SOURCE: First Choice Healthcare Solutions, Inc.

First Choice Healthcare Solutions, Inc.

November 17, 2014 08:30 ET

First Choice Healthcare Reports Third Quarter 2014 Results

Comparable Nine Month Revenues Climb 38% Fueled by 46% Increase in Net Patient Service Revenues

MELBOURNE, FL--(Marketwired - Nov 17, 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 third quarter results for the three and nine months ended September 30, 2014.

Financial Highlights for the Three Months Ended September 30, 2014 Compared to the Three Months Ended September 30, 2013:

  • Total revenues were $1,891,045, up 14% from $1,654,730.

    • Net patient service revenue less provision for bad debts generated by our flagship Medical Center of Excellence, First Choice Medical Group, rose 17% to $1,627,157 from $1,395,610.
    • Rental revenue from our real estate holding, Marina Towers, remained relatively flat at $263,888 compared to $259,120.

  • After factoring non-cash expenses related to depreciation, bad debt expense and stock-based compensation totaling $502,210, net loss from operations was $140,886. This compared to net income from operations of $142,864 after factoring $211,800 in non-cash depreciation and stock-based compensation expenses.

    • Notwithstanding the noted non-cash expenses, income from operations increased modestly to $361,324 from $354,664.

  • Net loss totaled $375,620, or $0.02 loss per basic and diluted share, representing a 105% increase over a net loss of $183,409, or $0.01 loss per basic and diluted share. 

Financial Highlights for the Nine Months Ended September 30, 2014 Compared to the Nine Months Ended September 30, 2013:

  • Total revenues climbed 38% to $6,232,962 from $4,525,981.

    • Net revenues from patient service less provision for debts increased 46% to $5,448,428 from $3,739,435.
    • Rental revenue remained flat at $784,534 compared to $786,546.

  • Net loss from operations totaled $148,254 after factoring non-cash expenses related to depreciation, bad debt expense and stock-based compensation of $976,345. This compared to net income from operations of $286,909, inclusive of non-cash expenses of $529,678 for depreciation and stock-baed compensation.

    • Notwithstanding the non-cash expenses, net income from operations increased to $828,091 from $816,587.

  • After factoring interest expense of $651,228 and amortization financing costs of $62,058, the net loss for the first nine months of 2014 totaled $859,290, or $0.05 loss per basic and diluted share. For the comparable nine-month period in 2013, net loss was $558,871, or $0.04 loss per basic and diluted share, after giving consideration to $983,966 in interest expense and amortization financing costs of $51,477, offset by $187,351 related to a gain on change in fair value of a derivative liability.

  • Adjusted EBITDA1 was $402,517, compared to $1,006,250.

As of September 30, 2014, the Company had cash and restricted cash totaling $477,690; accounts receivable of $2,114, 525; total liabilities of $13,732,759, which included $8,938,980 in long term debt; and total stockholders' deficit of $1,798,933. 

"We are pleased that our third quarter revenue results continued to reflect the momentum we are building at First Choice Medical Group," stated Chris Romandetti, Chairman, President and CEO of First Choice. "As we approach the yearend, we remain squarely focused on achieving sustainable positive operating cash flow while investing back in our business through strategic acquisitions, continued expansion of our core leadership team and ongoing innovation in our systems of operations."

1 This press release includes information relating to Adjusted EBITDA Modified for Non-Cash Items, which is a financial measures that has not been prepared in accordance with generally accepted accounting principles in the United States ("GAAP"). This non-GAAP financial measure is not a measurement of financial performance under GAAP, and should not be considered as an alternative to GAAP measures or as indications of operating performance or any other measure of performance derived in accordance with GAAP. We do not consider these non-GAAP financial measures to be a substitute for, or superior to, the information provided by GAAP financial measures. These non-GAAP financial measures have been included in this press release because they are measures used by our management and board of directors to understand our business, make operating decisions and understanding and evaluating our operating results.

Adjusted EBITDA is a non-GAAP financial measure defined by us as net income/loss before interest expense, net, depreciation and amortization expenses and stock-based compensation expense. We have presented Adjusted EBITDA in this press release because it is a key measure used by our management and board of directors to understand and evaluate our core operating performance and trends, to prepare and approve our annual budget and to develop short and long-term operational plans. In particular, we believe that the exclusion of the amounts eliminated in calculating Adjusted EBITDA can provide a useful measure for period-to-period comparisons of our core business. Accordingly, we believe that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors. You should consider Adjusted EBITDA along with other GAAP-based financial performance measures, including various cash flow metrics, loss, and our GAAP financial results. For a reconciliation of non-GAAP financial measures to the nearest comparable GAAP financial measures for each of the periods indicated, "Reconciliation of Adjusted EBITDA Modified for Non-Cash Items" included in this press release.

