HOUSTON, TX, May 11, 2012 /CNW/ - Northstar Healthcare Inc. (TSX:NHC) today announced its financial results for the three months ended March 31, 2012. 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, 2012 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 had almost $400,000 of cash inflow from operations for the first quarter," said Dr. Donald Kramer, Chief Executive Officer of Northstar. "We are continuing to see positive results of our efforts to return Northstar to profitability from the time that I returned in the fourth quarter of 2010. This positive cash inflow allowed us to invest in an innovative laser modality to treat spine cases in a minimally invasive and efficacious manner. This investment has allowed the Company's relationship with North American Spine (NAS) to greatly increase the volume of cases that we can perform at our MSIH location. This investment, coupled with the restructuring of our partnerships at MSIH and Kirby locations should prove to create continuous success for Northstar."
First Quarter Results
Net patient service revenues for the three months ended March 31, 2012 totaled $3.2 million, a decrease of $0.4 million or 11.4%, compared to $3.6 million for the same period in 2011. The decrease in net patient service revenues was primarily due to a 66.7% decrease in case volume at the MSID location. The decrease in case volume was related to cases being brought to the surgery center in the prior period by non-partner physicians that were absent in the current year.
The Company had cash flows provided by operations of $0.4 million, representing a $0.2 million or 69.3% increase compared to the prior corresponding period, despite lower case volume. Management's efforts in managing the revenue cycle has provided positive results in collections.
Northstar recorded net loss of $0.6 million in the first quarter of 2012 which was comparable in the corresponding 2011 period. This resulted in a net loss of ($0.02) per weighted average share in both periods.
At March 31, 2012, Northstar had consolidated working capital of $3.4 million, including cash of $2.5 million. This compares with $3.8 million and $2.5 million, respectively, at year-end 2011.
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.
For further information:
Thomas O. Foster, III
Tel: (713) 355-8614