Spine Pain Management, Inc. Reports 2011 Financial Results and Furnishes Corporate Updates

HOUSTON, March 30, 2012 /PRNewswire/ -- Spine Pain Management, Inc. (OTC Bulletin Board: SPIN), through its Chief Executive Officer, William F. Donovan, M.D., is pleased to report financial results for the year ended December 31, 2011.  This year's report covers the second full year of operations in which results were totally derived from SPIN's business model put into operation in August 2009.  During the twelve month period ended December 31, 2011, the company's operations focused on continued development of its spine injury diagnostic business in the Houston and McAllen area as well as expanding into the Florida market with four new Centers in Tampa, Orlando, Jacksonville and Sarasota by year end. 

2011 Full Year Results
For 2011, net revenue was $5,212,165, an increase of 53% over 2010 net revenue of $3,389,581.  Net income was $1,315,004 or $.08 per share, up 20% over 2010 net income of $1,101,550 or $.06 per share. While the company's year over year net revenue increased by 53% for 2011, the increase in net income was less pronounced.  Net income for 2011 was significantly affected by certain expenses, including approximately $227,000 in temporary factoring expense (the company is no longer factoring) and $393,000 in legal expenses attributable to the defense of lawsuits brought against the company before the implementation of the current business model.  Had these charges not been incurred, net income would have been approximately $1,935,000 or $.11 per share for 2011, an increase of 76% over the prior year.

Q4 2011 Results
For Q4 2011 net revenue was up 60% to $1,349,162 from $843,841 in 2010.  Net income for Q4 2011 showed a small loss of $13,163 or $.00 per share vs. net income of $208,304 or $.01 a share in Q4 2010. The expenses described above in "2011 Full Year Results" were recognized primarily in Q4 2011, which is a seasonally slow period. This negatively affected net income in spite of a significant increase in net revenue for the quarter. Adding back charges of approximately $180,000 in temporary factoring expense and $78,000 in legal expenses relating to the lawsuits described above would result in net income of $244,837 or $.01 per share, an increase of 18% over Q4 2010.

2011 Gross Profit
The company recorded $5,212,165 in net revenues with $2,120,800 in costs of services and gross profit of $3,091,365 for the year ended December 31, 2011.  For the same period in 2010, the company recorded $3,389,581 in net revenues with $1,425,399 in costs of services and gross profit of $1,964,182.  Accordingly, 2011 gross profit increased 57% over 2010.

The company recognizes revenue by reference to "net revenue," which is gross amounts billed using CPT (Current Procedural Terminology) codes less account discounts that are expected to result when individual cases are ultimately settled.  Accordingly, the company had gross revenues of $10,594,259 for the year ended December 31, 2011, versus gross revenues of $6,528,194 for the year ended December 31, 2010. (The full SEC Filing can be accessed at:
http://www.sec.gov/edgar/searchedgar/companysearch.html (Type in "Spine Pain Management")

Corporate Updates
On February 17, 2012, Northshore Orthopedics, Assoc., an independent service provider to SPIN and its largest creditor, elected to exchange $1,020,200 of debt to the company into common shares at a price of $1.83 per share.  Northshore Orthopedics is owned by the company's CEO, William Donovan, M.D.

Discussions are active and ongoing with potential investors in the previously disclosed exploration of secured debt placement to enable further expansion of case volumes. At this point, availability of such growth capital appears ample but terms that generate clear shareholder value and avoid dilution are taking time to achieve. As the company has said before, there can be no assurance any financing will be completed.  

Spine Pain Management will present and meet with investors on April 10, 2012 in New York City at the 23rd annual Analyst Conference run by The Wall Street Forum.  This is one of the largest non-brokerage firm-sponsored investor conferences, and is for institutional investors. As such, it broadens the company's investor relations outreach.  In addition, Spine Pain is finalizing plans to participate in another major institutional investor conference in the Northeast around the middle of the year.     

Management Commentary on Results and Guidance
"Q411 gross revenues were on plan, and it was an accomplishment to come in about even with Q311 gross revenues despite the typical seasonality impact whereby the holidays slow SPIN's activities," said Dr. William Donovan, CEO. "We achieved significant growth in revenues for both Q4 and the year, vs. the same periods a year ago.  We believe the legal and other expenses that affected net income are behind us.  We are optimistic for 2012 and beyond, and anticipate we will achieve earnings in line with previous guidance of $0.30-35 excluding a potential new financing which we believe would be accretive.  At this juncture to be prudent, we are planning for the low end of the guidance range, with earnings weighted toward the second half of the year." Dr. Donovan added, "I would like to extend a personal invitation to all shareholders to join me and the rest of management on Monday's conference call, where more detail on the results will be addressed."

Investor Conference Call
Fourth Quarter/Year End investor conference call will be held on Monday, April 2 at 11:00 AM Eastern Time.  In a new practice for the company, there will be direct telephone access with interactive Q&A time available after management's prepared remarks.  By that morning, slides to be referenced in the conference call will be available for view under the investor tab of the corporate website, spinepaininc.com.  

Participants may dial (480) 629-9712 and reference Conference ID 4528254.  A replay will be available for 90 days at (877) 870-5176, or for international callers (858) 384-5517; the pin # is 4528254.  Alternatively, investors may access a live webcast or archive at:  http://viavid.net/dce.aspx?sid=00009577

About Spine Pain Management:
We are a medical marketing, management, billing and collection company facilitating diagnostic services for patients who have sustained spine injuries resulting from traumatic accidents. We deliver turnkey solutions to spine surgeons, orthopedic surgeons and other healthcare providers that provide necessary and appropriate treatment of musculo-skeletal spine injuries resulting from automobile and work-related accidents. Our care management services help reduce the financial burden on healthcare providers that provide patients with early-stage diagnostic testing and non-invasive surgical care, preventing many patients from being unnecessarily delayed or inhibited from obtaining needed treatment. We believe that our patient advocacy will be rewarding to patients who obtain needed relief from painful conditions.

Additional information about the company, along with a video can be found at its website at spinepaininc.com.

Forward-Looking Statements: This press release includes forward-looking statements as determined by the U.S. Securities and Exchange Commission (the "SEC"). All statements, other than statements of historical facts, included in this press release that address activities, events, or developments that the company believes or anticipates will or may occur in the future are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include general economic and business conditions, the ability to acquire and develop specific projects, the ability to fund operations, healthcare services demands, changes in healthcare practices, government regulation, and other factors over which the company has little or no control. The company does not intend (and is not obligated) to update publicly any forward-looking statements. The contents of this press release should be considered in conjunction with the warnings and cautionary statements contained in the company's recent filings with the SEC.

For Further Information Contact:
Gary M. Giblen
Director of Strategic Development, Finance & Communications
[email protected]
(203) 324-2022

SOURCE Spine Pain Management, Inc.