- Q1 Net Revenues Increased 60% YoY to $667,294 from $416,298
- Q1 YoY Net Income $53,139 or $.003 from vs Loss of $ (354,866) or ($.018)
- Gross Margin Increased to 66% from 52%
- All Revenues and Income Derived from Legacy Personal Injury Funding
- New Fully US and EU Certified QVH™ v.3.0 and QVH CARE™ VideoTeleShare installed in SPIN Affiliate Centers
- Strategic Sales & Marketing Agreement Signed with Personal Injury Institute (PII) & Northeast. Director of QVH Sales & Marketing Retained
HOUSTON, May 12, 2016 (GLOBE NEWSWIRE) — Spine Injury Solutions, Inc. (OTCQB:SPIN), a technology-driven, medical service, device and healthcare solution company servicing the multi-billion dollar spine injury sector, reports Q1 2016 financial results and will hold an interactive video Investor conference call today Thursday, May, 12 2016, at 4:20 p.m. (EDT) to discuss the Company’s financial results for first quarter 2016 and provide an update on its current and future business initiatives.
Additional Q1 2016 Highlights and Subsequent Events.
- Completed All QVH v.3 Certification Testing Receives CE Mark for EU Sales
- Awaiting EU Patent Pending for the sales representation of 1st EU QVH in Germany
- Successfully Develops New Product HALO Rx™ For Full Operating Room use.
- Developed two new leasing programs for QVH, both Affiliate & 3rd Party Sales.
- Ended Q1 2016 with Strong Cash & Available Credit facilities in spite of QVH R&D costs
- Significantly increased operational efficiency of Core business as seen by Improved top and bottom line, lower SG&A and strong increase in Gross Margins.
- Signed Strategic Marketing Agreement with Certified Colossus Expert Dr. Matthew DeGaetano and his Personal Injury Institute (PII) to both expand marketing reach of QVH and “Value Add” PII training to SPIN & QVH clients to accelerate and Increase PI Settlements.
- Added James Schwartz, experienced Sales & Marketing Rep as QVH North East Manager of Sales & Marketing.
Dr. Donovan, Chairman CEO stated; “After eight consecutive quarters of losses which coincide with Management’s decision to cease doing business in Florida and McAllen TX, causing the loss of over 70% of SPIN’s revenue base at the time, along with the beginning of upgrading & certifying QVH for 3rd party sales. Management is pleased to report positive earnings for Q1 2016. This turning to profitability is particularly noteworthy in that it was accomplished before the first sales of any 3rd Party QVH programs, proving that the core Business Model of Financing Personal Injury cases, particularly when paired with the internal Affiliate QVH 3.0, is the excellent business model we envisioned. We expect cash from QVH sales will now be the driver to fulfil and accelerate our long awaited vision of SPIN delivering exceptional growth to its shareholders.” Donovan went on to say; “I strongly suggest shareholders and other interested parties, particularly Personal Injury Attorneys and Doctors, to participate in our Conference Call, or if not possible, view the video replay on our website after the fact. Aside from meeting our new N.E. Manager of Sales & Marketing , the highlight of our call is our special guest, long time Houston based SPIN client and advocate, PI Attorney, Larry Tylka. We have provided additional information on the two below:
About James Schwartz– Jim, who joined the Company in April is based in the SE Pennsylvania and will initially be servicing the US NE Corridor. He is a Temple University Graduate with over 20 years as a Sales & Marketing Rep. He has an extensive background in External Sales of Products & Programs specifically addressing areas of interest to SPIN and QVH, to include: Personal Injury and Liability insurers as a top rep for Judicate Inc., an Arbitration & Mediation Services Company in the 1990’s working in Southern California. In early 2000’s he Joined CardioReady setting up its PA, NY and NJ territory selling Defibrillators. Moving on in the late 2000’s where he became PA Territory Sales Manager for Align Tech’s Invisalign brand where he reached “Presidents Club” status, selling and training Doctors and Staff. Most recently he was Territory Sales Manager for Transformation Enzymes, Inc. for Mid-Atlantic Region Educating and selling their Enzyme Products specifically to Chiropractors.
Jim, who with his family are long time significant shareholders of SPIN, came to us once the QVH received its final certification. His excitement for our QVH, long sales and training experience mainly in and to our Specific Markets along with historical knowledge of our products made him a “natural” to “kick-off” our National Sales Effort. You will get to meet Jim on the Conference Call today.
About Larry Tylka Esq. -Additionally on the Conference Call, we are extremely happy to have Larry Tylka, a well-known Houston area Personal Injury Attorney who has been a long time attorney client of SPIN and strong advocate for our QVH and the Colossus™ software education and training we provide our medical and legal clients. He will address how the addition of SPIN’s Products and Services can increase settlements and judgements. What makes Larry’s perspective even more compelling is that he started his legal profession as a Defense Attorney specifically representing PI Liability Insurance carriers before switching to the Plaintiff side.
Results of Operations
Comparison of the three month period ended March 31, 2016 with the three month period ended March 31, 2015.
