IMAC Holdings Reports Third Quarter 2021 Financial Results and Provides Corporate Update

BRENTWOOD, Tenn., Nov. 10, 2021 (GLOBE NEWSWIRE) -- IMAC Holdings, Inc. (Nasdaq: IMAC) (“IMAC” or the “Company”), a provider of innovative medical advancements and care specializing in regenerative rehabilitation orthopedic treatments without the use of surgery or opioids, today announces financial results for the third quarter ended September 30, 2021.

Financial Highlights from 3Q2021 (all comparisons are with the quarter ended September 30, 2020, unless otherwise indicated):

• Total revenue was $3.49 million, compared with $3.48 million
• Total patient visits at IMAC Centers were up 10% to 43,451, compared to 39,345
• Net loss was $1.7 million, or a loss of $0.07 per share, compared with a net loss of $1.4 million, or a loss of $0.12 per share
• Cash as of September 30, 2021, was $11.2 million compared to $2.6 million as of December 31, 2020
• Notes payable fell to $1.2 million, compared with $4.5 million as of December 31, 2020
  

Recent Corporate Highlights:

• Purchased Louisiana Orthopaedic & Sports Rehab Institute in Baton Rouge, Louisiana
• Formed The Back Space, a wholly owned subsidiary, operating retail spine care centers within Walmart stores. The Back Space opened more clinics in Nashville-area Walmart stores, with additional locations in the Orlando and St. Louis markets also expected to be opened as part of the initial pilot program
• Launched its dedicated acute injury service line as well as a toll-free hotline for around-the-clock access to schedule patients with acute sports, accident, and work-related injuries at IMAC Centers in Florida, Illinois, Kentucky, Missouri, Tennessee, and Louisiana
• Initiated the second cohort of its Phase 1 clinical trial for its investigational compound utilizing umbilical cord-derived allogenic mesenchymal stem cells for the treatment of bradykinesia due to Parkinson’s disease

“Our third quarter performance was marked by execution of strategic corporate initiatives. We made progress on the operational infrastructure and early launch of The Back Space concept, with retail healthcare centers in Walmart locations specializing in chiropractic and spinal care services. The initial ten-store pilot program will continue to open stores in the fourth quarter, including those in the Orlando and St. Louis markets. The Back Space is an important segment for us, and while its current impact to our financial picture is limited, positioning convenient and affordable chiropractic and general spinal care in a retail setting is an opportunity we plan to continue actively pursuing.

“It is also worth noting that the financial health of our balance sheet offers us flexibility and the opportunity to pursue both our medical clinic business as well as the Back Space retail clinic service lines. At the end of the third quarter, our cash was over $11 million, our notes payable had been whittled down to just over $1 million, and our working capital position was over $8 million. We have the capital necessary to execute our strategic growth objectives.

“The third quarter was certainly not without its challenges, however. The delta variant of COVID contributed to a market-specific decline in our core medical clinic operations in western Kentucky, an area that was intensely affected by the delta variant over the summer months, resulting in a decline of nearly 1,900 patient visits from the comparable quarter for that market. Nonetheless, we still experienced a 10% rise in total patient visits in the quarter to 43,451.

“In closing, I certainly want to thank all of our shareholders for their confidence in the IMAC team, and we look forward to updating investors as our strategic objectives are implemented,” concluded Mr. Ervin.

Results of Operations for the Three Months Ended September30, 2021 Compared to the Three Months Ended September 30, 2020

• Total revenue increased from $3.48 million in the 2020 period to $3.49 million in the 2021 period. The prevalence of the delta variant of COVID in the third quarter of 2021 in the Company’s key markets negatively impacted results
• The increase in total operating expenses from $4.8 million in the third quarter of 2020 to $6.3 million in the third quarter of 2021 was driven predominantly by:
  • an increase in salaries and benefits (+$755,000 YOY) due to the addition of new employees in 2021 with acquisitions and launch of The Back Space as compared to the reduction in workforce due to the onset of the COVID pandemic in 2020
  • an increase in general and administrative expenses (+641,000 YOY) due to increased collection, rent, and clinical expenses impacted by acquired clinics
• Net loss attributable to IMAC Holdings was $1.7 million, or ($0.07) per share, in the third quarter of 2021 versus a net loss off $1.4 million, or ($0.12) per share, in the year-ago period
• Cash at September 30, 2021 was $11.2 million, compared to $2.6 million at December 30, 2020

About IMAC Holdings, Inc.

IMAC Holdings owns and manages health and wellness centers that deliver sports medicine, orthopedic, and life science therapies for movement restricting diseases. IMAC is comprised of three business segments: outpatient medical centers, The Back Space, and a clinical research division. With treatments to address the aging population, IMAC Holdings owns or manages 18 outpatient medical clinics and has partnered with several active and former professional athletes, including Ozzie Smith, David Price, Mike Ditka, and Tony Delk, to promote a minimally invasive approach to sports medicine. IMAC’s The Back Space retail spine health and wellness treatment centers deliver chiropractic care within Walmart locations. IMAC’s research division is currently conducting a Phase I clinical trial evaluating a mesenchymal stem cell therapy candidate for bradykinesia due to Parkinson’s disease. For more information visit www.imacholdings.com.

Safe Harbor Statement

This press release contains forward-looking statements. These forward-looking statements, and terms such as “anticipate,” “expect,” “believe,” “may,” “will,” “should” or other comparable terms, are based largely on IMAC's expectations and are subject to a number of risks and uncertainties, certain of which are beyond IMAC's control. Actual results could differ materially from these forward-looking statements as a result of, among other factors, risks and uncertainties associated with its ability to maintain and grow its business, the variability of its operating results, its ability to maintain and enhance its brand, its development and introduction of new products and services, the successful integration of acquired companies, technologies and assets, marketing and other business development initiatives, competition in the industry, general government regulation, economic conditions, dependence on key personnel, the ability to attract, hire and retain personnel who possess the skills and experience necessary to meet customers’ requirements, and its ability to protect its intellectual property. IMAC encourages you to review other factors that may affect its future results in its public filings with the Securities and Exchange Commission. In light of these risks and uncertainties, there can be no assurance that the forward-looking information contained in this press release will in fact occur. More information about IMAC Holdings, Inc. is available at www.imacregeneration.com

IMAC Press Contact:
Laura Fristoe
lfristoe@imacrc.com

Investors:
Bret Shapiro
(516) 222-2560
brets@coreir.com

Financial Tables Follow

IMAC HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)

IMAC HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

IMAC HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)