PAIN CARE INC (fka PRXZ)

[roger wilco]

PRZ Paincare PR Nov 13 2007

http://biz.yahoo.com/prnews/071113/cltu048.html?.v=101

PainCare Holdings Reports 2007 Third Quarter Results
Tuesday November 13, 8:30 am ET

ORLANDO, Fla., Nov. 13 /PRNewswire-FirstCall/ -- PainCare Holdings, Inc. (Amex: PRZ - News), one of the nation's leading providers of pain-focused medical and surgical solutions and services, today reported its financial and operational results for the three and nine month periods, ended September 30, 2007.

OPERATIONAL HIGHLIGHTS AND RESTRUCTURING UPDATE:

-- During the third quarter, PainCare completed the divesture of four
underperforming practices and two surgery centers as part of a major
restructuring initiative which began earlier this year. As a
consequence, the Company now owns and/or manages ten pain-focused
Centers of Excellence in the United States and Canada. Certain of
these remaining practices have either downsized or adjusted the
provision of services to meet the current demands of the marketplace.

-- In July 2007, Integrated Pain Solutions (IPS), PainCare's wholly owned
subsidiary engaged in developing the nation's first pain-focused
Managed Services Organization, signed an agreement with Coalition
America, Inc. (CAI), the nation's leader in medical claim savings, to
assist CAI in cost containment programs and pain-related medical
treatment for those patients associated with CAI's national customer
base of employers, insurers, payors, HMOs, re-insurers and managing
general underwriters.

-- More recently, IPS signed a national contract with FOCUS Healthcare
Management, Inc. Pursuant to the agreement, IPS' national call center
will process patient appointments, originating from FOCUS' customer
base, with pain management specialists affiliated with IPS' privileged
provider networks initially established in New Jersey, Michigan,
Tennessee, Florida and Colorado.

-- Since first launching operations in early 2007, IPS has made progress
in ramping up its infrastructure and beginning the transformation from
a development stage to a revenue generating company. To date, IPS has
established provider networks in Colorado, Florida, Illinois, Michigan,
New Jersey and Tennessee (with plans to expand into Alabama,
California, Georgia, New York, Ohio, Pennsylvania and Texas over the
next six to nine months).

-- PainCare recently announced the formation of a joint venture with
MedeFile International, Inc. (OTC Bulletin Board: MDFI - News) created to
market the MedeFile system, a proprietary personal electronic medical
records management solution. Under the agreement, PainCare has been
granted exclusive rights to market the MedeFile system direct to
consumers in exchange for a 50% share of revenues generated strictly
from its marketing activities.

OVERVIEW OF 2007 THIRD QUARTER AND YEAR-TO-DATE FINANCIAL RESULTS

-- Total revenues from continuing operations for the third quarter were
$6.2 million, representing a 19% decline from $7.7 million reported
for the same three month period in 2006. For the nine months ended
September 30, 2007, total revenues from continuing operations
decreased 21% to $21.8 million from $27.5 million in the comparable
nine month reporting period in 2006.

-- The Company incurred a non-cash, non-recurring impairment charge of
$9.4 million in the third quarter of this year. In addition, due to
the divestiture of certain business interests, loss from discontinued
operations resulted in a non-cash, non-recurring charge totaling $2.3
million during the three months ended September 30, 2007.

-- Net loss for the third quarter of this year was $20.0 million, or
$.30 loss per diluted share, compared to a net loss of $4.1 million,
or $0.06 loss per diluted share in the third quarter of 2006. For
the nine months ended September 30, 2007, net loss totaled $82.4
million, or $1.22 loss per diluted share, compared to net income of
$13.6 million, or $0.18 per diluted share, reported for the first
nine months of last year.



PAINCARE HOLDINGS, INC.
Consolidated Balance Sheets
As of September 30, 2007 and December 31, 2006

September 30, December 31,
2007 2006

Assets
Current Assets
Cash $434,766 $2,414,160
Accounts receivable, net 6,506,304 8,013,638
Note receivable 968,706 500,000
Deposits, prepaids and other 884,687 552,183
Deferred tax asset 14,052,953 1,605,278
Income tax receivable 1,525,318 4,135,375
Current assets of discontinued operations - 13,898,821
Total current assets 24,372,734 31,119,455
Property and equipment, net 6,956,927 7,949,791
Goodwill, net 32,362,550 48,685,270
Other assets 993,753 3,602,071
Non-current assets of discontinued operations - 72,597,394
Total assets $64,685,964 $163,953,981

