SOURCE: American Dental Partners, Inc.

American Dental Partners, Inc.

February 25, 2009 21:47 ET

American Dental Partners Reports Fourth Quarter and Year-End 2008 Financial Results

WAKEFIELD, MA--(Marketwire - February 25, 2009) - American Dental Partners, Inc. (NASDAQ: ADPI) today announced financial results for the quarter and year ended December 31, 2008.

The Company's financial results reflect income and expenses, including non-cash items, required by generally accepted accounting principles as a result of the previously announced settlement of litigation among PDG, P.A. ("PDG"), PDHC, Ltd., one of the Company's subsidiaries, and the Company effective February 29, 2008. In addition to its actual results, the Company has provided a pro forma financial presentation that excludes the operating results of 25 dental facilities transferred to PDG on February 29, 2008 and the accounting impact associated with the litigation settlement from both periods of comparison (see "PDG Litigation Settlement Accounting" and "Supplemental Operating Data" tables).

Comparing actual results and pro forma results for the fourth quarter of 2008 with the fourth quarter of 2007:

--  Net revenue was $65,110,000 as compared to $79,583,000.  Pro forma net
    revenue was $65,110,000 as compared to $67,421,000.
--  Earnings from operations were $5,270,000 as compared to $(27,016,000).
    Pro forma earnings from operations were $5,429,000 as compared to
    $5,046,000.
--  Net earnings were $1,310,000 as compared to $(18,824,000).  Pro forma
    net earnings were $1,407,000 as compared to $1,052,000.
--  Diluted net earnings per share were $0.10 as compared to $(1.47).  Pro
    forma diluted net earnings per share were $0.11 as compared to $0.08.
--  Diluted cash net earnings per share were $0.21 as compared to $(1.36).
    Pro forma diluted cash net earnings per share were $0.21 as compared to
    $0.20.
    

Comparing actual results and pro forma results for the twelve months of 2008 with the same period in 2007:

--  Net revenue was $291,108,000 as compared to $278,755,000.  Pro forma
    net revenue was $273,411,000 as compared to $230,011,000.
--  Earnings from operations were $60,190,000 as compared to $(6,354,000).
    Pro forma earnings from operations were $21,526,000 as compared to
    $20,433,000.
--  Net earnings were $30,118,000 as compared to $(7,716,000).  Pro forma
    net earnings were $6,528,000 as compared to $8,992,000.
--  Diluted net earnings per share were $2.29 as compared to $(0.61).  Pro
    forma diluted net earnings per share were $0.50 as compared to $0.68.
--  Diluted cash net earnings per share were $2.71 as compared to $(0.27).
    Pro forma diluted cash net earnings per share were $0.91 as compared to
    $1.00.
    

Operating Results

Patient revenue of the Company's affiliated dental group practices was $99,073,000 for the quarter, which includes $93,227,000 from dental group practices which are affiliated with the Company by means of service agreements and $5,846,000 from Arizona's Tooth Doctor for Kids. Same market patient revenue growth was 0.6% for the quarter and (0.3)% excluding in-market affiliations. Patient revenue of the Company's affiliated dental group practices was $415,958,000 for the year, which includes $391,520,000 for dental group practices which are affiliated with the Company by means of service agreements and $24,438,000 from Arizona's Tooth Doctor for Kids. Same market patient growth was 5.6% for the year and 1.1% excluding in-market affiliations.

Cash flow from operations was $9,904,000 for the quarter and $38,561,000 for the year. Capital expenditures were $2,652,000 for the quarter and $11,984,000 for the year. The Company relocated one dental facility during the quarter. During the year, the Company completed four denovo facilities and expanded and/or relocated seven dental facilities. Amounts paid for affiliations and acquisitions, including contingent amounts and affiliation costs, amounted to $2,101,000 during the quarter and $15,557,000 for the year. The Company completed five in-market affiliations during the quarter. During the year, the Company completed one platform affiliation and seven in-market affiliations which were combined with existing platform affiliations in Wisconsin, New York, Tennessee and North Carolina. Affiliations generated approximately $2,300,000 of patient revenue from date of affiliation and are expected to generate patient revenue of approximately $5,300,000 on an annualized basis.

