Paincare Reports 154% Rise in Revenue and 207% Jump in Net Income for the Six Months Ended June 30, 2004
ORLANDO, Fla., July 22 /PRNewswire-FirstCall/ -- PainCare Holdings, Inc. (AMEX: PRZ) today reported its financial results for the three and six month periods, ended June, 30, 2004, once again doubling or tripling nearly every key metric of comparative performance.
For the Three-Month Period Ended June 30, 2004 Compared to Same Three
Month Period Ended June 30, 2003:
-- Revenues increased 142% to $9,117,069 from $3,774,487;
-- Operating Income rose 315% to $3,229,084 from $779,100;
-- Net Income jumped 212% to $1,757,611, or $.06 basic earnings per share
and $.05 diluted earnings per share, compared to $563,000, $.03 basic
earnings per share and $.02 diluted earnings per share.
For the Six-Month Period Ended June 30, 2004 Compared to Same Six Month
Period Ended June 30, 2003:
-- Revenues increased 155% to $15,976,797 from $6,272,607;
-- Operating Income grew 255% to $4,851,049 from $1,367,305;
-- Net Income climbed 207% to $2,723,946, or $.10 basic earnings per
share and $.07 diluted earnings per share, compared to $886,289, or
$.05 basic earnings per share and $.04 diluted earnings per share.
As of June 30, 2004, the Company had approximately $4.04 million in cash and stockholders' equity of approximately $35.6 million.
Mark Szporka, Chief Financial Officer of PainCare, stated, "It is noteworthy to mention that although PainCare successfully acquired Denver Pain Management, Georgia Pain Physicians, Care Clinics and Dynamic Rehabilitation Centers during our second quarter, three of these acquisitions were not completed until more than halfway through the reporting period. Consequently, PainCare was not able to book the full quarterly contributions that we expect to realize from these practices on a moving forward basis."
Continuing, Szporka noted, "Had these practices been acquired on January 1, 2004, pro forma analysis reveals that revenue for the six months ended June 30, 2004 would have been $20,962,453, operating income would have been $6,756,378, and net income would have been $3,972,305, or $.13 earnings per basic share and $.10 earnings per diluted share. All things factored, we're very pleased with how our model is performing."
"With half of the year behind us, PainCare is squarely focused on perpetuating the exciting fundamental progress we've put in motion, thus far. Looking ahead, our business prospects are extremely robust, due largely to the enthusiasm of our corps of physicians and healthcare professionals; the appeal, success and timeliness of our business model; the expertise of our employees and management team; and the loyal support of our shareholders," added Randy Lubinsky, PainCare's Chief Executive Officer.
The Company will host a teleconference this afternoon beginning at 4:15 PM Eastern, and invites all interested parties to join management in a discussion regarding the Company's second quarter financial results, corporate progression and other meaningful developments. The conference call can be accessed via telephone by dialing toll free 800-218-9073 or via live webcast by visiting www.paincareholdings.com.
PainCare Holdings, Inc.
Consolidated Balance Sheet
As of June 30, 2004 and December 31, 2003June 30, 2004December 31, 2003
(Unaudited) (Audited)
Assets
Current assets:
Cash $ 4,038,249 $ 7,923,767
Accounts receivable, net 11,942,589 5,100,699
Due from stockholder 28,021 203,050
Note receivable 79,301 320,353
Deposits & prepaid expenses 780,093 514,957
Total current assets 16,868,253 14,062,826
Property and equipment, net 6,433,246 4,730,723
Goodwill, net 37,898,540 21,946,735
Other assets 4,841,698 2,680,665
Total assets $ 66,041,737 $ 43,420,949
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable
and accrued expenses $ 671,912 $ 639,668
Income tax payable 891,329 -
Interest payable 62,500 -
Current portion
of notes payable 4,258,850 4,216,566
Current portion
of convertible debentures 2,490,000 306,616
Current portion of
capital lease obligations 611,426 578,557
Total current liabilities 8,986,017 5,741,407
Notes payable, less current portion 471,225 510,141
Convertible debentures,
less current portion 17,373,600 10,712,000
Deferred income tax liability 1,188,711 683,300
Capital lease obligations,
less current portion 2,455,181 2,300,165
Total liabilities 30,474,734 19,947,013
Stockholders' equity:
Common stock, $.0001 par value,
authorized 75,000,000 shares;
issued and outstanding 31,087,027
and 26,882,597 shares 3,109 2,688
Preferred stock, $.0001 par value,
authorized 10,000,000 shares;
issued and outstanding shares - -
Additional paid in capital 31,081,243 21,700,894
Retained earnings 4,493,339 1,769,393
Other comprehensive income (loss) (10,688) 961
Total stockholders' equity 35,567,003 23,473,936
Commitments
Total liabilities and
stockholder's equity $ 66,041,737 $ 43,420,949
PainCare Holdings, Inc.
