Financial and Operational Restructuring Initiatives Set Stage for
Redefined Growth Strategy in 2008 and Beyond ORLANDO, Fla., Aug. 16
/PRNewswire-FirstCall/ -- PainCare Holdings, Inc. (AMEX:PRZ), one
of the nation's leading providers of pain-focused medical and
surgical solutions and services, today provided an update on its
ongoing financial and operational restructuring plans and reported
its financial results for the three and six month reporting
periods, ended June 30, 2007. PainCare anticipates filing the
related Form 10Q with the SEC no later than close of business on
Tuesday, August 21, 2007. The Company could not complete the Form
10-Q within the prescribed time, because the Registrant effected
numerous dispositions of physician practices during the quarter
resulting in the need for additional time to complete the
associated accounting and financial reporting. Although PainCare
believes that the financial data included within this press release
is accurate, it may be subject to change upon the filing of the
Form 10Q. OPERATIONAL HIGHLIGHTS AND RESTRUCTURING UPDATE: -- The
Company has completed the sale of Center for Pain Management ASC
and an associated pain practice, both based in Maryland, back to
its original shareholders. The transaction provided for a one-time
cash payment to PainCare of $5 million by the original
shareholders, forgiveness of the outstanding $7.8 million note due
and payable to the shareholders, and forgiveness of $2 million in
earn-out obligations that were payable to the shareholders in
accordance with the terms and conditions of the original
acquisition. -- The Company has completed a transaction with
Surgery Partners Holdings, LLC providing for the sale of PainCare's
controlling interest in the ambulatory surgery center located in
Lake Worth, Florida for total cash consideration of $10 million and
an additional $2.3 million in potential earn- out cash payments. --
The Company has also signed a definitive agreement with Surgery
Partners, LLC providing for the sale of PainCare's controlling
interest in the ambulatory surgery center located in Coral Gables,
Florida. Upon closing of the transaction, which is expected to
occur within the next 30 days following receipt of regulatory
approvals, the Company will receive approximately $4.4 million in
cash proceeds. -- Through its financial restructuring efforts,
PainCare is in the process of reducing debt obligation from $37.5
million to approximately $8.5 million. Further, the Company is
working to restructure the remaining $8.5 million. -- The Company
has initiated an operational restructuring initiative providing for
the divestiture or closing of certain non-performing or non-core
physician practices. Further, at the corporate level, PainCare has
implemented an overhead reduction initiative that has, to date,
resulted in expenses being significantly reduced over that of the
year-ago period. Additional cost-cutting programs are continually
being evaluated. -- PainCare's wholly-owned subsidiary, Integrated
Pain Solutions, has made considerable progress in establishing its
operating platform, and recently announced the signing of its first
customer, Coalition America. Currently, the Company is engaged in
establishing its proprietary provider networks in key markets
around the country in anticipation of launching revenue generating
operations late in the third quarter. OVERVIEW OF 2007 SECOND
QUARTER AND YEAR-TO-DATE FINANCIAL RESULTS -- Total revenues from
continuing operations for the second quarter were $9.6 million, a
12% decrease from $10.8 million in the prior year's second quarter.