The Company recognized $450,000 in stock-based compensation expense, $275,000 net of tax or $.02 per diluted share, during the quarter as compared to $464,000, $289,000 net of tax or $.02 per diluted share, for the prior year's same quarter. The Company recognized $1,961,000 in stock-based compensation expense, $1,196,000 net of tax or $.09 per diluted share, during the year as compared to $1,898,000, $1,158,000 net of tax or $.09 per diluted share, for the prior year.

PDG Litigation Settlement Accounting

As previously reported, the Company completed the settlement of the litigation with PDG effective February 29, 2008 which included transferring the operating assets of 25 dental facilities to PDG and entering into a transition services agreement with PDG in which the Company was obligated to provide interim management services to PDG through September 30, 2008. The Company has concluded the transition services agreement and received the related $19 million fee, and the parties are completing the final steps in the separation of the companies.

Cash net earnings and cash earnings from operations 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 fourth quarter and year ended December 31, 2008, the Company will host its previously announced conference call on Thursday, February 26, 2009 at 10:00 a.m. EST, 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. EST, Thursday, March 5, 2009.

American Dental Partners is one of the nation's leading business partners to dental group practices. The Company is affiliated with 25 dental group practices which have 241 dental facilities with approximately 2,107 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 impact the matters herein described, including but not limited to the possibility that we may not realize the benefits expected from our acquisition and affiliation strategy, economic, regulatory and/or other factors outside the control of the Company, settlements or judgments of pending litigation, which are detailed from time to time in the "Risk Factors" section of the Company's SEC reports, including the annual report on Form 10-K for the year ended December 31, 2007.

                      AMERICAN DENTAL PARTNERS, INC.

                          FINANCIAL HIGHLIGHTS
                 (in thousands, except per share amounts)
                               (unaudited)


                                 Three Months Ended   Twelve Months Ended
                                    December 31,          December 31,
                                --------------------- --------------------
                                   2008       2007       2008       2007
                                ---------- ---------  ---------  ---------

Net revenue                     $   65,110 $  79,583  $ 291,108  $ 278,755
Operating expenses:
     Salaries and benefits          28,448    35,516    125,795    119,411
     Lab fees and dental
      supplies                       9,745    11,979     42,836     43,209
     Office occupancy expenses       8,094     9,163     33,878     31,457
     Other operating expenses        5,811     6,533     26,017     23,400
     General corporate expenses      2,216     3,560     12,366     14,427
     Depreciation expense            2,938     2,887     11,054      9,422
     Amortization of intangible
      assets                         2,429     2,401      9,634      7,049
     Litigation expense                159    34,560    (30,662)    36,734
                                ---------- ---------  ---------  ---------
          Total operating
           expenses                 59,840   106,599    230,918    285,109
                                ---------- ---------  ---------  ---------
Earnings from operations             5,270   (27,016)    60,190     (6,354)
     Interest expense, net           2,929     3,227     10,193      5,253
     Minority interest                 203        41        634        390
                                ---------- ---------  ---------  ---------
Earnings before income taxes         2,138   (30,284)    49,363    (11,997)
     Income taxes                      828   (11,460)    19,245     (4,281)
                                ---------- ---------  ---------  ---------
Net earnings                    $    1,310 $ (18,824) $  30,118  $  (7,716)
                                ========== =========  =========  =========

Net earnings per common share:
     Basic                      $     0.10 $   (1.47) $    2.34  $   (0.61)
                                ========== =========  =========  =========
     Diluted                    $     0.10 $   (1.47) $    2.29  $   (0.61)
                                ========== =========  =========  =========
Weighted average common shares
 outstanding:
     Basic                          12,902    12,812     12,876     12,681
                                ========== =========  =========  =========
     Diluted                        13,057    12,812     13,150     12,681
                                ========== =========  =========  =========








                      AMERICAN DENTAL PARTNERS, INC.

