x
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
For
the quarterly period ended
|
June
30, 2010
|
o
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
BIRNER
DENTAL MANAGEMENT SERVICES, INC.
|
(Exact
name of registrant as specified in its
charter)
|
COLORADO
|
84-1307044
|
|
(State
or other jurisdiction of incorporation
or organization) |
(IRS
Employer
Identification
No.)
|
3801
EAST FLORIDA AVENUE, SUITE 508
DENVER,
COLORADO
|
80210
|
(Address
of principal executive offices)
|
(Zip
Code)
|
(303)
691-0680
|
(Registrant’s
telephone number, including area
code)
|
Large
accelerated filer ¨
|
Accelerated
filer ¨
|
Non-accelerated
filer ¨
|
Smaller
reporting company x
|
|||
(Do
not check if a smaller
|
||||||
reporting
company)
|
Class
|
Shares
Outstanding as of August 9, 2010
|
|
Common
Stock, no par value
|
1,851,380
|
|
|
Page
|
|
Item 1. | Financial Statements | ||
Condensed
Consolidated Balance Sheets as of December 31, 2009 and June 30, 2010
(Unaudited)
|
3
|
||
Unaudited
Condensed Consolidated Statements of Income for the Quarters and Six
Months Ended June 30, 2009 and 2010
|
4
|
||
Unaudited
Condensed Consolidated Statements of Shareholders’ Equity and
Comprehensive Income as of June 30, 2010
|
5
|
||
Unaudited
Condensed Consolidated Statements of Cash Flows for the Six Months Ended
June 30, 2009 and 2010
|
6
|
||
Unaudited
Notes to Condensed Consolidated Financial Statements
|
8
|
||
Item
2.
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
15
|
|
Item
4.
|
Controls
and Procedures
|
26
|
|
PART II - OTHER INFORMATION
|
|||
Item
2.
|
Unregistered
Sales of Equity Securities and Use of Proceeds
|
27
|
|
Item
6.
|
Exhibits
|
28
|
|
Signatures
|
29
|
December 31,
|
June 30,
|
|||||||
|
2009
|
2010
|
||||||
**
|
(Unaudited)
|
|||||||
ASSETS
|
||||||||
CURRENT
ASSETS:
|
||||||||
Cash
and cash equivalents
|
$ | 779,622 | $ | 923,711 | ||||
Accounts
receivable, net of allowance for doubtful
|
||||||||
accounts
of $371,762 and $358,600, respectively
|
3,124,160 | 3,472,142 | ||||||
Deferred
tax asset
|
195,170 | 195,170 | ||||||
Prepaid
expenses and other assets
|
433,222 | 782,612 | ||||||
Total
current assets
|
4,532,174 | 5,373,635 | ||||||
PROPERTY
AND EQUIPMENT, net
|
3,532,011 | 4,140,967 | ||||||
OTHER
NONCURRENT ASSETS:
|
||||||||
Intangible
assets, net
|
12,842,285 | 12,392,108 | ||||||
Deferred
charges and other assets
|
153,734 | 153,784 | ||||||
Notes
receivable
|
191,557 | 185,654 | ||||||
Total
assets
|
$ | 21,251,761 | $ | 22,246,148 | ||||
LIABILITIES
AND SHAREHOLDERS’ EQUITY
|
||||||||
CURRENT
LIABILITIES:
|
||||||||
Accounts
payable
|
$ | 1,934,468 | $ | 2,362,964 | ||||
Accrued
expenses
|
1,716,395 | 1,798,058 | ||||||
Accrued
payroll and related expenses
|
1,795,968 | 2,257,660 | ||||||
Income
taxes payable
|
267,160 | - | ||||||
Current
maturities of long-term debt
|
920,000 | 920,000 | ||||||
Liabilities
related to discontinued operations
|
- | 158,447 | ||||||
Total
current liabilities
|
6,633,991 | 7,497,129 | ||||||
LONG-TERM
LIABILITIES:
|
||||||||
Deferred
tax liability, net
|
526,036 | 505,403 | ||||||
Long-term
debt, net of current maturities
|
4,362,024 | 4,426,097 | ||||||
Other
long-term obligations
|
2,112,395 | 2,168,406 | ||||||
Liabilities
related to discontinued operations
|
- | 14,126 | ||||||
