First Choice Healthcare Reports Record First Quarter 2014 Results

MELBOURNE, FL--(Marketwired - May 15, 2014) - 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 first quarter financial results for the three months ended March 31, 2014.

Financial Highlights for the Three Months Ended March 31, 2014 Compared to the Three Months Ended March 31, 2013:

• Total revenues climbed 59% to $2,234,753, up from $1,401,681.
  
  

  • Net patient service revenue from the Company's Medical Center of Excellence, First Choice Medical Group of Brevard, rose 74% to $1,972,830 from $1,135,012.
    
    

• Net income from operations doubled, increasing 102% to $199,310 from $98,908.
  
  

  • Notwithstanding non-cash expenses for depreciation and amortization of $134,719, net income from operations for the first quarter of 2014 totaled $334,028, as compared to net income from operations in the first quarter of 2013 of $221,428 after deducting non-cash expenses for depreciation and amortization expenses of $122,620.
    
    

• Net loss decreased 86% to $35,099, or $0.00 per basic and diluted share, as compared to a net loss of $255,069, or $0.02 loss per basic and diluted share, for the same period in the prior year.
  
  

• As of March 31, 2014, the Company had cash and restricted cash totaling approximately $614,389; and accounts receivable of $1.75 million.
  
  

Chris Romandetti, Chairman, President and Chief Executive Officer of First Choice, noted, "Growth momentum that began in early 2013 in our Medical Center of Excellence, First Choice Medical Group of Brevard, LLC, located in Melbourne continues to be encouraging. With net income from operations showing strong, positive growth, we are very pleased with our overall financial performance and believe that it demonstrates that our strategy is on course and the focused execution of our business plan is indeed getting results. We are optimistic that, assuming these favorable trends continue, we will be able to execute our expansion strategy as our resources allow."

FIRST CHOICE HEALTHCARE SOLUTIONS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
			March 31,				December 31,
			2014				2013
			(unaudited)
ASSETS
Current assets
Cash			$	310,617			$	739,158
Cash-restricted				303,772				256,246
Accounts receivable				1,747,000				1,272,155
Prepaid and other current assets				153,159				140,580
Capitalized financing costs, current portion				57,348				57,348
	Total current assets			2,571,896				2,465,487
Property, plant and equipment, net of accumulated depreciation of $2,084,066 and $1,959,127, respectively				8,548,115				8,662,057
Other assets
Capitalized financing costs, long term portion				110,855				131,540
Patient list, net of accumulated amortization of $40,000 and $35,000, respectively				260,000				265,000
Patents				286,500				286,500
Deposits				2,713				2,713
	Total other assets			660,068				685,753
Total assets			$	11,780,079			$	11,813,297
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities
Accounts payable and accrued expenses			$	536,038			$	459,000
Stock based payable				144,100				166,340
Line of credit, short term				900,000				800,000
Convertible note payable, short term portion				598,666				-
Notes payable, current portion				782,978				743,787
Unearned revenue				49,754				74,934
	Total current liabilities			3,011,536				2,244,061
Long term debt:
Deposits held				72,901				72,901
Convertible note payable, long term portion				1,795,998				2,347,403
Notes payable, long term portion				8,699,044				8,935,473
	Total long term debt			10,567,943				11,355,777
Total liabilities				13,579,479				13,599,838
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, 16,793,248 and 16,747,248 shares issued and outstanding as of March 31, 2014 and December 31, 2013, respectively				16,793				16,747
Additional paid in capital				11,582,443				11,560,249
Accumulated deficit				(13,398,636	)			(13,363,537	)
	Total stockholders' deficit			(1,799,400	)			(1,786,541	)
Total liabilities and stockholders' deficit			$	11,780,079			$	11,813,297

FIRST CHOICE HEALTHCARE SOLUTIONS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
			Three Months Ended March 31,
			2014				2013
Revenues:
Patient service revenue			$	2,010,974			$	1,135,012
Provision for bad debts				(38,144	)			-
Net patient service revenue				1,972,830				1,135,012
Rental revenue				261,923				266,669
	Total revenue			2,234,753				1,401,681
Operating expenses:
Salaries & benefits				1,065,521				622,759
Other operating expenses				429,291				304,475
General & administrative				405,912				253,019
Depreciation and amortization				134,719				122,620
	Total operating expenses			2,035,443				1,302,873
Net income from operations				199,310				98,808
Other income (expense):
Miscellaneous income				750				750
Loss on change in fair value of derivative liability				-				(40,649	)
Amortization financing costs				(15,906	)			(14,337	)
Interest expense, net				(219,253	)			(299,641	)
	Total other income (expense)			(234,409	)			(353,877	)
Net loss before provision for income taxes				(35,099	)			(255,069	)
Income taxes (benefit)				-				-
NET LOSS			$	(35,099	)		$	(255,069	)
Net loss per common share, basic and diluted			$	(0.00	)		$	(0.02	)
Weighted average number of common shares outstanding, basic and diluted				16,756,648				12,751,906

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.