HOUSTON, May 14, 2013 (GLOBE NEWSWIRE) -- Spine Pain Management, Inc. (OTCQB:SPIN), a technology-driven, medical service, device and healthcare solution company servicing the multi-billion dollar spine injury sector, today reported financial results for its first quarter 2013. The company's Interactive Webinar Conference Call will follow at 4:15 PM EDT. Access information for the call is provided below.
Major Developments
- Completed and implemented refinements of its business model begun in 2012, resulting in a return to profitability and surpassing of revenues in each of the prior three quarters.
- The continuing legal education and continuing medical education programs centered around Video Medical Documentation.
- Made first sale of patented Quad Video HALO system
- Opened a new center in San Antonio, Texas.
- Passed the milestone of 5,000 procedures funded.
Results of Operations
Spine Pain Management recorded $2,102,929, in gross revenue for the three months ended March 31, 2013, offset by $1,059,727 of standard allowance for discount (sale of Video HALO of $50,000 was not offset by standard allowance), resulting in net revenue of $1,043,201. For the same period in 2012, gross revenue was $2,618,801, offset by $1,134,967 of standard allowance for discount, resulting in net revenue of $1,283,895. Net income was $45,969 for the three months ended March 31, 2013, compared to $481,320 for the three months ended March 31, 2012.
While revenues and earnings in Q1-13 were somewhat lower than Q1-12, management feels the quality of the revenues in Q1-13 is much improved over prior periods due to controls implemented in 2012. Additionally, when extraordinary income and loss items are excluded in Q2-12 and Q3-12, Q1-13 also exceeded both top and bottom line in each of the prior three quarters. A comparison of Q1-13 to Q4-12 shows a 237% increase in reported net revenues from $309,326 in Q4-12 and a return to profitability from a $630,035 loss in Q4-12.
To effectuate these controls, management was able to capitalize on historic data and efficiently model a more profitable use of our financial resources in pre-funding cases. The effect of these changes results in more stringent requirements as to which cases Spine Pain Management will pre-fund. Factors that are considered include: minimal insurance coverage, historical returns from the referring attorney and other parameters such as average length of time to settlement.
Spine Pain Management's CEO, Dr. William Donovan, stated, "As we represented on our year-end conference call six weeks ago, 2012 was a year in transition where management stepped back and closely evaluated what we had learned in the few years since we conceived and implemented SPIN's unique business model in a public company. There was never any question as to the validity of the core business model, as proven by collections of over $5 million and discounted future collections of some $6.3 million more, all generated from less than $2 million in startup capital. But since there was no other publically reporting companies to observe or learn from, we had to forge ahead as best we could. As previously reported, in the summer of 2012 we decided to retain an outside professional business consulting firm to do a six week 'top to bottom' company review. Since then we have implemented systems on how to best capitalize on using our database of over 3,000 cases, at that time, to more efficiently deploy are resources in the future. I believe Q-1 is a strong start to what I expect to be a very good year." Donovan went on to say, "I invite all shareholders and interested parties to attend, or later access, the video replay of our Q-1 interactive video conference call being held today."
Continuing Legal and Medical Education Programs
As recently reported, management has assisted in the development of a series of specialized educational program classes for attorneys, doctors and other provider organizations who manage patients with spine injuries who are parties to personal injury suits (CLE and CME programs). These programs include "Documentation Standards of Medical Video Documentation" (DMVD) and "Documentation and Visualization of Medical Injuries" (DVMI), both utilizing the Quad Halo Video 2.0 system. The development of these standards for SPIN's programs is based on SPIN's patent pending technology of QUAD HALO Video system with its associated hardware and software technology. To date, a total of four CLE/CME programs have been held in Florida and Texas with results being the generation of new attorney referrals.
First Sale of Patented Quad Video HALO system
In March, the company completed a first sale of its patented Quad Video, v. 2.0 HALO (HALO v.2) at a sales price of $50,000 plus a per treatment royalty after one year; thus opening up a new and significant revenue stream outside its normal course of business.
New Center in San Antonio, Texas
A new affiliate spine diagnostic center, the "Central Texas Pain Center" (CPTC), began treating patients on Feb. 22, 2013. CPTC is a well-established Texas based medical group with extensive experience in similar spine diagnostic procedures for accident patients.
Conference Call Details
Conference Call: An investor conference call with management will be held on Tuesday May 14, at 4:15 pm EDT. The call will be video WebCast with a short live Power Point Presentation followed by Q & A. The call may be accessed either by phone alone, which will not allow asking questions, or by phone and/or VOIP with headset after internet log-in with an on screen provided Audio Pin # which will allow verbally asking questions. Questions can also be typed into an online chat screen at any time during the presentation or Q & A period.
Access to the Call: To use the internet link, you must register prior to access, so we suggest you complete the registration and get your log-in information in advance of the start of the presentation. You can register at any time. As mentioned above, the call is Tuesday May 14 at 4:15 pm EDT.
Click or paste the link below in your browser for registration and web access to the presentation and follow the online instructions:
https://www3.gotomeeting.com/register/172307814
Or if the above link doesn't work, please try the following:
http://www.joinwebinar.com Webinar ID: 172-307-814
Telephone Dial-in and/or VOIP which provides Q&A: To verbally ask a question using your telephone, you must be online at the presentation website during the internet presentation where a unique Audio PIN # will be provided to you on screen after you log-in to the presentation console. You must use the pin to hear the call on the phone. During the presentation, all will be muted until the Q&A portion.
The Q & A will be moderated, but without an operator, and will be open to all questions after the formal presentations. Review this short YouTube tutorial video for pointers on how to use the Webinar Features. (This is just a demo. Do not use the numbers or codes on this demo. Use what is provided above.)
YouTube webinar instructions: http://youtu.be/n7b1VHDwwD4
If you use the telephone, but are NOT also online, you will be able to hear the presentation plus Q & A, but will remain in "listen only" mode for the duration of the call.
Conference Dial-in Number: 1 (470) 200-0305
Participant Access Code: 975-720-482
Audio PIN: Shown after joining the Webinar
Conference Play Back: A video replay of the conference call presentation will be available 3 to 4 hours after the completion of the call at the company website: http://www.spinepaininc.com/investor-information.php
About Spine Pain Management, Inc:
Spine Pain Management, Inc. is a medical services and technology company facilitating diagnostic services for patients who have sustained spine injuries resulting from traumatic accidents. It delivers turnkey solutions to spine surgeons, orthopedic surgeons and other healthcare providers that provide necessary and appropriate treatment of musculo-skeletal spine injuries resulting from automobile and work-related accidents. The company's care management services helps reduce the financial burden on healthcare providers that provide patients with early-stage diagnostic testing and non-invasive surgical care, preventing many patients from being unnecessarily delayed or inhibited from obtaining needed treatment. Spine Pain Management believes that its services and technology bring strong transparency and impartiality to all parties involved in the settlement of patient cases.
Additional information about the company, along with a video can be found at its website at www.spinepaininc.com.
Forward-Looking Statements: This press release includes forward-looking statements as determined by the U.S. Securities and Exchange Commission (the "SEC"). All statements, other than statements of historical facts, included in this press release that address activities, events, or developments that the company believes or anticipates will or may occur in the future are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include general economic and business conditions, the ability to acquire and develop specific projects, the ability to fund operations, healthcare services demands, changes in healthcare practices, government regulation, and other factors over which the company has little or no control. The company does not intend (and is not obligated) to update publicly any forward-looking statements. The contents of this press release should be considered in conjunction with the warnings and cautionary statements contained in the company's recent filings with the SEC.