First Choice Healthcare Solutions, Inc. Reports 2013 First Quarter Earnings

Company Delivers First Quarter of Positive Cash Flow From Operations

Marketwired

MELBOURNE, FL--(Marketwired - May 17, 2013) - First Choice Healthcare Solutions, Inc. (OTCQB: FCHS) (OTCBB: FCHS) announced today the 2013 first quarter financial and operational results.

"We are extremely pleased with our 2013 first quarter financial and operational results," stated Chris Romandetti, CEO of First Choice Healthcare. "Unlike many other healthcare business models, ours is designed to offer a more synergistic and profitable medical service mix. While we have increased this quarter's revenue by $187,207, or 15 percent, our EBITDA demonstrated a significant gain of $233,178, or 475 percent. These continued gains point to our ability to increase margins as our revenues continue to grow."

Additional accomplishments include the signing of two additional Orthopedic Surgeons and two Physician Assistants. "Signing four Clinicians continues to validate the FCMG model and Center of Excellence retail platform," stated Romandetti. "We remain cautiously optimistic that by year-end we will complement our Center of Excellence with two additional Orthopedic Surgeons and one Neurosurgeon. As we move forward with our expansion plan, we're investigating potential locations for our next Multi-Specialty Center of Excellence. Our focus is to identify geographic areas with high patient and physician benefit and the greatest leverage for our unique business model."

Financial highlights for the three months ended March 2013:

  • Revenues increased to $1,401,681 for the three months ended March 31, 2013, compared to revenues of $330,216 for the three months ended March 31, 2012. The increase in revenue of $1,071,465 or 324 percent is primarily attributable to the acquisition of First Choice Medical Group of Brevard, LLC, completed in April 2012, which added $1,135,012 in medical revenue for the quarter ended March 31, 2013 compared to $0 for the same period last year.
  • Total revenue increased to $1,401,681 or 15 percent for the three months ended March 31, 2013, compared to revenues of $1,214,474 for the period ended December 31, 2012.
  • Operating expenses increased to $1,302,873 or 1 percent for the three months ended March 31, 2013 compared to $1,288.673 for the period ended December 31, 2012.
  • Net income from operations increased to $98,808 an increase of $173,007 for the three month period ended March 31, 2013 compared to a net loss from operations of $74,199 for the period ended December 31, 2012.
  • Net loss decreased to $255,069 or 8.59 percent for the three months ended March 31, 2013 compared to a net loss of $279,649 for the period ended December 31, 2012.
  • EBITDA increased to $282,178 or 475 percent for the three months ended March 31, 2013 compared to $49,030 for the period ended December 31, 2012.
   
   
FIRST CHOICE HEALTHCARE SOLUTIONS, INC.  
CONDENSED CONSOLIDATED BALANCE SHEETS  
   
    March 31,     December 31,  
    2013     2012  
    (unaudited)        
ASSETS            
Current assets            
Cash   $ 113,009     $ 67,045  
Cash-restricted     276,986       221,148  
Accounts receivable     659,448       527,867  
Prepaid and other current assets     56,904       69,970  
Capitalized financing costs, current portion     57,348       57,348  
  Total current assets     1,163,695       943,378  
                 
Property, plant and equipment, net of accumulated depreciation of $1,592,949 and $1,465,939     8,631,723       8,756,631  
                 
Other assets                
Capitalized financing costs, long term portion     138,574       152,911  
Patient list, net of accumulated amortization of $20,000 and $24,391     280,000       275,609  
Deposits     2,719       2,719  
  Total other assets     421,293       431,239  
                 
Total assets   $ 10,216,711     $ 10,131,248  
                 
                 
LIABILITIES AND STOCKHOLDERS' DEFICIT                
Current liabilities                
Accounts payable and accrued expenses   $ 651,537     $ 576,209  
Notes payable, current portion     712,840       690,586  
Note payable, related party     300,000       300,000  
Convertible note payable, net of unamortized debt discount of $188,567 and $160,543, respectively     173,846       43,537  
Unearned revenue     39,357       39,438  
  Total current liabilities     1,877,580       1,649,770  
                 
Long term debt:                
Deposits held     47,399       47,399  
Revolving line of credit, related party     189,536       153,330  
Notes payable, long term portion     9,288,586       9,410,296  
Derivative liability     310,213       171,987  
  Total long term debt     9,835,734       9,783,012  
                 
Total liabilities     11,713,314       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, 12,833,461 and 12,706,795 shares issued and outstanding as of March 31, 2013 and December 31, 2012, respectively     12,833       12,707  
Additional paid in capital     7,404,867       7,244,993  
Common stock subscriptions     -       100,000  
Accumulated deficit     (8,914,303 )     (8,659,234 )
  Total stockholders' deficit     (1,496,603 )     (1,301,534 )
                 
Total liabilities and stockholders' deficit   $ 10,216,711     $ 10,131,248  
                 
                   
   
   
FIRST CHOICE HEALTHCARE SOLUTIONS, INC  
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS  
(unaudited)  
             
    Three months ended March 31,  
    2013     2012  
Revenues:            
Net Patient Service Revenue   $ 1,135,012     $ -  
Rental Revenue     266,669       330,216  
  Total Revenue     1,401,681       330,216  
                 
Operating expenses:                
Salaries & Benefits     622,759       67,596  
Other Operating expenses     304,475       97,298  
General & Administrative     253,019       224,147  
Depreciation and amortization     122,620       40,365  
  Total operating expenses     1,302,873       429,406  
                 
Net income (loss) from operations     98,808       (99,190 )
                 
Other income (expense):                
Miscellaneous income     750       750  
Loss on change in fair value of derivative liability     (40,649 )     -  
Amortization Financing costs     (14,337 )     (14,337 )
Interest expense, net     (299,641 )     (114,735 )
  Total other income (expense)     (353,877 )     (128,322 )
                 
                 
Net loss before provision for income taxes     (255,069 )     (227,512 )
                 
Income taxes (benefit)     -       (23,103 )
                 
NET LOSS   $ (255,069 )   $ (204,409 )
                 
Net loss per common share, basic and diluted   $ (0.02 )   $ (0.02 )
                 
Weighted average number of common shares outstanding, basic and diluted     12,751,906       12,462,750  
                 
                   

First Choice Healthcare Solutions, Inc. (www.myfchs.com and www.myfcmg.com)
First Choice Healthcare Solutions, Inc., through its wholly owned subsidiary FCID Medical, Inc., is developing and acquiring multi-specialty medical centers. The Company is carving a new niche in the multibillion-dollar medical clinical service industry with specialized multi-specialty medical centers of excellence that offer an optimal mix of synergistic multi-specialty physicians combined with an array of diagnostic capabilities. More information is available at www.myfchs.com.

Forward-looking Statements
This press release contains statements which are forward-looking statements. Such forward-looking statements are based on current expectations, estimates, and projections about our industry, management beliefs, and certain assumptions made by our management. Words such as "anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates," variations of such words, and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties, and assumptions that are difficult to predict; therefore, actual results may differ materially from those expressed or forecasted in any such 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.

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