DENVER, Aug. 15, 2011 /PRNewswire/ -- Birner Dental Management Services, Inc. (NASDAQ Capital Market: BDMS), operators of PERFECT TEETH® dental practices and Vantage Dental Implant Center, announced results for the quarter and six months ended June 30, 2011. For the quarter ended June 30, 2011, revenue increased $670,000, or 4.3%, to $16.4 million. The Company's earnings before interest, taxes, depreciation, amortization, non-cash expense associated with stock-based compensation and discontinued operations ("Adjusted EBITDA") decreased $196,000, or 12.0%, to $1.4 million for the quarter ended June 30, 2011. Net income for the quarter ended June 30, 2011 increased $149,000, or 68.6%, to $365,000 compared to $217,000 for the same period of 2010. Earnings per share increased 66.7%, to $0.19 for the quarter ended June 30, 2011 compared to $0.11 for the quarter ended June 31, 2010. The quarter ended June 30, 2010 was impacted by a loss from discontinued operations of $202,000, or $0.11 per share, net of tax benefit.

For the six months ended June 30, 2011, revenue increased $1.3 million, or 4.0%, to $33.5 million. The Company's Adjusted EBITDA decreased $752,000, or 20.9%, to $2.9 million for the six months ended June 30, 2011. Net income for the six months ended June 30, 2011 increased 0.1% to $752,000 compared to $751,000 for the same period of 2010. Earnings per share remained constant at $.39 for the six months ended June 30, 2011 and 2010. The six months ended June 30, 2010 was impacted by a loss from discontinued operations of $296,000, or $0.16 per share, net of tax benefit.

Although the Company's Perfect Teeth dental offices generated strong financial results in the quarter and six months ended June 30, 2011, the performance of Vantage Dental Implant Center negatively affected the Company's Adjusted EBITDA and earnings. The Company anticipates this to continue through 2011.

During the first six months of 2011, the Company had capital expenditures of $1.2 million, purchased 2,500 shares of its Common Stock for approximately $48,000 and paid out approximately $741,000 in dividends to its shareholders while decreasing total bank debt outstanding by approximately $907,000.

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 64 dental offices, of which 38 were acquired and 26 were de novo developments. The Company currently has 111 dentists. The Company operates its dental offices under the PERFECT TEETH® name. The Company also operates one Vantage Dental Implant Center in Denver, Colorado.

The Company previously announced it would conduct a conference call to review results for the quarter ended June 30, 2011 on Monday, August 15, 2011 at 9:00 a.m. MDT. 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 1-888-298-3451 and refer to Confirmation Code 7138488 approximately five minutes prior to the scheduled time. If you are unable to join the conference call on August 15, the rebroadcast number is 1-888-203-1112 with the pass code of 7138488. This rebroadcast will be available through August 29, 2011.

Non-GAAP Disclosures

This press release includes a non-GAAP financial measure with respect to Adjusted EBITDA. Please see the last page of this release for more information regarding Adjusted EBITDA and a reconciliation of Adjusted EBITDA to net income.

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 growth prospects and performance in 2011 and other future periods, implied future results as a result of the Company's training program to improve productivity of its dentists and hygienists and results and future performance of the Vantage Dental Implant Center opened in October 2010. 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, performances, 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

Reconciliation of Adjusted EBITDA

Adjusted EBITDA is not a U.S. generally accepted accounting principle ("GAAP") measure of performance or liquidity. However, the Company believes that it may be useful to an investor in evaluating the Company's ability to meet future debt service, capital expenditures and working capital requirements. Investors should not consider Adjusted EBITDA in isolation or as a substitute for operating income, cash flows from operating activities or any other measure for determining the Company's operating performance or liquidity that is calculated in accordance with GAAP. In addition, because Adjusted EBITDA is not calculated in accordance with GAAP, it may not necessarily be comparable to similarly titled measures employed by other companies. A reconciliation of Adjusted EBITDA to net income can be made by adding discontinued operations before income tax expense, depreciation and amortization expense - Offices, depreciation and amortization expense – Corporate, stock-based compensation expense, interest expense, net and income tax expense to net income as in the table below.