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First Choice Healthcare Reports Record Revenue and Second Quarter 2014 Results

Company Reports 51% Year-Over-Year Growth for the Six Months Ended June 30, 2014

MELBOURNE, FL -- (Marketwired) -- 08/14/14 -- First Choice Healthcare Solutions, Inc. (OTCQB: FCHS) ("FCHS" or "First Choice"), a diversified holding company focused on delivering clinically superior, patient-centric, multi-specialty care through state-of-the-art medical centers of excellence, today announced its second quarter financial results for the three and six months ended June 30, 2014.

Q2 2014 Financial Summary

  • 43% increase in total revenue to $2,107,164 for the second quarter ended June 30, 2014 as compared to $1,469,570 for the same period in 2013 driven by growth in net patient service revenue from the Medical Center of Excellence, FCMG
  • For the three months ended June 30, 2014, the Company's wholly owned subsidiary (Medical Division), First Choice Medical Group of Brevard, experienced a 53% increase in revenue to $1,848,441 from $1,208,813 for the same period of last year in its Medical Center of Excellence
  • Other operating expenses increased 38% for the three months ended June 30, 2014 to $427,056, as compared to $308,414 for the same period in the prior year due to the hiring of additional physicians and their support staff which occurred in the fourth quarter of 2013
  • General and administrative expenses for the three months ended June 30, 2014 were $669,208, as compared to $347,326 for the same period in the prior year, and was attributed to expenses related to the Company's growth and capital restructuring
  • For the three months ended June 30, 2014, net loss was $(448,571), or $0.03 per share, as compared to a net loss of $(120,392), or $0.01 loss per share, for the same period in the prior year. Additional expenses are attributable to investment in the Company's infrastructure to move forward with the growth of the business

Six Months Ended June 30, 2014 Financial Summary

  • 51% increase in total revenue to $4,341,917 for the six months ended June 30, 2014, up from $2,871,251 over the same period of 2013 driven by growth in net patient service revenue from the Medical Center of Excellence, FCMG
  • For the six months ended June 30, 2014, the Company's wholly owned subsidiary (Medical Division), First Choice Medical Group of Brevard, experienced a 63% increase in revenue to $3,821,271 from $2,343,825 for the same period of last year in its Medical Center of Excellence
  • Operating expenses increased 40% for the six months ended June 30, 2014 to $856,347, as compared to $612,889 for the same period in the prior year due to the hiring of additional physicians and their support staff which occurred in the fourth quarter of 2013
  • General and administrative expenses for the six months ended June 30, 2014 was $1,075,120, as compared to $600,345 for the same period in the prior year, and was attributed to expenses related to the Company's growth and capital restructuring
  • For the six months ended June 30, 2014, net loss was $(483,670), or $0.03 per share, as compared to a net loss of $(375,461), or $0.03 loss per share, for the same period in the prior year. Additional expenses are attributable to investment in the Company's infrastructure to move forward with the growth of the business
  • As of June 30, 2014, the Company had cash and restricted cash totaling approximately $352,265 and accounts receivable of $2.05 million

Chris Romandetti, Chairman, President and Chief Executive Officer of First Choice, noted, "During the second quarter of 2014, we continued to invest in the infrastructure for our future growth and profitability. We are excited to see the momentum pick up as we reported a 51% year-over-year growth for the six months ended June 30, 2014 which consists of a 63% growth in our core operating business in net patient service from our wholly owned subsidiary, the Medical Center of Excellence, FCMG. Our top line revenue has generated double digit increases, and revenue from operations show strong, positive growth. In addition, we are very pleased that our EBITDA remains positive for the six months ended June 30, 2014 at $255,623. Our Real Estate Division, The Marina Towers, remain consistently strong with a 95% occupancy of our Class A, six story professional office building located in Melbourne, Florida. We are committed to revenue generation and prudent financial oversight and are optimistic that we will be able to execute our expansion strategy as our resources allow."

[FINANCIAL CHARTS TO FOLLOW]

                  FIRST CHOICE HEALTHCARE SOLUTIONS, INC.
                   CONDENSED CONSOLIDATED BALANCE SHEETS

                                                  June 30,     December 31,
                                                    2014           2013
                                               -------------  -------------
                                                  (unaudited)
                    ASSETS
Current assets
Cash                                           $      70,812  $     739,158
Cash-restricted                                      281,453        256,246
Accounts receivable                                2,055,245      1,272,155
Prepaid and other current assets                     225,624        140,580
Capitalized financing costs, current portion          57,348         57,348
                                               -------------  -------------
  Total current assets                             2,690,482      2,465,487
                                               -------------  -------------

Property, plant and equipment, net of
 accumulated depreciation of $2,210,618 and
 $1,959,127                                        8,498,548      8,662,057
                                               -------------  -------------

Other assets
Capitalized financing costs, long term portion        90,169        131,540
Patient list, net of accumulated amortization
 of $40,000 and $35,000                              255,000        265,000
Patents                                              286,500        286,500
Deposits                                               2,713          2,713
                                               -------------  -------------
  Total other assets                                 634,382        685,753
                                               -------------  -------------

Total assets                                   $  11,823,412  $  11,813,297
                                               =============  =============


     LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities
Accounts payable and accrued expenses          $     818,417  $     459,000
Stock based payable                                   96,000        166,340
Line of credit, short term                         1,000,000        800,000
Convertible note payable, short term portion         915,412              -
Notes payable, current portion                       781,999        743,787
Unearned revenue                                      50,854         74,934
                                               -------------  -------------
  Total current liabilities                        3,662,682      2,244,061
                                               -------------  -------------

Long term debt:
Deposits held                                         72,901         72,901
Convertible note payable, long term portion        1,317,066      2,347,403
Notes payable, long term portion                   8,515,934      8,935,473
                                               -------------  -------------
  Total long term debt                             9,905,901     11,355,777
                                               -------------  -------------

Total liabilities                                 13,568,583     13,599,838
                                               -------------  -------------

Stockholders' deficit
Preferred stock, $0.01 par value; 1,000,000
 shares authorized, Nil issued and outstanding             -              -
Common stock, $0.001 par value; 100,000,000
 shares authorized, 17,385,947 and 16,747,248
 shares issued and outstanding as of June 30,
 2014 and December 31, 2013, respectively             17,386         16,747
Additional paid in capital                        12,084,650     11,560,249
Accumulated deficit                              (13,847,207)   (13,363,537)
                                               -------------  -------------
  Total stockholders' deficit                     (1,745,171)    (1,786,541)
                                               -------------  -------------

Total liabilities and stockholders' deficit    $  11,823,412  $  11,813,297
                                               =============  =============



                  FIRST CHOICE HEALTHCARE SOLUTIONS, INC.
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                (unaudited)

                            Three months ended         Six months ended
                                 June 30,                  June 30,
                             2014         2013         2014         2013
                         -----------  -----------  -----------  -----------
Revenues:
Patient Service Revenue  $ 1,885,569  $ 1,208,813  $ 3,896,543  $ 2,343,825
Provision for bad debts      (37,128)           -      (75,272)           -
                         -----------  -----------  -----------  -----------
Net patient service
 revenue less provision
 for bad debts             1,848,441    1,208,813    3,821,271    2,343,825
Rental Revenue               258,723      260,757      520,646      527,426
                         -----------  -----------  -----------  -----------
  Total Revenue            2,107,164    1,469,570    4,341,917    2,871,251

Operating expenses:
Salaries & Benefits        1,090,806      641,789    2,156,327    1,264,548
Other Operating expenses     427,056      308,414      856,347      612,889
General & Administrative     669,208      347,326    1,075,120      600,345
Depreciation and
 amortization                126,772      126,805      261,491      249,425
                         -----------  -----------  -----------  -----------
  Total operating
   expenses                2,313,842    1,424,334    4,349,285    2,727,207
                         -----------  -----------  -----------  -----------

Net (loss) income from
 operations                 (206,678)      45,236       (7,368)     144,044

Other income (expense):
Miscellaneous income             750          813        1,500        1,563
Gain on change in fair
 value of derivative
 liability                         -      229,631            -      188,982
Amortization Financing
 costs                       (25,466)     (14,337)     (41,372)     (28,674)
Interest expense, net       (217,177)    (381,735)    (436,430)    (681,376)
                         -----------  -----------  -----------  -----------
  Total other income
   (expense)                (241,893)    (165,628)    (476,302)    (519,505)
                         -----------  -----------  -----------  -----------


Net loss before
 provision for income
 taxes                      (448,571)    (120,392)    (483,670)    (375,461)

Income taxes (benefit)             -            -            -            -
                         -----------  -----------  -----------  -----------

NET LOSS                 $  (448,571) $  (120,392) $  (483,670) $  (375,461)
                         ===========  ===========  ===========  ===========

Net loss per common
 share, basic and
 diluted                 $     (0.03) $     (0.01) $     (0.03) $     (0.03)
                         ===========  ===========  ===========  ===========

Weighted average number
 of common shares
 outstanding, basic and
 diluted                  16,988,149   12,841,154   16,873,038   12,796,777
                         ===========  ===========  ===========  ===========

About First Choice Healthcare Solutions, Inc.
Headquartered in Melbourne, Florida, First Choice Healthcare Solutions (FCHS) is actively engaged in developing a network of multi-specialty medical centers of excellence throughout the southeastern U.S., which are distinguished as premier destinations for clinically superior, patient-centric care. Through its wholly owned subsidiary FCID Medical, Inc., the Company currently operates one Medical Center of Excellence, First Choice Medical Group of Brevard, which specializes in the delivery of musculoskeletal medicine and rehabilitative care. FCHS' commercial real estate interests, which house its medical centers of excellence, are managed by its wholly owned subsidiary, FCID Holdings, Inc. For more information, please visit www.myfchs.com or www.myfcmg.com.

Safe Harbor Statement
Certain information set forth in this news announcement may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of First Choice Healthcare Solutions, Inc. Such forward-looking statements are based on current expectations, estimates and projections about the Company's industry, management beliefs and certain assumptions made by its management. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Information concerning factors that could cause the Company's actual results to differ materially from those contained in these forward-looking statements can be found in the Company's periodic reports on Form 10-K and Form 10-Q, and in its Current Reports on Form 8-K, filed with the Securities and Exchange Commission. Unless required by law, the Company undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise to reflect future events or circumstances or reflect the occurrence of unanticipated events.

For further investor information contact:
Robert Haag
Managing Partner
IRTH Communications
[email protected]
1-866-976-4784

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