Pacer Health Corporation Reports Operating Profit MIAMI, Fla.--(BUSINESS WIRE)--April 18, 2005--According to financial statements filed Friday, April 15, Pacer Health Corporation (OTCBB: PHLH - News), a Miami-based owner-operator of acute care hospitals, medical treatment centers and residential care facilities, has reported an net profit of $390,896.00 for the year ended December 31, 2004, compared to a net loss of $554,675.00 for the year ended December 31, 2003. Pacer Health's profit for the year is derived from total revenue of $9,424,473.00, which includes net patient revenue of $7,581,505.00 from wholly owned facilities, income from management fees, gains on debt settlement and other revenue. This compares to total income of $199,789.00 for the year ended December 31, 2003. "Through careful planning, cost-cutting management decisions and strategic purchases, Pacer Health has achieved profitability," said Rainier Gonzalez, chairman and CEO of Pacer Health. "Today, we are more confident than ever in our ability to deliver quality healthcare services while providing substantial value to our shareholders. Additionally, we believe that we will complete our planned acquisition in Georgia sometime this year." Pacer Health's significant increases in revenue and operating expense over the previous year are primarily attributable to its acquisition of South Cameron Memorial Hospital in Cameron Parish, Louisiana. The hospital consists of 25 acute care beds and 15 skilled nursing beds, as well as 24 psychiatric beds and a medical out-patient center located on a separate campus. "Pacer Health specializes in the operation of medical facilities in non-urban areas with smaller populations and fewer healthcare operators," added Gonzalez. "This model offers low barriers to entry and often little to no competition." Pacer Health plans to expand its business over the next several years, largely through the acquisition of financially distressed hospitals, the restructure of their operations to ensure financial viability, and the consolidation of these properties under the Pacer Health brand. The company's general and administrative expenses are expected to increase over this time period, due principally to expansion of corporate personnel and integration costs projected to be incurred in the development and implementation of centralized operational and financial systems. About Pacer Health Corporation Pacer Health Corporation is an owner-operator of acute care hospitals, medical treatment centers, and psychiatric facilities, primarily serving the growing senior citizen population and non-urban areas throughout the Southeast. Shareholders are encouraged to visit the company's web site at www.pacerhealth.com and register to receive Pacer Health news updates. Legal Notice Regarding Forward-Looking Statements: "Forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 may be included in this news release. These statements relate to future events or our future financial performance. These statements are only predictions and may differ materially from actual future results or events. Pacer Health disclaims any intention or obligation to revise any forward-looking statements whether as a result of new information, future developments or otherwise. There are important risk factors that could cause actual results to differ from those contained in forward-looking statements, including, but not limited to risks associated with changes in general economic and business conditions (including in the information technology and financial information industry), actions of our competitors, the extent to which we are able to develop new services and markets for our services, the time and expense involved in such development activities, the level of demand and market acceptance of our services, changes in our business strategies.
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