                          FINANCIAL HIGHLIGHTS
                             (in thousands)
                               (unaudited)


                                                  December 31, December 31,
                                                      2008         2007
                                                  ------------ ------------
ASSETS
Current assets:
     Cash and cash equivalents                    $      6,626 $      6,376
     Accounts receivable, net                           25,875       23,621
     Other current assets                               11,385       25,261
                                                  ------------ ------------
          Total current assets                          43,886       55,258
                                                  ------------ ------------

Property and equipment, net                             54,542       60,445
                                                  ------------ ------------
Other non-current assets:
     Goodwill                                           76,122       70,602
     Intangible assets, net                            175,527      179,969
     Other assets                                        3,149        2,232
                                                  ------------ ------------
          Total non-current assets                     254,798      252,803
                                                  ------------ ------------
          Total assets                            $    353,226 $    368,506
                                                  ============ ============

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
     Accounts payable and accrued expenses        $     30,818 $     40,524
     Accrued litigation expense                              -       30,968
     Other current liabilities                              20        3,475
     Current maturities of debt                            196          188
                                                  ------------ ------------
          Total current liabilities                     31,034       75,155
                                                  ------------ ------------
Non-current liabilities:
     Long-term debt                                    131,441      140,986
     Other liabilities                                  43,669       36,568
                                                  ------------ ------------
          Total non-current liabilities                175,110      177,554
                                                  ------------ ------------
          Total liabilities                            206,144      252,709
                                                  ------------ ------------

Minority Interest                                          584          894

Commitments and contingencies
Stockholders' equity                                   146,498      114,903
                                                  ------------ ------------
          Total liabilities and stockholders'
           equity                                 $    353,226 $    368,506
                                                  ============ ============






                      AMERICAN DENTAL PARTNERS, INC.
                       SUPPLEMENTAL OPERATING DATA
  (in thousands, except per share amounts and selected statistical data)
                               (unaudited)


                  Pro forma consolidated statement of income
                 for the three months ended December 31, 2008


                                          Pro Forma Adjustments
                                        -------------------------
                                        Settlement     Management
                               Actual     Assets        Services  Pro Forma
                              --------- ---------      ---------- ---------

Net revenue                   $  65,110 $       -      $        - $  65,110
Operating expenses
    Salaries and benefits        28,448         -               -    28,448
    Lab fees and dental
     supplies                     9,745         -               -     9,745
    Office occupancy expenses     8,094         -               -     8,094
    Other operating expenses      5,811         -               -     5,811
    General corporate
     expenses                     2,216         -               -     2,216
    Litigation expenses             159       159  (a)          -         -
                              --------- ---------      ---------- ---------
EBITDA                           10,637      (159)              -    10,796
    Depreciation                  2,938         -               -     2,938
    Amortization                  2,429         -               -     2,429
                              --------- ---------      ---------- ---------
Earnings from operations          5,270      (159)              -     5,429
    Interest expense, net         2,929         -               -     2,929
    Minority interest               203         -               -       203
                              --------- ---------      ---------- ---------
Earnings before income taxes      2,138      (159)              -     2,297
    Income taxes                    828                                 890
                              ---------                           ---------
Net earnings                      1,310                               1,407
Amortization of service
 agreements, net of tax           1,382                               1,382
                              ---------                           ---------
Cash net earnings (b)         $   2,692                           $   2,789
                              =========                           =========

Diluted net earnings per
 common share                 $    0.10                           $    0.11
                              =========                           =========
Diluted cash net earnings per
 common share (b)             $    0.21                           $    0.21
                              =========                           =========


