HOUSTON, TX, March 21, 2013 /CNW/ - Northstar Healthcare Inc. (TSX:NHC) today announced its financial results for the three and twelve months ended December 31, 2012. 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, 2012 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.
"2012 was a momentous year for the Company. Management's vision for turning the Company around found substantial traction and Northstar was able to post its first positive net income producing year since 2007" said Dr. Donald Kramer, Northstar's founder and current CEO. "Northstar also successfully re-syndicated each of its three ambulatory surgery centers to provide proper equity alignment for future center growth and enhanced Northstar distributions. During 2012, management was able to grow top-line revenue by $6.5 million while keeping expenses comparatively uniform. This increase in service revenues fell to the bottom line and benefited both Northstar and our physician partners."
Fourth Quarter Results
Net patient service revenues for the three months ended December 31, 2012 totaled $6.5 million, an increase of $2.3 million or 55.8%, compared to $4.2 million from the prior corresponding period. The increase in net patient service revenues was primarily due to a 44.5% increase in revenues per case experienced through improved billing and collections efforts at all of our locations.
The Company had net income of $0.4 million compared to a nominal amount in the prior corresponding period. This is primarily related to both improvements in revenue cycle management and favorable reimbursements in our pain specialty cases. This resulted in net income per weighted average share of $0.01.
Cash flow provided by operating activities in the fourth quarter of 2012 was $2.5 million which represented a $2.4 million increase compared with cash flow provided by operating activities of $0.1 million in the corresponding period in 2011.
Twelve Months Results
In the twelve months ended December 31, 2012, Northstar generated net patient service revenue of $20.9 million compared with $14.4 million in the corresponding period of 2011.
Northstar had income from operations for the twelve months ended December 31, 2012 of $9.3 million compared to $2.0 million in the corresponding 2011 period. Northstar reported net income in the 2012 twelve month period of $1.2 million, or $0.03 per weighted average share, compared with a net loss of $2.2 million, or $0.07 per weighted average share in the corresponding 2011 period.
Cash flow provided by operating activities in the twelve months ended December 31, 2012 was $4.8 million which represented a $4.5 million increase compared to the prior corresponding period, despite lower case volume. Management's efforts in managing the revenue cycle provided significant positive results in collections.
At December 31, 2012, Northstar had consolidated net working capital of $7.1 million, including cash of $4.2 million. This compares with $3.8 million and $2.5 million, respectively, at year-end 2011.
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 three ambulatory surgery centers, two in Houston and the third in Dallas.
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.