HOUSTON, Aug. 14, 2012 (GLOBE NEWSWIRE) -- Spine Pain Management, Inc. (the "Company") (OTCQB:SPIN), a medical services and technology company, today announced its financial results for its second quarter and six month period ended June 30, 2012. During the second quarter the Company arranged the opening of two additional diagnostic centers in Florida, to complete its geographic reach across Central Florida with a total of six centers in the state; purchased the intellectual property underlying the quad video platform, Halo Systems, which will further enhance the Company's service to its patients and its patients' advisory team; completed the sale of $500,000 in a convertible promissory note; and conducted an active investor awareness campaign.
The Company reported gross revenue net of allowance for discounts ("net revenue") of $919,000 for second quarter 2012. This compares to net revenue of $1.3 million for the comparable three month period of 2011 and $1.3 million for the first quarter of 2012. The Company incurred a net loss in the second quarter of $(386,000) or $(0.02) per basic share, which includes non-operating charges of $327,000 related to the settlement of a lawsuit. The Company generated a net profit of $307,000 or $0.02 per diluted share during the second quarter of 2011 and $481,000 or $0.03 per diluted share during the first quarter of 2012.
General and administrative (G&A) costs during the second quarter 2012 were $549,000 which includes $259,000 of non-cash charges comprised primarily of executives' and directors' ("managerial") stock options and provision for bad debt. This compares to G&A expenses in the second quarter of 2011 of $557,000 which includes non-cash charges of $69,000 comprised primarily of managerial options. It also compares to G&A expenses in the first quarter 2012 of $297,000 which includes similar non-cash charges of $143,000. G&A expenses excluding the non-cash charges were $289,000 in the second quarter of 2012, a decrease of $198,000 or 41 percent from the previous year second quarter level of $488,000. This also compares to G&A expenses of $154,000 incurred in the first quarter of 2012. The reduction in G&A expenses year-over-year reflects legal costs incurred during the second quarter of 2011 related to a legacy lawsuit which the Company has settled.
During the first six month of 2012, the Company generated net revenue of $2.2 million and net profits of $95,000 or $0.01 per diluted share, which includes non-operating charges of $327,000 related to the settlement of a lawsuit. This compares to net revenue of $2.1 million and a net profit of $605,000 or $0.03 per diluted share for the respective six month period in 2011. G&A costs for the first six months of 2012 were $846,000 which includes $403,000 of non-cash charges as outlined above. This compares to $788,000 for the same period in 2011, which included $75,000 in similar non-cash charges. Excluding non-cash charges, G&A costs for the first half of 2012 decreased $270,000 or 38 percent compared to the same period in 2011, which is mainly due to legal costs incurred in 2011 for a legacy lawsuit that the Company has settled.
Commenting on the financial results, Dr. William F. Donovan, Spine Pain Management's president and CEO, said, "During the second quarter, we experienced a reduction in patient referrals, which I believe is partially attributable to our focus on the Halo Technology acquisition, its consolidation into our organization and the development of its complementary business model and marketing strategy. In addition, we have been very active adding affiliate centers in our second market, Florida. We are now up to eight centers, two of which were just opened in early July 2012, which gives us geographical exposure to over 40 percent of the population in the State. With this accomplished, we are focused on continuing the company's growth trend." Dr. Donovan added, "Cash settlements for the quarter were approximately $637,000. As our case portfolio continues to season, we expect cash settlements to grow. We are working diligently, in conjunction with our service providers and counsel, to achieve further efficiencies in the process, in an attempt to lower the time to settlement. With the addition of our recently acquired Halo technology to support the services surrounding patients, we are making material progress in that effort."
The Company has scheduled a conference call for today, the details of which follow:
| Conference Call Details: | |
| Date/Time: | Tuesday, August 14, 2012—4:30 p.m. (EDT) |
| Telephone Number: | 888-713-4199 |
| International Dial-In Number: | 617-213-4861 |
| Participant Pass code: | 92230278 |
| Internet Access: | www.spinepaininc.com or www.earnings.com |
It is recommended that participants phone-in at least 10 minutes before the call is scheduled to begin. Participants may pre-register for the call at:
https://www.theconferencingservice.com/prereg/key.process?key=P8NHL8X7R
Pre-registrants will be issued a pin number to use when dialing into the live call which will provide quick access to the conference by bypassing the operator upon connection. A replay of the conference call in its entirety will be available approximately one hour after its completion by dialing 888-286-8010 (U.S.), 617-801-6888 (International) and entering the pass code 40280560 and on the Internet at www.earnings.com.
