OREANDA-NEWS. American CareSource Holdings, Inc. (NASDAQ:GNOW), an urgent and primary care company operating under the tradenames GoNow Doctors and Medac, today announced financial results for the quarter ended March 31, 2016.

Urgent and primary care segment revenue was $5.0 million for the first quarter, an increase of 87% from $2.67 million for the first quarter of 2015. The Company’s operating loss decreased by 51% to $1.6 million for the three months ended March 31, 2016 from $3.2 million for the three months ended March 31, 2015. Center-level, adjusted EBITDA was $326,000, an increase of $776,000 from $(450,000) for the first quarter of 2015. A reconciliation of all non-GAAP financial measures can be found at the end of this release.

The Company’s first quarter revenue growth was driven by operational improvements implemented by the Company’s new executive management team and by the full-quarter inclusion of the results of Medac Health Services, PA.  The Company purchased substantially all the assets of Medac in December 2015.  The executive management changes made in the first quarter were as follows:

  • On January 8, 2016, Adam S. Winger, the Company’s VP of Acquisitions and General Counsel, was appointed to serve as President and Chief Executive Officer.
  • Also on January 8, 2016, James A. Honn, the Company’s Chief Information Officer, was appointed to the additional position of Chief Operating Officer.
  • On March 4, 2016, Robert Frye, the Company’s Controller and Principal Accounting Officer, was appointed to the additional position of Interim Chief Financial Officer.

“We are pleased to report a successful first quarter of 2016,” said Adam Winger, President and Chief Executive Officer of GoNow. “In addition to producing positive center-level EBITDA, we continue to implement measures to improve our revenue cycle and reduce expenses.”  Among the measures taken in the first quarter, the Company executed a reduction in force, closed an underperforming facility, and moved and subleased its corporate office space.  Furthermore, on April 1, GoNow exited the Virginia market by selling its two clinics located in Gainesville and Fair Lakes, Virginia. “Although we expect the full impact of these efforts to be reflected in our second quarter financial results, we are proud to report significant revenue growth while achieving a 46% reduction in quarterly, year-over-year corporate overhead,” said Mr. Winger.

GoNow also entered into a strategic development arrangement with Birmingham-based commercial real estate firm, Harbert Realty Services.  Under the arrangement, Harbert may build and develop up to 10 new GoNow Doctors facilities throughout Alabama, Georgia, North Carolina and Florida over the next 12 months. If we move forward with the arrangement, Harbert will pay all costs to acquire the land and construct the facilities according to our plans and specifications in exchange for GoNow’s entry into a long-term lease. 

“We are excited about our progress, and we believe the pathway is now clear for significant year-over-year growth in our urgent and primary care business.”

About American CareSource Holdings, Inc.

American CareSource Holdings, Inc. owns and manages a chain of 11 urgent and primary care centers operating under the tradenames Medac and GoNow Doctors and owns an ancillary services network that provides ancillary healthcare services through its nationwide provider network.  GoNow's stock currently trades on the NASDAQ Capital Market under the ticker "GNOW."

  AMERICAN CARESOURCE HOLDINGS, INC.
  CONSOLIDATED STATEMENTS OF OPERATIONS
  For the quarters ended March 31, 2016 and 2015
  (amounts in thousands, except per share data)
   
    Three Months Ended March 31,
    (Unaudited)   (Unaudited)
      2016       2015  
Net revenues:      
  Urgent and primary care $   4,412     $   2,672  
  Service agreement     594         -  
Total net revenues     5,006         2,672  
Operating expenses:      
  Salaries, wages, contract medical professional fees and related expenses     4,006         3,072  
  Facility expenses     525         362  
  Medical supplies     210         224  
  Other operating expenses     1,603         2,052  
  Depreciation and amortization     222         166  
Total operating expenses     6,566         5,876  
Operating (loss)     (1,560 )       (3,204 )
         
Interest expense:      
  Interest expense     107         83  
  Deferred loan fees amortization, net of loss on warrant liability     470         369  
  Total other expense and interest expense     577         452  
(Loss) from continuing operations before taxes     (2,137 )       (3,656 )
Income tax expense     6         6  
Net (loss) from continuing operations     (2,143 )       (3,662 )
         
Income/(loss) from discontinued operations     299         (15 )
Net (loss)     (1,844 )       (3,677 )
Net (loss) attributable to non-controlling interests     (135 )       -  
Net (loss) attributable to American CareSource Holdings, Inc. $   (1,709 )   $   (3,677 )
Basic net (loss) per common share, continuing operations $   (0.11 )   $   (0.54 )
Diluted net (loss) per common share, continuing operations $   (0.11 )   $   (0.55 )
Basic net income per common share, discontinued operations $   0.02     $   0.00  
Diluted net income per common share, discontinued operations $   0.02     $   0.00  
Basic weighted-average common shares outstanding     16,603         6,772  
Diluted weighted-average common shares outstanding     16,603         6,852  
         

