<PAGE> 1
Exhibit 99.1
Slide presentation to be used at analyst and shareholder meetings
between January 16, 2001 and February 9, 2001
[logo]Renal Care Group
Nasdaq Symbol
RCGI
<PAGE> 2
Forward-Looking Statements
Some of the information included in this presentation is forward-looking
information and is given in reliance on the safe harbor provided by the private
securities litigation reform act. These forward-looking statements involve risks
and uncertainties. Our actual results could differ materially from these forward
looking statements due to certain factors, including business and economic
conditions and the availability of financing. These and other risks and
uncertainties are discussed in RCG's reports filed with the SEC, including our
annual report on form 10-K and our quarterly reports on form 10-Q.
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KEY INVESTMENT POINTS
- Strong U.S. market growth of 5-6% annually
- Predictable and recurring revenues
- Excellent patient outcomes drives volume growth above market average
- Proven cost management
- Prudent capital structure and strong free cash flow
- Selective acquisition opportunities
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COMPANY INFORMATION
[logo]Renal Care Group
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COMPANY PROFILE
- Specialized provider of dialysis services
- Physician-driven heritage
- Strong regional market presence
- Cost-effective, quality care
- Commitment to quality care drives value creation
- Medical outcomes improved
- Financial performance enhanced
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GROWTH IN PATIENTS
[Graph showing patient growth from 5,200 in 1996 to 8,240 in 1997 to 11,380 in
1998, to 14,500 in 1999 to 16,000 in 2000]
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CURRENT LOCATIONS
24 States
Medium size
[Map showing current locations in the states of Alabama, Alaska, Arizona,
Arkansas, Florida, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana,
Michigan, Mississippi, Missouri, New Jersey, New Mexico, Ohio, Oklahoma, Oregon,
Pennsylvania, Tennessee, Texas, Washington and Wisconsin]
[logo] Corporate Office, Nashville Tennessee
[character] Regional Offices
[character] University Affiliations
[character] Outpatient Dialysis Centers
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STRONG REGIONAL MARKET PRESENCE
[Chart showing market presence at January 1, 2000]
<TABLE>
<CAPTION>
Market Market Share No. of Patients
------ ------------ ---------------
<S> <C> <C>
Indiana/Ohio 40% 2,500
South and East Texas 43% 2,230
Mississippi 49% 2,050
Phoenix, AZ 38% 1,950
S. Chicago, IL 30% 1,560
Central Arkansas 39% 660
Portland, OR/Washington 60% 710
Western Kansas 45% 550
Weighted Average Share 30-35%
</TABLE>
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STRONG REGIONAL MARKET PRESENCE
[Chart showing market presence at December 31, 2000]
<TABLE>
<CAPTION>
Market Market Share No. of Patients
------ ------------ ---------------
<S> <C> <C>
Indiana/Ohio 48% 3,000
South and East Texas 43% 2,230
Mississippi 49% 2,050
Phoenix, AZ 38% 1,950
S. Chicago, IL 34% 1,760
Central Arkansas 39% 660
Portland, OR/Washington 60% 710
Western Kansas 45% 550
Weighted Average Share 30-35%
</TABLE>
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NUMBER OF ASSOCIATES (FTEs)
[Chart showing number of associates as of 12/31/00]
<TABLE>
<CAPTION>
%
----
<S> <C> <C>
Direct Patient Care 3,300 91.7
Billing and Collections 110 3.1
Information Systems 60 1.6
Field Management 80 2.2
Corporate Office 50 1.4
----- -----
3,600 100.0
===== =====
</TABLE>
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NUMBER OF ASSOCIATES (FTEs)
Incentive Programs
------------------
- Over 500 individuals have stock options
- 20% of associates participate in ESPP
- All top management participate in our cash incentive bonus plan
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INDUSTRY OVERVIEW
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ATTRACTIVE
INDUSTRY FUNDAMENTALS
- Expanding ESRD patient population
- High rates of diabetes and hypertension
- Aging population
- Increasing survival on dialysis
- Recurring and predictable revenues with recent increases from Medicare
- Patients qualify regardless of age
- Positive consolidation momentum
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MEDICARE
REIMBURSEMENT ENVIRONMENT
- Composite rate increased 2.4% for 2001
- AWP reduction delayed through 2001
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U.S. DIALYSIS PROVIDERS
[Pie chart showing dialysis providers in the United States, reflecting market
shares as follows: 24% for Fresenius; 16% for DaVita; 14% for Gambro; 5% for
Renal Care Group; 20% for hospitals; 15% for other independent providers; 6% for
independent chain providers. All percentages are as a percentage of
approximately 260,000 total patients.]
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OPERATING STRATEGY
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OPERATING STRATEGY
- Optimal care drives superior financial results
- Clinical objectives aligned with financial interests
- Medical Board is leveraging best practices across the Company
- Benchmarking across the Company
- Reviewing data and best practice implementation on quarterly basis
- Continuously improving outcomes
- Above industry average clinical outcomes
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UREA REDUCTION RATE
Percent Patients with URR greater than or equal to 70%
Goal = 70.0%
[Graph showing percentage of RCG patients with a urea reduction rate greater
than or equal to 70% on a quarterly basis from 1997 through third quarter 2000,
compared with a national average of 48% based on annual data from 1999. RCG
results are as follows: 1997 -- Q1 59.1%, Q2 60.7%, Q3 62.3%, Q4 63.7%; 1998 --
Q1 63.7%, Q2 63.9%, Q3 63.2%, Q4 66.1%; 1999 -- Q1 66.4%, Q2 66.5%, Q3 70.0%, Q4
73.4%; 2000 -- Q1 70.8%, Q2 71.2%, Q3 73.2%.]