(a) Includes professional fees associated with the PDG litigation
    settlement.
(b) Cash net earnings and diluted cash net earnings per share are not
    measures of financial performance under GAAP.  Cash net earnings
    excludes amortization expense related to service agreement intangible
    assets, net of tax. The Company incurs significant amortization
    expense related to its service agreements while many companies,
    both in the same industry and other industries, no longer amortize
    a significant portion of their intangible assets pursuant to Statement
    of Financial Accounting Standards No. 142 - Goodwill and Other
    Intangible Assets. The Company believes that cash net earnings and
    diluted cash net earnings per share are important financial measures
    for understanding its relative financial performance.






                      AMERICAN DENTAL PARTNERS, INC.
                       SUPPLEMENTAL OPERATING DATA
  (in thousands, except per share amounts and selected statistical data)
                               (unaudited)


                  Pro forma consolidated statement of income
                 for the three months ended December 31, 2007


                                        Pro Forma Adjustments
                                      -------------------------
                                      Settlement     Management
                            Actual    Assets(c)      Services(d) Pro Forma
                          ----------  ---------      ----------  ----------

Net revenue               $   79,583  $   9,083      $    3,079  $   67,421
Operating expenses
    Salaries and benefits     35,516      5,131             506      29,879
    Lab fees and dental
     supplies                 11,979      1,684               -      10,295
    Office occupancy
     expenses                  9,163      1,167              67       7,929
    Other operating
     expenses                  6,533        761              (2)      5,774
    General corporate
     expenses                  3,560          -               -       3,560
    Litigation expenses       34,560     34,560  (e)          -           -
                          ----------  ---------      ----------  ----------
EBITDA                       (21,728)   (34,220)          2,508       9,984
    Depreciation               2,887        340              10       2,537
    Amortization               2,401          -               -       2,401
                          ----------  ---------      ----------  ----------
Earnings from operations     (27,016)   (34,560)          2,498       5,046
    Interest expense, net      3,227          -               -       3,227
    Minority interest             41          -               -          41
                          ----------  ---------      ----------  ----------
Earnings before income
 taxes                       (30,284)   (34,560)          2,498       1,778
    Income taxes             (11,460)                                   726
                          ----------                             ----------
Net earnings                 (18,824)                                 1,052
Amortization of service
 agreements, net of tax        1,570                                  1,570
                          ----------                             ----------
Cash net earnings (f)     $  (17,254)                            $    2,622
                          ==========                             ==========

Diluted net earnings per
 common share             $    (1.47)                            $     0.08
                          ==========                             ==========
Diluted cash net earnings
 per common share (f)     $    (1.36)                            $     0.20
                          ==========                             ==========


(c) Includes expense reimbursement associated with 25 dental facilities
    transferred to PDG as part of litigation settlement.
(d) The Company provided management services pursuant to a Service
    Agreement with PDG through December 31, 2007.  Includes estimated
    portion of service fee revenue and associated expenses for 25 of the
    31 dental facilities transferred to PDG.
(e) Includes fair value of the assets transferred to PDG, interim
    management fee in excess of fair value, forgiveness of outstanding
    accounts receivable and professional fees associated with PDG
    litigation.
(f) Cash net earnings and diluted cash net earnings per share are not
    measures of financial performance under GAAP.  Cash net earnings
    excludes amortization expense related to service agreement intangible
    assets, net of tax. The Company incurs significant amortization
    expense related to its service agreements while many companies, both
    in the same industry and other industries, no longer amortize a
    significant portion of their intangible assets pursuant to Statement
    of Financial Accounting Standards No. 142 - Goodwill and Other
    Intangible Assets. The Company believes that cash net earnings and
    diluted cash net earnings per share are important financial measures
    for understanding its relative financial performance.






