Northstar Healthcare Inc. reported consolidated financial results for the third quarter and nine months ended September 30, 2009. For the quarter, the company generated net patient service revenue of $6.8 million compared with $9.4 million in the corresponding period of 2008. The year over year reduction in revenue was attributable to a 29.7% decrease in case volume to 1,561 cases from 2,219 in the 2008 period and an 8.9% decrease in the overall reimbursement rate. The company recorded income from operations of $1.5 million compared with $4.3 million in the 2008 period. Net income was $2.9 million or $0.19 per share fully diluted, compared with a reported loss of $33.4 million or $2.40 per share fully diluted. Net income figure includes a foreign currency gain of $2.7 million. Period includes a $2.4 million loss on foreign currency, a $78.9 million charge for impairment to goodwill and intangibles and an $18.2 million gain related to fair value changes. Cash flows provided by operating activities were $2.2 million, compared with $5.2 million in the corresponding period in 2008. Adjusted EBITDA net of non-controlling interests, capital expenditures, and before an unrealized gain on foreign exchange contracts and non-controlling interest, was $0.1 million. This compares with $2.9 million in the corresponding 2008 period. For the nine months, the company generated net patient service revenue of $19.0 million compared with $31.2 million in the corresponding period of 2008. The 2009 figure included $2.9 million in revenue attributable to 2008 and first quarter of 2009 operations, as the company's final 2008 collections exceeded the reported figures. The year over year reduction in revenue was primarily attributable to a 27.9% decrease in case volume - to 5,058 cases in the first nine months of 2009 from 7,014 in the corresponding 2008 period - and a 26.5% reduction in the overall reimbursement rate. Income from operations was $1.2 million, compared with $16.6 million in the comparable 2008 period. Net income was $2.9 million or $0.20 per share fully diluted, compared with a loss of $28.4 million or $2.04 per share fully diluted, in the 2008 period. The 2009 net income figure includes a foreign currency gain of $3.9 million. The 2008 period includes a $3.6 million loss on foreign currency, a $78.9 million charge for impairment to goodwill and intangibles and a $19.0 million gain related to fair value changes. Cash flows provided by operating activities were $6.7 million, compared with $18.3 million in the corresponding period in 2008. Adjusted EBITDA net of non-controlling interests, capital expenditures, and before an unrealized loss on foreign exchange contracts and non-controlling interest, was negative $1.5 million. This compares with positive Adjusted EBITDA of $9.7 million in the corresponding 2008 period.

Northstar Healthcare Inc. reported unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2009. For the quarter, the company reported income before income taxes and non-controlling interests of $3.95 million against loss before income taxes and non-controlling interests of $59.5 million a year ago. Purchase of property and equipment was $0.014 million against $0.071 million a year ago. For the nine months, the company reported income before income taxes and non-controlling interests of $4.81 million against loss before income taxes and non-controlling interests of $49.32 million a year ago. Purchase of property and equipment was $0.053 million against $0.31 million a year ago.

Northstar Healthcare Inc., Q3 2009 Earnings Call, Nov 12 2009