IMAC Holdings, Inc. (Nasdaq: IMAC) (“IMAC” or the “Company”), a
provider of Innovative Medical Advancements and Care, specializing
in regenerative rehabilitation orthopedic treatments without the
use of surgery or opioids, today announces financial results for
the three and nine months ended September 30, 2019.
Highlights from the Third Quarter Of 2019 (all
comparisons are with IMAC for the third quarter of 2018, unless
otherwise indicated):
- Total patient revenues were $8.7 million, compared with $6.1
million, a 35% increase
- Net revenues were $4.4 million, compared with $2.5 million, a
gain of 72%
- Net loss was $1.5 million or $0.19 per share, compared with a
net loss of $1 million or $0.22 per share
- Patient visits were 35,749, compared with 27,526 patient
visits, an increase of 30%
- Procedure volumes were 82,232 compared with 70,083, an increase
of 17%
- Cash as of September 30, 2019 was $0.7 million, compared with
$0.2 million as of December 31, 2018
- IMAC Expands Footprint in Springfield, Mo., Offering Full Suite
of Services Including Minimally Invasive Medical Treatments
Delivered by Licensed Medical Practitioners
- Chief Scientific Officer Ian White, Ph.D., discussed IMAC’s
approach to treating pain in documentary series Pain Revealed
Additional Highlights Since the End of the Third
Quarter:
- The company announced the sale of its BioFirma subsidiary to
Self Care Regeneration LLC for proceeds to the company of $320,800,
plus reimbursement of certain expenses at closing. IMAC will
continue to receive a supply of BioFirma’s
NeoCyte® regenerative medicine products for its rehabilitation
clinics at a deeply discounted price.
- IMAC further expanded geographic reach with Rockford clinic for
4th Illinois location.
- The United States Department of Veterans’ Affairs named IMAC
Holdings a Participant Provider in its Community Care Network for
Tennessee, Kentucky and Missouri.
- IMAC Initiated next phase of Brand Ambassador Program with
opening of Mike Ditka Center in Arlington Heights, Ill.
- Appointment of Ricardo Knight, M.D., MBA as medical director
for all Illinois centers.
“We continue to execute on our plan to
expand our presence in regions where we can extend our existing
geographic footprint,” said Jeff Ervin, CEO of IMAC Holdings. “With
the completion of our divestiture of the BioFirma asset, IMAC will
maintain the ability to utilize the products it produces at
discounts to ‘most favored nations’ pricing. We continue to look
for opportunities to expand in regions we believe have strategic
value and look forward to the opportunity to update our
stockholders on our continued progress during the final quarter of
2019.”
“We have seen consistent, significant increases
in our Patient Services Revenue, Procedures and Visits,
attributable to our investment in the opening of two new centers
during the quarter and the increased traction we are gaining from
brand awareness, first-class patient treatments, and recurring
visits,” added Matt Wallis, IMAC’s chief operating officer. “We
also anticipate further cost savings and increased revenue as we
strengthen our already strong relationship with the U.S. Department
of Veterans’ Affairs.”
Results of Operations for the Three and Nine Months
Ended September 30, 2019 Compared to the Three and Nine Months
Ended September 30, 2018
Patient service revenues increased 72% to $4.4
million for the three months ended September 30, 2019, compared to
$2.5 million for the three months ended September 30, 2018. Patient
service revenues increased 223% to $10.9 million for the nine
months ended September 30, 2019, compared to $3.4 million for the
nine months ended September 30, 2018. These increases were
primarily due to the 2019 acquisitions of ISDI Holdings II and PHR
Holdings (collectively “IMAC of Illinois”) and 2018 acquisitions of
IMAC of Kentucky, IMAC of Missouri and Advantage Therapy. The
change in other service revenues is due to a decrease in management
and administrative service fees derived from non-consolidated
outpatient clinics.
Procedures performed and visits to our clinics
are an indication of business activity. Procedures increased 179%
for the nine months ended September 30, 2019 compared to the nine
months ended September 30, 2018. Procedures increased from 86,647
in the nine months ended September 30, 2018 to 241,415 in the nine
months ended September 30, 2019. Visits to our clinics increased by
206% for the nine months ended September 30, 2019 compared to the
nine months ended September 30, 2018. Visits increased from 33,217
for the nine months ended September 30, 2018 to 101,798 in the nine
months ended September 30, 2019.