Total
liabilities
|
13,634,446 | 14,611,161 | ||||||
SHAREHOLDERS'
EQUITY:
|
||||||||
Preferred
Stock, no par value, 10,000,000 shares
|
||||||||
authorized;
none outstanding
|
- | - | ||||||
Common
Stock, no par value, 20,000,000 shares authorized;
|
||||||||
1,858,135
and 1,854,281 shares issued and outstanding, respectively
|
164,255 | 165,897 | ||||||
Retained
earnings
|
7,475,212 | 7,481,208 | ||||||
Accumulated
other comprehensive loss
|
(22,152 | ) | (12,118 | ) | ||||
Total
shareholders' equity
|
7,617,315 | 7,634,987 | ||||||
|
||||||||
Total
liabilities and shareholders' equity
|
$ | 21,251,761 | $ | 22,246,148 |
Quarters Ended
|
Six Months Ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2009
|
2010
|
2009
|
2010
|
|||||||||||||
REVENUE:
|
$ | 15,116,412 | $ | 15,746,655 | $ | 30,375,031 | $ | 32,193,537 | ||||||||
DIRECT
EXPENSES:
|
||||||||||||||||
Clinical
salaries and benefits
|
8,643,614 | 9,054,028 | 17,438,710 | 18,475,360 | ||||||||||||
Dental
supplies
|
577,078 | 662,489 | 1,110,434 | 1,244,855 | ||||||||||||
Laboratory
fees
|
|
678,148 | 699,383 | 1,312,164 | 1,415,933 | |||||||||||
Occupancy
|
1,169,208 | 1,289,934 | 2,334,927 | 2,587,601 | ||||||||||||
Advertising
and marketing
|
96,313 | 289,932 | 178,121 | 481,339 | ||||||||||||
Depreciation
and amortization
|
563,080 | 592,864 | 1,131,455 | 1,158,130 | ||||||||||||
General
and administrative
|
1,114,998 | 1,286,005 | 2,259,920 | 2,597,500 | ||||||||||||
12,842,439 | 13,874,635 | 25,765,731 | 27,960,718 | |||||||||||||
Contribution
from dental offices
|
2,273,973 | 1,872,020 | 4,609,300 | 4,232,819 | ||||||||||||
CORPORATE
EXPENSES:
|
||||||||||||||||
General
and administrative
|
1,187,732 |
(1)
|
1,071,158 |
(1)
|
2,162,920 |
(2)
|
2,255,326 |
(2)
|
||||||||
Depreciation
and amortization
|
22,161 | 22,323 | 44,551 | 43,947 | ||||||||||||
OPERATING
INCOME
|
1,064,080 | 778,539 | 2,401,829 | 1,933,546 | ||||||||||||
Interest
expense, net
|
27,350 | 44,183 | 69,958 | 97,019 | ||||||||||||
INCOME
FROM CONTINUING OPERATIONS
|
||||||||||||||||
BEFORE
INCOME TAXES
|
1,036,730 | 734,356 | 2,331,871 | 1,836,527 | ||||||||||||
Income
tax expense
|
434,762 | 315,771 | 979,386 | 789,707 | ||||||||||||
INCOME
FROM CONTINUING OPERATIONS
|
601,968 | 418,585 | 1,352,485 | 1,046,820 | ||||||||||||
DISCONTINUED
OPERATIONS (Note 9):
|
||||||||||||||||
Operating
(loss) attributable to assets disposed of
|
(142,026 | ) | (85,418 | ) | (268,734 | ) | (250,125 | ) | ||||||||
(Loss)
recognized on dispositions
|
- | (268,598 | ) | - | (268,598 | ) | ||||||||||
Income
tax benefit
|
59,651 | 152,227 | 112,868 | 223,051 | ||||||||||||
LOSS
ON DISCONTINUED OPERATIONS
|
(82,375 | ) | (201,789 | ) | (155,866 | ) | (295,672 | ) | ||||||||
NET
INCOME
|
$ | 519,593 | $ | 216,796 | $ | 1,196,619 | $ | 751,148 | ||||||||
Net
income per share of Common Stock - Basic
|
||||||||||||||||
Continuing
Operations
|
$ | 0.32 | $ | 0.23 | $ | 0.73 | $ | 0.56 | ||||||||
Discontinued
Operations
|
(0.04 | ) | (0.11 | ) | (0.09 | ) | (0.16 | ) | ||||||||
Net
income per share of Common Stock - Basic
|
$ | 0.28 | $ | 0.12 | $ | 0.64 | $ | 0.40 | ||||||||
Net
income per share of Common Stock – Diluted
|
||||||||||||||||
Continuing
Operations
|
$ | 0.32 | $ | 0.22 | $ | 0.72 | $ | 0.55 | ||||||||
Discontinued
Operations
