HOUSTON, May 17, 2011 /PRNewswire/ -- Spine Pain Management, Inc. (OTC Bulletin Board: SPIN), through its Chief Executive Officer, William F. Donovan, M.D., is pleased to report financial results for the quarter ended March 31, 2011. For Q1, 2011, net revenue was $839,446, and net income was $298,149 or $.02 per share. For Q1, 2010, net revenue was $903,810, and net income was $355,123 or $.02 per share.
In Q1, 2011, the company announced and subsequently opened its first out of Texas clinic in the Tampa Bay Area of Florida. Additionally, during the quarter, discussions were entered into with principals for the addition of two more prospective clinics in the near future. While the Florida clinic did begin operations late in the quarter and contributed a small amount of the total reported revenues, increased cash is in place to considerably ramp up Q2 production from this new clinic.
The company recognizes revenue by reference to "net revenue," which is gross amounts billed using CPT codes (AMA originated codes for the medical procedures performed) less account discounts that are expected to result when individual cases are ultimately settled. Accordingly, the company had gross revenues of $1,479,053 with net revenues of $839,446 for the quarter ended March 31, 2011, versus gross revenues of $1,452,133 with net revenues of $903,810 for the quarter ended March 31, 2010.
The company's business model, while having quite profitable operating margins, calls for early significant cash outlays for procedures on new cases added. The receivables accrued on these cases are paid at the time the cases are settled, which could take from several months to a year or more. Prior to expansion, SPIN's initial home clinic, which is owned and operated by SPIN's CEO, relaxed and replaced the up front cash requirements with promissory notes from the company and also in part exchanges for restricted stock to Dr. Donovan. This can be seen in the reported financial statements. This special situation is not available to new clinics not owned or operated by related parties. Therefore cash on hand is imperative in adding new clinics. With this in mind, management made the decision at year end to temporarily "throttle back" the number of new cash intensive cases in existing clinics in favor of keeping cash levels higher for the addition of new clinics. For the above reasons, year over year Q1 numbers were essentially flat. As mentioned, this is a temporary situation that is self resolving as older cases are now settling and providing ever increasing cash flow. In addition, access to straight debt financing is anticipated to open up as critical mass of the company increases. While a significant cash infusion could rapidly accelerate expansion, management feels that the company's stock is significantly undervalued and has no desire to dilute equity at these low levels. Accordingly, the company will continue to either seek outside debt financing, or continue its accelerating organic growth.
Dr. Donovan stated: "Since the operational opening of our first clinic in August of 2009, we have now completed seven profitable quarters, and by Q1 end, our total of procedures has grown to well over 1000. We have positioned the company for additional expansion and are anticipating additional clinic growth in the very near future." Donovan went on to say: "I would like to invite all current and prospective shareholders who either did not participate in, or review the replay of, our year end conference call held last month, to visit our website where the replay can be currently accessed. It should provide insight into the current business and our exceptional growth potential. I would also like to invite all to participate in our Q1 conference call. With the short period of time since our last call, the presentation side of this call will be short, leaving the focus of this call on questions and answers."
Conference Call: An investor's conference call with management will be held on Thursday, May 19, 2011 at 4:15 pm 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 or VOIP with 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 for your log-in any time between now and the start of the presentation at 4:15 EDT.
Click or paste the link below in your browser for web access to the presentation:
Or if the above link doesn't work, please try the following:
http://www.JoinWebinar.com Webinar ID: 478-445-110
Telephone Dial-in or VOIP with Q&A: To ask a question using your telephone, you must be online at the presentation website during the internet presentation where a unique Audio PIN # will be provided to you on screen after you log-in to the presentation area. During the presentation, all will be muted.
The Q & A will be moderated, but without an operator, and will be open to all questions after the presentation. Review this short 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.): http://spinepaininc.com/video/webinar_tutorial.wmv
If using the telephone, but NOT also online, you will hear the presentation plus Q & A, but will be in "listen only" mode.
Conference Dial-in Number: (805) 309-0020
Participant Access Code: 584-476-161#
Conference Play Back: A video replay of the conference call presentation will be available shortly after the completion of the call at the company website:
About Spine Pain Management:
Spine Pain Management is a medical marketing, management, billing and collection company facilitating treatment for patients who have sustained spine injuries resulting from traumatic accidents. Its mission is to deliver turnkey solutions to spine surgeons, orthopedic surgeons and other health care providers for necessary and appropriate treatment for musculo-skeletal spine injuries resulting from automobile and work-related accidents. The goal of the company is to become a leader in providing care management services to spine surgeons and orthopedic surgeons to facilitate proper treatment of their injured clients. By providing early treatment, the company believes that spine injuries can be managed, and injured victims can be quickly placed on the road to recovery. The company believes its advocacy will be rewarding to patients who obtain needed relief from painful conditions. The company provides a care management program that advocates for the injured victims by moving treatment forward to conclusion without the delay and hindrance of the legal process. Existing clinic locations are in Houston, Texas, McAllen, Texas and the Tampa Bay Area of Florida.
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.
For Information Contact:
Spine Pain Management, Inc.
William F. Donovan, M.D.
Chief Executive Officer
SOURCE Spine Pain Management, Inc.