American CareSource Holdings, Inc. Announces Results for the Three Months Ended September 30, 2015
17 Noviembre 2015 - 8:04PM
American CareSource Holdings, Inc. (Nasdaq:GNOW), owner and
operator of urgent and primary care centers and a leading national
network of ancillary healthcare providers, yesterday reported net
revenue of $6.5 million for the third quarter of 2015, as compared
with $6.8 million for the third quarter of 2014.
The net loss for the third quarter ended September 30, 2015, was
$2.2 million, as compared with a net loss of $1.5 million for the
third quarter of 2014. The increase in the net loss is primarily
attributable to costs incurred in the support and operation of our
growing urgent and primary care business.
Urgent and Primary Care Center
Highlights
- We owned and operated ten urgent and primary care centers
operating during the entire third quarter of 2015. Our centers are
located in Georgia (3), Alabama (3), Florida (2) and Virginia (2).
- The ten centers reported approximately 21,000 patient
encounters for the third quarter. This represents an increase
(on a pro-forma basis including encounters reported by prior owners
of the centers) of approximately 500 encounters in the third
quarter of 2015 over the same quarter of 2014. The increase is
largely attributable to the addition of our new center located in
Springville, Alabama, which we opened in the fourth quarter of
2014.
- Our urgent and primary care center revenues were $2.2 million
for the third quarter of 2015, which represents a 100% increase
over the same quarter in 2014. This new business segment incurred
an operating loss of $455,000 for the quarter, before recording
depreciation and amortization expenses of approximately
$122,000.
- We increased our existing $6.0 million line of credit by $1.0
million in the third quarter of 2015. This additional debt
capital provides us with funding to support our growth and working
capital needs. The interest rate on the $7.0 million credit
facility is LIBOR plus 1.75% per annum, which as of the date of
this release is 1.95%. We currently have $1.0 million available on
the line of credit.
- We adopted a new brand name for our urgent and primary care
center business, GoNow Doctors. We believe the brand will be
central to our improved marketing and advertising efforts, which
will better enable us to capitalize on the retail nature of our
business. In connection with this change, we changed our Nasdaq
ticker symbol from "ANCI" to "GNOW" in the third quarter of 2015.
- On July 31, 2015, we entered into a definitive agreement to
purchase certain assets used in the operation of Medac Health
Services, P.A., a four-center urgent care operation located in
Wilmington, North Carolina. The agreement, as amended,
provides that the transaction will close, if at all, by November
20, 2015. The total consideration for the transaction is $5.6
million, subject to certain adjustments. We currently do not
have funds sufficient to consummate the purchase and there is no
assurance that we will obtain sufficient funds by that date or that
the closing date can be extended beyond November 20, 2015.
Ancillary Network Highlights
- Revenue from our ancillary network business in the third
quarter of 2015 was $4.3 million, as compared to $5.7 million for
the same quarter in 2014. We do not anticipate increases in
revenue from our ancillary network business in the current or
future quarters.
- Effective October 1, 2014, we entered into a management
services agreement with HealthSmart, under which HealthSmart
manages the operation of our ancillary network business subject to
the supervision of an oversight committee a majority of the members
of which are appointed by us. HealthSmart hired substantially
all of our ancillary network employees. We compensate
HealthSmart with a fee equal the sum of 120% of all expenses
incurred in managing the business and 35% of the profits. We
are currently negotiating the sale of the business to HealthSmart,
and, if successful, we anticipate entering into a definitive
agreement to sell the business in the fourth quarter of 2015.
- The ancillary network business experienced an operating loss
for the third quarter of 2015 of $192,000 compared to operating
income of $406,000 for the comparable quarter of 2014, before
recording depreciation and amortization expenses of approximately
$152,000 and $154,000, respectively.
Shared Services
- With our entry into the urgent and primary care center
business, we created a Shared Services accounting category to track
and record the costs of managing both our urgent and primary care
center segment and the ancillary network segment. These costs
include finance and accounting, human resources, legal, marketing
and information technology.
- Shared services incurred total operating expenses of $1.6
million for the third quarter of 2015 compared to $1.8 million for
the comparable quarter of 2014. The decrease in costs relates,
among other things, to payroll reductions resulting from the
elimination of certain corporate support positions.
Financial Liquidity
- Total cash and cash equivalents at September 30, 2015 amounted
to $0.2 million, as compared to $1.0 million as of December 31,
2014. The decrease is attributable to operating losses. We
have used $11.0 million of our bank lines of credit through
September 30, 2015, and have an additional $1.0 million available
as of November 16, 2015.
