,310,787 998,141
Other..................................... 542,922 266,009 1,931,947 851,631
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Total managed dental
center expenses..................... 6,192,126 2,130,252 19,527,993 5,907,256
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General and administration................ 932,786 516,870 3,472,675 1,387,452
Depreciation and amortization............. 363,819 76,619 1,062,646 163,681
Corporate restructure and merger costs.... 587,950 -- 587,950 --
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1,884,555 593,489 5,123,271 1,551,133
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Operating income .................... 1,132,589 246,297 4,685,127 420,689
Interest income .......................... 206,328 249,604 871,727 314,710
Interest expense ......................... (80,278) (31,845) (231,746) (51,142)
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126,050 217,759 639,981 263,568
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Income before income taxes........... 1,258,639 464,056 5,325,108 684,257
Income taxes ............................. 659,715 179,010 2,227,306 263,952
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Net income........................... $ 598,924 $ 285,046 $ 3,097,802 $ 420,305
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Adjustment to redemption value of
common and preferred securities.......... -- -- -- (10,500)
Cumulative preferred stock dividend....... -- (10,000) -- (100,000)
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Net income applicable
to common shares.................... $ 598,924 $ 275,046 $3,097,802 $ 309,805
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Net income per common share:
Basic................................ $ 0.09 $ 0.05 $ 0.44 $ 0.07
Diluted.............................. $ 0.08 $ 0.05 $ 0.44 $ 0.07
Weighted average common
shares outstanding:
Basic................................ 7,031,107 5,919,350 6,996,842 4,610,331
Diluted.............................. 7,079,413 6,006,828 7,080,755 4,697,809
</TABLE>
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DENTAL CARE ALLIANCE, INC.
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
December 31, December 31,
1998 1997
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(unaudited) (audited)
ASSETS
<S> <C> <C>
Current assets $13,359,807 $22,167,219
Property and equipment, net 5,493,711 1,113,050
Non-current assets 22,142,739 5,274,218
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Total assets $40,996,257 $28,554,487
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $ 2,812,382 $ 2,410,475
Long-term liabilities 10,295,027 1,590,187
Stockholders' equity 27,888,848 24,553,825
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$40,996,257 $28,554,487
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</TABLE>
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