Birner Dental Management Services, Inc.

1777 S. Harrison Street, Suite 1400

Denver, CO 80210

303-691-0680

FOR IMMEDIATE RELEASE

May 11, 2017

Exhibit No. 99.1 BIRNER DENTAL MANAGEMENT SERVICES, INC. ANNOUNCES RESULTS FOR 1Q 2017

DENVER, COLORADO, May 11, 2017. Birner Dental Management Services, Inc. (OTCQX: BDMS), business services provider of PERFECT TEETH dental practices, announced results for the quarter ended March 31, 2017. For the quarter ended March 31, 2017, revenue decreased $771,000, or 4.7%, to $15.7 million compared to $16.4 million for the quarter ended March 31, 2016. The Company's earnings before interest, taxes, depreciation, amortization, and stock-based compensation expense ("Adjusted EBITDA") decreased $227,000, or 22.7%, to $777,000. Net loss for the quarter ended March 31, 2017 increased $125,000 to $(225,000) compared to $(100,000) for the quarter ended March 31, 2016. Loss per share increased to $(0.12) for the quarter ended March 31, 2017 compared to $(0.05) for the quarter ended March 31, 2016.

Despite challenging comparisons of the quarter ended March 31, 2017 to the same quarter in 2016, the Company believes there are meaningful signs of progress. As previously reported, the Company believes much of the decline in revenue and Adjusted EBITDA has been driven by a decrease in the number of dentists in the network. The dentist count was 112 at March 31, 2016 and had declined to 98 at December 31, 2016. As a result of management's actions, the Company believes this trend is beginning to reverse as evidenced by the Company's increasing its dentist count to 102 at March 31, 2017. Furthermore, dentist productivity, as measured by daily revenue per practicing dentist, increased 8.3% in the first quarter of 2017 as compared to the first quarter of 2016. In addition, patient flow continues to be strong with new patient visits up 8.2% in the quarter ended March 31, 2017 versus the same quarter in 2016. As dentist count increases, management believes operating results will improve through increased revenue and Adjusted EBITDA.

During the quarter ended March 31, 2017, the Company had capital expenditures of $156,000 and decreased total bank debt outstanding by approximately $655,000. The Company was in compliance with its first quarter 2017 bank credit facility covenants, including the EBITDA covenant as a result of $104,000 of expenses related to the strategic assessment that commenced in the second quarter of 2016 and was discontinued in the first quarter of 2017, which the bank permitted the Company to add back to EBITDA.

The Company also announced that it has reached an agreement in principle, pending receipt of signatures, with a group of shareholders regarding a mutual settlement agreement to end a potential proxy contest related to the Company's upcoming annual meeting of shareholders. Under the terms of the pending settlement agreement, the Company will nominate John M. Climaco and Gregory G. Fulton for election to its board of directors at the 2017 annual meeting, along with incumbent director Brooks G. O'Neil. "The board and management team believe this settlement serves the best interests of the Company, its shareholders and employees," said Fred Birner, the Company's Chairman and CEO. "We welcome these new nominees to our board. We look forward to putting this matter behind us and to getting back to the business of growing the Company and building shareholder value." As part of the pending settlement agreement, the shareholder group has agreed to withdraw its proposals for the annual meeting and to vote in favor of the above slate of director nominees at the 2017 annual meeting. In addition, the shareholder group agrees to a standstill that generally extends until the later of the 2018 annual meeting of shareholders and the date neither Mr. Climaco nor Mr. Fulton serves on the board, except that the shareholder group may propose nominees for director for the 2018 annual meeting in accordance with the Company's bylaws.

Birner Dental Management Services, Inc. acquires, develops, and manages geographically dense dental practice networks in select markets in Colorado, New Mexico, and Arizona. As of March 31, 2017, the Company managed 68 dental offices, of which 35 were acquired and 33 were de novo developments. The Company operates its dental offices under the PERFECT TEETH® name.

The Company previously announced it would conduct a conference call to review results for the quarter ended March 31, 2017 on Thursday, May 11, 2017 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 1-888-471-3820 and refer to Confirmation Code 5570786 approximately five minutes prior to the scheduled time. If you are unable to join the conference call on May 11, 2017, the rebroadcast number is 1-888-203-1112 with the pass code of 5570786. This rebroadcast will be available through May 25, 2017.

