HOUSTON, TX, Nov. 13, 2012 /PRNewswire/ - Northstar Healthcare Inc. (TSX:NHC) today announced its financial results for the three and nine months ended September 30, 2012. 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 three and nine months ended September 30, 2012 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.
"In the third quarter, the Company realized $1.6 million of cash inflow from operations," said Dr. Donald Kramer, Chief Executive Officer of Northstar. "Management has significantly improved our revenue cycle, increasing our overall collections. This positive cash inflow allowed us to distribute monies to our partners and continue to execute our long term plan for the Company".
Third Quarter ResultsNet patient service revenues for the three months ended September 30, 2012 totaled $6.1 million, an increase of $3.3 million or 115.9%, compared to $2.8 million from the prior corresponding period. The increase in net patient service revenues was primarily due to a 126.3% increase in revenues per case experienced through improved billing and collections efforts at all of our locations. In addition, the Company has seen favorable reimbursements in its pain specialty cases. The Company had cash flows provided by operations of $1.6 million, representing a $1.8 million increase compared to the prior corresponding period, despite lower case volume. Management's efforts in managing the revenue cycle provided significant positive results in collections. For the three months ended September 30, 2012, the Company experienced $0.9 million in cash flows used for financing activities compared to $0.2 million used in the prior corresponding 2011 period. Due to positive cash flow positions, the Company was able to make significant distributions to non-controlling interests. The Company had net income of $0.9 million compared to a net loss of $0.9 million in the prior corresponding 2011 period resulting in a $1.8 million increase, or 210.1%. Nine Months Results Net patient service revenues for the nine months ended September 30, 2012 totaled $14.4 million, an increase of $4.2 million or 41.0%, compared to $10.2 million for the same period in 2011. The increase was primarily due to an increase in revenues per case experienced through improved billing and collections efforts at all of our locations. In addition, the Company has seen favorable reimbursements in its pain specialty cases. Northstar had income from operations for the nine months ended September 30, 2012 of $6.2 million compared to $0.7 million in the corresponding 2011 period. Northstar reported net income in the 2012 nine month period of $0.8 million, or $0.02 earnings per weighted average share, compared with a net loss of $2.2 million, or $0.07 loss per weighted average share in the corresponding 2011 period. The Company had cash flows provided by operations of $3.6 million, representing a $3.5 million increase compared to the prior corresponding 2011 period, despite lower case volume. Management's efforts in managing the revenue cycle provided significant positive results in collections. For the nine months ended September 30, 2012, the Company experienced $2.0 million in cash flows used for financing activities compared to $0.9 million used in the prior corresponding 2011 period. Due to positive cash flow positions, the Company was able to make significant distributions to non-controlling interests, as well as pay off all outstanding debts on Houston Microsurgery Institute's revolving credit facility with Encore Bank. As of September 30, 2012, the Company had consolidated net working capital of $6.0 million. Cash balances were $4.1 million and total accounts receivable were $2.8 million. Accounts payable and accrued liabilities totaled $1.7 million. 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. Forward-looking statements 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.
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