HOUSTON, March 14 /PRNewswire/ -- Castle Dental Centers (Nasdaq: CASL),
one of the largest dental management companies in the U.S., today announced
that it expects its 1999 fourth quarter and year-end results will be below
those reported for the same period last year and below current expectations.
The company said it expects to record expenses for the 1999 fourth quarter
of at least $0.04 per share related to legal expenses incurred in connection
with the pending arbitration in California. Operating income will also be
affected by start-up expenses, including increased rent and depreciation,
related to "de novo" developments and an increase in corporate infrastructure
costs to support the company's 20 new operating locations opened during 1999.
Net income also will be affected by an increase in interest expenses relating
to increased borrowings under the company's senior credit facility and higher
effective interest rates.
Additionally, the company announced fourth quarter net income may further
be reduced by a possible increase in the company's allowance for doubtful
accounts. The amount of such increase, if any, will be determined upon
completion of the company's annual audit later this month, at which time the
company will report results for the fourth quarter and full year 1999.
Castle Dental Centers, Inc. develops, manages and operates integrated
dental networks through contractual affiliations with general, orthodontic and
multi-specialty dental practices in the U.S. Castle manages 102 dental centers
with approximately 250 affiliated dentists in Texas, Florida, Tennessee and
California with annual patient revenues of approximately $102 million.
Information contained in this press release, other than historical
information, may be considered forward-looking in nature and is subject to
various risks, uncertainties and assumptions. Among the key factors that may
have a direct bearing on the Company are fluctuations in the economy, the
degree and nature of competitions and the demand for the Company's services,
changes in laws and regulations affecting the Company's business, the
Company's inability at any time to complete acquisitions and integrate the
operations of acquired businesses, and numerous other factors discussed in
Castle Dental's filings with the Securities and Exchange Commission.
For more information regarding Castle Dental Centers, Inc., free of
charge, dial 1-800-PRO-INFO and enter "CASL."
SOURCE Castle Dental Centers
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CONTACT: John M. Slack, Chief Financial Officer of Castle Dental Centers, 713-479-8264; or Analyst Inquiries, Suzy Olson, of The Financial Relations Board-BSMG Worldwide, 312-274-2258, for Castle Dental Centers
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