|
(0.05 | ) | (0.11 | ) | (0.09 | ) | (0.16 | ) | ||||||||
Net
income per share of Common Stock - Diluted
|
$ | 0.27 | $ | 0.11 | $ | 0.63 | $ | 0.39 | ||||||||
Cash
dividends per share of Common Stock
|
$ | 0.17 | $ | 0.20 | $ | 0.34 | $ | 0.40 | ||||||||
Weighted
average number of shares of
|
||||||||||||||||
Common
Stock and dilutive securities:
|
||||||||||||||||
Basic
|
1,855,778 | 1,858,850 | 1,858,036 | 1,863,354 | ||||||||||||
Diluted
|
1,890,929 | 1,900,272 | 1,887,250 | 1,902,241 |
(1)
|
Corporate
expense - general and administrative includes $170,915 of stock-based
compensation expense pursuant to ASC Topic 718 and $81,792 related to a
long-term incentive program for the quarter ended June 30, 2009 and
$151,432 of stock-based compensation expense pursuant to ASC Topic 718 and
$84,348 related to a long-term incentive program for the quarter ended
June 30, 2010.
|
(2)
|
Corporate
expense - general and administrative includes $335,092 of stock-based
compensation expense pursuant to ASC Topic 718 and $81,792 related to a
long-term incentive program for the six months ended June 30, 2009 and
$301,761 of stock-based compensation expense pursuant to ASC Topic 718 and
$168,696 related to a long-term incentive program for the six months ended
June 30, 2010.
|
Common Stock
|
Other
Comprehensive Income |
Retained
Earnings |
Shareholders'
Equity |
|||||||||||||||||
Shares
|
Amount
|
|||||||||||||||||||
BALANCES,
December 31, 2009
|
1,858,135 | $ | 164,255 | $ | (22,152 | ) | $ | 7,475,212 | $ | 7,617,315 | ||||||||||
Common
Stock options exercised
|
25,145 | 19,310 | - | - | 19,310 | |||||||||||||||
Purchase
and retirement of Common Stock
|
(28,999 | ) | (488,125 | ) | - | - | (488,125 | ) | ||||||||||||
Dividends
declared on Common Stock
|
- | - | - | (745,152 | ) | (745,152 | ) | |||||||||||||
Stock-based
compensation expense
|
- | 470,457 | - | - | 470,457 | |||||||||||||||
Other
comprehensive income
|
- | - | 10,034 | - | 10,034 | |||||||||||||||
Net
income, six months ended June 30, 2010
|
- | - | - | 751,148 | 751,148 | |||||||||||||||
BALANCES,
June 30, 2010
|
1,854,281 | $ | 165,897 | $ | (12,118 | ) | $ | 7,481,208 | $ | 7,634,987 |
Net
income
|
$ | 751,148 | ||
Other
comprehensive income
|
10,034 | |||
Comprehensive
income
|
$ | 761,182 |
Six Months Ended
|
||||||||
June 30,
|
||||||||
2009
|
2010
|
|||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
Net
income
|
$ | 1,196,619 | $ | 751,148 | ||||
Adjustments
to reconcile net income to net
|
||||||||
cash
provided by operating activities:
|
||||||||
Depreciation
and amortization
|
1,274,545 | 1,202,076 | ||||||
Stock-based
compensation expense
|
416,884 | 470,457 | ||||||
Provision
for doubtful accounts
|
303,409 | 118,502 | ||||||
Provision
for deferred income taxes
|
(82,477 | ) | (20,632 | ) | ||||
Discontinued
operations costs
|
- | 376,903 | ||||||
Changes
in assets and liabilities net of effects
|
||||||||
from
acquisitions:
|
||||||||
Accounts
receivable
|
(838,965 | ) | (466,484 | ) | ||||
Prepaid
expenses and other assets
|
(146,542 | ) | (328,870 | ) | ||||
Deferred
charges and other assets
|
8,333 | (50 | ) | |||||
Accounts
payable
|
180,466 | 428,496 | ||||||
Accrued
expenses
|
199,230 | 35,993 | ||||||
Accrued
payroll and related expenses
|
481,030 | 461,692 | ||||||
