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TIGroup First Quarter Revenue Up 128% to $10.8M; Annual Run Rate Approaches $44M

^{Published on 2009-02-17 07:59:22, Last Modified on 2009-02-17 08:00:52 - Market Wire}
 

BEVERLY HILLS, Calif.--([ BUSINESS WIRE ])--Tri-Isthmus Group, Inc. (TIGroup) (Pink Sheets: TISG), a provider of financial solutions to the healthcare industry, announced today financial results for the first quarter of its fiscal year 2009 ended December 31, 2008.

Highlights for the quarter were:

• Revenue from medical services totaled $10.8 million for the three-month period ended December 31, 2008. This represented an increase of 128% from $4.7 million for the three-month period ended December 31, 2007. A significant portion of the increase was attributable to revenue of $3.0 million from operations of Southern Plains Medical Center in Oklahoma, which was acquired May 1, 2008.
• The revenue gain for the quarter represented the company's 6th consecutive quarter of increased revenue. Sequentially, revenues increased 8% from the $9.98 million reported for the fourth quarter ended September 30, 2008.

• The company's annual run rate is approaching $44 million.
• Healthcare operations generated EBITDA of $665,000 or an annual run rate of $2.6 million.
• Company-wide operating loss before non-cash charges was a negative $152,000. This was the company's best quarterly result to date. The adjusted company-wide EBITDA was a negative $207,000 reflecting the add-back of non-cash stock-based compensation, depreciation/amortization and interest to our overall net loss of $918,000. These results continue a positive trend line for the company.
• The company completed three bank financings with leading Oklahoma-based lenders in the aggregate amount of $8.4 million, which enabled the company to refinance certain existing loans, to acquire the remaining 49% of Southern Plains Medical Group that it did not already own, to purchase the building and property comprising its previously leased hospital in Stroud, OK and to provide funds to upgrade its facilities.
• Donnie Parkerson was hired as CFO of Southern Plains Medical Group (SPM) and subsequently was promoted to CFO of the holding company. He continues to serve as CFO of SPM.
• Tom Rice was hired as president and COO of SPM.
• In February 2009, existing investors including members of management made additional capital available for new projects and acquisitions in the amount of $1.5m to $2m with both warrant exercise and note conversion prices at a significant premium to current market prices.

TIGroup Chairman and CEO David Hirschhorn said, "Our first fiscal quarter was another quarter of important progress. We continued to produce top line growth and we generated positive EBITDA in operations and moved closer to positive EBITDA company wide. As previously reported, we successfully completed a key growth financing with local Oklahoma lenders in an exceedingly difficult lending and capital market.

"We remain cautiously optimistic that we can continue our growth in fiscal year 2009. Clearly there are many challenges in the national and local economies that all business is facing. We remain focused on our profitability as a priority in 2009 with our plans for growth."

"Our existing investors continue to support our growth plan as evidenced by our recent capital round. This financing for acquisitions, new projects and growth should help to continue our forward momentum," Hirschhorn said.

About Tri-Isthmus Group, Inc.

Tri-Isthmus Group, Inc. (TIGroup) is a financial solutions provider focused on healthcare services operations designed to deliver quality healthcare outside of traditional urban hospital settings. The company is building a portfolio of interests in ambulatory surgical centers, rural hospitals, surgical hospitals and other centers operating in partnership with physicians. For more information, visit [ http://www.tig3.com ].

A profile for investors can be accessed at [ http://www.hawkassociates.com/profile/tisg.cfm ]. For investor relations information, contact Frank Hawkins or Julie Marshall, Hawk Associates, at 305-451-1888, e-mail: [ tigroup@hawkassociates.com ]. An online investor kit including press releases, current price quotes, stock charts and other valuable information for investors may be found at [ http://www.hawkassociates.com ] and [ http://www.americanmicrocaps.com ]. To receive free e-mail notification of future releases for TIGroup, sign up at [ http://www.hawkassociates.com/about/alert/ ].

Safe-Harbor Statement under the Private Securities Litigation Reform Act of 1995:This press release may contain forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the" Exchange Act"), including all statements that are not statements of historical fact regarding the intent, belief or current expectations of the company, its directors or its officers with respect to, among other things: (i) the company's financing plans; (ii) trends affecting the company's financial condition or results of operations; (iii) the company's growth strategy and operating strategy; and (iv) the declaration and payment of dividends. The words "may," "would," "will," "expect," "estimate," "anticipate," "believe," "intend" and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the company's ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors including the risk disclosed in the company's Forms 10-K and 10-Q filed with the SEC.