                      AMERICAN DENTAL PARTNERS, INC.
                       SUPPLEMENTAL OPERATING DATA
  (in thousands, except per share amounts and selected statistical data)
                               (unaudited)


                  Pro forma consolidated statement of income
                 for the twelve months ended December 31, 2008


                                         Pro Forma Adjustments
                                       -------------------------
                                       Settlement     Management
                              Actual   Assets(g)      Services(h) Pro Forma
                            ---------  ---------      ---------- ----------

Net revenue                 $ 291,108  $   7,697      $   10,000 $  273,411
Operating expenses
    Salaries and benefits     125,795      4,717           1,453    119,625
    Lab fees and dental
     supplies                  42,836      1,436               -     41,400
    Office occupancy
     expenses                  33,878      1,092             180     32,606
    Other operating
     expenses                  26,017        135             323     25,559
    General corporate
     expenses                  12,366          -               -     12,366
    Litigation expenses       (30,662)   (30,662) (i)          -          -
                            ---------  ---------      ---------- ----------
EBITDA                         80,878     30,979           8,044     41,855
    Depreciation               11,054        317              42     10,695
    Amortization                9,634          -               -      9,634
                            ---------  ---------      ---------- ----------
Earnings from operations       60,190     30,662           8,002     21,526
    Interest expense, net      10,193          -               -     10,193
    Minority interest             634          -               -        634
                            ---------  ---------      ---------- ----------
Earnings before income
 taxes                         49,363     30,662           8,002     10,699
    Income taxes               19,245                                 4,171
                            ---------                            ----------
Net earnings                   30,118                                 6,528
Amortization of service
 agreements, net of tax         5,456                                 5,455
                            ---------                            ----------
Cash net earnings (j)       $  35,574                            $   11,983
                            =========                            ==========

Diluted net earnings per
 common share               $    2.29                            $     0.50
                            =========                            ==========
Diluted cash net earnings
 per common share (j)       $    2.71                            $     0.91
                            =========                            ==========


(g) Includes expense reimbursement associated with (i) 25 dental facilities
    transferred on February 29, 2008 to PDG as part of litigation
    settlement and (ii) the PDG doctors who practiced temporarily in
    the six dental facilities retained by the Company.
(h) The Company agreed to provide interim management services to PDG
    through September 30, 2008.  Includes interim  management fee revenue
    and expenses associated with providing such services, and salaries
    and benefits expense of management staff, including severance, who
    have been terminated as a result of realigning the Company's Minnesota
    based management team.
(i) Includes gain on disposal of assets of $30,763,000 and insurance
    proceeds of $1,002,000 for professional fees associated with the PDG
    litigation which were partially reimbursable pursuant to insurance
    coverage offset by professional fees and other net expenses associated
    with the litigation of $1,103,000.
(j) Cash net earnings and diluted cash net earnings per share are not
    measures of financial performance under GAAP.  Cash net earnings
    excludes amortization expense related to service agreement intangible
    assets, net of tax. The Company incurs significant amortization expense
    related to its service agreements while many companies, both in the
    same industry and other industries, no longer amortize a significant
    portion of their intangible assets pursuant to Statement of Financial
    Accounting Standards No. 142 - Goodwill and Other Intangible Assets.
    The Company believes that cash net earnings and diluted cash net
    earnings per share are important financial measures for understanding
    its relative financial performance.






                      AMERICAN DENTAL PARTNERS, INC.
                       SUPPLEMENTAL OPERATING DATA
  (in thousands, except per share amounts and selected statistical data)
                               (unaudited)


                  Pro forma consolidated statement of income
                 for the twelve months ended December 31, 2007


                                         Pro Forma Adjustments
                                       -------------------------
                                       Settlement     Management
                              Actual   Assets(k)      Services(l) Pro Forma
                            ---------  ---------      ---------- ----------

