New York Health Care, Inc. Reports Financial Results for 2nd Quarter 2006
New York Health Care, Inc. (the “Company”), and its wholly owned subsidiary, BioBalance Corporation (“BioBalance”), announced today the Company’s financial results for the Second Quarter ending June 30, 2006. The Company’s common stock trades on the OTC Bulletin Board under the symbol (OTCBB: BBAL).
Revenues for the quarter, which were generated solely from the Company’s home healthcare operations, increased to $11,018,270 from $10,913,774 in the same period in 2005. The increase in revenue is due to an increase in sales volume to some of the Company’s existing home healthcare clients. Cost of professional care of patients in the quarter increased to $9,147,298 from $9,010,944 for the same quarter last year. As a percentage of revenue, the cost of sales remained constant from period to period.
Selling, general and administrative expenses (“SG&A”) in the second quarter of 2006 increased to $2,408,964 from $2,350,241 in the same period in 2005. This increase was primarily due to management costs in the BioBalance segment.
The net loss of $1,228,021 in the second quarter of 2006 includes net income of $64,602 from the operations of the home healthcare segment offset by a net loss of $1,292,623 from the BioBalance segment, which to date has not generated any revenue. For the comparable period in 2005, the operations of the home care segment showed a net loss of $115,160 while the BioBalance segment had a net loss of $965,158.
About New York Health Care and BioBalance
Prior reports of the Company filed with the SEC remain available on the SEC website at http://www.sec.gov. Acquired by New York Health Care in January 2003, BioBalance operates as a wholly owned subsidiary. BioBalance is a biopharmaceutical company focused on the development of innovative treatments for various GI disorders that are poorly addressed by current therapies via accelerated regulatory pathways. These disorders include pouchitis, Irritable Bowel Syndrome (IBS), Crohn’s disease, ulcerative colitis, C. difficile infections, celiac disease and antibiotic-associated diarrhea. BioBalance’s lead product, Probactrix(R), recently received FDA approval to begin phase II clinical trials for pouchitis. Additional information on BioBalance is located on the BioBalance website at www.biobalance.com.
SAFE HARBOR STATEMENT: In addition to historical information, certain of the statements in the preceding paragraphs, particularly those anticipating future events, financial performance, business prospects and growth and operating strategies constitute forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by words such as anticipate, believe, estimate, expect, intend, predict, hope or similar expressions. Such statements are based on management’s current expectations and are subject to a number of factors and uncertainties which could cause actual results to differ materially from those described in the forward-looking statements, including, without limitation, satisfaction of regulatory and other approvals and conditions necessary to market Probactrix(R), the Company’s ability to implement its strategies and achieve its objectives and the risks and uncertainties described in reports filed by the Company with the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended, including without limitation, the risk factors set forth and cautionary statements made in the Company’s 2005 Annual Report on Form 10-K, its latest quarterly report on Form 10-Q and current reports on Form 8-K.
Consulting For Strategic Growth I, Ltd. (“CFSG1″) provides The BioBalance Corporation with consulting, business advisory, investor relations, public relations and corporate development services, for which CFSG1 receives a fixed monthly fee for the duration of the agreement. Independent of CFSG1′s receipt of cash compensation from BioBalance, CFSG1 may choose to purchase the common stock of New York Health Care, Inc. and thereafter sell those shares at any time it deems appropriate to do so. For further information, please visit www.cfsg1.com.
CONSOLIDATED STATEMENTS OF OPERATIONS FOR NEW YORK HEALTH CARE, INC. AND SUBSIDIARIES FOLLOW:
NEW YORK HEALTH CARE, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) For The Three Months Ended For The Six Months Ended June 30, June 30, 2006 2005 2006 2005 ———— ———— ———— ———— Net patient service revenue $ 11,018,270 $ 10,913,774 $ 22,984,884 $ 21,666,556 ———— ———— ———— ———— Expenses: Professional care of patients 9,147,298 9,010,944 18,544,052 17,860,380 ———— ———— ———— ———— Gross Profit 1,870,972 1,902,830 4,440,832 3,806,176 ———— ———— ———— ———— General and administrative 2,242,323 1,940,116 4,228,161 4,472,114 Product development 723,219 528,843 1,398,356 748,813 Bad debts expense – 248,704 – 283,704 Depreciation and amortization 166,641 161,421 330,369 321,645 ———— ———— ———— ———— Total operating expenses 3,132,183 2,879,084 5,956,886 5,826,276 ———— ———— ———— ———— Operating loss from continuing operations (1,261,211) (976,254) (1,516,054) (2,020,100) ———— ———— ———— ———— Non-operating income (expenses): Interest income 44,290 15,761 90,275 51,391 Interest expense – (1,178) (7,863) (3,259) ———— ———— ———— ———— Non-operating income, net 44,290 14,583 82,412 48,132 ———— ———— ———— ———— Loss from continuing operations before provision for income taxes (1,216,921) (961,671) (1,433,642) (1,971,968) Provision for income taxes 11,100 118,647 35,268 131,906 ———— ———— ———— ———— Loss from continuing operations (1,228,021) (1,080,318) (1,468,910) (2,103,874) ———— ———— ———— ———— Discontinued operations: Income (loss) from operations of discontinued component (including gain on sale of assets of $2,703,718 in 2005) net of tax paid of $30,549 and $34,452, respectively – 2,683,159 – 2,748,446 ———— ———— ———— ———— Income (loss) from discontinued operations – 2,683,159 – 2,748,446 ———— ———— ———— ———— Net income (loss) $ (1,228,021) $ 1,602,841 $ (1,468,910) $ 644,572 ============ ============ ============ ============ Basic and diluted income (loss) per share: Loss from continuing operations $ (0.04) $ (0.03) $ (0.04) $ (0.07) Income (loss) from discontinued operations $ – $ 0.08 $ – $ 0.09 ———— ———— ———— ———— Net income (loss) $ (0.04) $ 0.05 $ (0.04) $ 0.02 ============ ============ ============ ============ Weighted and diluted average shares outstanding 33,232,722 32,947,265 33,232,722 30,536,785 ============ ============ ============ ============
CONTACTS: Simon Fischer Director of Corp. Development BioBalance Corp. Tel: (212) 679-7778 Fax: (212) 679-7774 Contact via http://www.marketwire.com/mw/emailprcntct?id=6DE28D4AECE084FC Stanley Wunderlich CEO Consulting For Strategic Growth 1, Ltd. Tel: (800) 625-2236 Fax: (212) 337-8089 Email: Contact via http://www.marketwire.com/mw/emailprcntct?id=F536A80B81E7FEA3
SOURCE: BioBalance Corporation