Northstar Healthcare Reports Annual Results and 2013 Fourth Quarter
HOUSTON, TX -- (Marketwired) -- 03/06/14 -- Northstar Healthcare Inc. (TSX: NHC) today announced its financial results for the three and twelve months ended December 31, 2013. 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 twelve months ended December 31, 2013 is available in Management's Discussion and Analysis (MD&A) and 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.
"The company has shown continued growth in surgeon recruitment and the enhanced development of our direct-to-consumer marketing campaigns," stated Dr. Donald Kramer, Northstar Healthcare's Chief Executive Officer. "These capabilities are allowing Northstar to pursue additional opportunities in the surgical center industry."
"We have invested aggressively into building our marketing department and programs," stated Harry Fleming, Northstar Healthcare's Chief Financial Officer. "With positive results to date, we will continue this strategy as we roll out new programs into new markets. We expect this to fuel significant growth with corresponding EBITDA in the second half of 2014, as the multiple campaigns begin to produce revenues."
Fourth Quarter Results
Net patient service revenue for the three months ended December 31, 2013 totaled $13.5 million, an increase of $7.0 million or 108.7%, compared to $6.5 million from the prior corresponding period. Total cases for the three months ended December 31, 2013 were 1,811, representing an increase of 496 cases or 37.7% from the 1,315 cases in the prior corresponding period. Revenue per case increased as a product of the procedure mix moving towards higher value surgeries. The increase in net patient service revenue resulted in Northstar having EBITDA of $3.3 million, which includes a bargain purchase gain of $2.4 million, for the three months ended December 31, 2013 compared with $0.6 million from the prior corresponding period. These increases contributed to higher net income margin and resulted in net income of $0.08 per weight average share, compared with net income of $0.01 per weighted average share in the corresponding 2012 period.
Twelve Months Results
In the twelve months ended December 31, 2013, Northstar generated net patient service revenue of $31.1 million, an increase of 49% compared with $20.9 million in the corresponding period of 2012. The increase in net patient service revenue resulted in Northstar having EBITDA of $2.2 million for the twelve months ended December 31, 2013 compared with $2.1 million from the prior corresponding period. The increase in net patient service revenue was offset by an increase in operating general and administrative expenses as Northstar invested in its revenue growth and diversification. Northstar had net income of $0.04 per weight average share, compared with net income of $0.03 per weighted average share in the corresponding 2012 period.
Cash flows provided by operating activities in the twelve months ended December 31, 2013 were $3.5 million which represented a $1.3 million decrease compared to the prior corresponding period. The decrease was caused by an increase in investments related to direct to consumer marketing and expenses in physician contracting as the Company diversified its revenue streams in 2013.
At December 31, 2013, Northstar had consolidated net working capital of $8.7 million, including cash of $5.6 million. This compares with $7.1 million and $4.2 million, respectively, at year-end 2012.
About Northstar Healthcare Inc.
Northstar partners with physicians in the ownership and management of ambulatory facilities and healthcare services. Northstar owns and manages interests in four ambulatory surgery centers, two in Houston, one in Dallas, and the fourth in Scottsdale, Arizona. Northstar also owns and manages interests in two imaging centers and one urgent care clinic in Houston.
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