Northstar Healthcare reports $0.6M net loss for first quarter 2012

Northstar Healthcare Inc. (TSX:NHC) today announced its financial results for the three months ended March 31, 2012.

"The Company had almost $400,000 of cash inflow from operations for the first quarter," said Dr. Donald Kramer, Chief Executive Officer of Northstar. "We are continuing to see positive results of our efforts to return Northstar to profitability from the time that I returned in the fourth quarter of 2010. This positive cash inflow allowed us to invest in an innovative laser modality to treat spine cases in a minimally invasive and efficacious manner. This investment has allowed the Company's relationship with North American Spine (NAS) to greatly increase the volume of cases that we can perform at our MSIH location. This investment, coupled with the restructuring of our partnerships at MSIH and Kirby locations should prove to create continuous success for Northstar."

First Quarter Results
Net patient service revenues for the three months ended March 31, 2012 totaled $3.2 million, a decrease of $0.4 million or 11.4%, compared to $3.6 million for the same period in 2011. The decrease in net patient service revenues was primarily due to a 66.7% decrease in case volume at the MSID location. The decrease in case volume was related to cases being brought to the surgery center in the prior period by non-partner physicians that were absent in the current year.

The Company had cash flows provided by operations of $0.4 million, representing a $0.2 million or 69.3% increase compared to the prior corresponding period, despite lower case volume. Management's efforts in managing the revenue cycle has provided positive results in collections.

Northstar recorded net loss of $0.6 million in the first quarter of 2012 which was comparable in the corresponding 2011 period. This resulted in a net loss of ($0.02) per weighted average share in both periods.

At March 31, 2012, Northstar had consolidated working capital of $3.4 million, including cash of $2.5 million. This compares with $3.8 million and $2.5 million, respectively, at year-end 2011.