First Choice Healthcare Reports Third Quarter 2013 Results

MELBOURNE, FL--(Marketwired - Nov 15, 2013) -   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 third quarter results for the three and nine months ended September 30, 2013.

Financial Highlights for the Three Months Ended September 30, 2013 Compared to the Three Months Ended September 30, 2012:

• Total revenues rose 55% to $1,654,730 from $1,068,624.
  
  
• Income from operations was $142,864, up 206% from a loss from operations of $134,184.
  
  
  • Notwithstanding non-cash expenses of $124,378 for depreciation and amortization, income from operations totaled $267,242 in the third quarter of 2013; this compared to a loss from operations less non-cash depreciation and amortization expenses totaled $60,666 for the third quarter in 2012.
    
    
  • On a subsequent quarter over quarter basis, income from operations for the third quarter 2013 increased 216% over income from operations of $45,236 reported for the second quarter of this year.
    
    
• Despite higher interest expense associated with the servicing of loans ($302,590 for the three month reporting period in 2013 compared to $135,652 for the same period in 2012), net loss totaled $183,409, or $0.01 loss per basic and diluted share, representing a 35% decrease from a net loss of $283,423, or $0.02 loss per basic and diluted share for the same period in 2012. 
  
  

Financial Highlights for the Nine Months Ended September 30, 2013 Compared to the Nine Months Ended September 30, 2012:

• Total revenues were $4,525,981, climbing 75% from $2,590,873.
  
  
• Income from operations increased 237% to $278,443 from a loss from operations of $203,542.
  
  
  • Income from operations, before factoring non-cash expenses of $373,803 for depreciation and amortization, totaled $652,246, which compared to a loss from operations of $16,122 notwithstanding depreciation and amortization expenses of $187,420.
    
    
• After factoring interest expense of $983,966 and amortization financing costs of $51,477, offset by a gain on change in fair value of a derivative liability of $187,351, the net loss for the first nine months of 2013 declined 6% to $558,870, or $0.04 loss per basic and diluted share, from $593,715, or $0.05 loss per basic and diluted share. For the comparable period in 2012, the net loss was impacted by $372,515 in interest expense and amortization and financing costs of $43,011. 
  
  

As of September 30, 2013, the Company had cash and restricted cash totaling $455,331; accounts receivable of $1,174,488; total liabilities of $12,678,060, which included $10,033,993 in long term debt; and total stockholders' deficit of $968,029. However, subsequent to the end of the third quarter, First Choice raised gross proceeds of $2,000,000 from issuing an 8% Original Issue Secured Convertible Debenture to an institutional investor and paid off or converted to equity a total of $1,238,480 in debt, further strengthening the Company's balance sheet. In addition, the Company modified its $1.5 million line of credit with CT Capital, providing for the reduction of the annual interest rate from 12% per annum to 6% per annum in exchange for the issuance of 100,000 restricted shares of First Choice's common stock.

Commenting on the results, Chris Romandetti, Chairman, President and CEO of First Choice, stated, "We are very pleased with our solid financial performance through the end of the third quarter, which serves to validate the fundamental strength of our 'medical centers of excellence' business model and points to the compelling nature of our long term value proposition. We're particularly proud of the fact that the results serve to underscore First Choice's success-to-date in executing growth strategies that have allowed our flagship center, First Choice Medical Group, to steadily expand its team of exceptional care professionals, increase the number of patients it cares for on a daily basis, and perpetuate and enhance its reputation as the obvious 'first choice' for patients seeking clinically superior care and attention." 

Continuing, Romandetti said, "With the recent completion of the strategic financing, providing for very favorable terms to FCHS and our shareholders, coupled with the steps taken to retire or convert to equity over $1.2 million in debt, we are well poised to continue implementing expansion initiatives that will allow us to begin replicating our business model in other geographic markets in the coming year."

