HOUSTON, TX, May 10, 2013 /CNW/ - Northstar Healthcare Inc. (TSX:NHC)
today announced its financial results for the three months ended March
31, 2013. 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 three months ended March 31, 2013
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.
"During the first quarter of 2013, the Company began a change in its
business model to enhance its profitability. We chose to repurchase the
equity physician partners and to move forward with a business model
that would differentiate the Northstar centers from those of its
competitors. We anticipated that there would be additional expense and
decreased revenue to the company in the short term. While we have
incurred additional expenses in this regard, we are pleased to report
that the physician-contracting program has recently started and has
produced meaningful results with at least sixteen doctors signing up
for the program in the months of March and April. This has been most
impactful at the Microsurgery Institute of Houston. In addition,
Northstar has just started direct to consumer marketing initiatives."
First Quarter Results
Net patient service revenues for the three months ended March 31, 2013
totaled $4.1 million, an increase of $0.9 million or 27.6%, compared to
$3.2 million for the same period in 2012. The increase in net patient
service revenues was primarily due to an 83.7% increase in case volume
at the MSID location. The increase in case volume was due to Northstar
resyndicating the center and adding a large pain and spine physician
group in the 2nd half of 2012.
The Company recorded net loss of $0.7 million compared to net loss of
$0.6 million in the prior corresponding period. This change is
primarily related to increased marketing spend in salaries and
advertising as the Company is focusing more of its efforts on direct to
consumer marketing. This resulted in net loss per weighted average
share of $0.02.
For the three months ended March 31, 2013 the Company's had cash flows
provided by operations of $0.2 million, representing a $0.2 million
decrease compared to the prior corresponding period.
At March 31, 2013, Northstar had consolidated net working capital of
$6.1 million, including cash of $3.2 million. This compares with $7.1
million and $4.2 million, respectively, at year-end 2012.
Northstar Joins Forces with Healthcare Marketing Agency, LevelTwo
Northstar has engaged noted full-service marketing agency, LevelTwo,
LLC, based in Dallas, Texas to assume the administration of Northstar's
budding direct-to-consumer marketing programs. Dr. Kramer noted that
"LevelTwo has established itself as one of Texas' top healthcare
marketing service agencies. With LevelTwo, Northstar will obtain the
firepower to conquer new markets across the state." Adam Lefton's
employment as Chief Marketing Officer ended on May 7, 2013.
About Northstar Healthcare Inc.
Northstar partners with physicians in the ownership and management of
ambulatory facilities and healthcare services. Northstar owns and
manages 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:
Tel: (713) 840-5180