First Choice Healthcare Solutions Reports Second Quarter 2018 Results

MELBOURNE, Fla., Aug. 15, 2018 (GLOBE NEWSWIRE) -- First Choice Healthcare Solutions, Inc. (OTCQB: FCHS) ("First Choice" or the "Company"), a fully integrated, non-physician-owned, publicly traded healthcare delivery platform providing a full life cycle of Orthopaedic and spine care for patients through diagnosis, treatment and recovery, today reported its financial results for the three and six month periods  ended June 30, 2018.

Second Quarter 2018 Highlights

• Total revenue was $9.4 million, representing a 14.7% increase over prior year and 7.2% sequential increase over the prior quarter.
• Income from operations was approximately $460,000 compared to a loss of approximately $221,000 for the comparable prior year period.  Sequentially, income from operations increased 71.5%.
• Adjusted EBITDA increased over 131% to approximately $820,000 and Adjusted EBITDA margin improved by 440 basis points to 8.7% from the comparable prior year period.  Sequentially, Adjusted EBITDA grew 11.3%
• Days Sales Outstanding decreased 19 days over same period prior year and decreased by one day sequentially.
• Cash balance of $8.4 million or $0.26 per share
• Surgeries increased to 954, a 11.2% growth over the prior year and 3.6% sequential growth.

Chris Romandetti, President and CEO of First Choice, stated, “For the second quarter we are pleased to report net patient service revenue of approximately $8.8 million, a 15.7% increase over the prior year and 7.6% increase sequentially, representing over 131% Adjusted EBITDA growth over the prior year.  I am proud to say we have also achieved positive net income attributable to FCHS shareholders of approximately $432,000 compared to a loss of $132,000 when compared to same period last year, totaling a positive change of $564,000.”

Romandetti added “During the second quarter we successfully renegotiated our reimbursement rates with multiple payors granting increases of between 5 and 18 percent with additional escalators in future years.  Our surgeries performed continue to grow, and our average patient value is trending upward.  These positive developments allowed us to experience stronger Adjusted EBITDA and net income margins which we expect to continue to trend in a positive direction.”

Financial Results for Second Quarter of 2018 and First Half of 2018
Total revenue was $9.4 million for the second quarter of 2018, an increase of 14.7% compared to $8.2 million for the same period in 2017.  For the six months ended June 30, 2018 total revenue was $18.2 million an increase of 14.3% compared to $15.9 million for the comparable period last year.

Net income attributable to First Choice was $431,549 for the second quarter of 2018, compared to net loss of $131,575 for the same period in 2017.  For the six months ended June 30, 2018, net income attributable to First Choice was $710,887 compared to net income of $70,944 for the comparable period last year.

Non-GAAP adjusted EBITDA increased by 131% to $819,605 for the second quarter of 2018 compared to $353,653 for the same period in 2017.  For the six months ended June 30, 2018 Non-GAAP adjusted EBITDA was $1,555,682, an increase of 85% compared to $841,058 for the comparable period last year.

Conference Call and Webcast Information
The Company will host a conference call with the investment community on Wednesday, August 15^th at 11:00 a.m. Eastern Time featuring remarks by Chris Romandetti, President and CEO of First Choice, and Phillip Keller, CFO of First Choice.

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gillian Lee at 321-725-0090 extension 160.

The conference call will be broadcast live and available for replay at https://www.webcaster4.com/Webcast/Page/1527/26710 and via the investor relations section of the Company's website at http://ir.myfchs.com/.

(*) Use of Non-GAAP Financial Information
To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use non-GAAP EBITDA. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. We use non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. Our management believes that this non-GAAP financial measure provides meaningful supplemental information regarding our performance and liquidity by excluding certain items that may not be indicative of our recurring core business operating results. We believe that both management and investors benefit from referring to this non-GAAP financial measure in assessing our performance and when planning, forecasting, and analyzing future periods. This non-GAAP financial measure also facilitates management's internal comparisons to our historical performance and liquidity. We believe this non-GAAP financial measure is useful to investors both because they allow for greater transparency with respect to a key metric used by management in its financial and operational decision-making. For more information on this non-GAAP financial measure, please see the table captioned "Reconciliation of non-GAAP Adjusted EBITDA Performance".

Safe Harbor Statement
Certain information set forth in this news announcement may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of First Choice Healthcare Solutions, Inc. Such forward-looking statements are based on current expectations, estimates and projections about the Company's industry, management beliefs and certain assumptions made by its management. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Information concerning factors that could cause the Company's actual results to differ materially from those contained in these forward-looking statements can be found in the Company's periodic reports on Form 10-K and Form 10-Q, and in its Current Reports on Form 8-K, filed with the Securities and Exchange Commission. Unless required by law, the Company undertakes no obligation to update publicly any forward-looking statements, whether because of new information, future events, or otherwise to reflect future events or circumstances or reflect the occurrence of unanticipated events.

About First Choice Healthcare Solutions, Inc.
Headquartered in Melbourne, Florida, First Choice Healthcare Solutions (FCHS) is implementing a defined growth strategy aimed at expanding its network of non-physician-owned medical centers of excellence, which concentrate on treating patients in the following specialties: Orthopaedics, Spine Surgery, Interventional Pain Management, Physical Therapy and other ancillary and diagnostic services in key expansion markets throughout the U.S.  Serving Florida's Space Coast, the Company's flagship integrated platform currently administers over 100,000 patient visits each year and is comprised of First Choice Medical Group, The B.A.C.K. Center and Crane Creek Surgery Center. For more information, please visit www.myfchs.com, www.myfcmg.com, www.thebackcenter.net and www.cranecreeksurgerycenter.com.

Contact Information:
First Choice Healthcare Solutions, Inc.
Gillian Lee
Phone: 321-725-0090 ext. 160
Email: IR@myfchs.com