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.
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