Liabilities and Stockholders' Equity

Current liabilities
Accounts payable and accrued expenses $6,732,193 $4,035,538
Interest payable 3,367,842 781,971
Acquisition consideration payable 659,575 4,026,209
Current portion of notes payable 7,819,663 34,053,378
Convertible debentures 12,983,796 12,415,480
Current portion of default put option 600,000 600,000
Current portion of capital lease obligation 1,098,369 1,374,030
Total current liabilities of discontinued
operations - 2,311,839
Total current liabilities 33,261,438 59,598,445

Capital lease obligations 1,142,897 1,696,642
Deferred tax liability, non-current 14,052,953 3,048,760
Non-current liabilities of discontinued
operations - 67,355
Total liabilities 48,457,288 64,411,202
Minority interest related to discontinued
operations 2,191,797

Shareholders' equity
Common stock, $.0001 par value. Authorized
200,000,000 shares; issued and outstanding
67,648,717 and 66,292,721 shares, respectively 6,765 6,629
Preferred stock, $.0001 par value.
Authorized 10,000,000 shares; issued and
outstanding - 0 - shares - -
Additional paid in capital 143,999,041 142,763,156
Retained earnings (127,905,841) (45,465,595)
Other comprehensive income 128,711 46,792
Total stockholders equity 16,228,676 97,350,982
Total liabilities and stockholders' equity $64,685,964 $163,953,981



PAINCARE HOLDINGS, INC.
Consolidated Statements of Operations
For the Three and Nine Months Ended September 30, 2007 and 2006
(unaudited)

For the three months ended
September 30,
2007 2006
Consolidated Statement of Operations
Revenues:
Pain Mgmt. $3,560,198 $4,166,093
Surgery 775,899 1,189,135
Ancillary 1,828,616 2,296,655
Total Revenues 6,164,713 7,651,883
Cost of revenues 3,290,924 2,873,577
Gross profit 2,873,789 4,778,306
General and administrative expense 6,655,957 8,345,006
Amortization expense 344,054 165,609
Impairment 9,386,893 -
Depreciation expense 391,571 394,396
Operating income (loss) (13,904,686) (4,126,705)
Interest income (expense) (2,094,406) (1,588,985)
Derivative benefit - 8,558
Other income (expense) (65,798) 43,589
Income (loss) from continuing operations before
income taxes (16,064,890) (5,663,543)
Provision (benefit) for income taxes 700,259 165,571
Income (loss) from continuing operations,
net of tax (16,765,149) (5,829,114)
Discontinued operations:
Income (loss) from discontinued operations
(less applicable income tax (provision)
benefit of ($0), ($1,529,919), ($10,129),
($4,897,785)) (975,546) 1,718,946
Loss on disposal of discontinued operations (2,304,617) -
Income (loss) from discontinued operations,
net of tax (3,280,163) 1,718,946
Income (loss) from operations before a
cumulative effect of a change in accounting
principle (20,045,312) (4,110,168)
Cumulative effect of a change in accounting
principle (net of tax of $661,283) - -

Net income (loss) $(20,045,312) $(4,110,168)

Basic income (loss) per common share:
Income (loss) from continuing operations
before cumulative effect of a change in
accounting principle $(.25) $(.09)
Income (loss) from discontinued operations $(.05) $.03
Cumulative effect of a change in accounting
principle - -

Net income (loss) $(.30) $(.06)

Diluted income (loss) per common share:
Income (loss) from continuing operations
before cumulative effect of a change in
accounting principle $(.25) $(.09)
Income (loss) from discontinued operations $(.05) $.03
Cumulative effect of a change in accounting
principle - -

Net income (loss) $(.30) $(.06)

Basic weighted average common shares outstanding 67,563,753 64,482,619
Diluted weighted average common shares
outstanding 67,563,753 64,482,619