We recorded $1,162,621, in gross revenue for the three months ended March 31, 2016, offset by $495,357 of the expected settlement discount resulting in net revenue of $667,264. For the same period in 2015, gross revenue was $877,231, offset by $460,933 of standard allowance for discount, resulting in net revenue of $416,298. Revenue was positively affected by higher revenue collection percentage of 52% vs 48% last year and more volume in 2016 due to the Tyler location not being open in the first quarter of 2015. For the three months ended March 31, 2016, we managed four spine injury diagnostic centers: Houston, Texas; San Antonio, Texas; Tyler, Texas and Odessa, Texas. Service cost was $228,310 for the three months ended March 31, 2016 compared to $180,966 for the same period in 2015. The increase in service cost is attributable to the higher case volume since we added the Tyler location in 2016.
During the three months ended March 31, 2016, we incurred $366,513 of operating, general and administrative expenses compared with the $482,013 for the same period in 2015. Operating, general and administrative expenses were lower for the 2016 quarter compared to 2015 primarily because of a reduction in legal expenses, payroll expenses, consulting fees, and marketing expenses totaling approximately $122,000. The higher costs for the quarter ended March 31, 2015 were mostly incurred in connection with the commercialization of the QVH. We also spent $6,149 in research and development costs as compared to $82,468 in 2015. Overall, we had $110,519 in non-cash operating charges in 2016 compared to $132,222 in non-cash operating expenses for the three months ended March 31, 2015.
As a result of the foregoing, we had net income of $53,159 for the three months ended March 31, 2016, compared to $345,866 of net loss for the three months ended March 31, 2015.
Conference Call Details
Conference Call: An investor’s conference call with management will be held on Thursday, May 12, at 4:20 p.m. (EDT). The call will be video WebCast with a short live Power Point Presentation followed by Q & A. The call may be accessed either by phone alone, which will not allow asking questions, or by phone and/or VOIP with headset after internet log-in with an on screen provided Audio Pin # which will allow verbally asking questions. Questions can also be typed into an online chat screen at any time during the presentation or Q & A period.
Access to the Call: To use the internet link, you must register prior to access. So we suggest you complete the registration and get your log-in information in advance of the start of the presentation. You can register at any time. As mentioned above, the call is Thursday, May 12, at 4:20 p.m. (EDT).
Click or paste the link below in your browser for registration and web access to the presentation and follow the online instructions:
Or if the above link doesn’t work, please try the following:
http://www.joinwebinar.com Webinar ID: 103-330-835
Telephone Dial-in and/or VOIP which provides Q&A: To ask a question using your telephone, you must be online at the presentation website during the internet presentation where a unique Audio PIN # will be provided to you on screen after you log-in to the presentation console. You must use the pin to hear the call on the phone. During the presentation, all will be muted until the Q&A portion. Questions can be asked by typing in the question in the provided questions link on the provided console at any time during the presentation and will be answered during the Q&A.
The Q & A will be moderated, but without an operator, and will be open to all questions after the formal presentations. Review this short YouTube tutorial video for pointers on how to use the Webinar Features. (This is just a demo. Do not use the numbers or codes on this demo. Use what is provided above.)
YouTube webinar instructions: http://youtu.be/n7b1VHDwwD4
If you use the telephone, but are NOT also online, you will be able to hear the presentation plus Q & A, but will remain in “listen only” mode for the duration of the call.
Conference Dial-in Number: 1 (415) 655-0060
Participant Access Code: 775-920-041
Conference Play Back: A video replay of the conference call presentation will be available several hours after the completion of the call at the company website:
About Spine Injury Solutions, Inc:
We are a medical services and technology company facilitating diagnostic services for patients who have sustained spine injuries resulting from traumatic accidents. We deliver turnkey solutions to spine surgeons, orthopedic surgeons and other healthcare providers that provide necessary and appropriate treatment of musculo-skeletal spine injuries resulting from automobile and work-related accidents. Our care management services help reduce the financial burden on healthcare providers that provide patients with early-stage diagnostic testing and non-invasive surgical care, preventing many patients from being unnecessarily delayed or inhibited from obtaining needed treatment. We believe that our services and technology brings strong transparency and impartiality to all parties involved in the settlement of patient cases.
Additional information about the company, along with a video replay of most recent Investor Conference Call can be found at its website at www.spineinjurysolutions.com.
About Quad Video HALO, Inc.:
In addition, we are the owners and developers of the Patented and CE Certified Quad Video HALO™ and HALO Rx™, a Highly Scalable Video Integrated Operating Room Technology that Meets the Demands of Medical Practices and Major Hospital Systems using our latest VideoTeleShare hardware/software advancement in providing video transparency to both Invasive and Minimally Invasive medical procedures.
Additional information about QVH, can be found at its website at www.QuadVideoHalo.com
Forward-Looking Statements: This press release includes forward-looking statements as determined by the U.S. Securities and Exchange Commission (the “SEC”). All statements, other than statements of historical facts, included in this press release that address activities, events, or developments that the company believes or anticipates will or may occur in the future are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include general economic and business conditions, the ability to acquire and develop specific projects, the ability to fund operations, healthcare services demands, changes in healthcare practices, government regulation, and other factors over which the company has little or no control. The company does not intend (and is not obligated) to update publicly any forward-looking statements. The contents of this press release should be considered in conjunction with the warnings and cautionary statements contained in the company’s recent filings with the SEC.
Dr. William F. Donovan
Chairman, President & CEO
Spine Injury Solutions, Inc.