Income
taxes payable
|
75,900 | (267,161 | ) | |||||
Other
long-term obligations
|
(66,093 | ) | 56,011 | |||||
Net
cash provided by operating activities
|
3,002,339 | 2,818,081 | ||||||
CASH
FLOWS USED IN INVESTING ACTIVITIES:
|
||||||||
Notes
receivable - related parties, net
|
- | 5,903 | ||||||
Capital
expenditures
|
(192,619 | ) | (290,771 | ) | ||||
Development
or acquisition of new dental centers
|
- | (1,294,932 | ) | |||||
Net
cash used in investing activities
|
(192,619 | ) | (1,579,800 | ) | ||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Advances
– line of credit
|
6,736,883 | 12,462,774 | ||||||
Repayments
– line of credit
|
(8,415,085 | ) | (11,938,700 | ) | ||||
Repayments
– Term Loan
|
(460,000 | ) | (460,000 | ) | ||||
Proceeds
from exercise of Common Stock options
|
97,500 | 19,310 | ||||||
Purchase
and retirement of Common Stock
|
(170,045 | ) | (488,126 | ) | ||||
Tax
benefit of Common Stock options exercised
|
896 | - | ||||||
Common
Stock cash dividends
|
(632,871 | ) | (689,450 | ) | ||||
Net
cash used in financing activities
|
(2,842,722 | ) | (1,094,192 | ) | ||||
NET
INCREASE (DECREASE) IN CASH AND
|
||||||||
CASH
EQUIVALENTS
|
(33,002 | ) | 144,089 | |||||
CASH
AND CASH EQUIVALENTS, beginning of period
|
1,234,991 | 779,622 | ||||||
CASH
AND CASH EQUIVALENTS, end of period
|
$ | 1,201,989 | $ | 923,711 |
Six
Months Ended
|
||||||||
June
30,
|
||||||||
2009
|
2010
|
|||||||
SUPPLEMENTAL
DISCLOSURE OF CASH
|
||||||||
FLOW
INFORMATION:
|
||||||||
Cash
paid during the year for interest
|
$ | 95,225 | $ | 135,032 | ||||
Cash
paid during the year for income taxes
|
$ | 709,900 | $ | 854,449 | ||||
NON-CASH
ITEM:
|
||||||||
Gain
recognized on interest rate swap (net of taxes)
|
$ | 10,810 | $ | 10,034 |
Quarters Ended June 30,
|
||||||||||||||||||||||||
2009
|
2010
|
|||||||||||||||||||||||
Net Income
|
Shares
|
Per Share
Amount |
Net Income
|
Shares
|
Per Share
Amount |
|||||||||||||||||||
Basic
EPS
|
$ | 519,593 | 1,855,778 | $ | 0.28 | $ | 216,796 | 1,858,850 | $ | 0.12 | ||||||||||||||
Effect
of Dilutive Stock Options
|
- | 35,151 | (0.01 | ) | - | 41,422 | (0.01 | ) | ||||||||||||||||
Diluted
EPS
|
$ | 519,593 | 1,890,929 | $ | 0.27 | $ | 216,796 | 1,900,272 | $ | 0.11 |
Six Months Ended June 30,
|
||||||||||||||||||||||||
2009
|
2010
|
|||||||||||||||||||||||
Net Income
|
Shares
|
Per Share
Amount |
Net Income
|
Shares
|
Per Share
Amount |
|||||||||||||||||||
Basic
EPS
|
$ | 1,196,619 | 1,858,036 | $ | 0.64 | $ | 751,148 | 1,863,354 | $ | 0.40 | ||||||||||||||
Effect
of Dilutive Stock Options
|
- | 29,214 | (0.01 | ) | - | 38,887 | (0.01 | ) | ||||||||||||||||
Diluted
EPS
|
$ | 1,196,619 | 1,887,250 | $ | 0.63 | $ | 751,148 | 1,902,241 | $ | 0.39 |
Quarters Ended
|
Six Months Ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
Valuation Assumptions
|
2009 (5)
|
2010 (5)
|
2009
|
2010
|
||||||||||||
Expected
life (1)
|
- | - | 3.2 | 3.4 | ||||||||||||
Risk-free
interest rate (2)
|
- | - | 1.30 | % | 1.62 | % | ||||||||||
Expected
volatility (3)
|
- | - | 69 | % | 59 | % | ||||||||||
Expected
dividend yield
|
- | - | 6.33 | % | 4.50 | % | ||||||||||
Expected
Forteiture (4)
|
- | - | 4.97 | % | 8.49 | % |
(1)
|
The
expected life, in years, of stock options is estimated based on historical
experience.