 

AMERICAN CARESOURCE HOLDINGS, INC.  
CONSOLIDATED BALANCE SHEETS  
March 31, 2016 and 2015  
(amounts in thousands, except per share data)
  
   
    March 31, 2016 (Unaudited)   December 31, 2015 (Audited)  
       
ASSETS        
Current assets:        
 Cash and cash equivalents $   1,050     $   2,629    
 Accounts receivable, net     1,775         1,498    
 Prepaid expenses and other current assets     428         391    
 Assets held for sale     2,166         2,644    
  Total current assets     5,419         7,162    
           
Property and equipment, net     4,928         4,859    
           
Other assets:        
 Deferred loan fees, net     684         1,154    
 Other non-current assets     118         104    
 Intangible assets, net     1,828         1,885    
 Goodwill     5,921         5,921    
  Total other assets     8,551         9,064    
Total assets $    18,898     $    21,085    
           
LIABILITIES AND STOCKHOLDERS' (DEFICIT)        
Current liabilities:        
 Lines of credit $   11,800     $   11,100    
 Accounts payable     1,477         1,609    
 Accrued liabilities     1,330         1,907    
 Current portion of promissory notes and notes payable     184         210    
 Capital lease obligations, current portion     138         134    
 Liabilities held for sale     5,127         5,435    
  Total current liabilities     20,056         20,395    
           
Long-term liabilities:        
 Promissory notes and notes payable     522         522    
 Capital lease obligations     1,595         1,630    
 Other long-term liabilities     345         344    
   Total long term liabilities       2,462         2,496    
Total liabilities     22,518         22,891    
           
Stockholders' (deficit):        
 Preferred stock, $0.01 par value; 9,999 shares authorized     -         -    
 Series A convertible preferred stock; .87 shares authorized; .75 shares issued and outstanding in March 31, 2016 and December 31, 2015     664         664    
 Common stock, $0.01 par value; 40,000 shares authorized; 16,608 and 16,597 shares issued and outstanding at March 31, 2016 and December 31, 2015, respectively     166         165    
 Additional paid-in capital     32,565         32,535    
 Accumulated (deficit)     (36,879 )       (35,170 )  
Stockholders' (deficit) of American CareSource Holdings, Inc.     (3,484 )       (1,806 )  
 Equity of Non-controlling interest     (135 )       -     
 Total stockholders' (deficit)     (3,620 )       (1,806 )  
           
Total liabilities and stockholders' (deficit) $    18,898     $    21,085    
           

 

  AMERICAN CARESOURCE HOLDINGS, INC.  
  EBITDA RECONCILIATION TO GAAP  
  March 31, 2016 and 2015  
  (amounts in thousands, except per share data)
  
     
    March 31, 2016   March 31, 2015          
    (Unaudited)   (Unaudited)   Change  
    Urgent and
Primary
Care		   Shared
Services		   Total   Urgent and
Primary
Care		   Shared
Services		   Total   $   %  
Net revenues $   5,006     $   -     $   5,006     $   2,672     $   -     $   2,672     $   2,334       87 %  
Operating expenses:                                
  Ancillary network provider payments     -         -        3,256        -         -        4,331       (1,075 )     -25 %  
  Ancillary network administrative fees     -         -         324         -         -         330         (6 )     -2 %  
  Ancillary network other operating costs     -         -         816         -         -         972         (156 )     -16 %  
  Salaries, wages, contract medical professional fees and related expenses     3,537         469         4,006         2,170         902         3,072         934       30 %  
  Facility expenses     441         84         525         252         110         362         163       45 %  
  Medical supplies     210         -         210         224         -         224         (14 )     -6 %  
  Other operating expenses     756         847         1,603         476         1,576         2,052         (449 )     -22 %  
  Depreciation and amortization     194         28         222         149         17         291         (69 )     -24 %  
Total operating expenses $   5,138     $   1,428     $   6,566     $   3,271     $   2,605     $   5,876     $   690       12 %  
                                   
Operating (loss), from continuing operations $   (132 )   $   (1,428 )   $   (1,560 )   $   (599 )   $   (2,605 )   $   (3,204 )   $   1,644       -51 %  
Adjustments to EBITDA:                                
  Depreciation and amortization     194         28         222         149         17         166         56        
  Virginia clinics operating (loss)     142         -         142         -         -         -         142        
  MedHelp operating (loss)     35         -         35         -         -         -         35        
  Reduction in force     87         29         116         -         -         -         116        
Total adjustments to EBITDA     458         57         515         149         17         166         349       210 %  
                                   
EBITDA from continuing operations $   326     $   (1,371 )   $   (1,045 )   $   (450 )   $   (2,588 )   $   (3,038 )   $   1,993       -66 %