Orion Healthcorp (AMEX:ONH)
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Orion HealthCorp, Inc. (AMEX: ONH) today announced its financial results
for the first quarter ended March 31, 2007.
For the three months ended March 31, 2007, net operating revenues were
$8.3 million, a 48% increase over the $5.6 million for the same period
in the prior year and a 22% increased over the $6.8 million reported in
the fourth quarter of 2006. Net loss for the first quarter of 2007 was
$786,000, or $0.01 per basic share, compared with net income of
$771,000, or $0.07 per basic share, for the first quarter of 2006 and a
net loss of $3.9 million for the fourth quarter of 2006. Results for the
quarter ended March 31, 2007 included revenues and expenses for Rand
Medical Billing and the On Line companies, which the Company acquired in
December 2006. Earnings before interest, taxes, depreciation and
amortization (EBITDA) were $233,000 for the first quarter of 2007 as
compared with an EBITDA loss of $73,000 for the first quarter ended
March 31, 2006. (A reconciliation of EBITDA to net income for the first
quarter is provided on the attached unaudited consolidated condensed
statements of operations.)
Terrence L. Bauer, chief executive officer of Orion HealthCorp, said, “The
positive momentum that began last year carried over into the first
quarter. Revenue increased substantially both year over year and
sequentially as our two recent acquisitions became fully integrated and
positive contributors. Excluding discontinued operations, EBITDA was up
to $233,000 compared with a loss of $73,000 in the first quarter of last
year. Our results are consistent with our expectations, and we believe
we can maintain this momentum throughout the remainder of the year.”
The results for the three months ended March 31, 2007 and 2006,
respectively, include the consolidated results of Orion HealthCorp,
including its two reportable segments: Practice Management, which
provides business and management services to pediatric physician groups,
and Revenue Cycle Management, which provides physician billing and
collection services and practice management solutions, primarily to
hospital-based physicians. The surgery center business operated under
the name “SurgiCare”
and certain assets of Integrated Physician Services (IPS) are reported
as discontinued operations for the three months ended March 31, 2007 and
2006. Certain reclassifications have been made in the 2006 financial
statements to conform to the reporting format in 2007. Such
reclassifications had no effect on previously reported earnings. In
addition, the first quarter 2006 financial statements were restated to
reflect operations discontinued subsequent to the first quarter of 2006.
The Company also announced the results of its 2007 annual meeting of
shareholders, which was held on May 9, 2007. With 98% of Orion’s
shareholders casting their votes, Orion shareholders elected the
following directors to serve until the annual meeting in 2008: Terrence
L. Bauer; Paul H. Cascio; Michael J. Finn; David Crane; and Joseph M.
Valley, Jr. In addition, shareholders ratified the appointment of UHY,
L.L.P. as the Company’s independent public
auditors for 2007.
In closing, Mr. Bauer added, “The healthcare
environment is conducive to the growth of revenue cycle management and
practice management companies. Increasing costs, complex regulations and
decreased reimbursement are forcing physicians to seek outsourcing
alternatives. With our head of business development, Jay McBurney, in
place, we are actively pursuing multiple organic growth opportunities.
In our view, we are ideally positioned to add value to physicians and
create value for our shareholders.”
The live broadcast of Orion HealthCorp’s first
quarter conference call will begin at 11:00 a.m. Eastern Time on
Tuesday, May 15, 2007. An online replay of the call will be available
for 30 days following the conclusion of the live broadcast. A link for
these events can be found on the Company’s
website at www.orionhealthcorp.com
or at www.earnings.com.
Orion’s mission is to provide superior
billing, collections, practice, business and financial management
services for physicians, resulting in optimal profitability for its
clients and increased enterprise value for its stakeholders. For more
information on Orion HealthCorp, Inc., visit the Company’s
website at www.orionhealthcorp.com.
Certain statements in this press release constitute “forward-looking
statements” within the meaning of the
Securities Act of 1933, as amended, and the Securities Exchange Act of
1934, as amended (the “Acts”).
Any statements contained herein that are not statements of historical
fact are deemed to be forward-looking statements, including all
statements regarding improving financial metrics and future growth.