- We have initiated efforts to raise additional equity capital
during 2015. On February 6, 2015 we filed a Form S-1 registration
statement to sell additional shares of our common stock. To date,
however, we have not been successful in raising capital pursuant to
such registration statement on terms satisfactory to us.
Rule 134 Disclosure
A registration statement on Form S-1 relating to these
securities has been filed with the Securities and Exchange
Commission but has not yet become effective. These securities may
not be sold nor may offers to buy be accepted prior to the time
that the registration statement becomes effective.
A copy of the preliminary prospectus related to the offering may
be obtained, when available, by written request to American
CareSource Holdings, Inc., attn.: Adam S. Winger, 1170 Peachtree
Street NE, Suite 2350 Atlanta, Georgia 30309 or by email to
awinger@gonowdoctors.com.
This press release shall not constitute an offer to sell or a
solicitation of an offer to buy, nor shall there be any sale of
these securities in any state or jurisdiction in which such an
offer, solicitation or sale would be unlawful prior to registration
or qualification under the securities laws of any such state or
jurisdiction.
About American CareSource Holdings, Inc.
American CareSource Holdings, Inc. is the owner of a growing
chain of ten urgent and primary care centers and an ancillary
services network that provides ancillary healthcare services
through its nationwide provider network.
Forward-Looking Statements
Statements in this press release that are forward-looking are
based upon current expectations, and actual results or future
events may differ materially. Therefore, the inclusion of such
forward-looking information should not be regarded as a
representation by us that our objectives or plans will be achieved.
Such statements include, but are not limited to, our expectations
regarding the revenues from our ancillary network business and the
sale of our ancillary network business. Words such as
"expects," "believes," "anticipates," "intends," "should," "plans,"
and variations of such words and similar expressions are intended
to identify such forward-looking statements. Forward-looking
statements contained herein involve numerous risks and
uncertainties, and there are a number of factors that could cause
actual results or future events to differ materially, including,
but not limited to, our ability to attract or maintain patients,
clients or providers or achieve our financial results, changes in
national healthcare policy, federal or state regulation, and/or
rates of reimbursement, including without limitation to the impact
of the Patient Protection and Affordable Care Act, Health Care and
Educational Affordability Reconciliation Act and medical loss ratio
regulations, general economic conditions (including economic
downturns and increases in unemployment), the Company's ability to
successfully implement our growth strategy for the urgent and
primary care business, the Company's ability to identify and
acquire target centers, increased competition in the urgent care
and primary care market, the Company's ability to recruit and
retain qualified physicians and other healthcare professionals,
reduction in reimbursement rates from governmental payors, lower
than anticipated demand for services, pricing, market acceptance or
preference, changes in the business relationship with significant
clients, term expirations of contracts with significant clients,
increased competition, the Company's inability to maintain a
network of ancillary service providers that is adequate to generate
significant claims volume, increased competition in the ancillary
network business, the Company's inability to manage growth,
implementation and performance difficulties, and other risk factors
detailed from time to time in the Company's periodic filings with
the Securities and Exchange Commission. Except as otherwise
required by law, the Company undertakes no obligation to update or
revise these forward-looking statements.
AMERICAN CARESOURCE HOLDINGS,
INC. |
CONSOLIDATED STATEMENTS OF
OPERATIONS |
(Unaudited) |
(amounts in thousands, except