For the six months ended June 30, 2007, total revenues declined 13%
to $19.4 million from $23 million in the comparable six month
reporting period in 2006. -- The Company had a non-cash,
non-recurring goodwill impairment charge of $15.2 million in the
second quarter of this year. In addition, due to the divestiture of
certain business interests, loss from discontinued operations
resulted in a non-cash, non-recurring charge totaling $28.1 million
during the three months ended June 30, 2007. -- Net loss for the
second quarter of this year was $61.6 million, or $.92 loss per
diluted share, compared to a net loss of $550,000, or $0.01 loss
per diluted share in the second quarter of 2006. For the six months
ended June 30, 2007, net loss totaled $64.8 million, or $0.97 loss
per diluted share, compared to net income of $17.7 million, or
$0.25 per diluted share, reported for the first six months of last
year. FINANCIAL CHARTS TO FOLLOW PAINCARE HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS June 30, December 31, 2007 2006
(unaudited) Assets Current assets: Cash and cash equivalents
$931,569 $2,695,460 Accounts receivable, net of allowance for
doubtful accounts ($1,148,006) 7,940,064 8,650,466 Deposits and
prepaid expenses 636,413 649,668 Note receivable 319,551 500,000
Current deferred tax asset 594,043 1,921,825 Income tax receivable
7,690,737 4,135,376 Current assets of discontinued operations
6,650,142 12,567,030 Total current assets 24,762,519 31,119,825
Property and equipment, net 8,480,135 8,994,837 Goodwill, net
42,161,346 56,455,055 Other assets 3,295,967 4,847,679 Non-current
assets of discontinued operations 10,027,655 62,131,631 Total
assets $88,727,622 $163,549,027 Liabilities and Stockholders'
Equity Liabilities: Accounts payable and accrued expenses
$4,907,757 $4,295,402 Accrued interest 3,037,915 781,971
Acquisition consideration payable 811,998 4,026,209 Current portion
of notes payable 22,436,759 34,053,378 Current portion of
convertible debentures 12,839,354 12,415,480 Derivative liabilities
600,000 600,000 Current portion of capital lease obligations
1,196,410 1,383,790 Current liabilities of discontinued operations
312,486 2,042,215 Total current liabilities 46,142,679 59,598,445
Capital lease obligations, less current portion 1,399,172 1,717,138
Deferred tax liability non-current 2,141,084 2,425,697 Non-current
liabilities of discontinued operations 2,905,141 264,968 Total
liabilities 52,588,076 64,006,248 Minority interests related to
discontinued operations 2,904,605 2,191,797 Stockholders' equity:
Common stock, $.0001 par value. Authorized 200,000,000 shares;
issued and outstanding 67,532,050 and 66,292,721 shares,
respectively 6,753 6,629 Preferred stock, $.0001 par value.
Authorized 10,000,000 shares; issued and outstanding - 0 - shares
Additional paid in capital 143,410,198 142,763,156 Accumulated
deficit (45,465,595) (18,983,089) Current period loss (64,812,762)
(26,482,506) Cumulative Translation Adjustment 96,347 46,792 Total
stockholders' equity 33,234,941 97,350,982 Total liabilities and
stockholders' equity $88,727,622 $163,549,027 PAINCARE HOLDINGS,
INC. Consolidated Statements of Operations For the Three and Six
Months Ended June 30, 2007 and 2006 (Unaudited) For the Three
Months Ended For the Six Months Ended June 30, June 30, 2007 2006
2007 2006 (As restated) (As restated) Revenues: Pain management
$6,111,888 $6,568,065 $12,276,948 $12,339,476 Surgeries 859,172
1,604,047 2,201,365 3,485,077 Ancillary services 2,605,306
2,669,732 5,466,076 7,163,899 Total revenues 9,576,366 10,841,844
19,944,389 22,988,452 Cost of revenues 5,208,931 3,000,576
8,710,749 5,683,077 Gross profit 4,367,435 7,841,268 11,233,640
17,305,375 General and administrative expense 8,201,889 10,477,491
17,945,618 9,685,231 Impairment 15,225,074 -- 15,225,074 --
Amortization expense 191,017 564,045 222,600 1,006,957 Depreciation
expense 473,911 401,812 901,478 838,405 Operating income (loss)
(19,724,456) (3,602,080) (23,061,130) 5,774,782 Interest income
(expense) (1,539,452) (1,424,349) (3,277,368) (2,038.000)
Derivative benefit (expense) -- 98,396 -- 10,492,951 Other income
(expense) (35,464) 313,840 (10,215) 440,421 Income (loss) from
continuing operations before income taxes (21,299,372) (4,614,193)
(26,348,713) 14,670,154 Benefit (provision) for income taxes
(12,188,730) 1,466,685 (10,448,932) (1,927,304) Income (loss) from
continuing operations (33,488,102) (3,147,508) (36,797,645)
12,742,850 Discontinued operations: Income (loss) from discontinued
operations (less applicable income tax (expense) benefit of
$1,997,784, 1,912,165, (1,806,790), and $3,233,891) (4,891,906)
2,597,757 (4,514,110) 3,932,840 Loss on disposal of discontinued
operations (less applicable income tax benefit of $7,975,277 and
8,100,639) (23,257,657) -- (23,501,007) -- Income (loss) from
discontinued operations, net of tax (28,149,563) 2,597,757
(28,015,117) 3,932,840 Income (loss) from operations before a
