BRENTWOOD, Tenn, March 26, 2020 (GLOBE NEWSWIRE) -- IMAC Holdings, Inc. (IMAC) (“IMAC” or the “Company”), a provider of Innovative Medical Advancements and Care, specializing in regenerative rehabilitation orthopedic treatments without the use of surgery or opioids, today announces financial results for the year ending December 31, 2019.
Financial and Select Corporate Highlights from 2019 (all comparisons are with IMAC for the year ending December 31, 2018 unless otherwise indicated):
- Net revenues were $15.1 million, compared with $6.7 million, a gain of 126%
- Contractual Adjustments improved, dropping from 59% to 53% of gross charges
- Net loss was $6.5 million or $0.84 per share, compared with a net loss of $3.0 million or $0.47 per share
- Cash as of December 31, 2019 was $0.3 million, compared with $0.1 million as of December 31, 2018
- IMAC initiated next phase of Brand Ambassador Program with opening of Mike Ditka Center in Arlington Heights, Ill.
- Opened the Ozzie Smith IMAC Regeneration Center, in Springfield, Missouri, offering the company’s full suite of services including physical and occupational therapy, and the company’s signature regenerative rehabilitation medical treatments delivered by licensed medical practitioners.
- The United States Department of Veterans’ Affairs named IMAC Holdings a Participant Provider in its Community Care Network for Tennessee, Kentucky, Illinois and Missouri
Additional Highlights Since the End of 2019:
- IMAC launches new telehealth options to maintain consistent communications with active care patients choosing to "shelter in place."
- The company initiated new wellness maintenance programs on a subscription basis for all current and future visitors to its outpatient treatment centers.
- The company further expanded geographic reach with its first clinic operation in Florida with the purchase of Chiropractic Health of Southwest Florida, Inc. in Bonita Springs.
- The U.S. Department of Labor (DOL) has named IMAC Regeneration Centers as an approved provider of medical treatment, physical therapy and chiropractic services for their Office of Workers’ Compensation Programs (OWCP). The OWCP administers four major disability compensation programs that provide wage replacement benefits, medical treatment, vocational rehabilitation and other benefits to certain workers or their dependents who experience work-related injury or occupational disease.
- IMAC appointed Gerald M. Hayden, Jr. to its Board of Directors.
“2019 was a banner year for IMAC as we flourished from accretive acquisition and same-store expansion, while increasing our service offerings and roster of Hall of Fame Brand Ambassadors. Throughout 2019, we accomplished the goals and milestones we set out to achieve, which established a strong foundation for our continued growth into 2020 and beyond,” said Jeff Ervin, IMAC CEO. “Completing our IPO in February allowed us to not only raise proceeds through the sale of equity, but also eliminate more than $7M of current liabilities. Additionally, we expanded our presence with a large acquisition in Illinois, widening our geographic footprint into major metropolitan communities. We also increased our presence among insured lives, including gaining certification as a U.S. Department of Veteran’s Affairs community care network provider.
“We are heartened by the commitment our patients have demonstrated, which led to our strong annual increases in patient traffic at our clinics. Visits to our clinics in 2019 increased 117% to 138,639 visits vs. 63,812 in 2018. We improved EBITDA margin from -34% to -25% year over year, with the fourth quarter EBITDA at -18%. We will continue to focus on this financial metric by executing cost synergies from acquired entities while expanding our reach to patients seeking alternatives to invasive medical procedures.
“Given the developments impacting our country with COVID-19, we recently introduced our advanced telemedicine therapeutic offering and are making contingency plans to help mitigate the impact of temporary disruptions to our business, including leveraging governmental programs designed to aid businesses during these unprecedented times. We are dedicated to providing the most beneficial forms of therapy in assisting patients address their needs to the fullest extent we are able.”
