TORONTO, Aug. 15, 2013 (GLOBE NEWSWIRE) -- GreeneStone Healthcare Corporation (OTCBB:GRST) ("GreeneStone" or the "Company"), a provider of healthcare services and operator of several mental health clinics, released second quarter earnings showing continued growth in overall revenue.
While GreeneStone's overall revenue was up for the latest reported quarter by 13% to $1,528,944 from the same period in the previous year, the reported loss decreased by approximately 19% to $241,438 compared to the same period in the previous year. These losses were different in the latest period as they included more one-time charges, and increases in facility costs and interest costs.
GreeneStone's revenue for the three month period ended June 30, 2013, was $1,528,944 compared to $1,348,582 for the three month period ended June 30, 2012, an increase of $180,362 or approximately 13% and for the six months ended June 30, 2013, revenue was $2,973,268 as compared to $2,605,993 for same period in the previous year, an increase of $367,275 or approximately 14%. The increase in revenue for the Company's endoscopy practice was $160,849 or approximately 37% for the three month period ended June 30, 2013, as compared to same period in the previous year and $256,243 or approximately 29% for the six month period ended June 30, 2013, as compared to the same period for the previous year. The increase in the mental health and addiction business segment was $19,512 or approximately 2% for the three month period ended June 30, 2013, and $111,032, or approximately 6% for the six month period ended June 30, 2013, as compared to the same period for the previous year.
The loss reported for the three month period ending June 30, 2013, was $241,348, compared to $298,733 for the same period in the previous year for a decrease of $57,385 or approximately 19%, and a loss of $527,729 for the six month period ended June 30, 2013, compared to $623,353 for the previous period a decrease of $95,624 or approximately16%.
These losses were after the translation for foreign currency. Without the effect of the change in the exchange rate between the Canadian and US dollar, the loss reported for the three month period ending June 30, 2013, was $350,275 compared to $364,336 for the same period for the previous year for a decrease of approximately 4%, and a loss of $702,685 for the six month period ended June 30, 2013, compared to $634,178 for the previous period for the previous year, reflecting an increase of approximately 11%.
The Company experienced an increase in professional fees of $124,260 for the three months ended June 30, 2013, compared to the same period for the previous year and an increase of $205,722 for the six months ended June 30, 2013, compared to the same period for the previous year. These fees represent legal, appraisal and investor relations fees that relate to the management's efforts to recapitalize the Company. These fees are related to the cost of future financing for the Company and are not related to the operations of the Company.
The Company's facility costs increased by $42,894 for the three months ended June 30, 2013, compared to the same period for the previous year and $127,934 for the six months ended June 30, 2013, compared to the same period for the previous year. These increased costs are related to the escalation in rent for the Company's leased facility in Muskoka. The Company paid interest costs of $29,433 during the three month period ending June 30, 2013, and $46,851 during the six month period ending June 30, 2013.
The Company plans to purchase the Muskoka facility and subsequently refinance the mortgage and the outstanding interest bearing debts of the Company. Based on the Company's discussions with a Canadian chartered bank, the Company believes it will be able to complete this transaction within the calendar year. As previously announced, the Company engaged Colebrook Capital to work on further equity investments into the Company.
The Company is also pleased to report the transition of its outpatient and after-care facility from its Yorkville location to its new office location at 39 Pleasant Boulevard in Toronto. The Toronto staff dedicated to mental health and addiction are now combined at this location, allowing the renovations to begin at the Company's North York location in order to expand its endoscopy suites and add a surgery suite.
Shawn Leon, GreeneStone's Chief Executive Officer, stated, "We expect to continue reporting increases in revenue and reduced operating costs in the coming quarters. By completing the recapitalization of the Company along with the anticipated purchase of the Muskoka facility, we will complete our start-up phase and focus on accelerated growth and strong performance in all of our operating units. We believe these changes will dramatically improve our balance sheet and income statement, allowing us to focus on growth."
About GreeneStone Healthcare Corporation
GreeneStone Healthcare Corporation (OTCBB:GRST) operates medical and healthcare clinics in Ontario, Canada. GreeneStone's clinics serve to add overflow capacity to an increasingly stretched provincial healthcare system, and provide private alternatives to publicly available healthcare services. Its four medical clinics (three in Toronto, along with a facility in Muskoka, Ontario) offer various medical services, including addiction treatment, endoscopy, minor cosmetic procedures, and executive health care services. The Company currently has more than 60 employees and is based in North York, Ontario. For more information you can visit our website at www.greenestone.net.
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