Procedures increased 17% for the quarter ended
September 30, 2019 compared to the quarter ended September 30,
2018. Procedures increased from 70,083 in the quarter ended
September 30, 2018 to 82,232 in the quarter ended September 30,
2019. Visits to our clinics showed an increase of 30% for the
quarter ended September 30, 2019 compared to the quarter ended
September 30, 2018. Visits increased from 27,526 for the quarter
ended September 30, 2018 to 35,749 in the quarter ended September
30, 2019.
Operating expenses totaled $6.0 million,
compared to $3.7 million for the quarter ended September 30, 2018.
These included General and Administrative expense, which was $1.3
million compared with $1.0 million for the third quarter of 2018.
Operating loss was a total of $1.6 million, compared to $1.2
million during the third quarter of 2018, and net loss attributable
to IMAC Holdings was $1.5 million or $0.19 per share for the third
quarter of 2019, compared with a net loss attributable to IMAC
Holdings of $1 million or $0.22 per share for the third quarter of
2018.
Operating expenses totaled $15.9 million,
compared to $6.1 million for the nine months ended September 30,
2018. These included General and Administrative expense, which was
$3.7 million for the nine months ended September 30, 2019, compared
with $2.0 million for the nine months ended September 30, 2018.
Operating loss for the nine months ended September 30, 2019, was a
total of $5.1 million, compared to $2.7 million for the nine months
ended September 30, 2018, and net loss attributable to IMAC
Holdings for the nine months ended September 30, 2019, was $5.0
million or $0.68 per share, compared with a net loss attributable
to IMAC Holdings of $2.1 million or $0.47 per share for the nine
months ended September 30, 2018.
For the quarter ended September 30, 2019, the
Company reported cash and cash equivalents of $0.7 million,
compared with approximately $0.2 million as of December 31,
2018.
About IMAC Holdings, Inc.
IMAC Holdings was created in March 2015 to
expand on the footprint of the original IMAC Regeneration Center,
which opened in Kentucky in August 2000. IMAC Regeneration Centers
combine life science advancements with traditional medical care for
movement-restricting diseases and conditions. It owns or manages 14
outpatient clinics that provide regenerative, orthopedic and
minimally invasive procedures and therapies. It has partnered with
several active and former professional athletes, opening two Ozzie
Smith IMAC Regeneration Centers, two David Price IMAC Regeneration
Centers, one Tony Delk IMAC Regeneration Center, and three IMAC
Regeneration Centers sponsored by Mike Ditka. IMAC’s outpatient
medical clinics emphasize its focus around treating sports and
orthopedic injuries without surgery or opioids.
Safe Harbor Statement
This press release contains forward-looking
statements. These forward-looking statements, and terms such as
“anticipate,” “expect,” “believe,” “may,” “will,” “should” or other
comparable terms, are based largely on IMAC's expectations and are
subject to a number of risks and uncertainties, certain of which
are beyond IMAC's control. Actual results could differ materially
from these forward-looking statements as a result of, among other
factors, risks and uncertainties associated with its ability to
raise additional funding, its ability to maintain and grow its
business, variability of operating results, its ability to maintain
and enhance its brand, its development and introduction of new
products and services, the successful integration of acquired
companies, technologies and assets, marketing and other business
development initiatives, competition in the industry, general
government regulation, economic conditions, dependence on key
personnel, the ability to attract, hire and retain personnel who
possess the skills and experience necessary to meet customers’
requirements, and its ability to protect its intellectual property.
IMAC encourages you to review other factors that may affect its
future results in its registration statement and in its other
filings with the Securities and Exchange Commission. In light of
these risks and uncertainties, there can be no assurance that the
forward-looking information contained in this press release will in
fact occur. More information about IMAC Holdings, Inc. is available
at www.imacregeneration.com
IMAC Press Contact: Laura Fristoe
lfristoe@imacrc.com
Investors:Bret Shapiro (516) 222-2560
brets@coreir.com
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