Consolidated Statements of Operations (Unaudited)
For the Three and Six Months Ended June 30, 2004 and 2003
For the Three For the Six
Months Ended Months Ended
June 30, June 30,
2004 2003 2004 2003
Total revenues:
Patient
services $ 3,874,981 $ 2,188,345 $ 7,494,546 $ 3,758,659
Management
fees 5,242,088 1,586,142 8,482,251 2,513,948
Total revenues 9,117,069 3,774,487 15,976,797 6,272,607
Cost of sales 1,575,951 1,046,816 3,059,997 1,833,360
Gross profit 7,541,118 2,727,671 12,916,800 4,439,247
Operating
expenses:
Selling,
general and
administrative 4,023,843 1,892,941 7,562,784 2,931,158
Depreciation
expense 213,413 55,630 366,385 140,784
Amortization
expense 74,778 - 136,582 -
Operating
income 3,229,084 779,100 4,851,049 1,367,305
Interest expense 560,895 114,101 713,016 247,382
Other income 35,828 12,168 52,653 12,793
Income before
taxes 2,704,017 677,167 4,190,686 1,132,716
Provision
for income
taxes 946,406 114,167 1,466,740 246,427
Net income 1,757,611 563,000 $ 2,723,946 $ 886,289
Basic earnings
per share $ 0.06 $ 0.03 $ 0.10 $ 0.05
Basic weighted
average shares
outstanding 29,035,926 20,845,528 28,348,671 18,841,242
Diluted earnings
per share $ 0.05 $ 0.02 $ 0.07 $ 0.04
Diluted weighted
average shares
outstanding 39,073,183 27,194,881 38,651,374 24,892,252
The accompanying supplemental pro forma financial information represents a non-GAAP financial measure. A "non-GAAP financial measure" is defined as a numerical measure of a Company's financial performance, financial position or cash flows that excludes (or includes) amounts that are included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP in the company's financial statements. Pro forma income or loss is used by investors and analysts of PainCare as an alternative to GAAP measures when evaluating the Company's performance in comparison to other companies. The Company's management believes that the presentation of pro forma income or loss may provide useful information regarding the Company's financial performance and earnings potential by calculating and quantifying the effect of certain charges on income or loss per share calculated in accordance with GAAP and gives investors and analysts insight into the potential future profitability of the Company's operating business. Management also believes that the presentation of the non-GAAP financial measure is consistent with its past practice, as well as industry practice in general, and will enable investors and analysts to compare current non-GAAP measures with non-GAAP measures presented in prior periods. The above pro forma information may not be comparable to similarly titled measures used by other companies and should not be considered as a substitute for measures of performance prepared in accordance with GAAP or as a prediction of future financial results.
About PainCare Holdings, Inc.
Founded in Orlando, Florida in 2000, PainCare specializes in the cost- effective delivery of high-tech pain relief through Minimally Invasive Surgery, Pain Management technologies and Orthopedic Rehabilitation. The Company has established and is aggressively expanding a highly specialized network of orthopedic rehabilitation, spine surgery and pain management centers across North America to serve the pain care market. PainCare has built a professional healthcare organization comprised of many internationally renowned pain management physicians, neuro-and orthopedic surgeons, and physiatrists with centers found in Florida, Colorado, North Dakota, Texas, Louisiana, Missouri, Maine, Georgia, Michigan and Canada.
PainCare also offers turnkey, on-site, rehab and electro diagnostic programs directly to independent physician practices, group practices and medical institutions under a revenue-sharing arrangement. MedX-Direct provides the most advanced testing, strengthening and rehabilitation utilizing state-of-the-art MedX equipment installed on-site at each physician practice. EDX-Direct program physicians are supplied with all equipment, technical training and support necessary to introduce electro diagnostic medicine studies into their respective practice offerings.
For more information on PainCare, please visit the Company web site at www.paincareholdings.com.
This press release may contain forward-looking statements that may be subject to various risks and uncertainties. Such forward-looking statements are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and are made based on management's current expectations or beliefs as well as assumptions made by, and information currently available to, management. A variety of factors could cause actual results to differ materially from those anticipated including the following: insufficient capital to expand business; market acceptance of new products and services; management's ability to effectively launch new products in a timely and cost efficient manner; governmental regulation and legal uncertainties; ability to manage growth and to respond to rapid technological change; competitive pressures; costs or difficulties related to the integration of businesses, if any, acquired or that may be acquired, may be greater than expected; operating costs or customer loss and business disruption following future mergers and acquisitions may be greater than expected; general economic or business conditions; and any changes in the securities market. For a detailed description of these and other cautionary factors that may affect PainCare's future results, please refer to PainCare's filings with the Securities Exchange Commission, especially in the "Factors Affecting Operating Results and Market Price of Securities" included in the Company's most recent filings filed with the Securities Exchange Commission.
For investors, media professionals and retail stockbrokers, please contact:
Stephanie Noiseux, Elite Financial Communications Group, LLC at 407-585-1080
or via email at prz@efcg.net
For institutional investors, please contact:
Evan Smith or Erica Pettit, KCSA Worldwide at 212-682-6300
or
Elite Financial at 407-585-1080 or via email at prz@efcg.net
SOURCE PainCare Holdings, Inc.
-0- 07/22/2004
/CONTACT: Stephanie Noiseux of Elite Financial Communications Group, LLC,
+1-407-585-1080, or prz@efcg.net, or Evan Smith or Erica Pettit, both of KCSA
Worldwide, +1-212-682-6300, or Elite Financial, +1-407-585-1080, or
prz@efcg.net, all for PainCare Holdings, Inc./
/Web site: www.paincareholdings.com /
(PRZ)
CO: PainCare Holdings, Inc.
ST: Florida
IN: HEA BIO MTC FIN CPR
SU: ERN CCA