ATLANTA, May 10, 2016 (GLOBE NEWSWIRE) -- 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.”

Internet Posting of Information

The Company routinely posts information that may be important to investors in the “Investor Relations” section of its website at www.gonowdoctors.com. The Company encourages investors and potential investors to consult its website regularly for important information about the Company.

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."

Forward-Looking Statements

This press release contains "forward-looking statements," including statements related to our 2016 outlook and expectations related to cost savings. Forward-looking statements may be identified by their use of terms such as "anticipate", "believe", "anticipate", "confident", "could", "estimate", "expect", "intend", "may", "plan", "predict", "project", "target", "will" and other similar terms. These statements are subject to significant risks and uncertainties, actual results and future events could differ materially from those projected, and we caution stockholders not to place undue reliance on the forward-looking statements contained in this press release. Risks and uncertainties exist related to the Company and its business due to a number of factors, including the statements under "Risk Factors" contained in our periodic reports filed with the SEC. Given these uncertainties, you should not place undue reliance on these forward-looking statements. We intend these forward-looking statements to speak only as of the date of this press release and undertake no duty or obligation to update any forward-looking statements contained in this press release as a result of new information, future events or changes in our expectations, except as required by law.



 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% 
                  

  

Contact: Adam Winger, awinger@americancaresource.com

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