Holding Company

DeCare Dental is a wholly-owned subsidiary of DeCare International, which serves as a holding company.  DeCare International's other key subsidiary is Minnesota's largest non-profit dental benefit administrator.

CFO Report
Total Managed Revenues Surpass $1 Billion

The breadth and scope of services offered by DeCare Dental—along with its broad market presence through the various brands it manages—have significantly contributed to its financial success.

In 2007, the organization passed a major milestone as it registered $1.06 billion in total managed revenues, compared to $1.01 billion in 2006. Our annual growth in managed revenues has averaged roughly 7 percent over the recent five-year period (2002 to 2007).

DeCare continues to contain costs and provide affordable dental care for all of its members. We processed 6.5 million dental service claims in 2007. Operating expenses in 2007 were 6.9 percent of total DeCare managed revenue—one of the most efficient levels in the industry.

DeCare’s 2007 revenues over expenses of nearly $30 million measures a return of more than 15 percent of average equity, representing a strong return in an industry where margins are thin and dependent upon prudent management of operating expenses.

DeCare’s December 31, 2007, balance sheet is solid. DeCare holds a strong position in cash and cash equivalents and maintains sufficient liquidity. The vast majority of investments are high-investment-grade fixed securities, and market values exceed cost for the portfolio. The aging of accounts receivable is very current. An external actuarial firm annually reviews our claim reserving methods and assumptions and rendered an opinion that our dental service claim liability is fairly stated. DeCare’s total equity grew to $194 million as of December 31, 2007, providing sound financial security to its customer groups, subscribers and business partners.

DeCare’s 2007 financial statements are supported by an Independent Auditor’s Report with an unqualified opinion from external auditor McGladrey & Pullen, LLP. DeCare again received an unqualified 2007 Independent Service Auditor’s Report from McGladrey & Pullen, LLP on DeCare’s claims processing controls.

These reports are available upon request.

Dani V. Fjelstad, Executive Vice President
Finance and Business Development, and Chief Financial Officer

*DeCare Dental family of companies

Please read our annual report for DeCare International’s Consolidated Financial Statements for 2006 and 2007.