Northstar Healthcare Reports 2011 Second Quarter Results
HOUSTON, TX, Aug. 11, 2011 /PRNewswire/ - Northstar Healthcare Inc. (TSX:NHC) today announced its financial results for the second quarter and six months ended June 30, 2011. 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 second quarter and six months ended June 30, 2011 is available in Management's Discussion and Analysis (MD&A) and Interim 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 continued to assess opportunities for revenue diversification as well as growth for our existing operating centers during this quarter," said Dr. Donald Kramer, Chief Executive Officer of Northstar. "The initiatives that we have in place for a minimally invasive spine surgery program at our Kirby location and podiatry programs at our Houston and Dallas location are nearing implementation phase. The Company expects to see the financial impact of these programs later on in the fiscal year. Based on our continuing efforts to recruit and bring in new doctors, as well as our focus on creating new specialty programs for our existing centers, we are optimistic that the company will see growth and a return to profitability. Additionally, active discussions continue between Northstar and a number of strategic partners with the aim of diversifying the Company's service lines. Public disclosures will be made at such time as there are definitive agreements."
Second Quarter Results
In the second quarter ended June 30, 2011, Northstar generated net patient service revenue of $3.8 million compared with $4.4 million in the corresponding period of 2010. The year-over-year decrease in Q2 net patient service revenues was primarily due to a 10.6% decrease in case volume and a 4.9% decrease in the net patient service revenues per case. The overall case volume decrease was attributable to a 16.9% decrease at the Kirby ASC and a 54.5% decrease at our Houston ASC. The decrease at the Houston ASC was due to a lack of cases from exclusive use agreements.
Northstar recorded a second quarter 2011 profit from operations of $0.2 million compared with a $1.6 million profit in the 2010 period. The net loss in the 2011 period was $0.7 million, or $0.02 per share, compared with a loss of $2.1 million, or $0.15 per share in the 2010 period. The 2010 net loss figure included a $0.3 million loss on change in fair value of Class B Units.
Cash flow provided by operating activities in the second quarter of 2011 was nominal, compared with cash flow used for operating activities of $1.4 million in the corresponding period in 2010.
Six Months Results
In the six months ended June 30, 2011, Northstar generated net patient service revenue of $7.4 million compared with $7.5 million in the corresponding period of 2010. The decreases in case volume and revenue per case discussed in the second quarter results above were offset by favorable first quarter results.
Northstar had income from operations for the six months ended June 30, 2011 of $0.9 million compared to $2.0 million in the comparable 2010 period. Northstar reported a net loss in the 2011 six month period of $1.3 million, or $0.04 per share, compared with a loss of $3.5 million, or $0.25 per share in the corresponding 2010 period. The 2010 net loss figure included a $0.2 million gain on change in fair value of Class B Units.
Cash flow provided by operating activities in the six months ended June 30, 2011 was $0.2 million, compared with cash flow used for operating activities of $1.4 million in the corresponding period in 2010.
At June 30, 2011, Northstar had consolidated working capital of $4.7 million, including cash of $3.3 million. This compares with $5.3 million and $4.2 million, respectively, at year-end 2010.
About Northstar Healthcare Inc.
Northstar owns and manages ambulatory surgery centers in the United States, focusing initially on metropolitan areas in Texas. The Company holds interests in three ambulatory surgery centers, two in Houston and the third in Dallas.
Forward-looking statements
This news release may contain forward-looking statements (within the meaning of applicable securities laws) relating to business of Northstar Healthcare Inc. (the "Company") and the environment in which it operates. Forward-looking statements are identified by words such as "believe", "anticipate", "expect", "intend", "plan", "will", "may" and other similar expressions. These statements are based on the Company's expectations, estimates, forecasts and projections. They are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. These risks and uncertainties are discussed in the Company's regulatory filings available on the Company's web site at www.Northstar-Healthcare.com or at www.sedar.com. There can be no assurance that forward-looking statements will prove to be accurate as actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, a forward-looking statement speaks only as of the date on which such statement is made. The Company undertakes no obligation to publicly update any such statement or to reflect new information or the occurrence of future events or circumstances.
SOURCE Northstar Healthcare Inc.
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