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Press Release Source: National Health Partners, Inc.
National
Health Partners
announces LETTER TO SHAREHOLDERS
To our
stockholders:
It has been a remarkable year thus far for
National Health Partners. Our
revenue and gross profits have soared, our net loss has almost
disappeared, we've diversified our CARExpress program offering, we have
begun creating a direct sales force, and we have signed agreements with
some major business partners.
I would like to take this opportunity to discuss our recent
accomplishments and our exciting plans for the next 12
months.
Industry Update
The U.S. healthcare crisis continues to drive
demand for our programs. More
and more companies and organizations are turning to the discount
healthcare market for solutions to the healthcare crisis because it is
simply too expensive for them to provide adequate health benefits to their
employees and members.
Consider the following data from the U.S. Department of Commerce
and the National Coalition on Healthcare:
·
15.9% of all
Americans, or 46.6 million people, were without health insurance coverage
in 2005, up from 15.6% of all Americans, or 45.3 million people, in 2004,
an increase of 1.3 million people, and an additional 61 million people are
underinsured;
·
more than 40% of
small businesses do not offer employer-sponsored health
coverage
·
premiums for
employer-sponsored health coverage are expected to increase from $7,000
per year in 2001 to $17,000 per year in 2011
·
the average cost of family coverage is now nearly
$11,480 per year, including workers contributions of nearly
$2,973.
This data, while tragic, provides the
underpinnings for the unique opportunity that we are pursuing: the
provision of unique and affordable healthcare
solutions.
CARExpress
CARExpress has become one of the most
recognized names in the discount healthcare market and is one of the
fastest growing companies in the healthcare industry. There are several reasons why
consumers are turning to us rather than our competitors. First, our CARExpress health
savings network is the largest in the industry. We have over 1,000,000
participating providers available to our members through our agreements
with CareMark, Aetna, Optum, Outlook Vision, Integrated Health, Three
Rivers, International Med-Care and HealthFi International - some of the
largest and most prestigious national medical networks in the
country. Second, we have
begun offering new membership programs under the name "CARExpress Plus"
that are comprised of our CARExpress health discount programs and limited
liability insurance benefits underwritten by one of the world's largest
insurance companies. And
third, we provide a level of customer service that is unmatched in our
industry. We have a full team
of primarily bilingual individuals who provide outstanding service to our
members. The culture that we
have created at the company is inspiring to all people who work
there.
2007 Financial
Results
Our 2007 financial results have been
outstanding. Revenue for the
nine-month period ended September 30, 2007 increased almost 210% to
$3,250,182 from $1,052,473 for the nine-month period ended September 30,
2006, and the company's gross profit increased over 1,350% to $1,212,579
for the nine-month period ended September 30, 2007 compared to $83,455 for
the nine-month period ended September 30, 2006. In addition, our net loss per
share has decreased over 70% to $(0.06) for the nine months ended
September 30, 2007 from $(0.22) for the nine months ended September 30,
2006. These numbers show
substantial improvement in all of our financial metrics and represent a
tremendous achievement for our employees and
shareholders.
Revenue*
Gross
Profit*
(in millions) (in millions)
*
2007 numbers represent projections by the company.
Our performance this past year is not the
by-product of a one-year spike in growth or a market anomaly. It is the result of effective
planning, work and dedication to delivering our members program
innovations that differentiate National Health Partners from the
marketplace and will enable us to continue to develop relationships with
more and more small businesses, associations and other
organizations.
Where We Are Heading
We are in the process of transforming National
Health Partners into a truly unique and diverse health discount
company. We will be turning
the company into a comprehensive, full service health discount
organization - something that none of our competitors have achieved or
attempted.
We recently entered into an agreement with
Internet Coupon Exchange that will make coupons and rebates available to
our members for all kinds of prescription drugs and over-the-counter
medications. These are not
minor coupons and rebates - they are significant (currently averaging
about $9 each). Not only does
this provide a substantial incentive for someone to join CARExpress and
remain a member (as the amount of the rebates alone can pay for the cost
of a membership for a family of four), but it provides us with an
additional revenue stream.