For the nine months ended
September 30,
2007 2006
Consolidated Statement of Operations
Revenues:
Pain Mgmt. $ 12,212,591 $13,565,575
Surgery 2,258,355 4,027,780
Ancillary 7,294,691 9,892,769
Total Revenues 21,765,637 27,486,124
Cost of revenues 10,273,478 7,407,288
Gross profit 11,492,159 20,078,836
General and administrative expense 22,221,145 17,118,583
Amortization expense 372,324 466,753
Impairment 19,328,879 -
Depreciation expense 1,168,426 1,146,060
Operating income (loss) (31,598,615) 1,347,440
Interest income (expense) (5,371,185) (3,625,849)
Derivative benefit - 10,501,509
Other income (expense) (77,232) 418,262
Income (loss) from continuing operations
before income taxes (37,047,032) 8,641,362
Provision (benefit) for income taxes (1,186,194) 1,958,900
Income (loss) from continuing operations,
net of tax (35,860,838) 6,682,462
Discontinued operations:
Income (loss) from discontinued operations
(less applicable income tax (provision)
benefit of ($0), ($1,529,919), ($10,129),
($4,897,785)) (12,673,145) 5,883,061
Loss on disposal of discontinued operations (33,906,263) -
Income (loss) from discontinued operations,
net of tax (46,579,408) 5,883,061
Income (loss) from operations before a
cumulative effect of a change in accounting
principle (82,440,246) 12,565,523
Cumulative effect of a change in accounting
principle (net of tax of $661,283) - 991,925
Net income (loss) $(82,440,246) $13,557,448

Basic income (loss) per common share:

Income (loss) from continuing operations
before cumulative effect of a change in
accounting principle $ (.53) $.10
Income (loss) from discontinued operations $ (.69) $.09
Cumulative effect of a change in accounting
principle - $.02

Net income (loss) $(1.22) $.21

Diluted income (loss) per common share:
Income (loss) from continuing operations
before cumulative effect of a change in
accounting principle $(.53) $.09
Income (loss) from discontinued operations $(.69) $.08
Cumulative effect of a change in accounting
principle - $.01

Net income (loss) $(1.22) $ .18

Basic weighted average common shares outstanding 67,061,322 64,040,150
Diluted weighted average common shares
outstanding 67,061,322 74,166,535



About PainCare Holdings, Inc.

Headquartered in Orlando, Florida, PainCare Holdings, Inc. is one of the nation's leading providers of pain-focused medical and surgical solutions and services. Through its proprietary network of acquired or managed physician practices, and in partnership with independent physician practices and medical institutions throughout the United States and Canada, PainCare is committed to utilizing the most advanced science and technologies to diagnose and treat pain stemming from neurological and musculoskeletal conditions and disorders.

Through its wholly-owned subsidiary, Caperian, Inc., PainCare offers medical real estate and development services. Through Integrated Pain Solutions, the Company is engaged in pioneering the nation's first managed services organization that offers a multi-disciplinary healthcare network focused on the treatment of pain. For more information on PainCare Holdings, please visit www.paincareholdings.com.

This press release contains forward-looking statements that may be subject to various risks and uncertainties. Such forward-looking statements are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and are made based on management's current expectations or beliefs as well as assumptions made by, and information currently available to, management. These forward-looking statements, which may include statements regarding our future financial performance or results of operations, including expected revenue growth, cash flow growth, future expenses, future operating margins and other future or expected performance, are subject to the following risks: the acquisition of businesses or the launch of new lines of business, which could increase operating expenses and dilute operating margins; the inability to attract new patients by our owned practices, the managed practices and the limited management practice; increased competition, which could lead to negative pressure on our pricing and the need for increased marketing; the inability to maintain, establish or renew relationships with physician practices, whether due to competition or other factors; the inability to comply with regulatory requirements governing our owned practices, the managed practices and the limited management practices; that projected operating efficiencies will not be achieved due to implementation difficulties or contractual spending commitments that cannot be reduced; and to the general risks associated with our businesses.

In addition to the risks and uncertainties discussed above you can find additional information concerning risks and uncertainties that would cause actual results to differ materially from those projected or suggested in the forward-looking statements in the reports that we have filed with the Securities and Exchange Commission. The forward-looking statements contained in this press release represent our judgment as of the date of this release and you should not unduly rely on such statements. Unless otherwise required by law, we undertake no obligation to publicly update or revise any forward- looking statements, whether as a result of new information, future events or otherwise after the date of this press release. In light of these risks and uncertainties, the forward-looking events and circumstances discussed in the filing may not occur, and actual results could differ materially from those anticipated or implied in the forward-looking statements.

FOR MORE INFORMATION, PLEASE CONTACT:
Investor/Shareholder Relations
Dodi Handy, President and CEO, or Daniel Conway, Chief Strategist
Elite Financial Communications Group, LLC
at 407-585-1080 or via email at [e-mail]


Source: PainCare Holdings, Inc.