First Choice Healthcare Reports Profitable Results for First Quarter 2015

MELBOURNE, FL--(Marketwired - May 18, 2015) - First Choice Healthcare Solutions, Inc. (OTCQB: FCHS) ("FCHS" or "First Choice"), a diversified holding company focused on delivering clinically superior, patient-centric, multi-specialty care through state-of-the-art medical centers of excellence, today reported its first quarter financial results for the three months ended March 31, 2015.

Financial Highlights for the Three Months Ended March 31, 2015 Compared to the Three Months Ended March 31, 2014:

• Total revenues increased 12% to $2,505,167 from $2,234,753.
  
  
  • Net patient service revenues generated by our flagship Medical Center of Excellence, First Choice Medical Group, grew 14% to $2,240,065 -- up from $1,972,830.
  • Rental revenue produced by our real estate subsidiary, Marina Towers, LLC, rose modestly to $265,103 from $261,923.
    
    
• Income from operations climbed 108% to $413,769 from $199,310. Nothwithstanding non-cash expenses totaling $353,669 for stock-based compensation, depreciation and amortization; income from operations totaled $767,438 for the first quarter of 2015, compared to $388,078 in the same three month period in 2014 after factoring $188,769 in non-cash stock-based compensation, depreciation and amortization.
  
  
• Net income increased 187% to $30,689, or $0.00 earnings per basic and diluted share, from a net loss of $35,099, or $0.00 loss per basic and diluted share.
  
  
• Net cash used in the Company's operating activities improved 46% to $173,931 from $320,305.
  
  

As of March 31, 2015, First Choice had cash and restricted cash totaling $497,531; accounts receivable of $2,252,053 and total stockholders' deficit of $2,652,494. Subsequent to the end of the quarter, the Company's lender, Hillar Capital Investments, L.P. converted $680,000 of the $2,320,000 8% original issue discount convertible debenture. As a consequence, the outstanding principal amount and interest of the debenture, as of May 1, 2015, has been reduced to $1.53 million. 

Earlier last week, the Company announced that through its newly formed wholly-owned subsidiary, TBC Holdings of Melbourne, Inc., it had expanded its portfolio of Medical Centers of Excellence located in Florida's Space Coast region with the addition of Brevard Orthopaedic Spine & Pain Center, Inc., dba The B.A.C.K. Center, to its medical business-building platform. TBC Holdings will exercise effective control over the business of the practice, and treat it as a variable interest entity, effective as of May 1, 2015. As a result, beginning with the release of First Choice's second quarter 2015 results, the Company will include the financial results of The B.A.C.K. Center in its consolidated financial statements in accordance with generally accepted accounting prinicples as if it was a wholly owned subsidiary. 

Christian Romandetti, Chairman, President and CEO of First Choice, stated, "We are very pleased with our Company's strong financial performance in the first quarter of 2015, during which time our Medical Centers of Excellence platform continued to demonstrate that our operations are materially benefitting from key efficiencies that we have continued to implement over the past year. In view of our recent transaction involving The B.A.C.K. Center, which will allow us to book The B.A.C.K. Center's May and June results, we fully expect that our future quarterly growth will be even more pronounced, with our revenues forecasted to increase to more than $4.8 million in the second quarter."

Continuing, Romandetti said, "As we move through 2015, we will look to continue executing other planned expansion strategies, driving stronger cash flow while paying down our higher cost debt. Given the notable progress we achieved in the first quarter and the momentum we are currently experiencing in our medical business-building business, we feel very optimistic that this year will continue to prove to be our best one yet."

FIRST CHOICE HEALTHCARE SOLUTIONS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
			March 31,				December 31,
			2015				2014
			(unaudited)
ASSETS
Current assets
Cash			$	112,794			$	279,087
Cash-restricted				384,737				318,259
Accounts receivable, net				2,252,053				1,804,636
Prepaid and other current assets				127,221				153,296
Capitalized financing costs, current portion				68,370				68,370
	Total current assets			2,945,175				2,623,648
Property, plant and equipment, net of accumulated depreciation of $2,602,845 and $2,472,111				8,171,848				8,294,298
Other assets
Capitalized financing costs, long term portion				17,089				37,775
Patient list, net of accumulated amortization of $60,000 and $55,000				240,000				245,000
Patents, net of amortization of $23,875 and $19,100				262,625				267,400
Deposits				2,571				2,571
	Total other assets			522,285				552,746
Total assets			$	11,639,308			$	11,470,692
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities
Accounts payable and accrued expenses			$	1,360,890			$	1,457,275
Stock based payable				220,000				537,750
Advances				298,000				224,000
Line of credit, short term				1,377,000				1,237,000
Convertible note payable, short term portion				2,192,099				2,148,835
Notes payable, current portion				684,904				732,791
Unearned revenue				51,639				38,763
	Total current liabilities			6,184,532				6,376,414
Long term debt:
Deposits held				72,901				72,901
Notes payable, long term portion				8,034,369				8,184,560
	Total long term debt			8,107,270				8,257,461
Total liabilities				14,291,802				14,633,875
Stockholders' deficit
Preferred stock, $0.01 par value; 1,000,000 shares authorized, Nil issued and outstanding				-				-
Common stock, $0.001 par value; 100,000,000 shares authorized, 18,432,055 and 17,951,055 shares issued and outstanding as of March 31, 2015 and December 31, 2014, respectively				18,432				17,951
Additional paid in capital				13,151,461				12,671,942
Accumulated deficit				(15,822,387	)			(15,853,076	)
	Total stockholders' deficit			(2,652,494	)			(3,163,183	)
Total liabilities and stockholders' deficit			$	11,639,308			$	11,470,692

