Northstar Healthcare Reports 2011 First Quarter Results
HOUSTON, TX, May 26, 2011 /PRNewswire/ - Northstar Healthcare Inc. (TSX:NHC) today announced its financial results for the first quarter ended March 31, 2011. 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 first quarter ended March 31, 2011 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.
"The Company has had an active quarter as we continue to execute on our long term plan for growth and profitability," said Dr. Kramer, Chief Executive Officer of Northstar. "We completed an acquisition for an ambulatory surgery center in Dallas as well as established a partnership involving a toxicology laboratory. The Dallas center is already having a positive impact on our financial results and profitability. The toxicology laboratory commenced operations in early May 2011. In addition, we have initiatives in place at each of our centers designed around our physician partner specialties to promote growth. These initiatives include: starting a minimally invasive spine surgery program at our Kirby location; a procedure suite at our Houston location focusing on pain and gastrointestinal medicine; and a podiatry program at our Dallas location. The Company will continue to focus on diversifying our revenue base as well as continue to assess opportunities to partner with other healthcare service providers to expand the utilization of our facilities and capitalize on our network of physicians."
Subsequent to quarter-end, Northstar Healthcare Inc. entered into an agreement to acquire certain ownership interests in four physician-owned radiation therapy cancer treatment centers from Dr. Chris Phan, a radiation oncologist. "We are excited about entering the oncology field and adding Dr. Phan and his team to Northstar's management team," said Dr. Kramer. "Dr. Phan has a vast physician investor network which the Company can utilize to promote continued growth."
"The Company is also pleased to announce the hiring of Lloyd Taylor as our Chief Strategy Officer," said Dr. Kramer. "Mr. Taylor brings extensive experience in the healthcare marketing and IT fields to Northstar."
First Quarter Results
In the first quarter ended March 31, 2011, Northstar generated net patient service revenue of $3.6 million compared with $3.1 million in the corresponding period of 2010. Northstar noted that in the first quarter of 2010, there were $0.6 million in collections included in revenue that were attributable to prior periods. Excluding these amounts, the company generated revenue of $3.6 million in the first quarter of 2011 compared with $2.5 million in the prior year period.
The year-over-year increase in Q1 net patient service revenues was primarily due to a 14.9% increase in case volume and a 2.4% increase in the net patient service revenues per case. The overall case volume increase was attributable to the acquisition of PFSD, which though its partial ownership of MSID, contributed 294 cases for the three months ended March 31, 2011. This increase was mitigated by a 5.6% decrease at the Kirby ASC and a 42.3% decrease at our Houston ASC. The decrease at the Houston ASC was due to a lack of cases from exclusive use agreements.
Northstar recorded a first quarter 2011 profit from operations of $0.7 million compared with a $0.4 million profit in the 2010 period. The net loss in the 2011 period was $0.6 million, or $0.02 per share, compared with a loss of $1.4 million, or $0.10 per share. The 2010 net loss figure included a $0.4 million gain on change in fair value of Class B Units.
Cash flow provided by operating activities in the first quarter of 2011 was $0.6 million, compared to a nominal amount in the corresponding period in 2010.
At March 31, 2011, Northstar had consolidated working capital of $5.5 million, including cash of $3.7 million. This compares with $5.3 million and $4.2 million, respectively, at year-end 2010.
"We are extremely pleased with these results as they clearly show our turnaround plan has taken root as we expected. Based on our continuing efforts to recruit and bring in new doctors, as well as our EONS acquisitions, we are optimistic that the company will see continued growth and a return to robust positive EBITDA," said Don Kramer, Northstar's CEO. "The healthcare landscape is exciting and Northstar believes it will be properly positioned for great profitability in the future."
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.
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.