DENVER, March 24, 2011 /PRNewswire/ -- Birner Dental Management Services, Inc. (Nasdaq: BDMS),operators of PERFECT TEETH™dental practices and Vantage Dental Implant Center, announced results for the year and quarter ended December 31, 2010. For the year ended December 31, 2010, revenue increased $4.8 million, or 8.1%, to $64.0 million. The Company's earnings before, interest, taxes, depreciation, amortization, non-cash expense associated with stock-based compensation and discontinued operations ("Adjusted EBITDA") decreased $792,000, or 10.9%, to $6.5 million. Net income for the year ended December 31, 2010 decreased $482,000, or 25.0%, to $1.4 million compared to $1.9 million for the same period of 2009. Earnings per share decreased 25.8%, to $0.75 for the year ended December 31, 2010 compared to $1.02 for the year ended December 31, 2009.

For the quarter ended December 31, 2010, revenue increased $1.5 million, or 10.8%, to $15.7 million. The Company's Adjusted EBITDA decreased $493,000, or 30.9%, to $1.1 million for the quarter ended December 31, 2010 compared to $1.6 million for the quarter ended December 31, 2009. Net income for the quarter ended December 31, 2010 decreased $156,000, or 43.1%, to $207,000. Earnings per share decreased 43.6%, to $.11 for the quarter ended December 31, 2010 compared to $.19 for the quarter ended December 31, 2009.

The increase in revenue of $4.8 million for the year ended December 31, 2010 was attributable to $4.3 million in additional revenue related to three offices acquired in the third and fourth quarters of 2009 and two de novo offices opened in the first and fourth quarters of 2010. Same store revenue (based on 57 offices open during each full year) increased $481,000. The increase in revenue of $1.5 million for the quarter ended December 31, 2010 was attributable to $832,000 in additional revenue related to two offices acquired in the fourth quarter of 2009 and two de novo offices opened in the first and fourth quarters of 2010. Same store revenue (based on 58 offices open during each full quarter) increased $708,000, or 5.1%, primarily due to increased revenue related to a clinical quality improvement program initiated by the Company during 2010.

For the year ended December 31, 2010, advertising expenses increased $890,000 compared to the year ended December 31, 2009. For the fourth quarter ended December 31, 2010, advertising expenses increased $497,000 compared to the fourth quarter ended December 31, 2009.

While the Company's Perfect Teeth dental offices generated strong financial results in the fourth quarter of 2010, the performance of Vantage Dental Implant Center negatively affected the Company's Adjusted EBITDA and earnings. The Company anticipates this to continue into 2011.

During 2010, the Company had capital expenditures of $3.4 million, purchased 39,805 shares of its Common Stock for approximately $676,000 and paid approximately $1.4 million in dividends to its shareholders. During 2010, bank debt decreased approximately $845,000, which reduced total debt outstanding to $4.4 million at December 31, 2010. The Company continues to have strong operating cash flows and has maintained a conservative financial position.

The Company's board of directors has approved an increase in the Company's quarterly dividend to $.22 per share from $.20 per share. This increase will be effective with the dividend payable in July 2011.

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 119 dentists. The Company operates its dental offices under the PERFECT TEETH™ name. Birner Dental also operates one Vantage Dental Implant Center in Colorado.

The Company previously announced it would conduct a conference call to review results for the year and quarter ended December 31, 2010 on Thursday, March 24, 2011 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 1-888-312-9865 and refer to Confirmation Code 9726975 approximately five minutes prior to the scheduled time. If you are unable to join the conference call on March 24, the rebroadcast number is 1-888-203-1112 with the pass code of 9726975. This rebroadcast will be available through April 7, 2011.

Non-GAAP Disclosures

This press release includes a non-GAAP financial measure with respect to Adjusted EBITDA. The non-GAAP financial measure included in this press release may be different from, and therefore may not be comparable to, similar measures used by other companies. Please see the last page of this release for more information on the reconciliation of Adjusted EBITDA to GAAP measures.

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 2010 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 at 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.

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.