First Choice Healthcare Solutions Reports Six Month Revenues Rise 118 Percent
By Space Coast Daily // August 16, 2016
CONTINUED PROFITABILITY, REVENUE GROWTH
ABOVE VIDEO: Chris Romandetti, President and CEO of publicly listed First Choice Healthcare Solutions, Inc., talks about his company’s growth and goals. For more information, call 321-802-5820 or visit www.MyDoctor321.com/SCD
FIRST CHOICE HEALTHCARE SOLUTIONS REPORTS CONTINUED PROFITABILITY AND REVENUE GROWTH IN SECOND QUARTER 2016
• Three Month Revenues Increased 77% to $7.65 Million, Up from $4.32 Million;
• Six Month Revenues Rose 118% to $14.90 Million from $6.83 Million
• Q216 Adjusted EBITDA* Increased to $838,000 from $124,000;
• Adjusted EBITDA* for the First Half of 2016 Rose to $2.06 Million from $772,000
BREVARD COUNTY • MELBOURNE, FLORIDA – First Choice Healthcare Solutions, Inc. (OTCQB:FCHS) (“FCHS,” “First Choice” or the “Company”), one of the nation’s only non-physician-owned, publicly traded healthcare services companies focused on the delivery of total musculoskeletal solutions with an emphasis on Orthopaedics, including spine care and treatment, today announced its second quarter results for the three and six months ended June 30, 2016.
Chris Romandetti, Chairman, President and CEO of First Choice, stated, “During the second quarter, our Company continued to benefit from high levels of execution at each of the Centers of Medical Excellence comprising our Melbourne, Florida platform. Our success in recruiting first rate Orthopaedic and Spine surgeons to our Melbourne practices, along with the addition of The B.A.C.K. Center and Crane Creek Surgery Center to our Melbourne platform, is helping to drive strong growth across several key metrics, including revenue, adjusted EBITDA and net income. Moreover, our strong cash position and operating leverage have begun to yield greater cost efficiencies and compelling expansion opportunities that should collectively serve to unlock strategic and financial benefits for our Company in coming quarters. We look forward to providing detailed insight into our results and growth initiatives on this morning’s call.”
Financial Highlights for Three Months Ended June 30, 2016 Compared to Three Months Ended June 30, 2015:
Total revenues rose 77% to a record $7,653,100 – up from $4,324,315. The increase was mainly attributable to the integration of The B.A.C.K. Center (“TBC”) and Crane Creek Surgery Center (“CCSC”) into the First Choice platform, effective May 1, 2015 and October 1, 2015, respectively; as well as the addition of two new Board Certified Orthopaedic surgeons to the clinical staff at First Choice Medical Group – Dr. Kenneth Sands and Dr. Raymond DeLorenzi – late in the second quarter of this year.
• Net patient service revenues rose 85% to $7.02 million from $3.80 million.
On a non-GAAP basis, adjusted EBITDA* rose 578% to $838,268 from $123,671.
Net income increased to $153,137, or $0.01 earnings per basic and diluted share, from a net loss of $496,729, or $0.03 loss per basic and diluted share.
Financial Highlights for Six Months Ended June 30, 2016 Compared to Six Months Ended June 30, 2015:
Total revenues increased 118% to $14,894,853 from $6,829,482.
• Net patient service revenues climbed 126% to $13,638,403 from $6,044,103.
On a non-GAAP basis, adjusted EBITDA* totaled $2,055,475, representing a 166% increase over $772,173 reported for the first half of 2015. With the sale of Marina Towers factored, adjusted EBITDA* rose to $11,267,821.
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With the one-time gain from the sale of Marina Towers, net income climbed to $9,720,078, or $0.42 earnings per basic share and $0.36 earnings per diluted share, compared to a net loss of $466,040, or $0.03 loss per basic and fully diluted share. Notwithstanding the one-time gain from the building sale, net income totaled $507,732, or $0.02 earnings per basic and diluted share.
Balance Sheet Highlights as of June 30, 2016 Compared to December 31, 2015:
Cash totaled $7,785,602, up from cash and restricted cash of $1,954,412.
Accounts receivable increased to $8,369,428 from $6,623,894.
Total liabilities dropped 46% to $10,558,074 from $19,585,255.
Total stockholders’ equity climbed 360% to $13,969,630 from $3,038,733.
Conference Call and Webcast:
First Choice will host a conference call and webcast for the investment community this morning, beginning at 11:00 AM Eastern Standard Time to discuss its financial results and recent corporate developments.
Participants can register and access the conference call by dialing 866-682-6100 (U.S and Canada dial-in) or 862-255-5401 (for international dial-in).
The conference call will also be webcasted, which can be accessed through First Choice’s investor relations website by navigating to http://ir.myfchs.com/ir-calendar and clicking on “Second Quarter 2016 Conference Call and Webcast.” Webcast participants will be required to register to access the call. For those who cannot listen to the live broadcast, a replay will be available shortly after the call on the investor relations page of First Choice’s website, found at http://ir.myfchs.com
*About Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use non-GAAP EBITDA. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.
We use this non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. Our management believes that this non-GAAP financial measure provides meaningful supplemental information regarding our performance and liquidity by excluding certain items that may not be indicative of our recurring core business operating results.
We believe that both management and investors benefit from referring to this non-GAAP financial measure in assessing our performance and when planning, forecasting, and analyzing future periods. This non-GAAP financial measure also facilitates management’s internal comparisons to our historical performance and liquidity. We believe this non-GAAP financial measure is useful to investors both because they allow for greater transparency with respect to a key metric used by management in its financial and operational decision-making. For more information on this non-GAAP financial measure, please see the table captioned “Reconciliation of non-GAAP Adjusted EBITDA Performance.”
Restatement of First Quarter 2016 Adjusted EBITDA
In the press release dated May 17, 2016 relating to the Company’s first quarter 2016 financial results, the Company provided Non-GAAP Financial Measures relating to its Adjusted EBITDA results. However, it was discovered that the Adjusted EBITDA results failed to add back net interest expenses in its reported calculations. The corrected Adjusted EBITDA calculations for the first quarter 2016 periods are provided in the charts below.
For additional details relating to First Choice’s first quarter 2016 results, please refer to the Interim Report on Form 10-Q filed with the U.S. Securities and Exchange Commission and found at www.sec.gov
CLICK HERE For First Choice Healthcare Solutions, Inc. Condensed Consolidated Balance Sheets
About First Choice Healthcare Solutions, Inc.
Headquartered in Melbourne, Florida, First Choice Healthcare Solutions (FCHS) is implementing a defined growth strategy aimed at expanding its network of non-physician-owned medical centers of excellence, which concentrate on treating patients in the following specialties: Orthopaedics, Spine Surgery, Neurology, Interventional Pain Management and related diagnostic and ancillary services in key expansion markets throughout the Southeastern U.S. Serving Florida’s Space Coast, the Company’s flagship integrated platform currently administers over 100,000 patient visits each year and is comprised of First Choice Medical Group, The B.A.C.K. Center and Crane Creek Surgery Center. For more information, please visit www.myfchs.com, www.myfcmg.com, www.thebackcenter.net and www.cranecreeksurgerycenter.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.
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