BIRNER


Birner Dental Management Services, Inc.

1777 S. Harrison Street, Suite 1400

Denver, CO 80210

303-691-0680


FOR IMMEDIATE RELEASE

March 30, 2016

Exhibit No. 99.1


BIRNER DENTAL MANAGEMENT SERVICES, INC. ANNOUNCES RESULTS FOR FOURTH QUARTER AND YEAR ENDED 2015


DENVER, COLORADO, March 30, 2016. Birner Dental Management Services, Inc. (NASDAQ Capital Market: BDMS), business services provider of PERFECT TEETH dental practices, announced results for the quarter and year ended December 31, 2015. For the year ended December 31, 2015 compared to 2014, revenue decreased $1.3 million, or 2.0%, to $63.8 million. The Company's earnings before interest, taxes, depreciation, amortization, stock-based compensation expense, severance compensation expense, office consolidation expense and change in fair value of contingent liabilities ("Adjusted EBITDA") decreased $293,000, or 7.3%, to $3.7 million for the year ended December 31, 2015 compared to 2014. Net loss for the year ended December 31, 2015 decreased $219,000 to $(705,000) compared to $(924,000) for the year ended December 31, 2014. Loss per share decreased to $(0.38) for the year ended December 31, 2015 compared to $(0.50) for the year ended December 31, 2014.


For the quarter ended December 31, 2015 compared to the same period in 2014, revenue decreased $293,000, or 1.9%, to $15.0 million. The Company's Adjusted EBITDA decreased $99,000, or 14.1%, to $600,000 for the quarter ended December 31, 2015 compared to the same period in 2014. Net loss for the quarter ended December 31, 2015 decreased $136,000 to $(375,000) compared to $(511,000) for the same period of 2014. Net loss per share decreased to $(0.20) for the quarter ended December 31, 2015 compared to $(0.27) for the quarter ended December 31, 2014.


Significantly contributing to the decrease in Adjusted EBITDA during both 2015 periods was negative Adjusted EBITDA from the Company's two most recently opened de novo offices. The Company's de novo offices typically take a period of time after opening before they generate positive Adjusted EDITDA. These two offices had negative Adjusted EBITDA of $413,000 and $140,000 for the year and quarter ended December 31, 2015 respectively. The Company opened a de novo office in Commerce City, Colorado in January 2016, but as previously announced, the Company does not intend to open any additional de novo offices for the balance of the year. Instead, the Company will focus on gaining profitability in its most recently opened offices and its existing facilities, filling excess capacity in its offices, and paying down bank debt.


On March 29, 2016, the Company entered into a new credit agreement with Guaranty Bank and Trust Company (the "Credit Facility). The Credit Facility consists of a $2.0 million revolving line of credit and a $10.0 million reducing revolving loan. The revolving line of credit matures on March 31, 2018. The reducing revolving loan matures on March 31, 2021 and requires mandatory reductions of $500,000 per calendar quarter. Interest varies between LIBOR plus 2.90% and LIBOR plus 2.25% depending on the Company's funded debt-to- EBITDA ratio. There is no commitment fee or origination fee on the Credit Facility. Through the remainder of 2016, dividends are prohibited under the Credit Facility; however, beginning in 2017 dividends are permitted so long as the pro forma fixed charge coverage ratio is greater than 1.20 to 1.00 after giving effect to the dividend.


Fred Birner, Chief Executive Officer of the Company, stated "We have made significant investments in de novo offices and other aspects of our business over the past three years, with $11.9 million spent on eight de novo offices, remodels or relocations and other enhancements, including conversion to digital radiography. We are now focused on realizing on these investments. We believe our new Credit Facility fits well with our overall near-term strategic objectives of returning to profitability while filling the current physical capacity in our offices, reducing capital expenditures and paying down bank debt that has extended maturities. Our Company has a strong history of providing significant returns to our shareholders. In fact, since we started paying a dividend in 2004, the Company has returned in excess of $38.0 million to its shareholders through dividends and common stock repurchases - on total equity invested of approximately $18.0 million. Our objective is to strengthen our operating performance such that we can resume paying dividends and otherwise enhance shareholder value."

