Northstar Healthcare Reports 2012 Second Quarter Results
HOUSTON, TX, Aug. 3, 2012 /PRNewswire/ – Northstar Healthcare Inc. (TSX:NHC)
today announced its financial results for the three and six months
ended June 30, 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 and six months ended June 30,
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 realized $1.8 million of cash inflow from operations for
the second quarter,” said Dr. Donald Kramer, Northstar Chief Executive
Officer, “we continue to see positive results. This positive cash
inflow allowed us to distribute monies to our partners and retire all
outstanding debt at Houston Microsurgery Institute. Management has
significantly improved our revenue cycle, increasing our overall
collections. The Company may see a decrease in the third quarter
collections due to lower than expected case volume”.
Second Quarter Results
Net patient service revenues for the three months ended June 30, 2012
totaled $5.1 million, an increase of $1.4 million or 35.9%, compared to
$3.8 million from the prior corresponding period. The increase in net
patient service revenues resulted from a 50.3% increase in revenues per
case due to improved billing and collections efforts across all of our
locations. In addition, we have seen favorable reimbursements in our
pain specialty cases.
The Company had cash flows provided by operations of $1.8 million,
representing a $1.8 million increase compared to the prior
corresponding period, despite lower case volume. Management’s efforts
in managing the revenue cycle provided significant positive results in
collections.
For the three months ended June 30, 2012, the Company had a $0.8 million
in cash flows used for financing activities compared to $0.3 million
used in the prior corresponding period. Due to positive cash flow
positions, the Company was able to make significant distributions to
non-controlling interests, as well as pay off all outstanding debts on
Houston Microsurgery Institute’s revolving credit facility with Encore
Bank.
The Company had net income of $0.5 million compared to a net loss of
($0.7 million) in the prior corresponding period resulting in a $1.2
million increase, or 166.1%. This is primarily related to improvements
in revenue cycle management.
Six Months Results
Net patient service revenues for the six months ended June 30, 2012
totaled $8.4 million, an increase of $0.9 million or 12.7%, compared to
$7.4 million for the same period in 2011. The increase was primarily
due to an increase in revenues per case experienced through improved
billing and collections efforts at all of our locations. In addition,
the Company has seen favorable reimbursements in our pain specialty
cases.
Northstar had income from operations for the six months ended June 30,
2012 of $2.9 million compared to $0.9 million in the corresponding 2011
period. Northstar reported a net loss in the 2012 six month period of
$0.1 million which had a nominal effect on loss per weighted average
share, compared with a net loss of $1.3 million, or $0.04 loss per
weighted average share in the corresponding 2011 period.
The Company had cash flows provided by operations of $2.2 million,
representing a $1.9 million increase compared to the prior
corresponding period, despite lower case volume. Management’s efforts
in managing the revenue cycle provided significant positive results in
collections.
For the six months ended June 30, 2012, the Company had a $1.1 million
in cash flows used for financing activities compared to $0.6 million
used in the prior corresponding period. Due to positive cash flow
positions, the Company was able to make significant distributions to
non-controlling interests, as well as pay off all outstanding debts on
Houston Microsurgery Institute’s revolving credit facility with Encore
Bank.
At June 30, 2012, Northstar had consolidated working capital of $4.4
million, including cash of $3.5 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.
Forward-looking statements
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.
