HOUSTON, Aug. 16, 2011 /PRNewswire/ -- Spine Pain Management, Inc. (OTC: SPIN), a specialty medical management and finance company addressing the $50 billion personal injury case sector, through its CEO, Dr. William F. Donovan, is pleased to announce this record quarter. With this quarter, the company has now completed its first two years of operations under its current business model, with all eight quarters being profitable. For Q2, 2011, net revenue was $1,253,049, and net income was $306,903 or $.02 per share and for Q2, 2010, net revenue was $785,833, and net income was $270,232 or $.02 per share, an approximate 60% and 14% increase respectively.
While SPIN's year over year revenues increased by 60% for the quarter, the smaller percentage increase in net income was primarily due to an unexpected legal charge of approximately $310,000 attributable to the defense of a suit that was brought in 2007 against the company and several other defendants under a previous business model. Had this charge not been taken, net income for the quarter would have increased to approximately $618,000 and net income per share would be $.04. (More on the litigation charge can be found in the company's current Q2 2011 SEC Form 10-Q filing linked below.)
YOY Rev & Net Inc. Comparison
Complete Q2 SEC Form 10Q and other filings can be accessed at: http://www.sec.gov/edgar/searchedgar/companysearch.html (Type in Spine Pain)
The company recognizes revenue by reference to "net revenue," which is gross amounts billed using CPT codes (AMA originated codes for the medical procedures performed) less account discounts that are expected to result when individual cases are ultimately settled. The company recorded $2,579,586 in gross revenue (amount billed) for the three months ended June 30, 2011, offset by $1,326,537 of standard allowance for discount, resulting in the reported net revenue of $1,253,049.
In the last two weeks of Q2, 2011, the company became affiliated with a fourth center in Orlando, Florida, which contributed only minimally to Q2 results. On August 1, 2011, the company became affiliated with a fifth center in Jacksonville, Florida. Management anticipates both centers will contribute significantly to Q3 and beyond.
"As was earlier forecast, we are now showing accelerating momentum in our organic growth, both in centers and revenues, due to an ever increasing volume of older funded cases being resolved—a situation we foresee continuing," said Dr. Donovan, CEO of SPIN.
Conference Call Details
Conference Call: An investor conference call with management will be held on Thursday, August 18, 2011 at 4:15 pm EDT. The call will be video WebCast with a short live Power Point Presentation followed by Q & A. The call may be accessed either by phone alone, which will not allow asking questions, or by phone or VOIP with internet log-in with an on screen provided Audio Pin # which will allow verbally asking questions. Questions can also be typed into an online chat screen at any time during the presentation or Q & A period.
Access to the Call: To use the internet link, you must register prior to access. So we suggest you complete the registration and get your log-in information in advance of the start of the presentation. You can register for your log-in any time between now and the start of the presentation at 4:15 EDT.
Click or paste the link below in your browser for web access to the presentation:
Or if the above link doesn't work, please try the following:
http://www.JoinWebinar.com Webinar ID: 704-586-382
Telephone Dial-in or VOIP with Q&A: To ask a question using your telephone, you must be online at the presentation website during the internet presentation where a unique Audio PIN # will be provided to you on screen after you log-in to the presentation area. During the presentation, all will be muted.
The Q & A will be moderated, but without an operator, and will be open to all questions after the presentation. Review this short tutorial video for pointers on how to use the Webinar Features (This is just a demo. Do not use the numbers or codes on this demo. Use what is provided above.): http://spinepaininc.com/video/webinar_tutorial.wmv
If you use the telephone but are NOT also online, you will hear the presentation plus Q & A, but will be in "listen only" mode.
Conference Dial-in Number: +1 (215) 383-1016
Participant Access Code: 239-396-604#
Conference Play Back: A video replay of the conference call presentation will be available shortly after the completion of the call at the company website:
About Spine Pain Management:
With headquarters in Houston, Texas, we now have financing arrangements with five affiliated centers in Houston, Texas, McAllen Texas, the Tampa Bay area of Florida, Orlando, Florida and Jacksonville, Florida. We are a medical marketing, management, billing and collection company facilitating diagnostic services for patients in our affiliated centers who have sustained spine injuries resulting from traumatic accidents. We deliver turnkey financial management 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 financial management services enable healthcare providers to pre-fund diagnostic testing and non-invasive and surgical care, which prevents patients from being unnecessarily delayed or inhibited from obtaining needed treatment. We believe our patient advocacy will be rewarding to patients who obtain needed relief from painful conditions, and moreover, provides spine surgeons and orthopedic surgeons a solution to offset the cost of care prior to settlement.
Through our financial management system, we purchase medical receivables from the spine surgeons, orthopedic surgeons and other healthcare providers that diagnose and treat patients with musculo-skeletal spine injuries. We have affiliations with certain centers that provide the spine diagnostic injections and treatment. These centers have a contract with us that allow them to shift to us the financial risk in collecting the accounts receivable for the medical procedures. That is, the doctors at the centers are willing to be paid by us an "up front" percentage of the gross bill shortly after completion of each procedure, providing them with immediate cash flow. On the other hand, we take the risk of a rare, but possible "no settlement," along with having to wait for months until payment of all or some portion of the patient's bill at the time of final settlement.
Additional information about the company, along with a video can be found at its website at www.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 Information Contact:
Spine Pain Management, Inc.
William F. Donovan, M.D.
Chief Executive Officer
SOURCE Spine Pain Management, Inc.