MELBOURNE, FL -- (Marketwired) -- 11/17/14 -- 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, 2014.
Financial Highlights for the Three Months Ended September 30, 2014 Compared to the Three Months Ended September 30, 2013:
Financial Highlights for the Nine Months Ended September 30, 2014 Compared to the Nine Months Ended September 30, 2013:
As of September 30, 2014, the Company had cash and restricted cash totaling $477,690; accounts receivable of $2,114, 525; total liabilities of $13,732,759, which included $8,938,980 in long term debt; and total stockholders' deficit of $1,798,933.
"We are pleased that our third quarter revenue results continued to reflect the momentum we are building at First Choice Medical Group," stated Chris Romandetti, Chairman, President and CEO of First Choice. "As we approach the yearend, we remain squarely focused on achieving sustainable positive operating cash flow while investing back in our business through strategic acquisitions, continued expansion of our core leadership team and ongoing innovation in our systems of operations."
1 This press release includes information relating to Adjusted EBITDA Modified for Non-Cash Items, which is a financial measures that has not been prepared in accordance with generally accepted accounting principles in the United States ("GAAP"). This non-GAAP financial measure is not a measurement of financial performance under GAAP, and should not be considered as an alternative to GAAP measures or as indications of operating performance or any other measure of performance derived in accordance with GAAP. We do not consider these non-GAAP financial measures to be a substitute for, or superior to, the information provided by GAAP financial measures. These non-GAAP financial measures have been included in this press release because they are measures used by our management and board of directors to understand our business, make operating decisions and understanding and evaluating our operating results.
Adjusted EBITDA is a non-GAAP financial measure defined by us as net income/loss before interest expense, net, depreciation and amortization expenses and stock-based compensation expense. We have presented Adjusted EBITDA in this press release because it is a key measure used by our management and board of directors to understand and evaluate our core operating performance and trends, to prepare and approve our annual budget and to develop short and long-term operational plans. In particular, we believe that the exclusion of the amounts eliminated in calculating Adjusted EBITDA can provide a useful measure for period-to-period comparisons of our core business. Accordingly, we believe that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors. You should consider Adjusted EBITDA along with other GAAP-based financial performance measures, including various cash flow metrics, loss, and our GAAP financial results. For a reconciliation of non-GAAP financial measures to the nearest comparable GAAP financial measures for each of the periods indicated, "Reconciliation of Adjusted EBITDA Modified for Non-Cash Items" included in this press release.
FINANCIAL CHARTS TO FOLLOW
|FIRST CHOICE HEALTHCARE SOLUTIONS, INC.|
|CONDENSED CONSOLIDATED BALANCE SHEETS|
|September 30,||December 31,|
|Accounts receivable, net||2,114,525||1,272,155|
|Prepaid and other current assets||264,440||140,580|
|Capitalized financing costs, current portion||57,348||57,348|
|Total current assets||2,914,003||2,465,487|
|Property, plant and equipment, net of accumulated depreciation of $2,341,377 and $1,959,127||8,425,452||8,662,057|
|Capitalized financing costs, long term portion||69,483||131,540|
|Patient list, net of accumulated amortization of $50,000 and $35,000||250,000||265,000|
|Patents, net of amortization of $14,325||272,175||286,500|
|Total other assets||594,371||685,753|
|LIABILITIES AND STOCKHOLDERS' DEFICIT|
|Accounts payable and accrued expenses||$||1,078,142||$||459,000|
|Stock based payable||28,750||166,340|
|Line of credit, short term||1,202,000||800,000|
|Convertible note payable, short term portion||1,611,626||-|
|Notes payable, current portion||781,162||743,787|
|Total current liabilities||4,793,779||2,244,061|
|Long term debt:|
|Convertible note payable, long term portion||537,209||2,347,403|
|Notes payable, long term portion||8,328,870||8,935,473|
|Total long term debt||8,938,980||11,355,777|
|Preferred stock, $0.001 par value; 1,000,000 shares authorized, Nil issued and outstanding||-||-|
|Common stock, $0.001 par value; 100,000,000 shares authorized, 17,688,804 and 16,747,248 shares issued and outstanding as of September 30, 2014 and December 31, 2013, respectively||17,689||16,747|
|Additional paid in capital||12,406,205||11,560,249|
|Total stockholders' deficit||(1,798,933||)||(1,786,541||)|
|Total liabilities and stockholders' deficit||$||11,933,826||$||11,813,297|
|FIRST CHOICE HEALTHCARE SOLUTIONS, INC|
|CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS|
|Three months ended September 30,||Nine months ended September 30,|
|Patient service revenue||$||1,917,597||$||1,395,610||$||5,814,140||$||3,739,435|
|Provision for bad debts||(290,440||)||-||(365,712||)||-|
|Net patient service revenue less provision for bad debts||1,627,157||1,395,610||5,448,428||3,739,435|
|Salaries & benefits||925,513||735,888||3,081,840||2,000,436|
|Other operating expenses||407,699||353,034||1,264,046||965,923|
|General & administrative||548,635||298,566||1,623,755||898,911|
|Depreciation and amortization||150,084||124,378||411,575||373,803|
|Total operating expenses||2,031,931||1,511,866||6,381,217||4,239,073|
|Net (loss) income from operations||(140,886||)||142,864||(148,255||)||286,908|
|Other income (expense):|
|Gain on change in fair value of derivative liability||-||(1,631||)||-||187,351|
|Amortization Financing costs||(20,686||)||(22,802||)||(62,058||)||(51,477||)|
|Interest expense, net||(214,798||)||(302,590||)||(651,228||)||(983,966||)|
|Total other income (expense)||(234,734||)||(326,273||)||(711,036||)||(845,779||)|
|Net loss before provision for income taxes||(375,620||)||(183,409||)||(859,290||)||(558,871||)|
|Income taxes (benefit)||-||-||-||-|
|Net loss per common share, basic and diluted||$||(0.02||)||$||(0.01||)||$||(0.05||)||$||(0.04||)|
|Weighted average number of common shares outstanding, basic and diluted||17,523,044||13,416,949||17,092,088||13,005,773|
|1Adjusted EBITDA Modified for Non-Cash Items|
|Nine Months Ended September 30,|
|Non-Cash Item: Stock-Based Compensation||137,001||155,875|
About First Choice Healthcare Solutions, Inc.
Headquartered in Melbourne, Florida, First Choice Healthcare Solutions (FCHS) is actively engaged in developing a network of 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 currently operates one Medical Center of Excellence, First Choice Medical Group of Brevard, 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 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.
For additional information, please contact:
First Choice Healthcare Solutions, Inc.
321-725-0090, Extension 208
Source: First Choice Healthcare Solutions, Inc.
Released November 17, 2014