First Choice Healthcare Solutions Reports First Quarter 2018 Results and Expansion into New Territory

MELBOURNE, Fla., May 09, 2018 (GLOBE NEWSWIRE) -- First Choice Healthcare Solutions, Inc. (OTCQB:FCHS) ("First Choice" or the "Company"), a fully integrated, non-physician-owned, publicly traded healthcare delivery platform providing a full life cycle of othopaedic and spine care for patients through diagnosis, treatment and recovery, today reported its financial results for the three-month period ended March 31, 2018.

Chris Romandetti, President and CEO of First Choice, stated, “We are pleased to report that we achieved record net patient service revenue of $8.2 million and over 51% Adjusted EBITDA growth year-over-year for the first quarter of 2018.  With the recent strategic partnership with Steward Health Care we are happy to announce our expansion of the First Choice healthcare delivery platform into Indian River County, Florida.   We are in the final steps of our site selection that will house our Indian River County platform. When completed, our facilities will include an imaging center, physical therapy locations and physician offices.  We expect our new location will enable us to service up to an additional 3,000 surgeries per year.  Given our positive first quarter 2018 results and our expansion into Vero Beach and Sebastian, Florida, we believe First Choice is well positioned to continue this momentum and growth in 2018 and beyond.”

Recent Financial and Operational Highlights

  • 32% Increase in surgery count over comparable quarter  
  • Crane Creek Surgery Center turned profitable in first quarter 2018
  • Approaching 1,000 physical therapy visits per week
  • Cash balance of $8.5mm or $0.26 per share
  • DSO improved by 20%
  • Extended invitations to three independent board members

Financial Results for First Quarter of 2018
Total revenue was $8.8 million for the first quarter of 2018, an increase of 14% compared to $7.7 million for the same period in 2017.

Net income attributable to First Choice was $279,338 for the first quarter of 2018, compared to net income of $202,519 for the same period in 2017, representing an increase of 38%.

Non-GAAP adjusted EBITDA was $736,077 for the first quarter of 2018, an increase of 51% compared to $487,405 for the same period in 2017. *

Conference Call and Webcast Information
The Company will host a conference call with the investment community on Wednesday, May 9th at 11:00 a.m. Eastern Time featuring remarks by Chris Romandetti, President and CEO of First Choice, and Phillip Keller, CFO of First Choice.

To access the call, please use the following information: 
Date: Wednesday, May 9, 2018
Time: 11:00 a.m. EST, 8:00 a.m. PST
Toll-free dial-in number: (866) 682-6100
International dial-in number: (862) 298-0702

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gillian Lee at 321-725-0090 extension 160.

The conference call will be broadcast live and available for replay at and via the investor relations section of the Company's website at

(*) Use of Non-GAAP Financial Information
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 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".

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 because of new information, future events, or otherwise to reflect future events or circumstances or reflect the occurrence of unanticipated events.

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, Interventional Pain Management, Physical Therapy and other ancillary and diagnostic services in key expansion markets throughout the 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 and

Contact Information:
First Choice Healthcare Solutions, Inc.
Gillian Lee
Phone: 321-725-0090 ext. 160

Investor Contact:
Scott Eckstein / Allison Soss
KCSA Strategic Communications
Phone: +1 (212) 896-1210/+1 (212) 896-1267