Since the beginning of the fourth quarter of 2012, the Company has opened eight de novo offices: in Tucson, Arizona and in Erie, Colorado in the fourth quarter of 2012; in Loveland, Colorado in July 2013; in Monument, Colorado in December 2013; in Fort Collins, Colorado in May 2014; in Scottsdale, Arizona in October 2014; in Albuquerque, New Mexico in September 2015; and in Commerce City, Colorado in January 2016.


During 2015, the Company paid approximately $1.6 million in dividends to its shareholders, had capital expenditures of approximately $2.2 million and increased total bank debt outstanding by approximately $374,000.


Birner Dental Management Services, Inc. acquires, develops, and manages geographically dense dental practice networks in select markets in Colorado, New Mexico, and Arizona. The Company currently manages 69 dental offices, of which 36 were acquired and 33 were de novo developments. As of December 31, 2015, the Company had 116 dentists. The Company operates its dental offices under the PERFECT TEETH® name.


The Company previously announced it would conduct a conference call to review results for the year and quarter ended December 31, 2015 on Wednesday, March 30, 2016 at 9:00 a.m. MT. In addition to current operating results, the teleconference may include discussion of management's expectations of future financial and operating results. To participate in this conference call, dial in to 1-866-249-5224 and refer to Confirmation Code 9848271 approximately five minutes prior to the scheduled time. If you are unable to join the conference call on March 30, 2016, the rebroadcast number is 1-888-203-1112 with the pass code of 9848271. This rebroadcast will be available through April 13, 2016.


Non-GAAP Disclosures


This press release includes a non-GAAP financial measure with respect to Adjusted EBITDA. Please see below for more information regarding Adjusted EBITDA and a reconciliation of Adjusted EBITDA to net income (loss).


Forward-Looking Statements


Certain of the matters discussed herein may contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from expectations. These include statements regarding the Company's prospects and performance in future periods, including the payment of dividends. These statements involve known and unknown risks, uncertainties and other factors which may cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These and other risks and uncertainties are set forth in the reports filed by the Company with the Securities and Exchange Commission. The Company disclaims any obligation to update these forward-looking statements.


For Further Information Contact:

Birner Dental Management Services, Inc. Dennis Genty

Chief Financial Officer

(303) 691-0680

B IR N ER D EN TA L M A N A GEM EN T S ER VIC ES , IN C . A N D S UB S ID IA R IES C ON S OLID A TED S TA TEM EN TS OF OP ER A TION S


Quarters Ended Years Ended

D e c e m b e r 3 1, D e c e m b e r 3 1,

2 0 14 2 0 15 2 0 14 2 0 15


REVENUE:

Dental practice revenue


$ 14,056,483


$ 13,892,620


$ 59,924,198


$ 59,134,356

Capitatio n revenue 1,2 8 5 ,3 5 2 1,15 6 ,3 0 8 5 ,2 0 1,4 0 2 4 ,7 0 9 ,4 8 1 15,341,835 15,048,928 65,125,600 63,843,837


DIRECT EXP ENSES:

Clinical s alaries and benefits 9,169,973 9,054,636 38,641,198 38,209,674

Dental s upplies 747,839 703,245 2,977,962 2,965,182

Labo ra to ry fees 804,938 771,576 3,298,723 3,288,426

Occupancy 1,470,449 1,521,718 5,900,176 5,948,384

Advertis ing and marketing 286,892 154,737 965,202 862,397

Depreciatio n and amo rtiza tio n 1,131,839 1,027,783 4,229,253 4,283,291 General and adminis tra tive 1,3 12 ,0 7 3 1,4 6 1,8 9 4 5 ,4 4 1,12 6 5 ,3 8 7 ,9 8 8

14,924,003 14,695,589 61,453,640 60,945,342


Co ntributio n fro m dental o ffic es 417,832 353,339 3,671,960 2,898,495


CORP ORATE EXP ENSES:

General and adminis tra tive

982,591 (1 )

840,622 (1 )

4,659,610 (2 )

3,677,547 (

Depreciatio n and amo rtiza tio n

5 5 ,5 9 2

6 7 ,0 6 4

2 2 3 ,0 19

2 4 1,5 8 8

OP ERATING INCOME (LOSS)

(620,351)

(554,347)

(1,210,669)

(1,020,640)

OTHER INCOME (EXP ENSE):

Change in fa ir value o f co ntingent lia bilitie s


-


100,000


-


100,000

Interes t (expens e ), net

(2 9 ,6 7 9 )

(3 0 ,3 6 2 )