The forward-looking statements in this press release are based on
current beliefs, estimates and assumptions concerning the operations,
future results, and prospects of Orion HealthCorp, Inc. and the other
companies described herein. As actual operations and results may
materially differ from those assumed in forward-looking statements,
there is no assurance that forward-looking statements will prove to be
accurate. Forward-looking statements are subject to the safe harbors
created in the Acts. Any number of factors could affect future
operations and results, including without limitation, changes in federal
or state healthcare laws and regulations and third party payer
requirements, changes in costs of supplies, the loss of major customers,
increases in labor and employee benefit costs, increases in interest
rates on the Company’s indebtedness as well
as general market conditions, competition and pricing, and the Company’s
ability to successfully implement its business strategies and integrate
acquisitions, including the expense and impact of any potential
acquisitions and the ability to obtain necessary approvals and
financing. Orion HealthCorp, Inc. undertakes no obligation to update
publicly any forward-looking statements, whether as a result of new
information or future events.
ORION HEALTHCORP, INC.
Unaudited Consolidated Condensed Statements of Operations
(in thousands, except per share amounts)
Three Months Ended
March 31,
2007
2006
(Unaudited)
(Unaudited)
Net operating revenues
$8,285
$5,609
Operating expenses
8,761
6,087
Loss from continuing operations before other income (expense)
(476)
(478)
Other income (expense), net
(340)
546
Income (loss) from continuing operations
(816)
68
Income from operations of discontinued components
30
703
Net income (loss)
$(786)
$771
Weighted average common shares outstanding:
Basic
105,493
12,428
Diluted
105,493
84,127
Income (loss) per share:
Basic:
Net income (loss) per share from continuing operations
$(0.01)
$0.01
Net income per share from discontinued operations
0.00
0.06
Net income (loss) per share
$(0.01)
$0.07
Diluted:
Net income (loss) per share from continuing operations
$(0.01)
$0.00
Net income per share from discontinued operations
0.00
0.01
Net income (loss) per share
$(0.01)
$0.01
Reconciliation of EBITDA to net loss:
EBITDA
$233
$(73)
Less: Depreciation and amortization
(709)
(405)
Less: Total other income (expenses), net
(340)
546
Less: Income from operations of discontinued components, including
net gain on disposal
30
703
Net income (loss)
$(786)
$771
ORION HEALTHCORP, INC.
Consolidated Condensed Balance Sheets
(in thousands, except share amounts)
March 31,
Dec. 31,
2007
2006
(Unaudited)
Current assets:
Cash and cash equivalents
$249
$644
Accounts receivable, net
3,395
3,575
Inventory
366
278
Prepaid expenses and other current assets
635
407
Assets held for sale
524
502
Total current assets
5,169
5,406
Property and equipment, net
676
711
Other long-term assets:
Intangible assets, including goodwill, net
21,628
22,158
Other assets, net
1,807
1,908
Total other long-term assets
23,435
24,066
Total assets
$29,280
$30,183
Current liabilities:
Accounts payable and accrued expenses
$6,480
$6,938
Current portion of capital lease obligations and long-term debt
2,282
1,847
Current portion of long-term debt held by related parties
550
325
Liabilities held for sale
163
159
Total current liabilities
9,475
9,269
Long-term liabilities:
Capital lease obligations and long-term debt, net of current portion
6,858
6,989
Long-term debt, net of current portion, held by related parties
4,256
4,541
Total long-term liabilities
11,114
11,530
Stockholders' equity:
Preferred stock, par value $0.001; 20,000,000 shares authorized;
no shares issued and outstanding
--
--
Common stock, Class A, par value $0.001; 300,000,000 shares
authorized and 105,499,487 and 105,374,487 shares issued and
outstanding at March 31, 2007 and December 31, 2006, respectively
105
105
Common stock, Class D, par value $0.001; 50,000,000 shares
authorized and 24,658,955 shares issued and outstanding at March
31, 2007 and December 31, 2006
25
25
Additional paid-in capital
63,969
63,876
Accumulated deficit
(55,370)
(54,584)
Treasury stock - at cost; 9,140 shares
(38)
(38)
Total stockholders' equity
8,691
9,384
Total liabilities and stockholders' equity
$29,280
$30,183