FINANCIAL CHARTS TO FOLLOW

FIRST CHOICE HEALTHCARE SOLUTIONS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
			September 30,				December 31,
			2013				2012
			(unaudited)
ASSETS
Current assets
Cash			$	197,020			$	67,045
Cash-restricted				258,311				221,148
Accounts receivable				1,174,488				527,867
Employee loans				35,000				-
Prepaid and other current assets				118,226				69,970
Capitalized financing costs, current portion				57,348				57,348
	Total current assets			1,840,393				943,378
Property, plant and equipment, net of accumulated depreciation of $1,834,133 and $1,465,939				8,708,199				8,756,631
Other assets
Capitalized financing costs, long term portion				152,226				152,911
Patient list, net of accumulated amortization of $30,000				270,000				275,609
Patents				286,500				-
Investments				450,000				-
Deposits				2,713				2,719
	Total other assets			1,161,439				431,239
Total assets			$	11,710,031			$	10,131,248
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities
Accounts payable and accrued expenses			$	871,860			$	576,209
Line of credit, short term				635,000				-
Notes payable, current portion				738,349				690,586
Note payable, related party				300,000				300,000
Convertible note payable, net of unamortized debt discount of $106,744 and $160,543, respectively				58,098				43,537
Unearned revenue				40,760				39,438
	Total current liabilities			2,644,067				1,649,770
Long term debt:
Deposits held				60,150				47,399
Revolving line of credit, related party				141,448				153,330
Line of credit, long term				502,196				-
Notes payable, long term portion				9,119,238				9,410,296
Derivative liability				210,961				171,987
	Total long term debt			10,033,993				9,783,012
Total liabilities				12,678,060				11,432,782
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, 14,695,127 and 12,706,795 shares issued and outstanding as of September 30, 2013 and December 31, 2012, respectively				14,695				12,707
Additional paid in capital				8,235,380				7,244,993
Common stock subscriptions				-				100,000
Accumulated deficit				(9,218,104	)			(8,659,234	)
	Total stockholders' deficit			(968,029	)			(1,301,534	)
Total liabilities and stockholders' deficit			$	11,710,031			$	10,131,248

FIRST CHOICE HEALTHCARE SOLUTIONS, INC
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
			Three months ended September 30,								Nine months ended September 30,
			2013				2012				2013				2012
Revenues:
Net patient service revenue			$	1,395,610			$	798,077			$	3,739,435			$	1,707,694
Rental revenue				259,120				270,547				786,546				883,179
	Total Revenue			1,654,730				1,068,624				4,525,981				2,590,873
Operating expenses:
Salaries and benefits				735,888				470,334				2,000,436				1,029,692
Other Operating expenses				353,034				282,813				965,923				589,442
General and administrative				298,566				376,143				898,910				987,861
Depreciation and amortization				124,378				73,518				373,803				187,420
	Total operating expenses			1,511,866				1,202,808				4,239,072				2,794,415
Net income (loss) from operations				142,864				(134,184	)			278,443				(203,542	)
Other income (expense):
Miscellaneous income				750				750				2,313				2,250
Gain (Loss) on change in fair value of derivative liability				(1,631	)			-				187,351				-
Amortization financing costs				(22,802	)			(14,337	)			(51,477	)			(43,011	)
Interest expense, net				(302,590	)			(135,652	)			(983,966	)			(372,515	)
	Total other income (expense)			(326,273	)			(149,239	)			(845,779	)			(413,276	)
Net loss before provision for income taxes				(183,409	)			(283,423	)			(558,870	)			(616,818	)
Income taxes (benefit)				-				-				-				(23,103	)
NET LOSS			$	(183,409	)		$	(283,423	)		$	(558,870	)		$	(593,715	)
Net loss per common share, basic and diluted			$	(0.01	)		$	(0.02	)		$	(0.04	)		$	(0.05	)
Weighted average number of common shares outstanding, basic and diluted				13,416,949				12,706,795				13,005,773				12,623,962

About First Choice Healthcare Solutions, Inc.

Headquartered in Melbourne, Florida, First Choice Healthcare Solutions (FCHS) is actively engaged in owning and operating 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 operates its flagship center, First Choice Medical Group, 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 our industry, management beliefs and certain assumptions made by our 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, we undertake 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.