|
(2)
|
The
risk-free interest rate is based on U.S. Treasury bills whose term is
consistent with the expected life of the stock
options.
|
(3)
|
The
expected volatility is estimated based on historical and current stock
price data for the Company.
|
(4)
|
Forfeitures
are estimated based on historical
experience.
|
(5)
|
The
Company did not issue any options during the quarters ended June 30, 2010
or June 30, 2009.
|
Number of
Options |
Weighted-
Average Exercise Price |
Range of
Exercise Prices |
Weighted-
Average Remaining Contractual Term (years) |
Aggregate
Intrinsic Value (thousands) |
|||||||||||||||
Outstanding
at December 31, 2009
|
393,251 | $ | 16.28 |
$9.66
- $21.85
|
3.2 | $ | 879 | ||||||||||||
Granted
|
65,000 | $ | 15.62 |
$15.22
- $17.13
|
|||||||||||||||
Exercised
|
61,646 | $ | 10.25 |
$9.66
- $14.81
|
|||||||||||||||
Outstanding
at June 30, 2010
|
396,605 | $ | 17.11 |
$9.66
- $21.85
|
3.6 | $ | 631 | ||||||||||||
Exercisable
at June 30, 2010
|
244,793 | $ | 18.03 |
$9.66
- $21.85
|
2.7 | $ | 273 |
Date Dividend Paid
|
Quarterly Dividend Paid
per Share |
|
April
11, 2008; July 11, 2008; October 10, 2008; January 9, 2009
|
0.17
|
|
April
10, 2009; July 10, 2009; October 9, 2009; January 8, 2010
|
0.17
|
|
April
9, 2010; July 9, 2010
|
0.20
|
Quarters Ended
|
Six Months Ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2009
|
2010
|
2009
|
2010
|
|||||||||||||
Results
of operations
|
$ | (142,026 | ) | $ | (85,418 | ) | $ | (268,734 | ) | $ | (250,125 | ) | ||||
Future
lease obligations, fair value
|
- | (144,978 | ) | - | (144,978 | ) | ||||||||||
Asset
impairment charge
|
- | (123,620 | ) | - | (123,620 | ) | ||||||||||
Income
tax benefit
|
59,651 | 152,227 | 112,868 | 223,051 | ||||||||||||
Loss
from discontinued operations
|
$ | (82,375 | ) | $ | (201,789 | ) | $ | (155,866 | ) | $ | (295,672 | ) |
•
|
Contribution
from dental offices
|
•
|
Operating
income
|
•
|
Net
income
|
•
|
Earnings
per share
|
•
|
Consolidated
balance sheets
|
•
|
Consolidated
statements of shareholders equity and comprehensive
income
|
•
|
Consolidated
statements of cash flows
|
•
|
Adjusted
EBITDA
|
Quarters
|
Six Months
|
|||||||||||||||
Ended June 30,
|
Ended June 30,
|
|||||||||||||||
2009
|
2010
|
2009
|
2010
|
|||||||||||||
RECONCILIATION
OF EBITDA:
|
||||||||||||||||
Net
income
|
$ | 519,593 | $ | 216,796 | $ | 1,196,619 | $ | 751,148 | ||||||||
Add
back:
|
||||||||||||||||
Discontinued
operations-
|
||||||||||||||||
(before
income tax expense)
|
142,026 | 354,016 | 268,734 | 518,723 | ||||||||||||
Depreciation
and amortization - Offices
|
563,080 | 592,864 | 1,131,455 | 1,158,130 | ||||||||||||
Depreciation
and amortization - Corporate
|
22,161 | 22,323 | 44,551 | 43,947 | ||||||||||||
Stock-based