cumulative effect of a change in accounting principle (61,637,665)
(549,751) (64,812,762) 16,675,690 Cumulative effect of a change in
accounting principle (net of tax of $661,283) -- -- -- 991,925 Net
income (loss) $(61,637,665) $(549,751)$(64,812,762) $17,667,615
Basic income (loss) per common share: Income (loss) from continuing
operations before cumulative effect of a change in accounting
principle $(.50) $(.05) $(.55) $.20 Income (loss) from discontinued
operations $(.42) $.04 $(.42) $.06 Cumulative effect of a change in
accounting principle -- -- -- $.02 Net income (loss) $(.92) $(.01)
$(.97) $.28 Diluted income (loss) per common share: Income (loss)
from continuing operations before cumulative effect of a change in
accounting principle $(.50) $(.05) $(.55) $.18 Income (loss) from
discontinued operations $(.42) $.04 $(.42) $.05 Cumulative effect
of a change in accounting principle -- -- -- $.01 Net income (loss)
$(.92) $(.01) $(.97) $.25 Basic weighted average common shares
outstanding 67,263,159 64,482,619 66,842,451 63,011,366 Diluted
weighted average common shares outstanding 67,263,159 64,482,619
66,842,451 71,718,631 About PainCare Holdings, Inc. Headquartered
in Orlando, Florida, PainCare Holdings, Inc. is one of the nation's
leading providers of pain-focused medical and surgical solutions
and services. Through its proprietary network of acquired or
managed physician practices, and in partnership with independent
physician practices and medical institutions throughout the United
States and Canada, PainCare is committed to utilizing the most
advanced science and technologies to diagnose and treat pain
stemming from neurological and musculoskeletal conditions and
disorders. Through its wholly-owned subsidiary, Caperian, Inc.,
PainCare offers medical real estate and development services.
Through Integrated Pain Solutions, the Company is engaged in
pioneering the nation's first managed services organization that
offers a multi-disciplinary healthcare network focused on the
treatment of pain. For more information on PainCare Holdings,
please visit http://www.paincareholdings.com/. This press release
contains 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. These
forward-looking statements, which may include statements regarding
our future financial performance or results of operations,
including expected revenue growth, cash flow growth, future
expenses, future operating margins and other future or expected
performance, are subject to the following risks: the acquisition of
businesses or the launch of new lines of business, which could
increase operating expenses and dilute operating margins; the
inability to attract new patients by our owned practices, the
managed practices and the limited management practice; increased
competition, which could lead to negative pressure on our pricing
and the need for increased marketing; the inability to maintain,
establish or renew relationships with physician practices, whether
due to competition or other factors; the inability to comply with
regulatory requirements governing our owned practices, the managed
practices and the limited management practices; that projected
operating efficiencies will not be achieved due to implementation
difficulties or contractual spending commitments that cannot be
reduced; and to the general risks associated with our businesses.
In addition to the risks and uncertainties discussed above you can
find additional information concerning risks and uncertainties that
would cause actual results to differ materially from those
projected or suggested in the forward-looking statements in the
reports that we have filed with the Securities and Exchange
Commission. The forward-looking statements contained in this press
release represent our judgment as of the date of this release and
you should not unduly rely on such statements. Unless otherwise
required by law, we undertake no obligation to publicly update or
revise any forward- looking statements, whether as a result of new
information, future events or otherwise after the date of this
press release. In light of these risks and uncertainties, the
forward-looking events and circumstances discussed in the filing
may not occur, and actual results could differ materially from
those anticipated or implied in the forward-looking statements. FOR
MORE INFORMATION, PLEASE CONTACT: Investor/Shareholder Relations
Dodi Handy, President and CEO, or Daniel Conway, Chief Strategist
Elite Financial Communications Group, LLC at 407-585-1080 or via
email at DATASOURCE: PainCare Holdings, Inc. CONTACT:
Investor-Shareholder Relations, Dodi Handy, President and CEO, or
Daniel Conway, Chief Strategist, of Elite Financial Communications
Group, LLC, +1-407-585-1080, Web site:
http://www.paincareholdings.com/
Copyright
Paincare (AMEX:PRZ)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024
Paincare (AMEX:PRZ)
Graphique Historique de l'Action
De Juin 2023 à Juin 2024