Union Dental reported a loss of income from operations of $23,000 on revenues of $918,000 for the second quarter (end-June 30), compared with a profit of $325,000 on revenues of $1.1 million during the same quarter in 2010.
For the six-month period, the company reported a loss of $10,000 on revenues of $2 million, compared with a profit of $168,000 on revenues of $1.8 million for the same period in 2010.
Union Dental recently implemented an expansion program to double the size of its dental facility in Coral Springs, FL, and received a $1.48 million loan from Flagler Bank with a Small Business Administration (SBA) guarantee. This loan consolidated all the long-term debt of the company and included the funds for the expansion of the new facility, which includes all dental equipment to be fully operational upon opening.
"Due to the downturn in the economy and uncertainty of financial markets, our revenues were down in this quarter as compared to a year ago as patients put some of their healthcare needs on hold," said George Green, president and CEO, in a press release. "In addition, part of the loss is directly related to one-time costs with building the infrastructure for the expansion in addition to costs associated with our Flagler Bank/SBA loan, SBA fees, consulting fees, and additional legal and accounting fees with obtaining the loan."