compensation expense
|
252,707 | 235,780 | 416,884 | 470,457 | ||||||||||||
Interest
expense, net
|
27,350 | 44,183 | 69,958 | 97,019 | ||||||||||||
Income
tax expense
|
375,111 | 163,544 | 866,518 | 566,656 | ||||||||||||
Adjusted
EBITDA
|
$ | 1,902,028 | $ | 1,629,506 | $ | 3,994,719 | $ | 3,606,080 |
Quarters Ended
|
Six Months Ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2009
|
2010
|
2009
|
2010
|
|||||||||||||
Revenue
|
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||
Direct
Expenses:
|
||||||||||||||||
Clinical
salaries and benefits
|
57.2 | % | 57.5 | % | 57.4 | % | 57.4 | % | ||||||||
Dental
supplies
|
3.8 | % | 4.2 | % | 3.7 | % | 3.9 | % | ||||||||
Laboratory
fees
|
4.5 | % | 4.4 | % | 4.3 | % | 4.4 | % | ||||||||
Occupancy
|
7.7 | % | 8.2 | % | 7.7 | % | 8.0 | % | ||||||||
Advertising
and marketing
|
0.6 | % | 1.8 | % | 0.6 | % | 1.5 | % | ||||||||
Depreciation
and amortization
|
3.7 | % | 3.8 | % | 3.7 | % | 3.6 | % | ||||||||
General
and administrative
|
7.4 | % | 8.2 | % | 7.4 | % | 8.1 | % | ||||||||
85.0 | % | 88.1 | % | 84.8 | % | 86.9 | % | |||||||||
Contribution
from dental offices
|
15.0 | % | 11.9 | % | 15.2 | % | 13.1 | % | ||||||||
Corporate
Expenses:
|
||||||||||||||||
General
and administrative
|
7.9 | %(1) | 6.8 | %(1) | 7.1 | %(2) | 7.0 | %(2) | ||||||||
Depreciation
and amortization
|
0.1 | % | 0.1 | % | 0.1 | % | 0.1 | % | ||||||||
Operating
income
|
7.0 | % | 4.9 | % | 7.9 | % | 6.0 | % | ||||||||
Interest
expense
|
0.2 | % | 0.3 | % | 0.2 | % | 0.3 | % | ||||||||
Income
from continuing operations before income taxes
|
6.9 | % | 4.7 | % | 7.7 | % | 5.7 | % | ||||||||
Income
tax expense
|
2.9 | % | 2.0 | % | 3.2 | % | 2.5 | % | ||||||||
Income
from continuing operations
|
4.0 | % | 2.7 | % | 4.5 | % | 3.3 | % | ||||||||
Loss
attributable to discontinued opeations, net of income
taxes
|
( 0.5 | )% | ( 1.3 | )% | ( 0.5 | )% | ( 0.9 | )% | ||||||||
Net
income
|
3.4 | % | 1.4 | % | 3.9 | % | 2.3 | % |
(1)
|
Corporate
expense - general and administrative includes $170,915 of stock-based
compensation expense pursuant to ASC Topic 718 and $81,792 related to a
long-term incentive program for the quarter ended June 30, 2009 and
$151,432 of stock-based compensation expense pursuant to ASC Topic 718 and
$84,348 related to a long-term incentive program for the quarter ended
June 30, 2010.
|
(1)
|
Corporate
expense - general and administrative includes $335,092 of stock-based
compensation expense pursuant to ASC Topic 718 and $81,792 related to a
long-term incentive program for the six months ended June 30, 2009 and
$301,761 of stock-based compensation expense pursuant to ASC Topic 718 and
$168,696 related to a long-term incentive program for the six months ended
June 30, 2010.