FINANCIAL CHARTS TO FOLLOW

   
   
FIRST CHOICE HEALTHCARE SOLUTIONS, INC.  
CONDENSED CONSOLIDATED BALANCE SHEETS  
   
    September 30,     December 31,  
    2014     2013  
    (unaudited)        
ASSETS                
Current assets                
Cash   $ 137,018     $ 739,158  
Cash-restricted     340,672       256,246  
Accounts receivable, net     2,114,525       1,272,155  
Prepaid and other current assets     264,440       140,580  
Capitalized financing costs, current portion     57,348       57,348  
  Total current assets     2,914,003       2,465,487  
                 
Property, plant and equipment, net of accumulated depreciation of $2,341,377 and $1,959,127     8,425,452       8,662,057  
                 
Other assets                
Capitalized financing costs, long term portion     69,483       131,540  
Patient list, net of accumulated amortization of $50,000 and $35,000     250,000       265,000  
Patents, net of amortization of $14,325     272,175       286,500  
Deposits     2,713       2,713  
  Total other assets     594,371       685,753  
                 
Total assets   $ 11,933,826     $ 11,813,297  
                 
                 
LIABILITIES AND STOCKHOLDERS' DEFICIT                
Current liabilities                
Accounts payable and accrued expenses   $ 1,078,142     $ 459,000  
Stock based payable     28,750       166,340  
Advances     50,000       -  
Line of credit, short term     1,202,000       800,000  
Convertible note payable, short term portion     1,611,626       -  
Notes payable, current portion     781,162       743,787  
Unearned revenue     42,099       74,934  
  Total current liabilities     4,793,779       2,244,061  
                 
Long term debt:                
Deposits held     72,901       72,901  
Convertible note payable, long term portion     537,209       2,347,403  
Notes payable, long term portion     8,328,870       8,935,473  
  Total long term debt     8,938,980       11,355,777  
                 
Total liabilities     13,732,759       13,599,838  
                 
Stockholders' deficit                
Preferred stock, $0.001 par value; 1,000,000 shares authorized, Nil issued and outstanding     -       -  
Common stock, $0.001 par value; 100,000,000 shares authorized, 17,688,804 and 16,747,248 shares issued and outstanding as of September 30, 2014 and December 31, 2013, respectively     17,689       16,747  
Additional paid in capital     12,406,205       11,560,249  
Accumulated deficit     (14,222,827 )     (13,363,537 )
  Total stockholders' deficit     (1,798,933 )     (1,786,541 )
                 
Total liabilities and stockholders' deficit   $ 11,933,826     $ 11,813,297  
                 
                 

 

               
               
FIRST CHOICE HEALTHCARE SOLUTIONS, INC  
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS  
(unaudited)  
                         
    Three months ended September 30,     Nine months ended September 30,  
    2014     2013     2014     2013  
Revenues:                                
Patient service revenue   $ 1,917,597     $ 1,395,610     $ 5,814,140     $ 3,739,435  
Provision for bad debts     (290,440 )     -       (365,712 )     -  
Net patient service revenue less provision for bad debts     1,627,157       1,395,610       5,448,428       3,739,435  
Rental revenue     263,888       259,120       784,534       786,546  
  Total Revenue     1,891,045       1,654,730       6,232,962       4,525,981  
                                 
Operating expenses:                                
Salaries & benefits     925,513       735,888       3,081,840       2,000,436  
Other operating expenses     407,699       353,034       1,264,046       965,923  
General & administrative     548,635       298,566       1,623,755       898,911  
Depreciation and amortization     150,084       124,378       411,575       373,803  
  Total operating expenses     2,031,931       1,511,866       6,381,217       4,239,073  
                                 
Net (loss) income from operations     (140,886 )     142,864       (148,255 )     286,908  
                                 
Other income (expense):                                
Miscellaneous income     750       750       2,250       2,313  
Gain on change in fair value of derivative liability     -       (1,631 )     -       187,351  
Amortization Financing costs     (20,686 )     (22,802 )     (62,058 )     (51,477 )
Interest expense, net     (214,798 )     (302,590 )     (651,228 )     (983,966 )
  Total other income (expense)     (234,734 )     (326,273 )     (711,036 )     (845,779 )
                                 
                                 
Net loss before provision for income taxes     (375,620 )     (183,409 )     (859,290 )     (558,871 )
                                 
Income taxes (benefit)     -       -       -       -  
                                 
NET LOSS   $ (375,620 )   $ (183,409 )   $ (859,290 )   $ (558,871 )
                                 
Net loss per common share, basic and diluted   $ (0.02 )   $ (0.01 )   $ (0.05 )   $ (0.04 )
                                 
Weighted average number of common shares outstanding, basic and diluted     17,523,044       13,416,949       17,092,088       13,005,773  
                                 
                                 

 

             
             
1Adjusted EBITDA Modified for Non-Cash Items  
             
    Nine Months Ended September 30,  
    2014     2013  
  NET LOSS   $ (859,290 )   $ (588,870 )
  Amortization     62,058       51,477  
  Depreciation     411,575       373,803  
  Interest     651,228       983,966  
  Taxes     -       -  
  Non-Cash Item: Stock-Based Compensation     137,001       155,875  
                 
    EBITDA   $ 402,571     $ 1,006,250  
                 

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 additional information, please contact:
    First Choice Healthcare Solutions, Inc.
    Evelyn Viancardi
    321-725-0090, Extension 208