HOUSTON, March 22, 2012 /PRNewswire/ - Northstar Healthcare Inc. (TSX:NHC) today announced its financial results for the three and twelve months ended December 31, 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 three and twelve months ended December 31, 2011 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.
"Northstar was profitable for the fourth quarter," said Donald Kramer, M.D., Chief Executive Officer of Northstar. "We are seeing the fruits of our efforts to return Northstar to profitability from the time that I returned in the fourth quarter of 2010. This is especially satisfying because this is Northstar's first profitable quarter (excluding extraordinary items) in over two years, since the third quarter of 2009, when I stepped down as CEO, due to my differences with the former board over the direction they were taking the company. Northstar has moved through a number of strategic relationships and operational changes which are enhancing its performance. Several of these changes have been in its billing and collection processes, which have improved the revenues collected for each surgery. Additionally, Northstar is negotiating the restructuring of its partnerships which should be accretive to the Company. Public disclosures will be made at such time as there are definitive agreements."
Fourth Quarter Results
Net patient service revenues for the three months ended December 31, 2011 totaled $4.2 million, an increase of $1.9 million or 85.3%, compared to $2.2 million for the same period in 2010. The increase in net patient service revenues was primarily due to a 16.7% increase in case volume and a 58.9% increase in the net patient service revenues per case for the three months ended December 31, 2011 versus the same period in 2010. The overall case volume increase was primarily attributable to our acquisition of PFSD, which through its partial ownership of MSID, contributed 153 cases for the three months ended December 31, 2011.
Northstar recorded net income from operations of $11 thousand in the fourth quarter of 2011 which represented a $1.8 million increase compared with a $1.8 million loss in the corresponding 2010 period. This resulted in nominal income per weighted average share, compared with a net loss of $1.8 million, or ($0.05) per weighted average share in the 2010 period.
Cash flow provided by operating activities in the fourth quarter of 2011 was $0.1 million which represented a $0.4 million increase compared with cash flow used for operating activities of $0.3 million in the corresponding period in 2010.
Twelve Months Results
In the twelve months ended December 31, 2011, Northstar generated net patient service revenue of $14.4 million compared with $12.3 million in the corresponding period of 2010.
Northstar had income from operations for the twelve months ended December 31, 2011 of $2.0 million compared to $1.6 million in the corresponding 2010 period. Northstar reported a net loss in the 2011 twelve month period of $2.2 million, or $0.07 per weighted average share, compared with a net loss of $5.0 million, or $0.26 per weighted average share in the corresponding 2010 period. The 2010 net loss figure included a non-recurring $2.0 million gain on derecognition of Class B Units upon completion of a private placement of common shares.
Cash flow provided by operating activities in the twelve months ended December 31, 2011 was $0.2 million which represented a $4.3 million increase compared with cash flow used for operating activities of $4.1 million in the corresponding period in 2010.
At December 31, 2011, Northstar had consolidated working capital of $3.8 million, including cash of $2.5 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.
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.