ORLANDO, Fla., Nov. 11 /PRNewswire-FirstCall/ -- PainCare Holdings, Inc. today reported record financial results for the third quarter period ended September 30, 2003, achieving its six consecutive quarter of revenue and earnings growth.
For the Three-Month Period Ended September 30, 2003 Compared to Same Three-Month Period Ended September 30, 2002:
-- Revenues increased 154% to $4,376,417 from $1,720,419;
-- Gross Profits nearly doubled (177%) to $3,010,754 from $1,086,939 due to increase in gross profit margins which increased to 69% from 63%;
-- Operating Income swelled 319% to $491,772 from $117,278;
-- Net Income increased 152% to $360,605, or $0.02 basic earnings per share and $0.01 diluted earnings per share, compared to $143,216, $.02 basic earnings per share and $.01 diluted earnings per share.
For the Nine-Month Period Ended September 30, 2003 Compared to Same Nine- Month Period Ended September 30, 2002:
-- Revenues grew 102% to $10,649,024 from $5,261,802;
-- Gross Profits increased 123% to $7,450,001 from $3,336,819 due to an increase in gross profit margins from 63% to 70%;
-- Operating Income jumped 123% to $1,859,077 from $832,174;
-- Net Income improved 135% to $1,246,894, or $0.06 basic earnings per share and $0.05 diluted earnings per share, compared to $529,854, or $.06 basic earnings per share and $.05 diluted earnings per share.
As of September 30, 2003, the Company had approximately $6.2 million in cash and receivables and stockholders' equity of approximately $16.5 million.
Mark Szporka, PainCare's CFO, noted, "As part of our growth strategy, we continue to review opportunities to acquire orthopedic rehabilitation, spine surgery and pain management centers across North America. We have signed letters of intent to acquire five practices. We also anticipate closing our next round of funding in the near future, which will enable us to close on these practices subject to the completion of our due diligence and the entering into definitive agreements. "
Randy Lubinsky, CEO of PainCare Holdings, stated, "PainCare continues to successfully build upon the framework we established three years ago when we founded the Company. We believe that our ability to consistently demonstrate successive quarter-over-quarter growth in all operational areas is a direct reflection of our strict adherence to set business principles and the consistent execution of our business plan. I'd like to thank the entire PainCare team for their contributions to another successful quarter."
PainCare Holdings, Inc. Consolidated Balance Sheet As of September 30, 2003 and December 31, 2002 September 30, 2003 December 31, 2002 (Unaudited) (Audited) Assets Current Assets: Cash $1,895,391 $2,078,684 Accounts receivable 4,282,654 2,781,094 Due from Shareholder 339,325 339,325 Note receivable 318,438 100,316 Deposits & prepaid expenses 567,013 138,519 Total current assets 7,402,820 5,437,938 Furniture and equipment, net 3,396,631 3,012,615 Goodwill, net 10,404,767 5,012,552 Other Assets 2,286,048 203,822 Total assets 23,490,265 13,666,927 Liabilities and Stockholders' Equity Current liabilities: Accounts payable 407,583 529,031 Current portion of notes payable 1,939,784 320,123 Current portion of convertible debenture 332,063 987,164 Current portion of lease payable 531,764 445,549 Total current liabilities 3,211,194 2,281,867 Notes payable 521,865 1,009,391 Convertible debentures - Net of Current Portion 910,000 664,055 Lease payable 2,104,229 2,155,733 Deferred Income Tax Liability 311,724 -- Shareholder Loan -- 1,890 Total liabilities 7,059,011 6,112,936 Stockholders' equity: Common stock, $.0001 par value. Authorized 75,000,000 shares; issued and outstanding 23,667,057 and 15,576,640 shares 2,367 1,557 Preferred stock, $.0001 par value. Authorized 10,000,000 shares; issued and outstanding 0 shares -- -- Additional paid in capital 14,613,847 7,019,246 Retained earnings (accumulated deficit) 1,803,381 556,487 Cumulative translation adjustments 11,659 (23,299) Total stockholders' equity 16,431,254 7,553,991 Total liabilities and stockholder's equity $23,490,265 $13,666,927 Consolidated Statements of Operations (unaudited) For the Three and Nine Months Ended September 30, 2003 and 2002 For the Three Months Ended For the Nine Months Ended September 30, September 30, 2003 2002 2003 2002 Total revenues: Patient services $1,838,095 $1,071,672 $4,459,907 $3,335,528 Management fees 2,538,322 648,747 6,189,117 1,926,274 Total revenues 4,376,417 1,720,419 10,649,024 5,261,802 Cost of sales 1,365,663 633,480 3,199,023 1,924,983 Gross profit 3,010,754 1,086,939 7,450,001 3,336,819 Operating expenses: Selling, general and administrative 2,380,269 914,974 5,311,427 2,353,030 Depreciation expense 138,713 54,687 279,497 151,615 Operating income 491,772 117,278 1,859,077 832,174 Interest expense 103,290 74,276 350,672 203,460 Other income 37,419 173,992 50,212 173,992 Income before taxes 425,901 216,994 1,558,618 802,706 Provision for income taxes 65,296 73,778 311,724 272,852 Net income $360,605 143,216 $1,246,894 529,854 Basic earnings per share $0.02 $0.02 $0.06 $0.06 Basic weighted average shares outstanding 23,202,057 9,126,263 20,294,847 8,864,999 Diluted earnings per share $0.01 $0.01 $0.05 $0.05 Diluted weighted average shares outstanding 30,914,362 11,013,408 27,178,754 10,508,811
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 third quarter financial results, corporate progression and other meaningful developments. The conference call can be accessed via telephone by dialing toll free 800-240-2134 or via live webcast by visiting http://www.paincareinc.com/.
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.
Through strategic acquisitions and management service agreements, the Company is establishing a network of orthopedic rehabilitation, spine surgery and pain management centers across North America to serve the pain care market. Currently, PainCare owns and operates: Advanced Orthopaedics of South Florida, Inc., located in Lake Worth, Florida, that specializes in minimally invasive spine surgery; Rothbart Pain Management Clinic, Inc., one of the largest providers of pain management services in Canada; Spine One, P.C., a pain management practice specializing in minimally invasive spine procedures; and Pain & Rehabilitation Network, Inc., dba "The Pain Center," an established pain management practice serving the Greater Jacksonville area in Florida, and led by Andrea M. Trescot, M.D., considered one of the leading pain management physicians in the country; Medical Rehabilitation Specialists, Inc., an established physiatry and pain management practice located in Tallahassee, Florida, led by Kirk Mauro, M.D., one of the country's leading physiatrists. PainCare also manages Associated Physicians Group (APG), a fully integrated pain management group practice serving the St. Louis Metro-East market.
In addition, PainCare operates a turnkey orthopedic rehabilitation program, marketed as MedX-Direct, utilizing MedX' patented, proprietary, rehabilitation equipment to provide selected healthcare providers with an enhanced revenue stream into their practices.
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 MORE INFORMATION, PLEASE CONTACT Stephanie Noiseux, Elite Financial Communications Group, LLC 407-585-1080 or via email at steph@efcg.net
PainCare Holdings, Inc.CONTACT: Stephanie Noiseux, Elite Financial Communications Group, LLC,+1-407-585-1080 or email steph@efcg.net, for PainCare
Web site: http://paincareinc.com/
