SPIN fourth quarter net revenue increases 53% to $5,212,165

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 ended December 31, 2011.  This year's report covers the second full year of operations in which results were totally derived from SPIN's business model put into operation in August 2009.  During the twelve month period ended December 31, 2011, the company's operations focused on continued development of its spine injury diagnostic business in the Houston and McAllen area as well as expanding into the Florida market with four new Centers in Tampa, Orlando, Jacksonville and Sarasota by year end. 

2011 Full Year Results
For 2011, net revenue was $5,212,165, an increase of 53% over 2010 net revenue of $3,389,581.  Net income was $1,315,004 or $.08 per share, up 20% over 2010 net income of $1,101,550 or $.06 per share. While the company's year over year net revenue increased by 53% for 2011, the increase in net income was less pronounced.  Net income for 2011 was significantly affected by certain expenses, including approximately $227,000 in temporary factoring expense (the company is no longer factoring) and $393,000 in legal expenses attributable to the defense of lawsuits brought against the company before the implementation of the current business model.  Had these charges not been incurred, net income would have been approximately $1,935,000 or $.11 per share for 2011, an increase of 76% over the prior year.

Q4 2011 Results
For Q4 2011 net revenue was up 60% to $1,349,162 from $843,841 in 2010.  Net income for Q4 2011 showed a small loss of $13,163 or $.00 per share vs. net income of $208,304 or $.01 a share in Q4 2010. The expenses described above in "2011 Full Year Results" were recognized primarily in Q4 2011, which is a seasonally slow period. This negatively affected net income in spite of a significant increase in net revenue for the quarter. Adding back charges of approximately $180,000 in temporary factoring expense and $78,000 in legal expenses relating to the lawsuits described above would result in net income of $244,837 or $.01 per share, an increase of 18% over Q4 2010.

2011 Gross Profit
The company recorded $5,212,165 in net revenues with $2,120,800 in costs of services and gross profit of $3,091,365 for the year ended December 31, 2011.  For the same period in 2010, the company recorded $3,389,581 in net revenues with $1,425,399 in costs of services and gross profit of $1,964,182.  Accordingly, 2011 gross profit increased 57% over 2010.

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 $10,594,259 for the year ended December 31, 2011, versus gross revenues of $6,528,194 for the year ended December 31, 2010.

Corporate Updates
On February 17, 2012, Northshore Orthopedics, Assoc., an independent service provider to SPIN and its largest creditor, elected to exchange $1,020,200 of debt to the company into common shares at a price of $1.83 per share.  Northshore Orthopedics is owned by the company's CEO, William Donovan, M.D.

Discussions are active and ongoing with potential investors in the previously disclosed exploration of secured debt placement to enable further expansion of case volumes. At this point, availability of such growth capital appears ample but terms that generate clear shareholder value and avoid dilution are taking time to achieve. As the company has said before, there can be no assurance any financing will be completed.  

Spine Pain Management will present and meet with investors on April 10, 2012 in New York City at the 23rd annual Analyst Conference run by The Wall Street Forum.  This is one of the largest non-brokerage firm-sponsored investor conferences, and is for institutional investors. As such, it broadens the company's investor relations outreach.  In addition, Spine Pain is finalizing plans to participate in another major institutional investor conference in the Northeast around the middle of the year.     

Management Commentary on Results and Guidance
"Q411 gross revenues were on plan, and it was an accomplishment to come in about even with Q311 gross revenues despite the typical seasonality impact whereby the holidays slow SPIN's activities," said Dr. William Donovan, CEO. "We achieved significant growth in revenues for both Q4 and the year, vs. the same periods a year ago.  We believe the legal and other expenses that affected net income are behind us.  We are optimistic for 2012 and beyond, and anticipate we will achieve earnings in line with previous guidance of $0.30-35 excluding a potential new financing which we believe would be accretive.  At this juncture to be prudent, we are planning for the low end of the guidance range, with earnings weighted toward the second half of the year." Dr. Donovan added, "I would like to extend a personal invitation to all shareholders to join me and the rest of management on Monday's conference call, where more detail on the results will be addressed."