HOUSTON, April 8, 2011 /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 ending December 31, 2010. This year's report covers the first full year of operations where results were totally derived from SPIN's new business model put into operation in August 2009. For 2010, net revenue was $3,389,581, and net income was $1,101,550 or $.06 per share. For 2009, net revenue was $540,505, and there was a net loss of $720,526 or $.05 per share.
The company recorded $3,389,581 in net revenues with $1,425,399 in costs of services and gross profit of $1,964,182 for the year ended December 31, 2010.
For the same period in 2009, the company recorded $540,505 in net revenues with $349,400 in costs of services and gross profit of $191,105.
These increases are directly attributable to revenues generated from the company's spine injury diagnostic centers in Houston and McAllen, Texas.
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 $6,528,194 with net revenues of $3,389,581 for the year ended December 31, 2010, versus gross revenues of $982,736 with net revenues of $540,505 for the year ended December 31, 2009.
During the twelve month period ended December 31, 2010, the company's operations focused on continued development of its spine injury diagnostic business in the Houston area and opening its second spine injury diagnostic center in McAllen, Texas in June 2010.
During the twelve month period ended December 31, 2009, the company's operations focused on developing its spine injury diagnostic business and opening its first spine injury diagnostic center in Houston, Texas in August 2009.
Dr. Donovan stated: "Since the operational opening of our first clinic in August of 2009, we have now completed six profitable quarters, and by year end, our total of either settled or current cases has grown to over 700. As can be seen by the recently announced opening of our first out of state clinic in Florida, we feel that systems are now in place for a rapid acceleration in future growth."
New Center Growth Expected To AccelerateAs an advocate for accident victims, SPIN is a medical marketing, management, billing and collection company. SPIN bills for its services with expectation that payment may take an extended period of time and may be settled at a reduced amount on a case by case basis. Now due to a combination of a larger growing case base and seasoned cases paying off, internal cash flow is increasing.
To date, most of the company's growth has been funded by a combination of funding from management, a small amount of outside debt and growing organic cash flow. As cash flow increases, the company's ability to add clinics at a faster pace is also anticipated to increase. The company may, however, still need additional cash resources to accelerate its growth. Management prefers to avoid equity financing since it believes the company's stock is considerably undervalued based on the company's track record of growth in both revenues and net income. With this in mind, various outside debt options are now being investigated. Depending on the availability of adequate funding, the company has targeted multiple new centers that could be added by year end.
Conference Call: An investor's conference call with management will be held on Thursday, April 14, 2011 at 4:15 PM EDT. Q & A will be available after the formal presentation for those using the telephone option. The call will also be video WebCast with a live Power Point presentation that can be followed by those who choose to call in. Those who rather not call can follow the presentation live on the internet at the link below. In either case, should an attendee decide to use the internet link, they 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.
Click or paste the link below in your browser for web access to the presentation:
Telephone Dial-in with Q&A:
Conference Dial-in Number: (516) 453-0014
Participant Access Code: 296-775-302#
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 at: http://www.spinepaininc.com/investor-information.php
About Spine Pain Management:
Spine Pain Management is a medical marketing, management, billing and collection company facilitating treatment for patients who have sustained spine injuries resulting from traumatic accidents. Its mission is to deliver turnkey solutions to spine surgeons, orthopedic surgeons and other health care providers for necessary and appropriate treatment for musculo-skeletal spine injuries resulting from automobile and work-related accidents. The goal of the company is to become a leader in providing care management services to spine surgeons and orthopedic surgeons to facilitate proper treatment of their injured clients. By providing early treatment, the company believes that spine injuries can be managed, and injured victims can be quickly placed on the road to recovery. The company believes its advocacy will be rewarding to patients who obtain needed relief from painful conditions. The company provides a care management program that advocates for the injured victims by moving treatment forward to conclusion without the delay and hindrance of the legal process.
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.SPINE PAIN MANAGEMENT, INC. STATEMENTS OF OPERATIONS For the Years Ended December 31, 2010 and 2009 20102009Net revenue$
540,505Cost of providing services, including amounts paid toa related party of $1,143,699 and $349,400 duringthe years ended December 31, 2010 and 2009, Respectively1,425,399349,400Gross profit1,964,182191,105Operating, general and administrative expenses863,3991,057,002Income (loss) from operations1,100,783(865,897)Other income and (expenses):Other income9,346376,709Interest expense(8,579)(641)Asset impairment loss-(230,697)Other income767145,371Net income (loss)$
(720,526)Net income (loss) per common shareBasic and fully-diluted$
(0.05)Weighted average number of common shares outstanding:Basic and fully-diluted17,128,69015,849,463SPINE PAIN MANAGEMENT, INC. BALANCE SHEETS December 31, 2010 and 2009 ASSETS 20102009 Current assets: Cash $
32,789 Accounts receivable, net 1,254,618205,824 Related party receivable 23,597- Prepaid expenses 151,333- Total current assets 1,606,751238,613 Accounts receivable, net 1,721,520302,675 Total assets $
541,288 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) Current liabilities: Accounts payable and accrued liabilities $
475,138 Notes payable -11,317 Due to former officers and directors -56,016 Due to related parties 1,051,199269,295 Total current liabilities 1,418,696811,766 Debentures payable 136,586- Total liabilities 1,555,282811,766 Commitments and contingencies Stockholders' equity (deficit) Common stock: $0.001 par value, 50,000,000 shares authorized; 17,403,396 and 16,867,682 shares issued and outstanding at December 31, 2010 and 2009, respectively 17,40316,868 Additional paid-in capital 15,658,73414,717,352 Accumulated deficit (13,903,148)(15,004,698) Total stockholders' equity (deficit) 1,772,989(270,478) Total liabilities and stockholders' equity (deficit) $
541,288For the complete financial statements and accompanying notes, see the company's Annual Report on Form 10-K for the year ended December 31, 2010, as filed with the SEC on March 31, 2011.For Information Contact:Spine Pain Management, Inc.
William F. Donovan, M.D.
Chief Executive Officer
|SOURCE Spine Pain Management, Inc.|
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