Results of Operations for the Twelve Months Ended December 31, 2019 Compared to the Twelve Months Ended December 31, 2018
Patient service revenues more than doubled year over year from 2018 to 2019, increasing from $6.7 million to $15.1 million. Operating expenses totaled $21.3 million during 2019, compared to $10.2 million for the year ended December 31, 2018. These included General and Administrative expenses, which were $5 million in 2019 compared with $3 million for the year 2018. Operating loss was a total of $6.1 million, compared to $3.5 million during the 2018, and net loss attributable to IMAC Holdings was $6.5 million during 2019, compared with a net loss attributable to IMAC Holdings of $3.0 million during the year ended December 31, 2018.
For the year ended December 31, 2019, the Company reported cash and cash equivalents of $0.3 million, compared with approximately $0.1 million as of December 31, 2018.
About IMAC Holdings, Inc.
IMAC Holdings was created in March 2015 to expand on the footprint of the original IMAC Regeneration Center, which opened in Kentucky in August 2000. IMAC Regeneration Centers combine life science advancements with traditional medical care for movement-restricting diseases and conditions. It owns or manages 14 outpatient clinics that provide regenerative, orthopedic and minimally invasive procedures and therapies. It has partnered with several active and former professional athletes, opening two Ozzie Smith IMAC Regeneration Centers, two David Price IMAC Regeneration Centers, one Tony Delk IMAC Regeneration Center, and three IMAC Regeneration Centers sponsored by Mike Ditka. IMAC’s outpatient medical clinics emphasize its focus around treating sports and orthopedic injuries without surgery or opioids.
Safe Harbor Statement
This press release contains forward-looking statements. These forward-looking statements, and terms such as “anticipate,” “expect,” “believe,” “may,” “will,” “should” or other comparable terms, are based largely on IMAC's expectations and are subject to a number of risks and uncertainties, certain of which are beyond IMAC's control. Actual results could differ materially from these forward-looking statements as a result of, among other factors, risks and uncertainties associated with its ability to raise additional funding, its ability to maintain and grow its business, variability of operating results, its ability to maintain and enhance its brand, its development and introduction of new products and services, the successful integration of acquired companies, technologies and assets, marketing and other business development initiatives, competition in the industry, general government regulation, economic conditions, dependence on key personnel, the ability to attract, hire and retain personnel who possess the skills and experience necessary to meet customers’ requirements, and its ability to protect its intellectual property. IMAC encourages you to review other factors that may affect its future results in its registration statement and in its other filings with the Securities and Exchange Commission. In light of these risks and uncertainties, there can be no assurance that the forward-looking information contained in this press release will in fact occur. More information about IMAC Holdings, Inc. is available at www.imacregeneration.com
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Financial Tables Follow
IMAC Holdings, Inc.
Consolidated Balance Sheet
December 31, 2019 and 2018
|December 31,||December 31,|
|Cash||$ 373,689||$ 194,316|
|Accounts receivable, net||1,258,325||303,630|
|Total current assets||2,577,575||668,109|
|Property and equipment, net||3,692,009||3,333,638|
|Intangible assets, net||7,169,072||4,257,434|
|Deferred IPO Costs||-||335,318|
|Deferred financing costs||170,274||-|
|Right of use asset||3,719,401||-|
|Total other assets||14,148,494||7,073,040|
|Total assets||$ 20,418,078||$ 11,074,787|
|LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)|
|Accounts payable and accrued expenses||$ 2,909,666||$ 1,261,582|
|Notes payable, current portion||1,422,554||4,459,302|
|Capital lease obligation, current portion||17,473||16,740|
|Line of credit||79,961||379,961|
|Liability to issue common stock, current portion||421,044||-|
|Total current liabilities||6,065,636||13,831,173|
|Notes payable, net of current portion||2,109,065||317,291|
|Capital Lease Obligation, net of current portion||66,565||84,038|
|Lease Incentive Obligation||-||576,454|
|Liability to issue common stock||578,866||-|
|Operating lease, net of current portion||3,660,654||-|
|Stockholders' equity (deficit):|
|Preferred stock - $0.001 par value, 5,000,000 authorized,||-||-|
|nil issued and outstanding at December 31, 2019 and 2018|
|Common stock; $0.001 par value, 30,000,000 authorized,||8,907||4,534|
|8,913,258 and 6,582,737 shares issued and outstanding|
|at December 31, 2019 and 2018, respectively|
|Additional paid-in capital||20,050,634||1,233,966|
|Total stockholders' equity (deficit)||7,937,292||(3,932,160)|
|Total liabilities and stockholders' equity||$ 20,418,078||$ 11,074,787|
IMAC Holdings, Inc.