  March 31, December 31,
    2018     2017  
ASSETS unaudited  
Current assets    
Cash $   8,474,437   $   2,015,534  
Accounts receivable, net     9,908,563       8,699,714  
Employee loans     1,268,487       1,155,109  
Prepaid and other current assets     630,285       676,931  
  Total current assets     20,281,772       12,547,288  
Property, plant and equipment, net     2,519,638       2,295,163  
Other assets     3,824,483       3,908,781  
Total assets $   26,625,893   $   18,751,232  
Current liabilities    
Accounts payable and accrued expenses $   2,545,295   $   2,379,404  
Accounts payable, related party     251,588       251,588  
AMT tax payable     230,037       223,899  
Line of credit, short term     440,024       440,024  
Notes payable, current portion     49,515       29,552  
Unearned revenue     44,557       44,607  
Deferred rent, short term portion     81,410       105,171  
  Total current liabilities     3,642,426       3,474,245  
Long term liabilities:    
Deposits held     41,930       41,930  
Line of Credit     1,100,000       1,100,000  
Notes payable, long term portion     149,288       60,146  
Deferred rent, long term portion     2,641,579       2,589,568  
  Total long term     3,932,797       3,791,644  
Total liabilities     7,575,223       7,265,889  
Temporary equity 2022 Put option     7,500,000       -   
Preferred stock     -        -   
Common stock     32,172       27,357  
Additional paid in capital     24,982,457       25,185,487  
Treasury stock     -        (249,265 )
Accumulated deficit     (13,709,680 )     (13,989,018 )
Total stockholders' equity attributable to FCHS     11,304,949       10,974,561  
Non-controlling interest (note 12)     245,721       510,782  
  Total equity     11,550,670       11,485,343  
Total liabilities and equity $   26,625,893   $   18,751,232  

  For the three months ended March 31,
    2018     2017  
Revenues: unaudited unaudited
Patient Service Revenue $   8,481,672   $   7,406,986  
Allowance for bad debts     (278,562 )     (264,996 )
Net patient service revenue less provision for bad debts     8,203,110       7,141,990  
Rental Revenue     582,787       578,363  
  Total Revenue     8,785,897       7,720,353  
Operating expenses:    
Salaries and benefits     4,329,285       3,716,375  
Other operating expenses     2,632,786       2,529,183  
General and administrative     1,353,836       1,173,834  
Depreciation and amortization     201,912       189,488  
  Total operating expenses     8,517,819       7,608,880  
Net (loss) income from operations     268,078       111,473  
Other income (expense):    
Miscellaneous income (expense)     40,322       50,102  
Interest expense, net     (23,512 )     (32,074 )
  Total other income     16,810       18,028  
Net (loss) income before provision for income taxes     284,888       129,501  
Income taxes (benefit)     -        -   
Net (loss) income     284,888       129,501  
Non-controlling interest (note 10)     (5,550 )     73,018  
Net (loss) income per common share, basic $   0.01   $   0.01  
Net (loss) income per common share, diluted $   0.01   $   0.01  
Weighted average number of common shares outstanding, basic     28,610,793       26,252,505  
Weighted average number of common shares outstanding, diluted     29,410,793       27,052,505  

  For the three months ended March 31,
    2018     2017  
Net Income $   284,888   $   129,501  
Adjustments to reconcile net income to cash used in operating activities:    
Depreciation and amortization     201,912       189,488  
Bad debt expense     278,562       264,996  
Stock based compensation     180,439       63,324  
Changes in operating assets and liabilities:    
Accounts receivable     (1,487,411 )     (1,118,306 )
Prepaid expenses and other current assets     46,646       (229,258 )
Employee loans     (113,378 )     (132,791 )
Accounts payable and accrued expenses     165,891       353,849  
Deferred rent     28,250       51,871  
Unearned income     (50 )     16,918  
  Net cash used in operating activities     (414,251 )     (410,408 )
Purchase of 25% interest in Crane Creek     (400,000 )     -   
Purchase of equipment     (335,951 )     (173,729 )
  Net cash (used in) provided by investing activities     (735,951 )     (173,729 )
Proceeds from sale of common stock     7,500,000       -   
Proceeds from notes payable     120,709       22,113  
Purchase of treasury stock     (11,604 )     (130,125 )
  Net cash provided by (used in) financing activities     7,609,105       (108,012 )
Net increase in cash, cash equivalents and restricted cash     6,458,903       (692,149 )
Cash and cash equivalents, beginning of period     2,015,534       4,593,638  
Cash, cash equivalents and restricted cash, end of period $   8,474,437   $   3,901,489  

  For the three months ended March 31,
    2018     2017  
Interest     23,512       32,074  
Taxes     -        -   
Depreciation and Amortization     201,912       189,488  
Stock Based Compensation     231,315       63,324  
Adjusted EBITDA     736,077       487,405  
    8.4 %   6.3 %

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Source: First Choice Healthcare Solutions, Inc.

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