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Company Contact: John Bergeron Chief Financial Officer Spine Pain Management, Inc. 713-521-4220 investorinfo@SpinePainInc.com |
Investor Contact: Yvonne L. Zappulla Managing Director Grannus Financial Advisors, Inc. 212-681-4108 yvonne@GrannusFinancial.com |
About Spine Pain Management, Inc:
We are a medical services and technology company facilitating diagnostic services for patients who have sustained spine injuries resulting from traumatic accidents. We deliver 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. Our care management services help 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. We believe that our services and technology brings 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.
********Financial Statements Follow********
| SPINE PAIN MANAGEMENT, INC. | ||
| CONDENSED BALANCE SHEETS | ||
| JUNE 30, 2012 | DECEMBER 31, 2011 | |
| ASSETS | (Unaudited) | |
| Current Assets: | ||
| Cash | $582,118 | $54,582 |
| Accounts receivable, net | 3,328,540 | 2,876,848 |
| Prepaid expenses | 29,934 | 99,083 |
| Debt cost | 111,586 | -- |
| Note receivable from a related party | 163,703 | -- |
| Total current assets | 4,215,881 | 3,030,513 |
| Accounts receivable, net of allowance for doubtful accounts of $160,000 and $40,000 at June 30, 2012 and December 31, 2011, respectively | 3,304,399 | 2,954,269 |
| Intangible assets | 224,200 | -- |
| Debt cost | -- | 167,386 |
| Note receivable from a related party | -- | 163,703 |
| Other assets | 7,000 | -- |
| Total assets | $7,751,480 | $6,315,871 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current Liabilities: | ||
| Accounts payable and accrued liabilities | $814,061 | $923,665 |
| Due to related parties | 396,399 | 1,330,899 |
| Current portion of notes payable and long-term debt | 342,504 | -- |
| Total current liabilities | 1,552,964 | 2,254,564 |
| Notes payable and long-term debt | 503,284 | 314,280 |
| Total liabilities | 2,056,248 | 2,568,844 |
| Stockholders' Equity: | ||
| Common stock: $0.001 par value, 50,000,000 shares authorized; 18,050,882 and 17,088,396 shares issued and outstanding at June 30, 2012 and December 31, 2011, respectively | 18,051 | 17,088 |
| Additional paid-in capital | 18,169,884 | 16,318,083 |
| Accumulated deficit | (12,492,703) | (12,588,144) |
| Total stockholders' equity | 5,695,232 | 3,747,027 |
| Total Liabilities and Stockholders' Equity | $7,751,480 | $6,315,871 |
| SPINE PAIN MANAGEMENT, INC. | ||||
| UNAUDITED CONDENSED STATEMENTS OF OPERATIONS | ||||
|
FOR THE THREE MONTHS ENDED JUNE 30, |
FOR THE SIX MONTHS ENDED JUNE 30, |
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| 2012 | 2011 | 2012 | 2011 | |
| Net revenue | $919,396 | $1,253,049 | $2,203,291 | $2,092,495 |
| Cost of providing services | ||||
| Third party providers | 57,480 | 308,900 | 390,280 | 461,800 |
| Related party providers | 328,020 | 212,100 | 456,620 | 359,800 |
| Total cost of providing services | 385,500 | 521,000 | 846,900 | 821,600 |
| Gross profit | 533,896 | 732,049 | 1,356,391 | 1,270,895 |
| Operating, general and administrative expenses | 548,629 | 556,745 | 845,880 | 787,719 |
| (Loss) income from operations | (14,733) | 175,304 | 510,511 | 483,176 |
| Other income and (expense): | ||||
| Other income | 8,645 | 156,213 | 17,111 | 162,980 |
| Litigation settlement expense | (326,650) | -- | (326,650) | -- |
| Interest expense | (53,141) | (24,614) | (105,531) | (41,104) |
| Total other income and (expense) | (371,146) | 131,599 | (415,070) | 121,876 |
| Net (loss) income | $ (385,879) | $306,903 | $95,441 | 605,052 |
| Net (loss) income per common share | ||||
| Basic | $ (0.02) | $0.02 | $0.01 | $0.03 |
| Diluted | $ (0.02) | $0.02 | $0.01 | $0.03 |
| Weighted average number of common shares outstanding: | ||||
| Basic | 17,876,596 | 17,403,396 | 17,611,147 | 17,403,396 |
| Diluted | 17,876,596 | 17,403,396 | 18,094,581 | 17,403,396 |