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American HealthChoice Reports Third Quarter Results

Tuesday , August 24, 2004 14:12 ET

FLOWER MOUND, Texas, Aug 24, 2004 /PRNewswire-FirstCall via COMTEX/ -- American HealthChoice, Inc. (OTC Bulletin Board: AMHI) (the "Company") announced today that its third quarter financials have been filed and are now available for review on the EDGAR system easily accessible on the SEC's website (http://www.sec.gov ). A condensed version of the financial statement is attached herein to this news release.

Operating income for the three-month period ended June 30, 2004 was $4,000, a notable improvement compared to the operating loss of $68,000 for the same period in 2003. Net loss for the three-month period ended June 30, 2004 was $914,000, which is attributed to a "bad debt" loss of $900,000. This non-cash loss is the result of the write-off of accounts receivable related to the Company's acquisition of three clinics in August 2000, and it does not impact the current year or future years' operating income of AMHI's company- owned clinics.

Chairman and CEO, Dr. J. W. Stucki stated, "Overall we are quite pleased with our financial results for the second and third quarters of fiscal 2004. Based on patient billings to date for the current quarter, which ends September 30, 2004, we anticipate another increase in patient billings in the range of 15-20% compared to the same quarter in 2003. In addition, we are intent on decreasing our marketing expenses this quarter -- the primary variable expense that is associated with the significant increase we've experienced in patient billings."

American HealthChoice is a medical services company comprised of a parent company and twenty-five owned and affiliated medical clinics in Texas and Louisiana. For more information, please visit our newly revised corporate website located at: http://www.americanhealthchoice.com .

Safe Harbor Statement: The statements in this release that relate to future plans, expectations, events, performance, and the like are forward- looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the Securities Exchange Act of 1934. Actual results or events could differ materially from those described in the forward-looking statements due to a variety of factors, including those set forth in the company's report on Form 10-KSB for fiscal year 2003 filed with the Securities and Exchange Commission.



American HealthChoice, Inc.
Condensed Consolidated Statements of Operations

Nine Months ended June 30
2003 2004
Patient billings $ 5,897,000 $ 6,990,000
Allowance for discounts on billings 2,624,000 3,271,000
Net revenues 3,273,000 3,719,000

Operating expenses 3,477,000 3,671,000
Operating income (loss) (204,000) 48,000

Interest expense (53,000) (55,000)
Bad debt loss --- (900,000)
Net loss $ (257,000) $ (907,000)

Basic and diluted net loss per share $ --- $ (0.01)
Weighted average common shares outstanding 88,100,000 105,032,000

Three Months ended June 30
2003 2004
Patient billings $ 1,972,000 $ 2,515,000
Allowance for discounts on billings 886,000 1,184,000
Net revenues 1,086,000 1,331,000

Operating expenses 1,154,000 1,327,000
Operating income (loss) (68,000) 4,000

Interest expense (18,000) (18,000)
Bad debt loss --- (900,000)
Net loss $ (86,000) $ (914,000)

Basic and diluted net income per share $ --- $ (0.01)
Weighted average common shares outstanding 88,100,000 108,148,000

Condensed Consolidated Balance Sheet

June 30,
2004
Cash $ 23,000
Accounts receivable, net 5,306,000
Other current assets 124,000
Total current assets 5,453,000
Property and equipment, net 446,000
Goodwill 1,349,000
Total assets $ 7,248,000

Notes payable and capital lease obligations $ 1,054,000
Bankruptcy claims 1,146,000
Accrued payroll and expenses 1,532,000
Total current liabilities 3,732,000

Stockholders' equity 3,516,000
Total liabilities and stockholders' equity $ 7,248,000


SOURCE American HealthChoice, Inc.


CONTACT: investor relations, Equitilink LLC, [phone], or
international, [phone], for American HealthChoice, Inc.

URL: http://www.americanhealthchoice.com
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