Non-GAAP Disclosures

This press release includes a non-GAAP financial measure with respect to Adjusted EBITDA. Please see below for more information regarding Adjusted EBITDA and a reconciliation of Adjusted EBITDA to net loss.

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 prospects and performance in future periods, including improvement in operating results and dentist hiring, the amount of bank debt, compliance with debt covenants, performance of de novo offices, the payment or nonpayment of dividends, dentist count, dentist turnover and recruitment, dentist productivity, new patient visits and patient flow and the impact of certain shareholder matters. 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, performance 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, including the Company's Form 10-K for the year ended December 31, 2016. 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 BIRNER DENTAL MANAGEMENT SERVICES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

Quarters Ended March 31,

2016

2017

REVENUE:

Dental practice revenue

$ 15,366,543

$ 14,618,704

Capitation revenue

1,064,690

1,041,976

16,431,233

15,660,680

DIRECT EXPENSES:

Clinical salaries and benefits

9,870,950

9,466,299

Dental supplies

725,273

628,406

Laboratory fees

871,615

881,141

Occupancy

1,566,805

1,550,259

Advertising and marketing

158,870

169,904

Depreciation and amortization

1,020,091

964,802

General and administrative

1,403,210

1,263,626

15,616,814

14,924,437

Contribution from dental offices 814,419 736,243

CORPORATE EXPENSES:

General and administrative 876,906 (1) 959,458 (1)

Depreciation and amortization

62,799

46,084

OPERATING LOSS

(125,286)

(269,299)

Interest expense, net

39,322

72,423

LOSS BEFORE INCOME TAXES

(164,608)

(341,722)

Income tax benefit

(64,198)

(116,663)

NET LOSS

$ (100,410)

$ (225,059)

Net loss per share of Common Stock - Basic

$ (0.05)

$ (0.12)

Net loss per share of Common Stock - Diluted

$ (0.05)

$ (0.12)

Weighted average number of shares of

Common Stock and dilutive securities:

Basic 1,860,482 1,860,261

Diluted 1,860,482 1,860,261

(1) Corporate expenses - general and administrative includes $46,707 and $35,236 of stock-based compensation expense pursuant to ASC Topic 718 for the quarters ended March 31, 2016 and 2017, respectively.

BIRNER DENTAL MANAGEMENT SERVICES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

CURRENT ASSETS:

ASSETS

December 31, March 31,

2016 2017

Cash

Accounts receivable, net of allowance for doubtful

accounts of approximately $410,000 and $410,000, respectively

$ 157,923

3,212,190

$ 208,670

3,849,498

Note receivable

34,195

34,195

Prepaid expenses and other assets

759,749

735,400

Total current assets

4,164,057

4,827,763

PROPERTY AND EQUIPMENT, net

7,279,436

6,636,109

OTHER NONCURRENT ASSETS:

Intangible assets, net

6,721,084

6,509,476

Deferred charges and other assets

155,741

163,991

Note receivable

31,051

23,358

Total assets

$ 18,351,369

$ 18,160,697

Accounts payable

$ 2,723,473

$ 2,861,371

Accrued expenses

925,776

1,074,744

Accrued payroll and related expenses

2,164,758

2,652,495

Income taxes payable

-

122,042

Current maturities of long-term debt

2,500,000

3,284,195

Total current liabilities

8,314,007

9,994,847

LONG-TERM LIABILITIES:

Deferred tax liability, net

1,174,416

935,712

Long-term debt

7,351,006

5,912,112

Other long-term obligations

1,081,655

1,077,564

Total liabilities

17,921,084

17,920,235

SHAREHOLDERS' EQUITY:

LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES:

Preferred Stock, no par value, 10,000,000 shares

authorized; none outstanding - -

Common Stock, no par value, 20,000,000 shares

authorized; 1,860,261 and 1,860,261 shares issued and

outstanding, respectively

1,615,001

1,650,237

Accumulated deficit

(1,184,716)

(1,409,775)

Total shareholders' equity

430,285

240,462

Total liabilities and shareholders' equity

$ 18,351,369

$ 18,160,697

Birner Dental Management Services Inc. published this content on 11 May 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 11 May 2017 18:06:17 UTC.

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