|
Payments due by Period
|
||||||||||||||||||||
Total
|
Less than 1
year
|
1-3 years
|
3-5 years
|
More than
5 years
|
||||||||||||||||
Debt
obligations
|
$ |
5,346,097
|
$ |
920,000
|
$ |
4,426,097
|
$ | - | $ | - | ||||||||||
Operating
lease obligations
|
10,032,947 | 3,202,915 | 4,576,044 | 2,017,705 | 236,283 | |||||||||||||||
Total
|
$ | 15,379,044 | $ | 4,122,915 | $ | 9,002,141 | $ | 2,017,705 | $ | 236,283 |
Issuer Purchases of Equity Securities
|
||||||||||||||||
Period
|
Total Number
of Shares
Purchased
|
Average Price
Paid per Share
|
Total Number
of Shares
Purchased as
Part of Publicly
Announced
Plans or
Programs (1)
|
Approximate
Dollar Value of
Shares That
May Yet Be
Purchased
Under the
Plans or
Programs (1)
|
||||||||||||
April
1, 2010 through April 30, 2010
|
6,197 | $ | 17.38 | 6,197 | $ | 407,113 | ||||||||||
May
1, 2010 through May 31, 2010
|
300 | 17.80 | 300 | $ | 401,773 | |||||||||||
June
1, 2010 through June 30, 2010
|
5,415 | 17.60 | 5,415 | $ | 306,198 | |||||||||||
Total
|
11,912 | $ | 17.49 | 11,912 |
(1)
|
The stock repurchase program has
been ongoing for more than five years and there is no expiration date for
the program. Most recently, on January 23, 2008, the Board of
Directors authorized the Company to make available open market purchases
of its Common Stock of up to $1 million. On May 1, 2008, the
Company’s Board of Directors approved up to $2 million of stock
repurchases. On July 30, 2008, the Board of Directors approved an
additional $1 million of stock repurchases. On August 12, 2008, the
Board of Directors approved up to $2 million of stock repurchases.
On December 16, 2009, the Board of Directors approved an additional
$500,000 of stock repurchases. On August 10, 2010, the Board of
Directors approved an additional $1 million of stock repurchases.
Common Stock repurchases may be made from time to time as the
Company’s management deems
appropriate.
|
Exhibit
|
||
Number
|
Description of Document
|
|
3.1
|
Amended
and Restated Articles of Incorporation, incorporated herein by reference
to Exhibits 3.1 and 3.2 to the Company’s Registration Statement on Form
S-1 (SEC File No. 333-36391), as filed with the Securities and Exchange
Commission on September 25, 1997.
|
|
3.2
|
Amended
and Restated Bylaws, incorporated herein by reference to Exhibit 3.3 to
the Company’s Registration Statement on Form S-1 (SEC File No. 333-36391),
as filed with the Securities and Exchange Commission on September 25,
1997.
|
|
4.1
|
Reference
is made to Exhibits 3.1 and 3.2.
|
|
4.2
|
Specimen
Stock Certificate, incorporated herein by reference to Exhibit 4.2 to the
Company’s Registration Statement on Form S-1/A (SEC File No. 333-36391),
as filed with the Securities and Exchange Commission on November 25,
1997.
|
|
10.1
|
Ninth
Amendment of Second Amended and Restated Credit Agreement dated May 31,
2010 between the Company and Key Bank of Colorado.
|
|
31.1
|
Rule
13a-14(a) Certification of the Chief Executive Officer.
|
|
31.2
|
Rule
13a-14(a) Certification of the Chief Financial Officer.
|
|
32.1
|
|
Section
1350 Certifications of the Chief Executive Officer and the Chief Financial
Officer.
|
BIRNER
DENTAL MANAGEMENT SERVICES, INC.
|
||||
Date: August
13, 2010
|
By:
|
/s/ Frederic W.J. Birner
|
||
Name:
|
Frederic
W.J. Birner
|
|||
Title:
|
Chairman
of the Board and Chief Executive Officer
|
|||
(Principal
Executive Officer)
|
||||
Date: August
13, 2010
|
By:
|
/s/ Dennis N. Genty
|
||
Name:
|
Dennis
N. Genty
|
|||
Title:
|
Chief
Financial Officer, Secretary, and Treasurer
|
|||
(Principal Financial and
Accounting
Officer)
|