Company will announce Q2 financial results, Aug 14, 2014, followed by an Interactive Webinar Conference Call to follow at 4:20 pm EDT. Access info provided below.
HOUSTON, Aug. 14, 2014 (GLOBE NEWSWIRE) -- Spine Pain Management, Inc. (OTCQB:SPIN), a technology-driven, financial services, medical device, and healthcare solution company servicing the multi-billion dollar spine injury sector, today announced financial results for its second quarter 2014.
Major Developments
- Company notes significant Quarter over Quarter improvement from Q1 2014 with Net Revenues up 153% and loss reduced by more than 2/3.
- Though losing all revenues from our Florida and McAllen affiliates for 2014, our Q2 2014 revenues are already approaching Q2 2013 revenues.
- A new Affiliate in Midland-Odessa was added with positive results.
- Outside Consulting Team lead by David Spencer was retained to vastly expand the technological aspects and capabilities of SPIN's Quad Video HALO™ in preparation for third party marketing across all invasive and minimally invasive medical providers.
- Exceptionally well-seasoned Sales and Marketing professional, Michael K. Smith, joins the company.
Results of Operations
Comparison of the three month period ended June 30, 2014 with the three month period ended June 30, 2013.
We recorded $1,767,599 in gross revenue for the three months ended June 30, 2014, offset by $907,939 of the expected settlement discount resulting in net revenue of $859,660. For the same period in 2013, gross revenue was $1,790,073, offset by $922,742 of the expected settlement discount, resulting in net revenue of $867,331. We are currently affiliated with three spine injury diagnostic centers in the United States, which are located in Houston, Texas; Odessa, Texas; and San Antonio, Texas. While we were affiliated with fewer centers for the three months ended June 30, 2014, compared to same period in 2013, the revenue mix had higher priced procedures in 2014 period.
Service cost was $423,651 for the three months ended June 30, 2014 compared to $360,008 for the same period in 2013. The increase is due mainly to a sales mix that had higher cost procedures.
During the three months ended June 30, 2014, we incurred $532,958 of operating, general and administrative expenses compared with the $477,280 for the same period in 2013. The increase is attributable to increases, in travel expenses of approximately $13,000, QVH marketing of $57,000, $10,000 in audit costs, $6,000 in consulting costs, and legal fees of $27,000, coupled with decreases of investor relations by $9,000, decrease of $10,000 in director and officer non-cash compensation and non-cash consulting expenses of $37,000 and other net general and administrative expenses of approximately $2,000.
As a result of the foregoing, we had net loss of $153,245 ($.01/sh) for the three months ended June 30, 2014, compared to a net loss of $101,525 ($.01/sh) for the three months ended June 30, 2013.
Used in above Comparison-Q1 2014 results
The Company recorded $657,931, in gross revenue for the three months ended March 31, 2014, offset by $323,243 of the expected settlement discount resulting in net revenue of $344,688. In January 2014 we made the decision to cease affiliations with centers in Florida and terminated our affiliation with our healthcare provider in the state. Also in January 2014, the Company made the decision to discontinue our affiliation with Waltham Associates in McAllen, Texas in connection with what the Company believed was an isolated situation which increased competition in the area. We had no revenue from our Florida or McAllen affiliates for the three months ended March 31, 2014. As a result of the foregoing, we had a net loss of $480,287 or $.03 per share for the three months ended March 31, 2014.
Dr. William Donovan, President and CEO, stated, "While it was not an easy decision in January to terminate relationships with centers that were generating 70% of our past revenues, as stated at the time, we felt re-deploying our resources into more productive markets was the right move. Being able to effectively match results from Q2 13 when those four centers were operational and included in that quarters numbers, seems to be quickly justifying our decision. It is management's goal to continue to grow our legacy business both by increasing procedures in our existing markets as well as expending into new markets in this year's second half."
Donovan went on to say, "While our QVH has been an invaluable tool for our proprietary use, showing it in several Trade shows to both the medical and legal community has confirmed there is a large market for a more technologically advanced and modifiable version. Based on feedback from these shows, we made the decision to develop a truly dynamic product for national as well as international sales; not only by raising the quality of the unit, but also by bringing in Michael Smith, a top rated Medical Sales & Marketing professional with a strong background in video integration, telemedicine and spinal implants. We also have a consulting agreement with David Spencer, our Technology Team leader. The synergism and collaboration between these two brilliant professionals gives SPIN an exceptional opportunity to participate in the exciting Video Management Systems (VMS) Medical Device sector. I wholeheartedly invite all shareholders and interested parties to attend, or if not possible, then later access the video replay of our Q2 interactive video conference call being held today."
Conference Call Information.
Conference Call: An investor's conference call with management will be held on Thursday, August 14, at 4:20 p.m. (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 Thursday, Aug 14, at 4:20 p.m. (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/556948398
Or if the above link doesn't work, please try the following:
http://www.joinwebinar.com Webinar ID: 556-948-398
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 (914) 339-0033
Participant Access Code: 746-280-923
Conference Play Back: A video replay of the conference call presentation will be available several hours after the completion of the call at the company website:
http://www.spinepaininc.com/investor-information.php
About Spine Pain Management, Inc:
We are a technology driven, financial services, medical device and healthcare solution 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.