Each time a coupon or rebate is used, we receive a fee. In addition, we recently entered
into an agreement with Swanson Health Products through which our members
will receive 10% off the cost of Swanson vitamins and nutritional
supplements purchase through our website.
We will be entering into agreements with many
more companies through which we will make a variety of healthcare-related
products and services available to our members at discounted prices. In some cases these agreements
will provide additional revenue-sharing opportunities to us. In all cases, they will provide
tremendous ancillary benefits to our members that will keep our members
coming back to our website.
We also intend to enter into an agreement to provide our membership
with access to a world-class health and wellness website. They will be able to access all
kinds of health and wellness related information and purchase related
products and services at discounted prices. The more reasons our members have
to use our website and the benefits of our various programs, the longer
they will remain a member of ours.
We are also in the process of changing the mix
of business partners with whom we work. In the past, we used a variety of
marketing companies to sell our CARExpress programs to consumers. This was costly financially and
produced members with very lower retention rates. Our efforts are now focused
exclusively on entering into agreements with small businesses,
associations, unions, chambers of commerce and related organizations, as
well as insurance brokers and agents. We recently announced agreements
with TotalHR, Inc., a leading provider of employee leasing and employment
services and Consultancy Services International, Inc. (CSI), a leading
insurance agency that designs, implements and administers employee benefit
programs by such companies.
We are currently in discussions with a number of small business
groups, associations and employee leasing companies, including Hispanic
chambers of commerce, some union groups, an association that will be
making our membership programs available to tens of thousands of
households per year and that may purchase our membership programs for each
of its members. Through
organizations such as these, we gain access to a large number of uninsured
or underinsured people who genuinely need our programs and will want to
remain a CARExpress member for a long period of
time.
While the majority of the business
opportunities that we are pursuing have been spearheaded by our incumbent
management, many of these opportunities are being generated by Frederick
Wolf. We recently announced
the hiring of Fred earlier this month and he is already producing a
substantial number of opportunities for us. Fred has relationships in place
with the types of associations and organizations that we are targeting,
which is of the utmost importance for us to be able enter into deals with
them. We intend to seek other
people like Fred who may be able to join our company and assist us in
pursuing even more of these opportunities.
Outlook for 2008
As we continue to generate monthly recurring
revenue from our fast-growing membership base and expanding program
offerings, we expect 2008 to be the fourth consecutive year for which we
have achieved year-over-year revenue growth of over 200%. We expect to begin generating
positive cash flow from operating activities and net profits from
operations during the first half of 2008. Once we achieve these results, we
will submit an application to have our common stock listed on the NASDAQ
or AMEX.
We are performing exceptionally well and have
achieved our remarkable results in the face of various crises that have
enveloped the company at different times during the year. We are working diligently to
achieve our goal of increasing stockholder value and believe we have made
the right investments in the people, programs and partnerships to allow us
to grow quickly and efficiently in 2008. Our stock is currently trading at
price-to-sales ratio of less than 3, which is an incredibly low valuation
for a high-growth company like us.
Most
high-growth companies trade at a substantially higher price-to-sales
ratio. We believe the
price of our stock will increase substantially as it reflects the growth
that we are experiencing and the results that we are generating.
I would like to express my appreciation to our
shareholders for all of the support they have provided to the company and
its management team and for the patience they have displayed as long-term
investors. We are
accomplishing something very special and it is our goal to make sure that
our shareholders reap the benefits of our success.
On behalf of our entire team, we thank you for
your continued support and confidence in National Health Partners.
Sincerely,
/s/ David M.
Daniels
David M.
Daniels
President & Chief
Executive Officer
* * * *
*
This letter 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 revenue 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. 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 letter.
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.
Contact: National Health Partners, Inc. _______________________
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Send mail to info@nationalhealthpartners.com with questions or comments. Copyright © 2006 NATIONAL HEALTH PARTNERS, INC. |
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