HOUSTON, TX, Nov. 10, 2011 /CNW/ - Northstar Healthcare Inc. (TSX:NHC)
today announced its financial results for the third quarter and nine
months ended September 30, 2011. All dollar amounts are in United
States currency unless otherwise stated; percentage calculations are
based on the numbers in the financial statements and may not correspond
to rounded figures presented in this release.
Detailed information relating to the third quarter and nine months ended
September 30, 2011 is available in Management's Discussion and Analysis
(MD&A) and Interim Consolidated Financial Statements, which are
available on the company's web site at: www.northstar-healthcare.com and at www.sedar.com. This information is not intended to provide a comprehensive comparison
of financial results.
"The Company continued to assess opportunities for revenue
diversification as well as growth for our existing operating centers
during this quarter," said Dr. Donald Kramer, Chief Executive Officer
of Northstar. "The initiatives that we have in place for podiatry
programs at our Houston and Dallas location have already produced some
positive results. Based on our continuing efforts to recruit and bring
in new doctors, as well as our focus on our new specialty programs for
our existing centers, we are optimistic that the company will see
growth and a return to profitability. Additionally, active discussions
continue between Northstar and a number of strategic partners with the
aim of diversifying the Company's service lines. Public disclosures
will be made at such time as there are definitive agreements."
Third Quarter Results
In the third quarter ended September 30, 2011, Northstar generated net
patient service revenue of $2.8 million compared with $2.6 million in
the corresponding period of 2010.
The year-over-year increase in Q3 net patient service revenues was
primarily due to a 19.1% increase in case volume which was slightly
mitigated by a 7.7% decrease in the net patient service revenues per
Northstar recorded a third quarter 2011 loss from operations of $0.2
million compared with a $0.5 million loss in the 2010 period. The net
loss in the 2011 period was $0.9 million, or $0.03 per share, compared
with a net profit of $0.3 million, or $0.02 per share in the 2010
period. The 2010 net profit figure included a $2.0 million gain on
derecognition of Class B Units upon completion of a private placement
of common shares.
Cash flow used for operating activities in the third quarter of 2011 was
$0.2 million, compared with cash flow used for operating activities of
$2.4 million in the corresponding period in 2010.
Nine Months Results
In the nine months ended September 30, 2011, Northstar generated net
patient service revenue of $10.2 million compared with $10.1 million in
the corresponding period of 2010.
Northstar had income from operations for the nine months ended September
30, 2011 of $0.7 million compared to $1.1 million in the comparable
2010 period. Northstar reported a net loss in the 2011 nine month
period of $2.2 million, or $0.07 per share, compared with a net loss of
$3.1 million, or $0.23 per share in the corresponding 2010 period. The
2010 net loss figure included a $2.0 million gain on derecognition of
Class B Units upon completion of a private placement of common shares.
Cash flow provided by operating activities in the nine months ended
September 30, 2011 was $0.1 million, compared with cash flow used for
operating activities of $3.8 million in the corresponding period in
At September 30, 2011, Northstar had consolidated working capital of
$3.3 million, including cash of $2.9 million. This compares with $5.3
million and $4.2 million, respectively, at year-end 2010.
Northstar's Board of Directors announced today that Donna Alexander,
Northstar's Chief Operating Officer, has left Northstar to explore
other opportunities. "The Company deeply appreciates Donna's service
over the last twelve months and wishes Donna the best of luck in her
new endeavors," said Dr. Kramer. For the time being, Donna's
responsibilities are being handled by others in Management.
About Northstar Healthcare Inc.
Northstar owns and manages ambulatory surgery centers in the United
States, focusing initially on metropolitan areas in Texas. The Company
holds interests in three ambulatory surgery centers, two in Houston and
the third in Dallas.
This news release may contain forward-looking statements (within the
meaning of applicable securities laws) relating to business of
Northstar Healthcare Inc. (the "Company") and the environment in which
it operates. Forward-looking statements are identified by words such as
"believe", "anticipate", "expect", "intend", "plan", "will", "may" and
other similar expressions. These statements are based on the Company's
expectations, estimates, forecasts and projections. They are not
guarantees of future performance and involve risks and uncertainties
that are difficult to control or predict. These risks and uncertainties
are discussed in the Company's regulatory filings available on the
Company's web site at www.Northstar-Healthcare.com or at www.sedar.com.
There can be no assurance that forward-looking statements will prove to
be accurate as actual outcomes and results may differ materially from
those expressed in these forward-looking statements. Readers,
therefore, should not place undue reliance on any such forward-looking
statements. Further, a forward-looking statement speaks only as of the
date on which such statement is made. The Company undertakes no
obligation to publicly update any such statement or to reflect new
information or the occurrence of future events or circumstances.
SOURCE Northstar Healthcare Inc.
For further information:
Thomas O. Foster, III
Tel: (713) 355-8614