World News: 17:31 GMT Wednesday 15th May 2019. [IMAC Holdings, Inc. via Globe Newswire via SPi World News]
BRENTWOOD, Tenn, May 15, 2019 (GLOBE NEWSWIRE) -- (“IMAC” or the “Company”), a provider of nnovative edical dvancements and are, specializing in regenerative rehabilitation orthopedic treatments without the use of surgery or opioids, announces financial results for the three months ended March 31, 2019. Financial results for the first quarter reflect the acquisitions of IMAC Regeneration Center of Kentucky, IMAC Regeneration Center of St. Louis and Advantage Therapy, bringing the total number of IMAC locations to 11 as of March 31, 2019, compared with two locations as of March 31, 2018.
Highlights from the first quarter of 2019 include the following (all comparisons are with IMAC for the first quarter of 2018, unless otherwise indicated):
Additional highlights since the end of the first quarter include:
“We continued aggressive implementation of our business plan during the first quarter, and I am very pleased with the momentum we have established, particularly since our IPO in February,” said Jeff Ervin, IMAC’s chief executive officer. “Because our financial results include the addition of nine clinics since the first quarter of last year, it is difficult to present meaningful comparisons. However, we believe the volume of patient visits is evidence of exceptional performance and bodes well for 2019. Note also that the first quarter tends to have the most seasonality as insurance deductibles reset in January and patient visits are often impacted by winter weather.
“We immediately put some of our IPO proceeds to work to generate patient awareness via increased marketing. In addition, we used our common stock as currency to complete the acquisition of a practice management group that manages three clinics in the northern Chicago suburbs. These clinics had 2018 net revenue of $5.0 million and net income of $0.8 million, and founder of these clinics, Dr. Jason Y Hui, is now Vice President of Business Development at IMAC. We have long viewed the Chicago area as a prime market for expansion, and we expect to complete the rebranding of these clinics utilizing brand ambassador Mike Ditka in July.
“Looking towards the balance of the year,” Mr. Ervin added, “we expect to enter new geographies and have identified clinics for acquisition, including several with outstanding letters of intent. We will continue to drive growth via engagement with local brand ambassadors and expect marketing efficiencies via our anchor and satellite business model as we grow the business. We expect material success in the second half of the year with our new corporate accounts initiative that targets the corporate self-insured market,” Mr. Ervin concluded.
Patient revenues for the first quarter of 2019 were $7.3 million, compared with $0.5 million for the prior-year first quarter, and net patient revenues for the first quarter of 2019 were $2.8 million, compared with $0.2 million for the first quarter of 2018. The increase was primarily due to the acquisitions of IMAC of Kentucky, IMAC of Missouri and Advantage Health during 2018. Total revenue was $2.8 million for the first quarter of 2019, compared with $0.3 million for the first quarter of 2018, which included management fees of $34,000.
Cost of revenues were $0.4 million for the first quarter of 2019, compared with $0.04 million for the first quarter of 2018, with the increase primarily attributable to the Company’s 2018 acquisitions.
Salaries and benefit expense were $2.1 million and $0.5 million for the first quarters of 2019 and 2018, respectively. The increase is attributable to acquisitions, costs related to the IPO and costs of being a public company. Acquisition salaries and benefit expense was $1.4 million for the first quarter of 2019, with no acquisition-related salaries and benefit expense in the first quarter of 2018. Advertising and marketing expense was $0.4 million for the first quarter of 2019, compared with $0.09 million for the first quarter of 2018. Advertising for acquisitions was $0.2million, compared with $0 in the prior year. General and administrative expense was $1.0 million for the first quarter of 2019, compared with $0.2 million for the first quarter of 2018, with $0.4 million of this increase due to acquisitions.
Depreciation and amortization expense was $0.3 million for the first quarter of 2019, compared with $0 a year ago. The increase was due to amortization costs associated with the acquisitions of IMAC of Kentucky, IMAC Regeneration Center of St. Louis and Advantage Therapy.
Net loss attributable to IMAC was $1.6 million or $0.27 per share for the first quarter of 2019, compared with a net loss attributable to IMAC of $0.4 million or $0.09 per share for the first quarter of 2018. The increase includes IPO and public-company costs, and restructuring of facility-level resources to the corporate level to prepare for anticipated growth.
The Company had cash and cash equivalents of $3.1 million as of March 31, 2019, compared with $0.2 million as of December 31, 2018. The increase was primarily due to IPO net proceeds of approximately $3.8 million.
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 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, and a Tony Delk IMAC Regeneration Center. Three Mike Ditka IMAC Regeneration Centers are expected to open by July 2019. IMAC’s outpatient medical clinics emphasize its focus around treating sports and orthopedic injuries without surgery or opioids.
More information about IMAC Holdings, Inc. is available at
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Globe Newswire: 17:31 GMT Wednesday 15th May 2019
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