Consolidated Statement of Operations
For the Years Ended December 31, 2019 and 2018
|Year Ended December 31,|
|Total patient revenue, net||15,100,708||6,637,071|
|Salaries and benefits||10,523,409||4,730,035|
|Advertising and marketing||1,238,352||859,191|
|General and administrative||5,064,437||3,063,270|
|Depreciation and amortization||1,552,919||651,066|
|Total operating expenses||21,311,657||10,252,467|
|Other income (expense):|
|Other income (expenses)||(16,132)||18,356|
|Beneficial conversion interest expense||(639,159)||-|
|Gain on Sale of Assets||140,074||-|
|Total other expenses||(765,958)||(127,927)|
|Loss before equity in loss of non-consolidated affiliate||(6,951,589)||(3,679,323)|
|Equity in loss of non-consolidated affiliate||-||(105,550)|
|Net loss before income taxes||(6,951,589)||(3,784,873)|
|Net loss attributable to the noncontrolling interest||454,359||731,130|
|Net loss attributable to IMAC Holdings, Inc.||$(6,497,230)||$ (3,053,743)|
|Net loss per share attributable to common stockholders|
|Basic and diluted||$ (0.84)||$ (0.47)|
|Weighted average common shares outstanding|
|Basic and diluted||7,753,642||4,533,623|
IMAC Holdings, Inc.
Statements of Cash Flows
For the Years Ended December 31, 2019 and 2018
|Cash flows from operating activities:|
|Adjustments to reconcile net loss to net cash|
|used in operating activities:|
|Depreciation and amortization||1,552,919||651,067|
|Beneficial conversion interest expense||639,159||-|
|Share based compensation||392,217|
|Equity in (earnings) loss of non-consolidated affiliate||-||(105,550)|
|(Increase) decrease in operating assets:|
|Accounts receivable, net||(412,805)||(170,235)|
|Due from related parties||-||(95,501)|
|Increase (decrease) in operating liabilities:|
|Accounts payable and accrued expenses||1,359,099||1,204,417|
|Lease incentive obligation||-||516,026|
|Net cash used in operating activities||(4,068,743)||(1,808,310)|
|Cash flows from investing activities:|
|Purchase of property and equipment||(1,200,216)||(1,579,842)|
|Cash paid for acquisistion||-||(23,931)|
|Proceeds from sale of fixed assets||147,096||-|
|Net cash used in investing activities||(1,053,120)||(1,603,773)|
|Cash flows from financing activities:|
|Proceeds from initial public offering, net of related fees||3,839,482||-|
|Proceeds from warrants exercised||357,345||-|
|Proceeds from issuance of common stock||1,311,697||-|
|Proceeds from notes payable||212,800||3,998,195|
|Payments on notes payable||(123,348)||(193,625)|
|Proceeds from line of credit||20,000||175,000|
|Payments on line of credit||(300,000)||(140,000)|
|Payments on capital lease obligation||(16,740)||(25,642)|
|Net cash provided by financing activities||5,301,236||3,478,610|
|Net increase in cash||179,373||66,527|
|Cash, beginning of year||194,316||127,788|
|Cash, end of year||$ 373,689||$ 194,315|
|Supplemental cash flow information:|
|Interest paid||$ 97,147||$ 153,824|
|Taxes paid||$ 18,533||$ -|
|Non Cash Financing and Investing:|
|Business acquisition via stock issuance||$ 3,771,978||$ 7,139,397|