Quantcast
Last updated on April 18, 2014 at 11:57 EDT

Northstar Healthcare Reports 2012 Third Quarter Results

November 13, 2012

HOUSTON, TX, Nov. 13, 2012 /PRNewswire/ – Northstar Healthcare Inc. (TSX:NHC)
today announced its financial results for the three and nine months
ended September 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 nine months ended
September 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.

“In the third quarter, the Company realized $1.6 million of cash inflow
from operations,” said Dr. Donald Kramer, Chief Executive Officer of
Northstar. “Management has significantly improved our revenue cycle,
increasing our overall collections. This positive cash inflow allowed
us to distribute monies to our partners and continue to execute our
long term plan for the Company”.

Third Quarter Results

Net patient service revenues for the three months ended September 30,
2012 totaled $6.1 million, an increase of $3.3 million or 115.9%,
compared to $2.8 million from the prior corresponding period. The
increase in net patient service revenues was primarily due to a 126.3%
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 its pain specialty cases.

The Company had cash flows provided by operations of $1.6 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 September 30, 2012, the Company experienced
$0.9 million in cash flows used for financing activities compared to
$0.2 million used in the prior corresponding 2011 period. Due to
positive cash flow positions, the Company was able to make significant
distributions to non-controlling interests.

The Company had net income of $0.9 million compared to a net loss of
$0.9 million in the prior corresponding 2011 period resulting in a $1.8
million increase, or 210.1%.

Nine Months Results

Net patient service revenues for the nine months ended September 30,
2012 totaled $14.4 million, an increase of $4.2 million or 41.0%,
compared to $10.2 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 its pain
specialty cases.

Northstar had income from operations for the nine months ended September
30, 2012 of $6.2 million compared to $0.7 million in the corresponding
2011 period. Northstar reported net income in the 2012 nine month
period of $0.8 million, or $0.02 earnings per weighted average share,
compared with a net loss of $2.2 million, or $0.07 loss per weighted
average share in the corresponding 2011 period.

The Company had cash flows provided by operations of $3.6 million,
representing a $3.5 million increase compared to the prior
corresponding 2011 period, despite lower case volume. Management’s
efforts in managing the revenue cycle provided significant positive
results in collections.

For the nine months ended September 30, 2012, the Company experienced
$2.0 million in cash flows used for financing activities compared to
$0.9 million used in the prior corresponding 2011 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.

As of September 30, 2012, the Company had consolidated net working
capital of $6.0 million. Cash balances were $4.1 million and total
accounts receivable were $2.8 million.  Accounts payable and accrued
liabilities totaled $1.7 million.

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.


Source: PR Newswire