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Birner Dental Management Services, Inc. (NASDAQ:BDMS)

Q3 2008 Earnings Call Transcript

November 13, 2008 11:00 am ET

Executives

Dennis Genty – CFO, Secretary and Treasurer

Fred Birner – CEO and Chairman

Operator

Good day, ladies and gentlemen, and welcome to the third quarter earnings conference call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time. (Operator instructions) As a reminder, this conference call is being recorded.

I would now like to turn the conference call over to your host Mr. Dennis Genty, Chief Financial Officer. Mr. Genty, you may begin.

Dennis Genty

Thank you. And thank you, ladies and gentlemen, for standing by and attending our call. If I may, I would like to take a make a brief [ph] statement regarding the Safe Harbor provisions. Pursuant to the Safe Harbor provisions of the Private Securities Litigation Act of 1995 the company announces that statements contained in this conference call that are not based on historical facts are forward-looking statements and as such is subject to uncertainties and risks that could cause actual results to differ materially from those projected or implied by such statements. These risks and uncertainties include but are not limited to the risk that actual results for the nine months may differ from results currently reported.

Risks associated with implementation of adding incremental dentals, regulatory constraints, changes in line with the regulations controlling the factors of dentistry or dental practice management companies, the availability of suitable locations within its markets, changes in the company’s operating or expansion strategies, (inaudible) successfully integrate proposed developments or acquisitions in dental offices, the ability of the company to manage effectively an increasing number of dental offices, the general economy of the United States and specific markets in which the company’s dental offices are located or are proposed to be located, trends in the healthcare industry, dental care and managed care industries as well as risk factors that may be identified from time to time in the company’s filings with the Securities and Exchange Commission or in the company’s press release.

At this time, the company will present estimation on the company’s financial performance for the period stated followed by a question-and-answer session. The speaker for today is Fred Birner, CEO and Chairman of Birner Dental Management. Good morning, Fred.

Fred Birner

Thank you, Dennis, and thank you all for joining us for our third quarter conference call. For the quarter ended September 30, revenues were up slightly to $15 million or approximately 1.7%, that is total dental group practice revenues. Our net revenues during the period were $8.8 million or up by 1.4%. Net income for the period was down approximately $135,000 from $635,000 in the similar period in ’07 or a 21% decline. Our adjusted EBITDA was $1.8 million for the period, down 9.3%.

For the nine months ended September 30, our total dental group practice revenues were $45.1 million or down approximately $400,000 or 0.9% for the nine months of 2008. Net revenues were $26.5 million versus $27.1 million in the 2007 period, down approximately 2.3%. Net income for the period was $1.5 million versus $2 million or down $500,000 for the similar period in ’07. Earnings per share were $0.69 versus $0.89. The adjusted EBITDA for the nine months ended September 30 was $5.2 million down approximately $900,000 from the 2007 period.

During the course of the first nine months of this year, the company had spent approximately $1 million on capital expenditures. We have been reasonably aggressive about buying shares back and we purchased 250,000 during the course of the year for approximately $3.9 million. We distributed dividends of about approximately $1 million between the cash that has been generated from operations and our line of credits increased approximately $870,000 during the course of the nine months as a result of the expenditures that we made.

With that, I will turn it over to any questions you all may have.

Question-and-Answer Session

Operator

(Operator instructions) I am not showing any questions or comments at this time, sir.

Fred Birner

We would like to thank you all for joining us and we look forward to speaking or having you join us for our fourth quarter conference call. Thank you once again. Good bye.

Operator

Thank you, ladies and gentlemen, for joining today’s conference. You may all disconnect and have a wonderful day. Good bye.

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