(115 ,7 5 0 )

(10 5 ,0 6 2 )

INCOME (LOSS) BEFORE INCOME TAXES

(650,030)

(484,709)

(1,326,419)

(1,025,702)

Inco me tax expens e (benefit)

(13 8 ,9 9 4 )

(110 ,0 4 4 )

(4 0 2 ,7 8 5 )

(3 2 1,0 3 2 )

NET INCOME (LOSS)

$ (5 11,0 3 6 )

$ (3 7 4 ,6 6 5 )

$ (9 2 3 ,6 3 4 )

$ (7 0 4 ,6 7 0 )


Net inco me (lo s s ) per s hare o f Co mmo n Sto ck - Bas ic


$ (0.27)


$ (0.20)


$ (0.50)


$ (0.38)


Net inco me (lo s s ) per s hare o f Co mmo n Sto ck - Diluted


$ (0.27)


$ (0.20)


$ (0.50)


$ (0.38)


Cas h dividends per s hare o f Co mmo n Sto ck


$ 0.22


$ 0.22


$ 0.88


$ 0.88


Weighted average number o f s hares o f

2 )





Co mmo n Sto ck and dilutive s ecurities :

Bas ic 1,8 5 9 ,8 9 3 1,8 6 1,10 6 1,8 5 8 ,6 5 0 1,8 6 0 ,2 4 6



Diluted 1,859,893 1,861,106 1,858,650 1,860,246


(1) Co rpo ra te expens e - general and adminis tra tive includes $ 132,080 of s to ck-bas ed co mpens atio n expens e purs uant to ASC To pic 718 fo r the quarter ended December 31, 2014 and $ 59,755 of s to ck-bas ed co mpens atio n expens e purs uant to ASC To pic 718 fo r the quarter ended December 31, 2015.


(2) Co rpo ra te expens e - general and adminis tra tive includes $ 364,880 of s to ck-bas ed co mpens atio n expens e purs uant to ASC To pic 718 and

$ 338,861 of s everance co mpens atio n expens e fo r the year ended December 31, 2014 and $ 229,093 of s to ck-bas ed co mpens atio n expens e purs uant to ASC To pic 718 fo r the year ended December 31, 2015.

BIRNER DENTAL MANAGEMENT SERVICES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS


CURRENT ASSETS:


ASSETS

December 31,

2014 2015

Cash

Accounts receivable, net of allowance for doubtful

accounts of approximately $420,000 and $390,000, respectively

$ 310,229


3,185,136

$ 258,801


3,043,655

Notes receivable

34,195

34,195

Deferred tax asset

614,944

275,907

Income tax receivable

-

73,878

Prepaid expenses and other assets

520,187

575,770

Total current assets

4,664,691

4,262,206

PROPERTY AND EQUIPMENT, net

11,258,025

9,808,014

OTHER NONCURRENT ASSETS:

Intangible assets, net


8,410,535


7,565,648

Deferred charges and other assets

160,853

155,741

Notes receivable

82,929

55,002

Total assets

$ 24,577,033

$ 21,846,611


Accounts payable

$ 2,912,162

$ 2,920,998

Accrued expenses

1,557,811

1,547,915

Accrued payroll and related expenses

2,511,953

2,330,398

Income taxes payable

Current maturities of long-term debt

6,638

-

-

1,500,000

Total current liabilities

6,988,564

8,299,311

LONG-TERM LIABILITIES:

Deferred tax liability, net


2,951,321


2,242,800

Long-term debt

9,833,453

8,707,578

Other long-term obligations

1,046,633

949,554

Total liabilities

20,819,971

20,199,243

LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES:


COMMITMENTS AND CONTINGENCIES


SHAREHOLDERS' EQUITY:

Preferred Stock, no par value, 10,000,000 shares

authorized; none outstanding - -

Common Stock, no par value, 20,000,000 shares

authorized; 1,859,689 and 1,861,106 shares issued and outstanding, respectively


1,214,056


1,446,182

Retained earnings

2,543,006

201,186

Total shareholders' equity

3,757,062

1,647,368

Total liabilities and shareholders' equity

$ 24,577,033

$ 21,846,611

Birner Dental Management Services Inc. issued this content on 30 March 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 30 March 2016 21:39:56 UTC

Original Document: http://www.perfectteeth.com/media/167916/q4_2015_earnings_release_only.pdf