SOURCE: First Choice Healthcare Solutions, Inc.

First Choice Healthcare Solutions, Inc.

August 14, 2014 07:30 ET

First Choice Healthcare Reports Record Revenue and Second Quarter 2014 Results

Company Reports 51% Year-Over-Year Growth for the Six Months Ended June 30, 2014

MELBOURNE, FL--(Marketwired - Aug 14, 2014) -  First Choice Healthcare Solutions, Inc. (OTCQB: FCHS) ("FCHS" or "First Choice"), a diversified holding company focused on delivering clinically superior, patient-centric, multi-specialty care through state-of-the-art medical centers of excellence, today announced its second quarter financial results for the three and six months ended June 30, 2014.

Q2 2014 Financial Summary

  • 43% increase in total revenue to $2,107,164 for the second quarter ended June 30, 2014 as compared to $1,469,570 for the same period in 2013 driven by growth in net patient service revenue from the Medical Center of Excellence, FCMG
  • For the three months ended June 30, 2014, the Company's wholly owned subsidiary (Medical Division), First Choice Medical Group of Brevard, experienced a 53% increase in revenue to $1,848,441 from $1,208,813 for the same period of last year in its Medical Center of Excellence
  • Other operating expenses increased 38% for the three months ended June 30, 2014 to $427,056, as compared to $308,414 for the same period in the prior year due to the hiring of additional physicians and their support staff which occurred in the fourth quarter of 2013
  • General and administrative expenses for the three months ended June 30, 2014 were $669,208, as compared to $347,326 for the same period in the prior year, and was attributed to expenses related to the Company's growth and capital restructuring
  • For the three months ended June 30, 2014, net loss was $(448,571), or $0.03 per share, as compared to a net loss of $(120,392), or $0.01 loss per share, for the same period in the prior year. Additional expenses are attributable to investment in the Company's infrastructure to move forward with the growth of the business

Six Months Ended June 30, 2014 Financial Summary

  • 51% increase in total revenue to $4,341,917 for the six months ended June 30, 2014, up from $2,871,251 over the same period of 2013 driven by growth in net patient service revenue from the Medical Center of Excellence, FCMG
  • For the six months ended June 30, 2014, the Company's wholly owned subsidiary (Medical Division), First Choice Medical Group of Brevard, experienced a 63% increase in revenue to $3,821,271 from $2,343,825 for the same period of last year in its Medical Center of Excellence
  • Operating expenses increased 40% for the six months ended June 30, 2014 to $856,347, as compared to $612,889 for the same period in the prior year due to the hiring of additional physicians and their support staff which occurred in the fourth quarter of 2013
  • General and administrative expenses for the six months ended June 30, 2014 was $1,075,120, as compared to $600,345 for the same period in the prior year, and was attributed to expenses related to the Company's growth and capital restructuring
  • For the six months ended June 30, 2014, net loss was $(483,670), or $0.03 per share, as compared to a net loss of $(375,461), or $0.03 loss per share, for the same period in the prior year. Additional expenses are attributable to investment in the Company's infrastructure to move forward with the growth of the business
  • As of June 30, 2014, the Company had cash and restricted cash totaling approximately $352,265 and accounts receivable of $2.05 million

Chris Romandetti, Chairman, President and Chief Executive Officer of First Choice, noted, "During the second quarter of 2014, we continued to invest in the infrastructure for our future growth and profitability. We are excited to see the momentum pick up as we reported a 51% year-over-year growth for the six months ended June 30, 2014 which consists of a 63% growth in our core operating business in net patient service from our wholly owned subsidiary, the Medical Center of Excellence, FCMG. Our top line revenue has generated double digit increases, and revenue from operations show strong, positive growth. In addition, we are very pleased that our EBITDA remains positive for the six months ended June 30, 2014 at $255,623. Our Real Estate Division, The Marina Towers, remain consistently strong with a 95% occupancy of our Class A, six story professional office building located in Melbourne, Florida. We are committed to revenue generation and prudent financial oversight and are optimistic that we will be able to execute our expansion strategy as our resources allow."

[FINANCIAL CHARTS TO FOLLOW]

   
FIRST CHOICE HEALTHCARE SOLUTIONS, INC.  
CONDENSED CONSOLIDATED BALANCE SHEETS  
   
    June 30,     December 31,  
    2014     2013  
      (unaudited )        
ASSETS                
Current assets                
Cash   $ 70,812     $ 739,158  
Cash-restricted     281,453       256,246  
Accounts receivable     2,055,245       1,272,155  
Prepaid and other current assets     225,624       140,580  
Capitalized financing costs, current portion     57,348       57,348  
  Total current assets     2,690,482       2,465,487  
                 
Property, plant and equipment, net of accumulated depreciation of $2,210,618 and $1,959,127     8,498,548       8,662,057  
                 
Other assets                
Capitalized financing costs, long term portion     90,169       131,540  
Patient list, net of accumulated amortization of $40,000 and $35,000     255,000       265,000  
Patents     286,500       286,500  
Deposits     2,713       2,713  
  Total other assets     634,382       685,753  
                 
