MELBOURNE, FL -- (Marketwired) -- 11/15/13 -- 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:
Financial Highlights for the Nine Months Ended September 30, 2013 Compared to the Nine Months Ended September 30, 2012:
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,|
|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|
|Capitalized financing costs, long term portion||152,226||152,911|
|Patient list, net of accumulated amortization of $30,000||270,000||275,609|
|Total other assets||1,161,439||431,239|
|LIABILITIES AND STOCKHOLDERS' DEFICIT|
|Accounts payable and accrued expenses||$||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|
|Total current liabilities||2,644,067||1,649,770|
|Long term debt:|
|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|
|Total long term debt||10,033,993||9,783,012|
|Preferred stock, $0.01 par value; 1,000,000 shares authorized, Nil issued and outstanding||-||-|
|Common stock, $0.001 par value; 100,000,000 shares authorized, 14,695,127 and 12,706,795 shares issued and outstanding as of September 30, 2013 and December 31, 2012, respectively||14,695||12,707|
|Additional paid in capital||8,235,380||7,244,993|
|Common stock subscriptions||-||100,000|
|Total stockholders' deficit||(968,029||)||(1,301,534||)|
|Total liabilities and stockholders' deficit||$||11,710,031||$||10,131,248|
|FIRST CHOICE HEALTHCARE SOLUTIONS, INC|
|CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS|
|Three months ended September 30,||Nine months ended September 30,|
|Net patient service revenue||$||1,395,610||$||798,077||$||3,739,435||$||1,707,694|
|Salaries and benefits||735,888||470,334||2,000,436||1,029,692|
|Other Operating expenses||353,034||282,813||965,923||589,442|
|General and administrative||298,566||376,143||898,910||987,861|
|Depreciation and amortization||124,378||73,518||373,803||187,420|
|Total operating expenses||1,511,866||1,202,808||4,239,072||2,794,415|
|Net income (loss) from operations||142,864||(134,184||)||278,443||(203,542||)|
|Other income (expense):|
|Gain (Loss) on change in fair value of derivative liability||(1,631||)||-||187,351||-|
|Amortization financing costs||(22,802||)||(14,337||)||(51,477||)||(43,011||)|
|Interest expense, net||(302,590||)||(135,652||)||(983,966||)||(372,515||)|
|Total other income (expense)||(326,273||)||(149,239||)||(845,779||)||(413,276||)|
|Net loss before provision for income taxes||(183,409||)||(283,423||)||(558,870||)||(616,818||)|
|Income taxes (benefit)||-||-||-||(23,103||)|
|Net loss per common share, basic and diluted||$||(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.
For additional information, please contact:
Chief Operating Officer
Source: First Choice Healthcare Solutions, Inc.
Released November 15, 2013