Net revenue                 $ 278,755  $  36,246      $   12,498 $  230,011
Operating expenses
    Salaries and benefits     119,411     20,316           1,995     97,100
    Lab fees and dental
     supplies                  43,209      6,883               -     36,326
    Office occupancy
     expenses                  31,457      4,611             214     26,632
    Other operating
     expenses                  23,400      3,059             288     20,053
    General corporate
     expenses                  14,427          -               -     14,427
    Litigation expenses        36,734     36,734  (m)          -          -
                            ---------  ---------      ---------- ----------
EBITDA                         10,117    (35,357)         10,001     35,473
    Depreciation                9,422      1,377              54      7,991
    Amortization                7,049          -               -      7,049
                            ---------  ---------      ---------- ----------
Earnings from operations       (6,354)   (36,734)          9,947     20,433
    Interest expense, net       5,253          -               -      5,253
    Minority interest             390          -               -        390
                            ---------  ---------      ---------- ----------
Earnings before income
 taxes                        (11,997)   (36,734)          9,947     14,790
    Income taxes               (4,281)                                5,798
                            ---------                            ----------
Net earnings                   (7,716)                                8,992
Amortization of service
 agreements, net of tax         4,282                                 4,282
                            ---------                            ----------
Cash net earnings (n)       $  (3,434)                           $   13,274
                            =========                            ==========

Diluted net earnings per
 common share               $   (0.61)                           $     0.68
                            =========                            ==========
Diluted cash net earnings
 per common share (n)       $   (0.27)                           $     1.00
                            =========                            ==========


(k) Includes expense reimbursement associated with 25 dental facilities
    transferred to PDG as part of litigation settlement.
(l) The Company provided management services pursuant to a Service
    Agreement with PDG through December 31, 2007.  Includes estimated
    portion of service fee revenue and associated expenses for 25 of the
    31 dental facilities transferred to PDG.
(m) Includes the fair value of the assets transferred to PDG, interim
    management fee in excess of fair value, foregiveness of outstanding
    accounts receivable and professional fees associated with PDG
    litigation.
(n) Cash net earnings and diluted cash net earnings per share are not
    measures of financial performance under GAAP.  Cash net earnings
    excludes amortization expense related to service agreement intangible
    assets, net of tax. The Company incurs significant amortization
    expense related to its service agreements while many companies, both
    in the same industry and other industries, no longer amortize a
    significant portion of their intangible assets pursuant to Statement
    of Financial Accounting Standards No. 142 - Goodwill and Other
    Intangible Assets. The Company believes that cash net earnings and
    diluted cash net earnings per share are important financial measures
    for understanding its relative financial performance.






                      AMERICAN DENTAL PARTNERS, INC.
                       SUPPLEMENTAL OPERATING DATA
  (in thousands, except per share amounts and selected statistical data)
                               (unaudited)


           Change in pro forma consolidated statement of income
     for the three and twelve months ended December 31, 2008 and 2007


                        Three Months Ended          Twelve Months Ended
                           December 31,                 December 31,
                    --------------------------- ---------------------------
                                         Change                      Change
                                         in Pro                      in Pro
                    Pro Forma Pro Forma  Forma  Pro Forma Pro Forma  Forma
                      2008      2007    Results   2008      2007    Results
                    --------- --------- ------- --------- --------- -------