Total assets   $ 11,823,412     $ 11,813,297  
                 
                 
LIABILITIES AND STOCKHOLDERS' DEFICIT                
Current liabilities                
Accounts payable and accrued expenses   $ 818,417     $ 459,000  
Stock based payable     96,000       166,340  
Line of credit, short term     1,000,000       800,000  
Convertible note payable, short term portion     915,412       -  
Notes payable, current portion     781,999       743,787  
Unearned revenue     50,854       74,934  
  Total current liabilities     3,662,682       2,244,061  
                 
Long term debt:                
Deposits held     72,901       72,901  
Convertible note payable, long term portion     1,317,066       2,347,403  
Notes payable, long term portion     8,515,934       8,935,473  
  Total long term debt     9,905,901       11,355,777  
                 
Total liabilities     13,568,583       13,599,838  
                 
Stockholders' deficit                
Preferred stock, $0.01 par value; 1,000,000 shares authorized, Nil issued and outstanding     -       -  
Common stock, $0.001 par value; 100,000,000 shares authorized, 17,385,947 and 16,747,248 shares issued and outstanding as of June 30, 2014 and December 31, 2013, respectively     17,386       16,747  
Additional paid in capital     12,084,650       11,560,249  
Accumulated deficit     (13,847,207 )     (13,363,537 )
  Total stockholders' deficit     (1,745,171 )     (1,786,541 )
                 
Total liabilities and stockholders' deficit   $ 11,823,412     $ 11,813,297  
                 
                 
   
FIRST CHOICE HEALTHCARE SOLUTIONS, INC.  
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS  
(unaudited)  
                         
    Three months ended
June 30,
    Six months ended
June 30,
 
    2014     2013     2014     2013  
Revenues:                                
Patient Service Revenue   $ 1,885,569     $ 1,208,813     $ 3,896,543     $ 2,343,825  
Provision for bad debts     (37,128 )     -       (75,272 )     -  
Net patient service revenue less provision for bad debts     1,848,441       1,208,813       3,821,271       2,343,825  
Rental Revenue     258,723       260,757       520,646       527,426  
  Total Revenue     2,107,164       1,469,570       4,341,917       2,871,251  
                                 
Operating expenses:                                
Salaries & Benefits     1,090,806       641,789       2,156,327       1,264,548  
Other Operating expenses     427,056       308,414       856,347       612,889  
General & Administrative     669,208       347,326       1,075,120       600,345  
Depreciation and amortization     126,772       126,805       261,491       249,425  
  Total operating expenses     2,313,842       1,424,334       4,349,285       2,727,207  
                                 
Net (loss) income from operations     (206,678 )     45,236       (7,368 )     144,044  
                                 
Other income (expense):                                
Miscellaneous income     750       813       1,500       1,563  
Gain on change in fair value of derivative liability     -       229,631       -       188,982  
Amortization Financing costs     (25,466 )     (14,337 )     (41,372 )     (28,674 )
Interest expense, net     (217,177 )     (381,735 )     (436,430 )     (681,376 )
  Total other income (expense)     (241,893 )     (165,628 )     (476,302 )     (519,505 )
                                 
                                 
Net loss before provision for income taxes     (448,571 )     (120,392 )     (483,670 )     (375,461 )
                                 
Income taxes (benefit)     -       -       -       -  
                                 
NET LOSS   $ (448,571 )   $ (120,392 )   $ (483,670 )   $ (375,461 )
                                 
Net loss per common share, basic and diluted   $ (0.03 )   $ (0.01 )   $ (0.03 )   $ (0.03 )
                                 
Weighted average number of common shares outstanding, basic and diluted     16,988,149       12,841,154       16,873,038       12,796,777  
                                 

About First Choice Healthcare Solutions, Inc.
Headquartered in Melbourne, Florida, First Choice Healthcare Solutions (FCHS) is actively engaged in developing a network of multi-specialty medical centers of excellence throughout the southeastern U.S., which are distinguished as premier destinations for clinically superior, patient-centric care. Through its wholly owned subsidiary FCID Medical, Inc., the Company currently operates one Medical Center of Excellence, First Choice Medical Group of Brevard, which specializes in the delivery of musculoskeletal medicine and rehabilitative care. FCHS' commercial real estate interests, which house its medical centers of excellence, are managed by its wholly owned subsidiary, FCID Holdings, Inc. For more information, please visit www.myfchs.com or www.myfcmg.com

Safe Harbor Statement
Certain information set forth in this news announcement may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of First Choice Healthcare Solutions, Inc. Such forward-looking statements are based on current expectations, estimates and projections about the Company's industry, management beliefs and certain assumptions made by its management. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Information concerning factors that could cause the Company's actual results to differ materially from those contained in these forward-looking statements can be found in the Company's periodic reports on Form 10-K and Form 10-Q, and in its Current Reports on Form 8-K, filed with the Securities and Exchange Commission. Unless required by law, the Company undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise to reflect future events or circumstances or reflect the occurrence of unanticipated events.

Contact Information

  • For further investor information contact:
    Robert Haag
    Managing Partner
    IRTH Communications
    fchs@irthcommunications.com
    1-866-976-4784