per share data) |
|
|
Three months ended
September 30, |
|
|
2015 |
2014 |
Net revenues: |
|
|
Ancillary network |
$ 4,293 |
$ 5,656 |
Urgent and primary care |
2,225 |
1,107 |
Total net revenues |
6,518 |
6,763 |
Operating expenses: |
|
|
Ancillary network provider payments |
3,130 |
3,929 |
Ancillary network administrative
fees |
275 |
278 |
Ancillary network other operating
costs |
1,080 |
-- |
Ancillary network prepaid write-off |
-- |
-- |
Salaries, wages, contract medical
professional fees and related expenses |
2,493 |
2,406 |
Facility expenses |
337 |
212 |
Medical supplies |
225 |
66 |
Other operating expenses |
1,183 |
1,265 |
Intangible asset impairment |
-- |
-- |
Depreciation and amortization |
274 |
235 |
Total operating expenses |
8,997 |
8,391 |
Operating (loss) |
(2,479) |
(1,628) |
|
|
|
Other (income) expense : |
|
|
(Gain) on cancellation of acquisition
promissory note |
(289) |
-- |
Interest expense: |
|
|
Interest expense |
101 |
28 |
(Gain)/loss on warrant liability, net of
deferred loan fees amortization |
(101) |
24 |
Total other (income) expense and interest
expense |
(289) |
52 |
Loss before income taxes |
(2,190) |
(1,680) |
Income tax expense (benefit) |
-- |
(226) |
Net (loss) |
$ (2,190) |
$ (1,454) |
Basic net loss per share |
$ (0.32) |
$ (0.22) |
Diluted net loss per share |
$ (0.39) |
$ (0.22) |
Basic weighted-average shares
outstanding |
6,921 |
6,745 |
Diluted weighted-average shares
outstanding |
7,038 |
6,745 |
|
|
|
AMERICAN CARESOURCE HOLDINGS,
INC. |
CONSOLIDATED STATEMENTS OF
OPERATIONS BY BUSINESS SEGMENT |
(amounts in thousands) |
|
|
Three
Months |
|
September 30, 2015 |
September 30, 2014 |
Change |
|
Urgent and Primary Care |
Ancillary Network |
Shared Services |
Total |
Urgent and Primary Care |
Ancillary Network |
Shared Services |
Total |
$ |
% |
Net revenues |
$ 2,225 |
$ 4,293 |
$ -- |
$ 6,518 |
$ 1,107 |
$ 5,656 |
$ -- |
$ 6,763 |
$ (245) |
-4% |
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
Ancillary network provider payments |
-- |
3,130 |
-- |
3,130 |
-- |
3,929 |
-- |
3,929 |
(799) |
-20% |
Ancillary network administrative
fees |
-- |
275 |
-- |
275 |
-- |
278 |
-- |
278 |
(3) |
-1% |
Ancillary network other operating
costs |
-- |
1,080 |
-- |
1,080 |
-- |
-- |
-- |
-- |
1,080 |
N/A |
Salaries, wages, contract medical
professional fees and related expenses |
1,800 |
-- |
693 |
2,493 |
781 |
793 |
832 |
2,406 |
87 |
4% |
Facility expenses |
254 |
-- |
83 |
337 |
89 |
-- |
123 |
212 |
125 |
59% |
Medical supplies |
225 |
-- |
-- |
225 |
66 |
-- |
-- |
66 |
159 |
241% |
Other operating expenses |
401 |
-- |
782 |
1,183 |
163 |
250 |
852 |
1,265 |
(82) |
-7% |
Depreciation and amortization |
122 |
152 |
-- |
274 |
81 |
154 |
-- |
235 |
39 |
17% |
Total operating expenses |
$ 2,802 |
$ 4,637 |
$ 1,558 |
$ 8,997 |
$ 1,180 |
$ 5,404 |
$ 1,807 |
$ 8,391 |
$ 606 |
7% |
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) |
$ (577) |
$ (344) |
$ (1,558) |
$ (2,479) |
$ (73) |
$ 252 |
$ (1,807) |
$ (1,628) |
$ (851) |
52% |
|
|
|
|
|
|
|
|
|
|
|
Other (income) expense: |
|
|
|
|
|
|
|
|
|
|
Gain on cancellation of acquisition
promissory note |
|
|
|
(289) |
|
|
|
-- |
(289) |
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
|
101 |
|
|
|
28 |
73 |
|
(Gain)/loss on warrant liability, net of
deferred loan fee amortization |
|
|
|
(101) |
|
|
|
24 |
(125) |
|
Total other (income) expense and interest
expense |
|
|
|
(289) |
|
|
|
52 |
(341) |
-656% |
Loss before income taxes |
|
|
|
$ (2,190) |
|
|
|
$ (1,680) |
$ (510) |
30% |
|
|
|
|
|
|
|
|
|
|
|
AMERICAN CARESOURCE HOLDINGS,
INC. |
CONSOLIDATED BALANCE
SHEETS |
(amounts in thousands) |
|
|
September 30, 2015 |
December 31, 2014 |
|
(Unaudited) |
(Audited) |
|
|
|
ASSETS |
|
|
Current assets: |
|
|
Cash and cash equivalents |
$ 197 |
$ 1,020 |
Accounts receivable |
2,969 |
4,204 |
Prepaid expenses and other current
assets |
775 |
612 |
Deferred income taxes |
6 |
6 |
Total current assets |
3,947 |
5,842 |
|
|
|
Property and equipment, net |
3,921 |
4,322 |
|
|
|
Other assets: |
|
|
Deferred income taxes |
12 |
12 |
Deferred loan fees, net |
1,625 |
2,666 |
Deferred offering costs |
310 |
225 |
