Inspira Financial Inc. Releases Audited Year-End Financial Results; Increases Revenue 87.6% Year-over-Year
June 29 2017 - 9:00AM
NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION
TO U.S. NEWSWIRE SERVICES AND DOES NOT CONSTITUTE AN OFFER OF THE
SECURITIES DESCRIBED HEREIN.
Inspira Financial Inc. (TSX-V:LND) ("Inspira"), a company
focused on providing revolving lines of credit, as well as billing
and collection services, to the highly fragmented U.S. mental
health and addiction services market, released its audited
consolidated financial statements the year-ending February 28,
2017.
Audited year-end financial statements ended February 28, 2017
and accompanying Management's Discussion & Analysis (MD&A)
are available at www.sedar.com.
Summary of Audited Financial Statements:
- Total revenue increased to $3,944,408 from $2,102,617 in the
last fiscal year, an increase 87.6% year-over-year.
- The billing and collection acquisition generated $565,206 or
14.3% of annual sales; with less than a half a year of revenue of
this fiscal year’s financials.
- Generated a loss of $466,378 for the year excluding items such
as legal and audit, goodwill impairment and stock-based
compensation 1 - Exited Management team, resulting in a total
expense of $1,205,084 for the fiscal year.
- Notwithstanding revenues and financial margin provided by the
acquisition, the Company completed IFRS accounting impairment
procedure for the acquisition, leading to a one-time expense in the
year-end financials.
1:
Net income (loss) |
$ |
(8,661,597 |
) |
Add Back: |
|
Goodwill impairment (non-recurring) |
$ |
6,385,773 |
|
Stock based compensation (non-cash) |
$ |
840,311 |
|
Legal and audit expenses |
$ |
969,135 |
|
Operational income after legal expenses |
$ |
(466,378 |
) |
Inspira's audited year-end financial statements ended February
28, 2017 and accompanying Management's Discussion & Analysis
(MD&A) are available at www.sedar.com.
“The business continues to evolve toward the vision of being a
leader in offering lending, billing and collecting services through
improved technology in the addiction market in the US,” said Jaime
Geber, Chairman of Inspira. “While the business is in the formative
stages, it seems well positioned for growth over time. In the
current quarter and beyond, we are focused on delivering increased
shareholder value in a number of ways. First, we continue to build
and invest in the billing and collections automation. While this
may take several quarters, the market is large and growing and the
business seems well positioned to be a leader once the technology
build out is complete. Second, the Board continues to look at ways
to leverage our large and growing cash balance to improve
shareholder returns. Lastly, during the transition of old
management to new, we are working to reduce overhead and operate
leanly. We are focused on protecting our cash balance which will
give us growing options to deliver shareholder value in the
future.”
About Inspira FinancialThe mental health and
substance abuse market in the U.S. is a rapidly expanding industry,
with current spending exceeding $35 billion. Within this industry,
thousands of businesses have annual revenues in the $1 million to
$50 million range. Due to the significant increase in
addiction treatment as a result of the Parity Act, the large and
permanently elevated volumes of claims has led Payors to impose
upon facilities in the mental health sector similarly complex
reimbursement requirements as those imposed in the physical
healthcare sector. Substance abuse facilities tend to use several
software applications and a non-automated billing company to
document services provided and bill insurance companies. This
cumbersome process slows down the tracking, billing and collection
process as the customer's billings increase, and were not designed
to handle the volume, or level of detail, now required by Payors
for prompt payment. As a result, across the mental health and
substance abuse industry there are collection delays and
consequently a need for capital.
Forward-Looking StatementsCertain statements contained in this
press release constitute "forward-looking information" as such term
is defined in applicable Canadian securities legislation. The words
"may", "would", "could", "should", "potential", "will", "seek",
"intend", "plan", "anticipate", "believe", "estimate", "expect" and
similar expressions as they relate to Inspira, narrowing of the
sales focus resulting in renewed sales growth, and building
shareholder value through both increasing revenues and profits, are
intended to identify forward-looking information. All figures are
in Canadian dollars. All statements other than statements of
historical fact may be forward-looking information. Such statements
reflect Inspira's current views and intentions with respect to
future events, and current information available to Inspira, and
are subject to certain risks, uncertainties and assumptions,
including; continues to look at ways to leverage our large and
growing cash balance to improve shareholder returns; attracting
clients by having a more targeted sales and marketing strategy;
existing clients not decreasing in size; adding new clients will
increase revenue; increasing revenue and profits improves share
price; the continued existence of billing/collection contracts; the
demand for addiction treatment continuing to increase; the new
service line being complimentary to existing Inspira clients;
Inspira being successful in its integration of the billing company;
Inspira's clients maintaining revenue regardless of overall
industry demand; Inspira's sales and marketing efforts resulting in
more clients; increasing total clients serviced will result in
Inspira's ability to attract larger clients which will have a
significant positive impact on revenue; sales and marketing
effectively growing the total client base; Inspira being able to
use the scale of multiple clients and a larger operation to reduce
costs; and the ability of Inspira to successfully create, including
its ability to retain and employ the necessary talent, the
effective software that results in automation. Material factors or
assumptions were applied in providing forward-looking information.
Many factors could cause the actual results, performance or
achievements that may be expressed or implied by such
forward-looking information to vary from those described herein
should one or more of these risks or uncertainties materialize.
These factors include changes in law, competition, the ability to
implement business strategies and pursue business opportunities,
state of the capital markets, the availability of funds and
resources to pursue operations, dependence on debt markets and
interest rates, demand for the lending products Inspira offers at
interest rates higher than at which Inspira can borrow, a novel
business model, granting of permits and licenses in a highly
regulated business, difficulty integrating newly acquired
businesses (including the billing company), risks of performance by
the target, new technologies, risk of billing irregularities by
borrowers, low profit market segments, as well as general economic,
market and business conditions, as well as those risk factors
discussed or referred to in Inspira's annual Management's
Discussion and Analysis for the year ended February 28, 2017, filed
with the securities regulatory authorities in certain provinces of
Canada and available at www.sedar.com. Should any factor
affect Inspira in an unexpected manner, or should assumptions
underlying the forward-looking information prove incorrect, the
actual results or events may differ materially from the results or
events predicted. Any such forward-looking information is expressly
qualified in its entirety by this cautionary statement. Moreover,
Inspira does not assume responsibility for the accuracy or
completeness of such forward-looking information. The
forward-looking information included in this press release is made
as of the date of this press release and Inspira undertakes no
obligation to publicly update or revise any forward-looking
information, other than as required by applicable law.
All amounts herein are in Canadian dollars and are based on our
interim consolidated financial statements and accompanying MD&A
for the period ended February 28, 2017 and related notes prepared
in accordance with International Financial Reporting Standards
(IFRS) unless otherwise noted.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Inspira Financial Inc.
Edward Brann
Executive Director
1 (844) 877-7562
IR@inspirafin.com
www.inspirafin.com
Inspira Financial (TSXV:LND)
Historical Stock Chart
From Nov 2024 to Dec 2024
Inspira Financial (TSXV:LND)
Historical Stock Chart
From Dec 2023 to Dec 2024