First Choice Healthcare Reports Third Quarter 2013 Results

Comparable Nine-Month Revenues Up 75% and Positive Cash Flow Materially Strengthens

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:

  • Total revenues rose 55% to $1,654,730 from $1,068,624.

  • Income from operations was $142,864, up 206% from a loss from operations of $134,184.

    • Notwithstanding non-cash expenses of $124,378 for depreciation and amortization, income from operations totaled $267,242 in the third quarter of 2013; this compared to a loss from operations less non-cash depreciation and amortization expenses totaled $60,666 for the third quarter in 2012.

    • On a subsequent quarter over quarter basis, income from operations for the third quarter 2013 increased 216% over income from operations of $45,236 reported for the second quarter of this year.

  • Despite higher interest expense associated with the servicing of loans ($302,590 for the three month reporting period in 2013 compared to $135,652 for the same period in 2012), net loss totaled $183,409, or $0.01 loss per basic and diluted share, representing a 35% decrease from a net loss of $283,423, or $0.02 loss per basic and diluted share for the same period in 2012.

Financial Highlights for the Nine Months Ended September 30, 2013 Compared to the Nine Months Ended September 30, 2012:

  • Total revenues were $4,525,981, climbing 75% from $2,590,873.

  • Income from operations increased 237% to $278,443 from a loss from operations of $203,542.

    • Income from operations, before factoring non-cash expenses of $373,803 for depreciation and amortization, totaled $652,246, which compared to a loss from operations of $16,122 notwithstanding depreciation and amortization expenses of $187,420.

  • After factoring interest expense of $983,966 and amortization financing costs of $51,477, offset by a gain on change in fair value of a derivative liability of $187,351, the net loss for the first nine months of 2013 declined 6% to $558,870, or $0.04 loss per basic and diluted share, from $593,715, or $0.05 loss per basic and diluted share. For the comparable period in 2012, the net loss was impacted by $372,515 in interest expense and amortization and financing costs of $43,011.

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."


September 30, December 31,
2013 2012
Current assets
Cash $ 197,020 $ 67,045
Cash-restricted 258,311 221,148
Accounts receivable 1,174,488 527,867
Employee loans 35,000 -
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
Other assets
Capitalized financing costs, long term portion 152,226 152,911
Patient list, net of accumulated amortization of $30,000 270,000 275,609
Patents 286,500 -
Investments 450,000 -
Deposits 2,713 2,719
Total other assets 1,161,439 431,239
Total assets $ 11,710,031 $ 10,131,248
Current liabilities
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
Unearned revenue 40,760 39,438
Total current liabilities 2,644,067 1,649,770
Long term debt:
Deposits held 60,150 47,399
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
Derivative liability 210,961 171,987
Total long term debt 10,033,993 9,783,012
Total liabilities 12,678,060 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, 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
Accumulated deficit (9,218,104 ) (8,659,234 )
Total stockholders' deficit (968,029 ) (1,301,534 )
Total liabilities and stockholders' deficit $ 11,710,031 $ 10,131,248
Three months ended September 30, Nine months ended September 30,
2013 2012 2013 2012
Net patient service revenue $ 1,395,610 $ 798,077 $ 3,739,435 $ 1,707,694
Rental revenue 259,120 270,547 786,546 883,179
Total Revenue 1,654,730 1,068,624 4,525,981 2,590,873
Operating expenses:
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):
Miscellaneous income 750 750 2,313 2,250
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 $ (183,409 ) $ (283,423 ) $ (558,870 ) $ (593,715 )
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 or

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:
Kathy Addison
Chief Operating Officer
Phone: 407-585-1080

Source: First Choice Healthcare Solutions, Inc.

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