SOURCE: First Choice Healthcare Solutions, Inc.

First Choice Healthcare Solutions, Inc.

April 01, 2014 08:30 ET

First Choice Healthcare Solutions Announces Record 2013 Year-End Results

MELBOURNE, FL--(Marketwired - Apr 1, 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 financial results for the fiscal year ended December 31, 2013.

2013 Financial Highlights

  • Total revenues climbed 71% to $6.51 million from total revenues of $3.81 million reported for 2012.

    • Net patient service revenue generated by the Company's flagship medical center of excellence, First Choice Medical Group of Brevard ("FCMG"), more than doubled, rising 106% to $5.46 million as compared to $2.65 million in the prior year.

  • Loss from operations for the year ended December 31, 2013 increased to $978,150, compared to a loss from operations of $277,740 for the prior year.

    • Notwithstanding non-cash expenses totaling $1,575,400 for stock-based compensation, impairment of investment, depreciation and amortization, income from operations totaled $597,250 in 2013. This compared to income from operations in 2012 of $89,507 deducting non-cash expenses totaling $367,247 for depreciation and amortization.

  • Due principally to the aforementioned non-cash charges and after factoring non-cash interest expense relating to the accounting of the private placement completed in November 2013 and other capital restructuring costs, the 2013 net loss totaled $4.70 million, or $0.35 loss per basic and diluted share, which compared to a net loss of $873,000, or $0.07 loss per basic and diluted share, for 2012.

  • As of December 31, 2013, the Company had cash and restricted cash totaling approximately $995,000, an increase of approximately $660,000 from December 31, 2012; and accounts receivable of $1.27 million, up from $528,000 in 2012.

Chris Romandetti, FCHS President and Chief Executive Officer, stated, "2013 was a very rewarding year for our Company -- a year in which we made material progress implementing and validating our Medical Centers of Excellence business model. The strong financial performance of our flagship center, FCMG, is in large measure due to the success we've had in expanding our team of physicians in 2013 to eight -- with three of these doctors joining us in the recent fourth quarter. Enhancing our overall mix of diagnostic and ancillary service offerings during the year, coupled with our local television and print marketing activities and community outreach initiatives, have served to fuel growth of our regional network of referring physicians, hospitals and surgical centers, which, in turn, has led to notable growth of the number of patients that now rely on FCMG for their musculoskeletal, diagnostic and rehabilitative care."

Continuing, Romandetti added, "Management is now squarely focused on replicating our Medical Center of Excellence model in key expansion markets. Increasing our top line revenues to at least $12 million by successfully executing our defined growth strategies, and continuing to practice expense discipline with a focus on profitability, are among our chief priorities in the current fiscal year. The Company believes these milestones coincide with our overarching goal of increasing shareholder value, and feel that we are well poised to make significant progress towards achieving our stated goals and objectives."

FINANCIAL CHARTS TO FOLLOW

   
FIRST CHOICE HEALTHCARE SOLUTIONS, INC.  
CONSOLIDATED BALANCE SHEETS  
DECEMBER 31, 2013 AND 2012  
   
    December 31,     December 31,  
ASSETS   2013     2012  
Current assets                
Cash   $ 739,158     $ 67,045  
Cash-restricted     256,246       221,148  
Accounts receivable     1,272,155       527,867  
Prepaid and other current assets     140,580       69,970  
Capitalized financing costs, current portion     57,348       57,348  
  Total current assets     2,465,487       943,378  
                 
Property, plant and equipment, net of accumulated depreciation of $1,959,127 and $1,465,939     8,662,057       8,756,631  
                 
Other assets                
Capitalized financing costs, long term portion     131,540       152,911  
Patient list, net of accumulated amortization of $35,000 and $24,391     265,000       275,609  
Patents     286,500       -  
Deposits     2,713       2,719  
  Total other assets     685,753       431,239  
Total assets   $ 11,813,297     $ 10,131,248  
                 
LIABILITIES AND STOCKHOLDERS' DEFICIT                
Current liabilities                
Accounts payable and accrued expenses   $ 459,000     $ 576,209  
Stock based payable     166,340       -  
Line of credit, short term     800,000       -  
Notes payable, current portion     743,787       690,586  
Note payable, related party     -       300,000  
Convertible note payable, net of unamortized debt discount of $160,543     -       43,537  
Unearned revenue     74,934       39,438  
  Total current liabilities     2,244,061       1,649,770  
                 
Long term debt:                
Deposits held     72,901       47,399  
Revolving line of credit, related party     -       153,330  
Convertible note payable, long term portion     2,347,403       -  
Notes payable, long term portion     8,935,473       9,410,296  
Derivative liability     -       171,987  
  Total long term debt     11,355,777       9,783,012  
Total liabilities     13,599,838       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, 16,747,248 and 12,706,795 shares issued and outstanding as of December 31, 2013 and 2012, respectively     16,747       12,707  
Additional paid in capital     11,560,249       7,244,993  
Common stock subscriptions     -       100,000  
Accumulated deficit     (13,363,537 )     (8,659,234 )
  Total stockholders' deficit     (1,786,541 )     (1,301,534 )
Total liabilities and stockholders' deficit   $ 11,813,297     $ 10,131,248  
   
   
   
