First Choice Healthcare announced that it has expanded its current portfolio of Medical Centers of Excellence located in the Florida Space Coast region, welcoming The B.A.C.K. Center to the company’s growing medical business-building platform.
Revenues Rose 12% to $2.51 Million; Notwithstanding Non-Cash Expenses, Income from Operations Climbed to Approximately $767,000; and Net Income Increased 187% to $31,000
BREVARD COUNTY • MELBOURNE, FLORIDA – First Choice Healthcare Solutions, Inc., a diversified holding company focused on delivering clinically superior, patient-centric, multi-specialty care through state-of-the-art medical centers of excellence, reported its first quarter financial results for the three months ended March 31, 2015.
Financial Highlights for the Three Months Ended March 31, 2015 Compared to the Three Months Ended March 31, 2014:
Total revenues increased 12% to $2,505,167 from $2,234,753.
Net patient service revenues generated by their flagship Medical Center of Excellence, First Choice Medical Group, grew 14% to $2,240,065 – up from $1,972,830.
Rental revenue produced by their real estate subsidiary, Marina Towers, LLC, rose modestly to $265,103 from $261,923.
Income from operations climbed 108% to $413,769 from $199,310. Nothwithstanding non-cash expenses totaling $353,669 for stock-based compensation, depreciation and amortization; income from operations totaled $767,438 for the first quarter of 2015, compared to $388,078 in the same three month period in 2014 after factoring $188,769 in non-cash stock-based compensation, depreciation and amortization.
Net income increased 187% to $30,689, or $0.00 earnings per basic and diluted share, from a net loss of $35,099, or $0.00 loss per basic and diluted share.
Net cash used in the Company’s operating activities improved 46% to $173,931 from $320,305.
As of March 31, 2015, First Choice had cash and restricted cash totaling $497,531; accounts receivable of $2,252,053 and total stockholders’ deficit of $2,652,494.
Subsequent to the end of the quarter, the Company’s lender, Hillar Capital Investments, L.P. converted $680,000 of the $2,320,000 8% original issue discount convertible debenture.
As a consequence, the outstanding principal amount and interest of the debenture, as of May 1, 2015, has been reduced to $1.53 million.
Earlier last week, the Company announced that through its newly formed wholly-owned subsidiary, TBC Holdings of Melbourne, Inc., it had expanded its portfolio of Medical Centers of Excellence located in Florida’s Space Coast region with the addition of Brevard Orthopaedic Spine & Pain Center, Inc., dba The B.A.C.K. Center, to its medical business-building platform.
TBC Holdings will exercise effective control over the business of the practice, and treat it as a variable interest entity, effective as of May 1, 2015.
As a result, beginning with the release of First Choice’s second quarter 2015 results, the Company will include the financial results of The B.A.C.K. Center in its consolidated financial statements in accordance with generally accepted accounting prinicples as if it was a wholly owned subsidiary.
Christian Romandetti
Christian Romandetti, Chairman, President and CEO of First Choice, stated, “We are very pleased with our Company’s strong financial performance in the first quarter of 2015, during which time our Medical Centers of Excellence platform continued to demonstrate that our operations are materially benefitting from key efficiencies that we have continued to implement over the past year.
“In view of our recent transaction involving The B.A.C.K. Center, which will allow us to book The B.A.C.K. Center’s May and June results, we fully expect that our future quarterly growth will be even more pronounced, with our revenues forecasted to increase to more than $4.8 million in the second quarter.”
Continuing, Romandetti said, “As we move through 2015, we will look to continue executing other planned expansion strategies, driving stronger cash flow while paying down our higher cost debt. Given the notable progress we achieved in the first quarter and the momentum we are currently experiencing in our medical business-building business, we feel very optimistic that this year will continue to prove to be our best one yet.”