FIRST CHOICE HEALTHCARE SOLUTIONS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
			Three Months Ended March 31,
			2015				2014
Revenues:
Patient service revenue			$	2,285,288			$	2,010,974
Provision for bad debts				(45,224	)			(38,144	)
Net patient service revenue less provision for bad debts				2,240,064				1,972,830
Rental Revenue				265,103				261,923
	Total Revenue			2,505,167				2,234,753
Operating expenses:
Salaries and benefits				946,120				1,065,521
Other operating expenses				451,485				429,291
General and administrative				553,284				405,912
Depreciation and amortization				140,509				134,719
	Total operating expenses			2,091,398				2,035,443
Net income from operations				413,769				199,310
Other income (expense):
Miscellaneous income				750				750
Amortization financing costs				(20,686	)			(15,906	)
Interest expense, net				(363,144	)			(219,253	)
	Total other expense			(383,080	)			(234,409	)
Net income (loss) before provision for income taxes				30,689				(35,099	)
Income taxes (benefit)				-				-
NET INCOME (LOSS)			$	30,689			$	(35,099	)
Net Income (loss) per common share, basic			$	0.00			$	(0.00	)
Net Income (loss) per common share, diluted			$	0.00			$	(0.00	)
Weighted average number of common shares outstanding, basic				18,062,466				16,756,648
Weighted average number of common shares outstanding, diluted				22,090,565				16,756,648

FIRST CHOICE HEALTHCARE SOLUTIONS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
			Three Months Ended March 31,
			2015				2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income (loss)			$	30,689			$	(35,099	)
Adjustments to reconcile net income (loss) to cash used in operating activities:
Depreciation and amortization				140,509				129,940
Amortization of financing costs				20,686				20,685
Bad debt expense				45,224				38,144
Common stock issued in connection with loan extension				99,000				-
Stock-based compensation				48,250				-
Changes in operating assets and liabilities:
Accounts receivable				(492,641	)			(512,989	)
Prepaid expenses and other				26,075				(12,579	)
Restricted funds				(66,478	)			(47,526	)
Accounts payable and accrued expenses				(38,121	)			124,299
Unearned income				12,876				(25,180	)
	Net cash used in operating activities			(173,931	)			(320,305	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of equipment				(8,284	)			(10,998	)
	Net cash used in investing activities			(8,284	)			(10,998	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from advances				74,000				-
Proceeds from lines of credit				140,000				100,000
Net payments on notes payable				(198,078	)			(197,238	)
	Net cash provided by (used in) financing activities			15,922				(97,238	)
Net decrease in cash and cash equivalents				(67,293	)			(428,541	)
Cash and cash equivalents, beginning of period				279,087				739,158
Cash and cash equivalents, end of period			$	112,794			$	310,617
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the period for interest			$	264,144			$	310,617
Cash paid during the period for taxes			$	-			$	-
Supplemental Disclosure on non-cash investing and financing activities:
Common stock issued in settlement of accrued expenses			$	15,000			$	22,240

About First Choice Healthcare Solutions, Inc.
Headquartered in Melbourne, Florida, First Choice Healthcare Solutions (FCHS) is actively engaged in developing a network of multi-specialty medical centers of excellence throughout the southeastern U.S., which are distinguished as premier destinations for clinically superior, patient-centric care. Through its wholly owned subsidiary FCID Medical, Inc., the Company currently operates First Choice Medical Group of Brevard (FCMG), First Choice's flagship Medical Center of Excellence which specializes in the delivery of neurological and musculoskeletal medicine and rehabilitative care; and through its wholly owned subsidiary TBC Holdings of Melbourne, Inc., it operates Brevard Orthopaedic Spine & Pain Center, Inc., dba The B.A.C.K. Center, which focuses on orthopaedic spine and pain medicine. FCHS' commercial real estate interests, which houses FCMG, are managed by its wholly owned subsidiary, FCID Holdings, Inc. For more information, please visit www.myfchs.com, www.myfcmg.com and www.thebackcenter.net. 

Safe Harbor Statement
Certain information set forth in this news announcement may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of First Choice Healthcare Solutions, Inc. Such forward-looking statements are based on current expectations, estimates and projections about the Company's industry, management beliefs and certain assumptions made by its management. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Information concerning factors that could cause the Company's actual results to differ materially from those contained in these forward-looking statements can be found in the Company's periodic reports on Form 10-K and Form 10-Q, and in its Current Reports on Form 8-K, filed with the Securities and Exchange Commission. Unless required by law, the Company undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise to reflect future events or circumstances or reflect the occurrence of unanticipated events.