2009-10-26 22:11:04 -

WAKEFIELD, MA -- (Marketwire) -- 10/26/09 -- American Dental Partners, Inc. (NASDAQ: ADPI) announced financial results today for the quarter and nine months ended September 30, 2009.



Comparing actual and adjusted results for the third quarter of 2009 with actual and pro forma results for the third quarter of 2008 (see "Debt Retirement Accounting" and "Litigation Settlement Accounting" for an explanation and "Supplemental Operating Data" tables for a presentation of the adjusted and pro forma results):

--  Net revenue was $67,986,000 for the third quarter 2009 as compared to
    $71,548,000 and pro forma $68,215,000 for the third quarter 2008.
--  Earnings from operations were $5,673,000 for the third quarter 2009 as
    compared to $7,958,000 and pro forma $5,046,000 for the third quarter 2008.
--  Net earnings were $1,399,000 as compared to $3,310,000. Adjusted net
    earnings were $2,030,000 as compared to pro forma $1,534,000.
--  Diluted net earnings per share were $0.10 as compared to $0.25.
    Adjusted diluted net earnings per share were $0.14 as compared to pro forma
    $0.12.
--  Diluted cash net earnings per share were $0.19 as compared to $0.35.
    Adjusted diluted cash net earnings per share were $0.23 as compared to pro
    forma $0.22.
    

Comparing actual and adjusted results for the nine months of 2009 with actual and pro forma results for the nine months of 2008 (see "Debt Retirement Accounting" and "Litigation Settlement Accounting" for an explanation and "Supplemental Operating Data" tables for a presentation of the adjusted and pro forma results):

--  Net revenue was $207,749,000 for the nine months 2009 as compared to
    $225,998,000 and pro forma $208,301,000 for the nine months 2008.
--  Earnings from operations were $19,075,000 for the nine months 2009 as
    compared to $54,920,000 and pro forma $16,097,000 for the nine months 2008.
--  Net earnings were $5,831,000 as compared to $28,808,000. Adjusted net
    earnings were $6,460,000 as compared to pro forma $5,125,000.
--  Diluted net earnings per share were $0.43 as compared to $2.19.
    Adjusted diluted net earnings per share were $0.47 as compared to pro forma
    $0.39.
--  Diluted cash net earnings per share were $0.73 as compared to $2.50.
    Adjusted diluted cash net earnings per share were $0.77 as compared to pro
    forma $0.70.
    

Operating Results


Patient revenue of the Company's affiliated dental group practices was $103,224,000 for the quarter, which includes $96,459,000 from dental group practices which are affiliated with the Company by means of service agreements and $6,765,000 from Arizona's Tooth Doctor for Kids. Same market patient revenue growth was (.7%) for the quarter and (1.3%) excluding in-market affiliations.



Cash flow from operations was $11,452,000 for the quarter and capital expenditures were $1,252,000. The Company completed one de novo facility during the quarter.



The Company recognized $403,000 in stock-based compensation expense, $243,000 net of tax or $0.02 per diluted share, during the quarter as compared to $506,000, $309,000 net of tax or $0.02 per diluted share, for the prior year's same quarter.



Debt Retirement Accounting


As previously announced the Company completed a public offering of common stock and refinanced its indebtedness in August 2009. Net proceeds from the sale of common stock of approximately $29,227,000 were used to retire existing indebtedness, and the Company entered into a new $130,000,000 senior secured credit facility, which includes a $50,000,000 revolving credit facility and an $80,000,000 term loan facility. As a result, included in interest expense, net, for the quarter was $1,043,000 of expenses associated with the retirement of the Company's prior credit facilities, $629,000 net of tax or $0.04 per diluted share. In addition to its 2009 actual results, the Company has provided an adjusted financial presentation to exclude expense items related to the debt retirement.



Litigation Settlement Accounting


The Company's 2008 financial results reflect income and expenses, including non-cash items, required by generally accepted accounting principles associated with the February 29, 2008 settlement of litigation among PDG, P.A. ("PDG"), PDHC, Ltd., one of the Company's subsidiaries, and the Company. In addition to its 2008 actual results, the Company has provided a pro forma financial presentation to exclude the income and expense items related to the litigation settlement.



Cash net earnings, cash earnings from operations, adjusted 2009 financial results and the pro forma 2008 financial results are non-GAAP financial measures. In accordance with the requirement of SEC Regulation G, please see the attached financial tables for a presentation of the most comparable GAAP measures and the reconciliation to the nearest GAAP measure and all additional reconciliations required by Regulation G.



For further discussion of these events and a comprehensive review of the third quarter ended September 30, 2009, the Company will host its previously announced conference call on Tuesday, October 27, 2009 at 9:00 a.m. EDT, which will be broadcast live over the Internet at www.amdpi.com : .
The call will be hosted by Gregory A. Serrao, Chairman, President and Chief Executive Officer. To access the webcast, participants should visit the Investor Relations section of the website at least fifteen minutes prior to the start of the conference call to download and install any necessary audio software. A replay of the webcast will be available at www.amdpi.com : approximately two hours after the call through 6:00 p.m. EDT, Tuesday, November 3, 2009.



American Dental Partners is one of the nation's leading business partners to dental group practices. The Company is affiliated with 26 dental group practices which have 241 dental facilities with approximately 2,123 operatories located in 18 states.



"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: With the exception of the historical information contained in this news release, the matters described herein contain "forward-looking"
statements that involve risk and uncertainties that may individually or collectively affect the matters herein described, including but not limited to the Company's risks associated with overall or regional economic conditions, dependence upon affiliated dental practices, contracts its affiliated practices have with third-party payors, government regulation of the dental industry, impact of health care reform, dependence upon service agreements and the impact of any terminations or potential terminations of such contracts, business interruptions, the outcome of pending litigation and the Company's acquisition and affiliation strategy, which are detailed from time to time in the "Risk Factors" section of the Company's filings with the Securities and Exchange Commission, including the annual report on Form 10-K for the year ended December 31, 2008 and quarterly reports on Form 10-Q.



###PRECONTENT2###



Contacts:
Gregory A. Serrao
Chairman, President and
Chief Executive Officer
781-224-0880

Breht T. Feigh
Executive Vice President,
Chief Financial Officer and Treasurer
781-224-0880

American Dental Partners, Inc.
401 Edgewater Place, Suite 430
Wakefield, MA 01880
Phone: 781/224-0880
Fax: 781/224-4216