Net revenue         $  65,110 $  67,421     -3% $ 273,411 $ 230,011     19%
Operating expenses
  Salaries and
   benefits            28,448    29,879     -5%   119,625    97,100     23%
  Lab fees and
   dental supplies      9,745    10,295     -5%    41,400    36,326     14%
  Office occupancy
   expenses             8,094     7,929      2%    32,606    26,632     22%
  Other operating
   expenses             5,811     5,774      1%    25,559    20,053     27%
  General corporate
   expenses             2,216     3,560    -38%    12,366    14,427    -14%
  Litigation
   expenses                -         -      0%         -         -      0%
                    --------- --------- ------  --------- --------- ------
EBITDA                 10,796     9,984      8%    41,855    35,473     18%
  Depreciation          2,938     2,537     16%    10,695     7,991     34%
  Amortization          2,429     2,401      1%     9,634     7,049     37%
                    --------- --------- ------  --------- --------- ------
Earnings from
 operations             5,429     5,046      8%    21,526    20,433      5%
  Interest expense,
   net                  2,929     3,227     -9%    10,193     5,253     94%
  Minority interest       203        41    395%       634       390     63%
                    --------- --------- ------  --------- --------- ------
Earnings before
 income taxes           2,297     1,778     29%    10,699    14,790    -28%
  Income taxes            890       726     23%     4,171     5,798    -28%
                    --------- --------- ------  --------- --------- ------
Net earnings            1,407     1,052     34%     6,528     8,992    -27%
Amortization of
 service agreements,
 net of tax             1,382     1,570    -12%     5,455     4,282     27%
                    --------- --------- ------  --------- --------- ------
Cash net earnings   $   2,789 $   2,622      6% $  11,983 $  13,274    -10%
                    ========= ========= ======  ========= ========= ======

Diluted net
 earnings per
 common share       $    0.11 $    0.08     50% $    0.50 $    0.68    -26%
                    ========= ========= ======  ========= ========= ======
Diluted cash net
 earnings per
 common share       $    0.21 $    0.20      5% $    0.91 $    1.00     -9%
                    ========= ========= ======  ========= ========= ======






                      AMERICAN DENTAL PARTNERS, INC.
                       SUPPLEMENTAL OPERATING DATA
  (in thousands, except per share amounts and selected statistical data)
                               (unaudited)


                       Selected statistical data


                                       December 31, December 31,     %
                                           2008         2007       Change
                                       ------------ ------------ ---------

Number of dental facilities                     241          266      -9.4%
Number of operatories (p)                     2,107        2,357     -10.6%
Number of affiliated dentists (q)               545          611     -10.8%


(p) An operatory is an area where dental care is performed and generally
    contains a dental chair, a hand piece delivery system and other
    essential equipment.
(q) Includes full-time equivalent general or specialty dentists employed by
    or contracted with the affiliated practices, including Arizona's Tooth
    Doctor for Kids.






            Patient revenue and same market patient revenue growth (r)

                Three Months Ended            Twelve Months Ended
                   December 31,                    December 31,
                -------------------     %      -------------------    %
                  2008      2007     Change     2008      2007     Change
                --------- --------- --------  --------- --------- --------
Patient revenue
 of affiliated
 practices:
   Platform
    dental
    group
    practices
    affiliated
    with us in
    both periods
    of
    comparison  $  96,367 $  95,793        1% $ 322,318 $ 305,249        6%
   Platform
    dental
    group
    practices
    that
    affiliated
    with us
    during
    periods of
    comparison      2,706    22,232      -88%    93,640   113,222      -17%
                --------- --------- --------  --------- --------- --------
Total patient
 revenue           99,073   118,025      -16%   415,958   418,471       -1%
Patient revenue
 of Arizona's
 Tooth Doctor
 for Kids           5,846     5,180       13%    24,438    22,426        9%
                --------- --------- --------  --------- --------- --------
Patient revenue
 of platform
 dental group
 practices
 affiliated
 with us by
 means of
 service
 agreements        93,227   112,845      -17%   391,520   396,045       -1%
Amounts due to
 us under
 service
 agreements        58,518    73,008      -20%   245,471   251,241       -2%
                --------- --------- --------  --------- --------- --------
Amounts
 retained by
 platform
 dental group
 practices
 affiliated
 with us by
 means of
 service
 agreements     $  34,709 $  39,837      -13% $ 146,049 $ 144,804        1%
                ========= ========= ========  ========= ========= ========


(r)  Includes patient revenue of affiliated dental group practices which
     are not consolidated with the Company’s financial results and patient
     patient revenue of Arizona's Tooth Doctor for Kids which is
     consolidated with the Company's financial results.

Contact Information

  • 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