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HEMATOCRIT
Hematocrit Levels, HD + PD Pts
Percent Patients with Hct greater than or equal to 30%
Goal = 90.0%
[Graph showing percentage of RCG patients with a hematocrit levels greater than
or equal to 30% on a quarterly basis from 1997 through third quarter 2000,
compared with a national average of 78% based on annual data from 1999. RCG
results are as follows: 1997 -- Q1 81.9%, Q2 82.8%, Q3 79.6%, Q4 79.1%; 1998 --
Q1 79.9%, Q2 82.1%, Q3 83.0%, Q4 84.6%; 1999 -- Q1 84.6%, Q2 86.1%, Q3 86.5%, Q4
87.9%; 2000 -- Q1 88.2%, Q2 88.5%, Q3 88.1%.]
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HOSPITALIZATION
Hospital Days/Patient/Year
[Bar chart showing national average hospitalization of 14.0 days per patient per
year for 1999 compared to RCG "Rolling" Twelve Months ended September 30, 2000
of 12.0 days per patient per year]
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MORTALITY
[Bar chart showing national average mortality rate of 23.2% for ESRD patients
for 1999 compared to RCG "Rolling" Twelve Months ended September 30, 2000 of
21.8%]
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FINANCIAL INFORMATION
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EARNINGS PER SHARE
[Bar chart showing earnings per share for the years ended December 31, 1996
through 1999 with expected year 2000 earnings per share and separate chart
showing earnings per share for the third quarters of 1999 and 2000, all earnings
are prior to restatements for the Dialysis Centers of America merger and the
Renal Disease Management by Physicians merger. Results shown are as follows:
1996 -- $0.42; 1997 -- $0.57; 1998 -- $0.84; 1999 -- $1.12; expected 2000 --
$1.32; Q3 1999 -- $0.29; Q3 2000 -- $0.33. The chart includes an arrow showing
growth from 1999 to 2000 expected represents 17.9% (22.3% without giving effect
to an increase in the price of Epogen).]
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REVENUE
($ in thousands)
[Bar chart showing revenue for the years ended December 31, 1996 through 1999
with expected year 2000 revenue and separate chart showing revenue for the third
quarters of 1999 and 2000, all revenue reflected are prior to restatements for
the Dialysis Centers of America merger and the Renal Disease Management by
Physicians merger. Results shown are as follows: 1996 -- $135.9 million; 1997 --
$214.0 million; 1998 -- $369.4 million; 1999 -- $520.6 million; expected 2000 --
$618.0 million; Q3 1999 -- $133.5 million; Q3 2000 -- $156.5 million. The chart
includes an arrow showing growth from 1999 to 2000 expected represents an 18.7%
increase.]
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INCREASING EBITDA MARGINS
1Q00 included one month EPO increase
50 basis point decrease in 2Q00 due to EPO
[Bar chart showing EBITDA margins for the years ended December 31, 1996 through
1999 and separate chart showing EBITDA margins for the third quarters of 1999
and 2000, all EBITDA margins reflected are prior to restatements for the
Dialysis Centers of America merger and the Renal Disease Management by
Physicians merger. Results shown are as follows: 1996 -- 18.2%; 1997 -- 19.4%;
1998 -- 22.2%; 1999 -- 23.6%; Q3 1999 -- 23.7%; Q3 2000 -- 23.8%.]
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COMPLETED ACQUISITIONS YTD
<TABLE>
<CAPTION>
Group Patients
----- --------
<S> <C>
Northwestern Memorial 220
Renal Disease Management 580
Sacred Heart Medical 425
Providence St. Peters 225
-----
1,450
=====
</TABLE>
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Acquisition Performance
<TABLE>
<CAPTION>
When
Acquired(1) 1999
----------- ----
<S> <C> <C>
Patients (CAGR 12%) 4,365 5,372
Revenues (CAGR 18%) $132.7 million $208.7 million
EBITDA 20.0% 25.8%
Days Sales Outstanding 81 69
Patients with URR greater than or equal to 70% 48% 71%
Patients with Hct greater than or equal to 30% 79% 87%
</TABLE>
(1) All 1996 and 1997 acquisitions
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FREE CASH FLOW
($ in thousands)
<TABLE>
<CAPTION>
2000E 2001E
----- -----
<S> <C> <C>
EBITDA $149,000 $171,000
CapEx 32,000 45,000
Taxes 40,000 45,000
Interest 6,000 3,000
Working Capital 1,000 13,000
Free Cash Flow 60,000 65,000
</TABLE>
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<TABLE>
<S> <C> <C> <C>
Capital Structure
September 30, 2000
($ in thousands)
Long-Term Debt $ 51,700 12.4% [of total capital]
Stockholders' Equity 366,100
--------
Total Capital $417,800
========
</TABLE>
EBITDA = $149 million
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LINE OF CREDIT STATUS
September 30, 2000
<TABLE>
<S> <C>
Total Amount $157,500,000
Amount Outstanding $ 49,500,000
------------
Amount Available $108,000,000
============
Borrowing Rate 7.2%
</TABLE>
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<PAGE> 31
Share Repurchase
- Up to $50 million
- Sound business fundamentals
- Accretive to earnings
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<PAGE> 32
KEY INVESTMENT POINTS
- Strong U.S. market growth of 5-6% annually
- Predictable and recurring revenues
- Excellent patient outcomes drives volume growth above market average
- Proven cost management
- Prudent capital structure and strong free cash flow
- Selective acquisition opportunities
[logo]Renal Care Group
<PAGE> 33
[logo]Renal Care Group
Nasdaq Symbol
RCGI
