2014 Dental Statistics

We are pleased to present to you a copy of our biennial survey.  The information shown below and contained on the attached pages is provided to you strictly as a management tool.  Its main purpose is to allow you to compare your practice with the averages and ranges of our sample and to provide some insight into the trends occurring in your profession.  It is important to note that formalized statistical sampling was not undertaken and therefore, the results should not be assumed to be statistically valid.

The line entitled “Net Income before owner compensation – Income Tax Basis” on Schedule 1 constitutes the total amount available for remunerating the dentists.  We have summarized how this “Net Income before owner compensation – Income Tax Basis” was allocated between different owner compensation and benefits as follows:

	Range
	High	Low	Average
Self employment income after adjustments show below, or salary taken	660,443	57,784	226,892
Owner/officer retirement plan contributions	56,500	0	11,067
Income tax basis profit (loss) earned by corporations	523,048	(46,803)	34,320
Insurance preminus and medical expenses paid on behalf of the owner/officer	30,884	0	8,570
Owner/officer payrool taxes paid or 1/2 self employment tax	18,036	4,962	10,581
Income Tax Basis			291,431

The range columns on the prior page and on Schedule 1 present the highest and lowest amount for that particular line item. The range columns are not meant to total or show cumulative or net figures.

The average columns on Schedules 1 and 2 present the average amount for that particular line item from survey participants. The average columns add up to the “Total Expenses Disbursed” and the “Net Income Before Owner Compensation – Income Tax Basis” figures.

The percentage (%) column on Schedule 1 adds up as described in the preceding paragraph.  However, the % change column on Schedule 2 is not meant to total or show cumulative or net figures.  This column represents the annualized percentage increase or decrease of that particular line item over the two year period.

It is important to note that financial information from multi-owner dental practices and from practices that utilize associate dentists has been segregated into information that represents the activity of each doctor.  Therefore, financial information from a sole proprietor using a part-time associate will show activity from the full time proprietor.  Collections, expenses and contribution to profit for the associate are not included.  By presenting information by practitioner in this manner, we are able to focus on statistics that make a better comparison across practices.

We would also like to highlight the following items:

1. “Total Expenses Disbursed” and “Net Income Before Owner Compensation – Income Tax Basis” percentages on Schedule 1 include activity that may be regarded as investing or financing as opposed to operating expenses.  These expenses may have practice acquisition overtones that do not necessarily compare to practices that have been operating for a longer term. To determine the adjusted “Total Expenses Disbursed” percentage, subtract “Covenants, contracts & agreements” percentage and some or all of the “Interest paid” percentage.
2. Depreciation, amortization & leased equipment” expense increased from 2012 to 2014 due to office updating and expansion and taking advantage of expanded first-year write-off and bonus depreciation laws.  Depreciation and amortization may also have practice acquisition overtones.  As a result, these expenses may vary greatly from practice to practice.  Consider adjusting the “Total Expenses Disbursed” percentage to compare expenses from operations.
3. “Office and computer expenses” increased from 2012 to 2014 due to the investment practices are making in computers and the rapid changes in technology.
4. ”Laundry and uniforms” costs are declining since fewer practices are incurring these costs. It is not likely that laundry and uniforms will be tracked separately in KDV’s dental statistics after 2014.

Dental Practitioners — High and Low Ranges and Averages for years ending by March 31, 2014

 

	Range
	High	Low	Average	%
Fees Received	2,329,615	241,759	831,527	100%
Salaries – general	184,961	0	59,817	7.2%
Salaries – assistants	180,730	0	63,719	7.7%
Salaries – hygienists	398,814	0	99,587	12.0%
Payroll taxes – staff	57,093	2,765	19,146	2.3%
Staff retirement plans	28,102	0	6,168	0.7%
Employee benefit plans	56,483	0	7,748	0.9%
Staff meetings and parties	20,213	0	2,674	0.3%
Professional supplies	198,964	6,585	62,148	7.5%
Laboratory fees	190,889	4,710	54,536	6.6%
Occupancy expense	118,643	11,486	50,382	6.1%
Repairs, decorate and service contracts	23,783	0	5,829	0.7%
Depreciation, amortization and leased equipment	119,295	0	24,729	2.9%
Interest paid	47,518	0	7,034	0.8%
Insurance – business	30,728	1,557	6,091	0.7%
Telephone	13,079	488	4,391	0.5%
Office and computer expenses	60,204	1,410	16,58	1.6%
Promotion and advertising	63,001	100	13,939	1.7%
Meetings and seminars	31,975	0	4,736	0.5%
Professional, banking and other fees	90,207	2,650	20,148	2.4%
Dues, licenses and subscriptions	8,651	405	3,062	0.4%
Auto and employee travel	8,890	0	1,403	0.2%
Laundry and uniforms	5,188	0	812	0.2%
Covenants, contracts and agreements	68,664	0	5,413	0.7%
Total Expenses Disbursed			540,096	65.0%
Net Income on an Income Tax Basis			291,431	35.0%

*Please read the explanatory notes in the cover letter regarding possible adjustments to the above figures.

Dental Practitioners — Comparison of 2014 and 2012 Averages

 

	2014 Average	2012 Average	Increase (Decrease)	Annualized % Change
Fees Received	831,527	771,183	60,344	3.8%
Salaries – general	59,817	60,105	(288)	-0.2%
Salaries – assistants	63,719	56,090	7,629	6.6%
Salaries – hygienists	99,587	88,006	11,581	6.4%
Payroll taxes – staff	19,146	17,906	1,240	3.4%
Staff retirement plans	6,168	6,393	(225)	-1.8%
Employee benefit plans	7,748	8,546	(798)	-4.8%
Staff meetings and parties	2,674	1,792	882	22.2%
Professional supplies	62,148	55,666	6,482	5.7%
Laboratory fees	54,536	54,674	(138)	-0.1%
Occupancy expense	50,382	50,400	(18)	0.0%
Repairs, decorate and service contracts	5,829	5,185	644	6.0%
Depreciation, amortization and leased equipment	24,729	18,724	6,005	14.9%
Interest paid	7,034	7,923	(889)	-5.8%
Insurance – business	6,091	5,204	887	8.2%
Telephone	4,391	3,946	445	5.5%
Office and computer expenses	16,582	13,918	2,664	9.2%
Promotion and advertising	13,939	13,899	40	0.1%
Meetings and seminars	4,736	3,642	1,094	14.0%
Professional, banking and other fees	20,148	16,860	3,288	9.3%
Dues, licenses and subscriptions	3,062	2,630	432	7.9%
Auto and employee travel	1,403	1,772	(369)	-11.0%
Laundry and uniforms	812	888	(76)	-4.4%
Covenants, contracts and agreements	5,413	5,173	240	2.3%
Total Expenses Disbursed	540,096	499,342	40,754	4.0%
Net Income Before Owners Compensation – Income Tax Basis	291,431	271,841	19,590	3.5%

*Please read the explanatory notes in the cover letter regarding possible adjustments to the above figures.