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EXHIBIT 99.1
[RENAL CARE GROUP LOGO]
NEWS RELEASE
FOR IMMEDIATE RELEASE CONTACT: R. DIRK ALLISON
CHIEF FINANCIAL OFFICER
615-345-5500
RENAL CARE GROUP, INC. SEES EPS GROWTH
OF 15% FOR NEXT THREE TO FIVE YEARS
Nashville, Tennessee (September 20, 2000)--Renal Care Group, Inc. (Nasdaq/NM:
RCGI) today announced that it expects to be able to sustain a 15% growth rate in
earnings per share over the next three to five years. Also, in order to focus
exclusively on its primary business of providing dialysis services, the Company
announced that it would write-off its wound care business. In connection with
writing off this business, the Company expects to record a one-time
restructuring charge of approximately $9 million in the third quarter of 2000.
The Company also announced that it expects to report earnings per share
of approximately $1.32 for 2000, an increase of 18% compared with 1999. Earnings
per share in the second half of 2000 will be affected moderately by expenses
associated with the Company's previously announced water treatment-related
episode in Youngstown, Ohio, as well as the Company's decision to decrease its
merger and acquisition activities in the second half of 2000 in light of
increasing acquisition pricing. The Company expects to generate earnings per
share of approximately $0.33 for the third quarter and approximately $0.34 for
the fourth quarter of 2000.
Sam A. Brooks, chairman and chief executive officer of Renal Care
Group, said, "Although the operational base of our company has expanded
dramatically, we believe that we can maintain a growth rate of 15% in earnings
per share for the next three to five years. This view is based on the inherent
predictability and recurring nature of the dialysis business, our proven
strength in integrating acquisitions and a galvanized management team that is
totally dedicated to delivering quality care and improving patient outcomes,
while remaining focused on building shareholder value. We also see positive
trends on the legislative horizon for next year.
"Further, in order to focus all our resources on our core business of
dialysis services," Mr. Brooks commented, "we will write off our investment in
our non-core wound care business. It has not contributed significantly to
profitability. This decision is consistent with our ongoing process of
evaluating our non-dialysis businesses as they relate to our core focus."
RENAL CARE GROUP, INC.
2100 WEST END AVENUE, SUITE 800
NASHVILLE, TENNESSEE 37203
(615) 345-5500 - (615) 345-5505 FACSIMILE
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RCGI Confident of EPS Growth
Page 2
September 20, 2000
In closing, Mr. Brooks said, "I have never been more confident about
our business or the future of the dialysis industry. At Renal Care Group,
financial success and quality patient care are compatible concepts. We have
demonstrated that the better the care, the healthier the patient; and the
healthier the patient, the better our company performs. In my long career in
healthcare, I have not encountered any other business where the goals of the
stockholder are so directly aligned with the needs of the patient. This
convergence of interests makes ours a unique and very special business for our
associates, stockholders and our more than 15,900 patients."
Renal Care Group will hold a conference call to discuss this press
release on Thursday, September 21, 2000, at 8:00 a.m. Central time. A
listen-only simulcast as well as a 30-day replay of the conference call to
discuss this press release will be available online at the Company's website at
www.renalcaregroup.com, www.streetevents.com or www.vcall.com.
Renal Care Group, Inc. is a dialysis services company that provides
care to patients with kidney disease. The Company treats approximately 15,900
patients through 193 dialysis centers, in addition to providing acute dialysis
services in 108 hospitals. Over 5,000 associates provide services in the
Company's 23-state network.
Certain statements in this press release constitute "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995. These forward-looking statements reflect management's expectations and
are based upon currently available information. These forward-looking statements
involve known and unknown risks, uncertainties and other factors that may cause
actual results, performance or achievements of Renal Care Group to differ
materially from those expressed in or implied by the forward-looking statements.
These factors are discussed in more detail in the Company's reports filed with
the Securities and Exchange Commission, including without limitation Renal Care
Group's annual report on Form 10-K for the year ended December 31, 1999 and
Renal Care Group's quarterly reports on From 10-Q for the quarters ended March
31, 2000 and June 30, 2000. Copies of these filings are available from Renal
Care Group upon request.
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