Press Release Source: National Health Partners, Inc.
National Health Partners
announces Q1 2009 Financial Results
and interim 2009 achievements
Company has generated 200% to 300% more sales to new members during the
first 6 weeks of Q2 2009 than it generated during Q1 2009 or any fiscal quarter in 2008
Monday May 18, 2009, 9:45 am
Monday May 18, 2009, 9:45 am EDT
HORSHAM, Pa. - (BUSINESS WIRE) - National Health Partners, Inc. (National Health) (OTCBB: NHPR - News), a leading provider of unique discount healthcare membership programs, announced its financial results for its fiscal quarter ended March 31, 2009. The company generated gross profit of $285,899 for Q1 2009 as its gross profit percentage rose to 68% for Q1 2009 from 63% for Q4 2008 and 43% for Q1 2008. Direct costs (sales commissions and network provider costs) decreased $335,931 to $131,944 for Q1 2009 from $467,875 for Q1 2008, representing a decrease of 72%, as net cash used by operating activities decreased 51% to $(179,822) for Q1 2009 from $(365,780) for Q1 2008. After excluding non-cash equity-based compensation expense, the company's net loss per share decreased 50% to $(0.01) for Q1 2009 compared to $(0.02) for Q1 2008.
The company believes that revenue received from sales of CARExpress membership programs by members generated through affinity groups, employers and insurance brokers located throughout the country, combined with lower costs realized through the company's recent cost-cutting actions, will be the primary driver for revenue, positive cash flow and profitability in 2009. The company expects to generate more than $8 million of revenue during 2009 and positive cash flows from operating activities of more than $1 million during the remainder of 2009.
2009 Achievements and Projections
"I am very excited about what we are currently accomplishing," stated David M. Daniels, President and Chief Executive Officer of National Health Partners. "We previously announced that we believed that Q2 2009 would be our breakout quarter. I am pleased to say that we are currently generating a substantial number of members at an accelerating rate just as we predicted. We have already generated 200% to 300% more new members during just the first six weeks of Q2 2009 then we generated during Q1 2009 or any of our fiscal quarters in 2008. I am also pleased with how well we have gotten our costs under control and improved our financial metrics. We generated a record gross profit percentage of 68% during Q1 2009 while reducing our direct costs and cash used by operating activities to the lowest levels in years. The combination of our quickly growing revenue with our low cash out-flows will provide us with stellar financial results during the remainder of 2009."
"Our business is kicking on all cylinders right now, and we only expect it to get better," continued Mr. Daniels. "We have several major opportunities that are all in various stages of starting up, and they are coming from a variety of different sources, like affinity groups, insurance brokerages, healthcare companies, employee leasing companies and small businesses. We expect to announce agreements with two of these organizations this week, each of which has the potential to increase our sales dramatically. 2009 is shaping up to be an incredible year for National Health Partners. I am very excited about what the future holds for us."
National Health Partners,
National Health Partners, Inc.
National Health Partners, Inc. is a national healthcare savings organization that provides discount healthcare membership programs to uninsured and underinsured people through a national healthcare savings network called "CARExpress." CARExpress is one of the largest networks of hospitals, doctors, dentists, pharmacists and other healthcare providers in the country and is comprised of over 1,000,000 medical professionals that belong to such PPOs as CareMark and Aetna. The company's primary target customer group is the 47 million Americans who have no health insurance of any kind. The company's secondary target customer group includes the 61 million Americans who lack complete health insurance coverage. The company is headquartered in Horsham, Pennsylvania. For more information on the company, please visit its website at www.nationalhealthpartners.com.
Safe Harbor Provision
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact contained herein, including, without limitation, statements regarding the company's future financial position, business strategy, budgets, projected revenues and costs, and plans and objectives of management for future operations, are forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "will," "expects," "intends," "plans," "projects," "estimates," "anticipates," or "believes" or the negative thereof or any variation thereon or similar terminology or expressions. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from results proposed in such statements. Although the company believes that the expectations reflected in such forward-looking statements are reasonable, it can provide no assurance that such expectations will prove to have been correct. Important factors that could cause actual results to differ materially from the company's expectations include, but are not limited to, its ability to fund future growth and implement its business strategy, its ability to develop and expand the market for its CARExpress membership programs, demand for and acceptance of its CARExpress membership programs, its dependence on a limited number of preferred provider organizations and other provider networks for healthcare providers, as well as those factors set forth in the company's most recently filed post-effective amendment to its registration statement on Form SB-2 and its other filings and submissions with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made. Except as required by law, the company assumes no obligation to update or revise any of the information contained in this press release.
National Health Partners, Inc.
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