Other non-current assets |
104 |
488 |
Intangible assets, net |
705 |
1,437 |
Goodwill |
6,113 |
6,113 |
Total other assets |
8,869 |
10,941 |
Total assets |
$ 16,737 |
$ 21,105 |
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
Current liabilities: |
|
|
Lines of credit |
$ 5,000 |
$ -- |
Due to ancillary network service
providers |
2,900 |
2,308 |
Due to HealthSmart, ancillary
network |
672 |
903 |
Accounts payable |
944 |
762 |
Accrued liabilities |
2,062 |
1,875 |
Current portion of long-term debt |
351 |
989 |
Capital lease obligations, current
portion |
130 |
117 |
Total current liabilities |
12,059 |
6,954 |
|
|
|
Long-term liabilities: |
|
|
Lines of credit |
5,800 |
4,716 |
Promissory notes and notes payable |
-- |
312 |
Capital lease obligations |
1,666 |
1,764 |
Warrant derivative liability |
1,670 |
3,200 |
Other long-term liabilities |
356 |
222 |
Total long term liabilities |
9,492 |
10,214 |
Total liabilities |
21,551 |
17,168 |
|
|
|
Commitments and contingencies |
-- |
-- |
|
|
|
Stockholders' equity (deficit): |
|
|
Preferred stock, $0.01 par value; 10,000
shares authorized, none issued |
-- |
-- |
Common stock, $0.01 par value; 40,000
shares authorized; 6,952 and 6,713 shares issued and outstanding in
2015 and 2014, respectively |
69 |
67 |
Additional paid-in capital |
26,188 |
25,731 |
Accumulated deficit |
(31,071) |
(21,861) |
Total stockholders' equity (deficit) |
(4,814) |
3,937 |
Total liabilities and stockholders' equity
(deficit) |
$ 16,737 |
$ 21,105 |
|
|
|
AMERICAN CARESOURCE HOLDINGS,
INC. |
CONSOLIDATED STATEMENTS OF CASH
FLOWS |
(Unaudited) |
(amounts in thousands) |
|
|
Nine months ended
September 30, |
|
2015 |
2014 |
Cash flows from operating activities: |
|
|
Net loss |
$ (9,210) |
$ (4,232) |
Adjustments to reconcile net loss to net
cash used in operating activities: |
|
|
Non-cash stock-based compensation
expense |
426 |
366 |
Intangible asset impairment |
520 |
-- |
Depreciation and amortization |
857 |
628 |
(Gain) loss on warrant liability, net of
deferred loan fees amortization |
(489) |
24 |
Gain on cancellation of acquisition
promissory note |
(289) |
-- |
Deferred income taxes |
-- |
(227) |
Change in deferred rent |
134 |
-- |
Changes in operating assets and
liabilities, net of effects of acquisitions: |
|
|
Accounts receivable |
1,235 |
(650) |
Prepaid expenses and other assets |
170 |
(235) |
Due to ancillary network service
providers |
592 |
263 |
Due to HealthSmart, ancillary
network |
(231) |
-- |
Accounts payable |
175 |
391 |
Accrued liabilities |
187 |
576 |
Net cash used in operating
activities |
(5,923) |
(3,096) |
|
|
|
Cash flows from investing activities: |
|
|
Cost of acquisitions |
-- |
(5,030) |
Additions to property and equipment |
(193) |
(422) |
Net cash used in investing
activities |
(193) |
(5,452) |
|
|
|
Cash flows from financing activities: |
|
|
Proceeds from issuance of common stock
and option exercises |
33 |
2,000 |
Proceeds from borrowings under lines of
credit |
6,084 |
2,834 |
Principal payments on capital lease
obligations |
(85) |
(14) |
Principal payments on long-term debt |
(661) |
(17) |
Offering costs, paid and deferred |
(78) |
-- |
Net cash provided by financing
activities |
5,293 |
4,803 |
|
|
|
Net decrease in cash and cash
equivalents |
(823) |
(3,745) |
Cash and cash equivalents at beginning of
period |
1,020 |
6,207 |
Cash and cash equivalents at end of
period |
$ 197 |
$ 2,462 |
|
|
|
Supplemental cash flow information: |
|
|
Cash paid (received) for taxes, net of
refunds |
$ (6) |
$ 25 |
Cash paid for interest |
$ 280 |
$ 36 |
|
|
|
Supplemental non-cash operating and financing
activity: |
|
|
Offering costs, unpaid and deferred |
$ 7 |
$ -- |
Reclassified property and equipment from
prepaid expenses |
$ 51 |
$ -- |
Warrants issued as deferred financing
costs |
$ 347 |
$ 1,690 |
Debt issued as consideration in business
combination |
$ -- |
$ 1,308 |
CONTACT: Investor Relations Contact:
Adam S. Winger, Interim CFO
awinger@gonowdoctors.com
Phone (205) 250-8381
American CareSource (CE) (USOTC:GNOW)
Gráfica de Acción Histórica
De Abr 2024 a May 2024
American CareSource (CE) (USOTC:GNOW)
Gráfica de Acción Histórica
De May 2023 a May 2024