FIRST CHOICE HEALTHCARE SOLUTIONS, INC.  
CONSOLIDATED STATEMENTS OF OPERATIONS  
             
    Year ended December 31,  
    2013     2012  
Revenues:                
Net patient service revenue   $ 5,459,373     $ 2,645,310  
Rental revenue     1,048,469       1,160,037  
  Total revenue     6,507,842       3,805,347  
                 
Operating expenses:                
Salaries and benefits     3,096,285       1,593,245  
Other operating expenses     1,715,942       865,641  
General and administrative     1,705,154       1,314,302  
Impairment of investment     450,000       -  
Depreciation and amortization     518,611       309,899  
  Total operating expenses     7,485,992       4,083,087  
                 
Net income (loss) from operations     (978,150 )     (277,740 )
                 
Other income (expense):                
Miscellaneous income     3,063       3,000  
Gain (loss) on change in fair value of derivative liability     32,218       (987 )
Amortization financing costs     (57,348 )     (57,348 )
Interest expense, net     (3,704,086 )     (563,391 )
  Total other (expense)     (3,726,153 )     (618,726 )
                 
                 
Net loss before provision for income taxes     (4,704,303 )     (896,466 )
                 
Income taxes (benefit)     -       (23,103 )
                 
Net Loss   $ (4,704,303 )   $ (873,363 )
                 
Net loss per common share, basic and diluted   $ (0.35 )   $ (0.07 )
                 
Weighted average number of common shares outstanding, basic and diluted     13,529,294       12,644,784  
                 
                 
   
FIRST CHOICE HEALTHCARE SOLUTIONS, INC.  
CONSOLIDATED STATEMENTS OF CASH FLOWS  
             
    Year ended December 31,  
    2013     2012  
CASH FLOWS FROM OPERATING ACTIVITIES:                
Net Loss   $ (4,704,303 )   $ (873,363 )
                 
Adjustments to reconcile net loss to cash used in operating activities:                
Depreciation     518,611       309,899  
Amortization of financing costs     57,348       57,348  
Bad debt expense     361,284       -  
                 
Amortization of debt discount in connection with convertible note     2,706,869       10,457  
Stock based compensation     549,441       -  
Common stock issued for loan modification     96,000       -  
Impairment of investment     450,000       -  
Loss on change in fair value of debt derivative     (32,218 )     987  
Changes in operating assets and liabilities:                
Accounts receivable     (1,105,572 )     (329,375 )
Accounts receivable-other     -       (205,000 )
Prepaid expenses and other     (70,604 )     (40,265 )
Restricted funds     (35,098 )     (131,209 )
Accounts payable and accrued expenses     (91,312 )     419,417  
Unearned income     35,496       15,354  
Deferred income taxes     -       (23,103 )
  Net cash provided by operating activities     (1,264,058 )     (788,853 )
                 
CASH FLOWS FROM INVESTING ACTIVITIES:                
Cash received from acquisition     -       48,761  
Cash payments for acquisition     -       (143,366 )
Purchase of equipment     (397,688 )     (2,773,450 )
Net increase in deposits     25,502       15,796  
  Net cash used in investing activities     (372,186 )     (2,852,259 )
                 
CASH FLOWS FROM FINANCING ACTIVITIES:                
Net (payments) proceeds from related party line of credit     (10,846 )     190,000  
Proceeds from convertible note payable     2,128,117       203,500  
Proceeds from lines of credit     1,373,208       -  
                 
Proceeds from issuance of notes payable, net of financing costs     152,659       2,871,058  
Proceeds from common stock subscription     -       100,000  
Net payments on notes payable     (1,334,781 )     (184,704 )
  Net cash provided by (used in) financing activities     2,308,357       3,179,854  
                 
Net increase (decrease) in cash and cash equivalents     672,113       (461,258 )
Cash and cash equivalents, beginning of period     67,045       528,303  
                 
Cash and cash equivalents, end of period   $ 739,158     $ 67,045  
                 
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:                
Cash paid during the period for interest   $ 731,877     $ 467,670  
Cash paid during the period for taxes   $ -     $ -  
                 
Supplemental Disclosure on non-cash investing and financing activities:                
                 
Common stock issued in connection with acquisition of First Choice Medical Group, Inc.   $ -     $ 497,725  
Common stock issued in settlement of note payable   $ 624,000     $ -  
                 
Common stock issued in settlement of related party line of credit   $ 142,484     $ -  
                 
Common stock issued in connection with acquisition of patent   $ 286,500     $ -  
                 
Common stock issued to acquire 10% interest in MedTech Diagnostics, LLC   $ 450,000     $ -  
                 
Beneficial conversion feature on convertible note credited to additional paid-in-capital   $ 1,871,117     $ -  
                 
Reclassification of derivative liability to additional paid-in-capital   $ 366,094     $ -  
                 

For more details on First Choice's fiscal 2013 year-end results, please refer to the Company's 10-K filed with the U.S. Securities and Exchange Commission and accessible at www.sec.gov.

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, diagnostic services, and rehabilitative care. FCHS's 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.

Contact Information

  • For additional information, please contact:
    HANOVER|ELITE
    Kathy Addison
    Chief Operating Officer
    Phone: 407-585-1080
    Email: FCHS@hanoverelite.com