Inspira Financial Inc. Releases Quarterly Results; Update on Loan Book and Operations
(firmenpresse) - WALNUT CREEK, CALIFORNIA -- (Marketwired) -- 10/29/15 -- Inspira Financial Inc. (TSX VENTURE: LND) ("Inspira") today announced results from the quarter ending August 31st, 2015.
After securing more than $25 million in public equity financing, as well as debt financing privately and through the issuance of public debentures, Inspira launched full operations in February 2015 into the fragmented marketplace of small companies in the large and growing market for alternative financial services offered to healthcare providers and their patients across the United States.
Inspira's initial product offering addresses the needs of a $1 trillion market of small healthcare providers across the U.S. Inspira currently offers several types of financing options for small businesses in the industry, including:
Financial and Business Highlights:
"Since we finalized our financing we have been able to ramp our loan book quickly with a very small, but focused, team," said David Costine, CEO of Inspira. "In just seven months we've built a loan book of over $50 million and generated an operational profit of $465,000 just this quarter," continued Mr. Costine. "Our annuity stream revenue gives me confidence that our quarter-over-quarter growth will remain strong and we continue to invest heavily in origination partners as well as internal staff and are seeing these investments pay off as we increase our growth rate every quarter to achieve our goal of a $500 million loan book."
"We're starting to develop good momentum in several areas in this market," continued Mr. Costine. "Our primary focus continues to be lines of credit in the million dollar range with yields as high as 18% and our strategy of offering small, introductory loans to catalyze our loan book as well as larger, short-term loans to generate strong cash flows appear to be working. As we grow, we expect to continue broadening our offerings and have recently ramped up our efforts to identify accretive acquisitions that can move our loan book size to over $100 million."
About Inspira Financial and the Fast Growing Market
The healthcare market in the U.S. is a rapidly expanding industry, with spending expected to exceed $4.5 trillion by 2020. Within this industry, over 1 million businesses have annual revenues in the $1 million to $50 million range. The emerging reimbursement trend towards more usage-based procedures, along with the fact that healthcare providers are being forced to increase patient volumes to maintain or grow profit levels, creates a need for increased efficiency and greater front-end investment in technology and larger staff sizes. These factors, as well as the realities that insurance providers are taking longer to pay than before and that patients are now bearing increased financial responsibility for medical bills, contribute to significant financial pressure and net working capital challenges for the average, smaller sized healthcare practice in the U.S.
Overall, traditional banks continue to reduce their risk profiles, term lenders require personal guarantees and first security over all assets, factoring lenders charge 25%+ annual interest and equipment providers have all but eliminated financing programs. The increasingly limited number of options for obtaining revolving lines of credit and loans for smaller healthcare providers creates a supply shortage in the market. This imbalance represents an opportunity for alternative lending companies catering to this demographic to capitalize upon. By targeting the 1 million+ healthcare providers in the U.S., Inspira believes it can generate high returns on government (Medicare/Medicaid) and large healthcare insurance receivables. Inspira plans to acquire debt and increase profitability through cross selling of financial services.
Information in this news release that is not current or historical factual information may constitute forward-looking information within the meaning of securities laws, including Inspira's ability to generate varying yields, achieve a $500 million loan book, close acquisitions, and broaden its product offerings. Implicit in this information, particularly in respect of the future outlook of Inspira and anticipated events or results, are assumptions based on beliefs of Inspira's senior management as well as information currently available to it. While these assumptions were considered reasonable by Inspira at the time of preparation, they may prove to be incorrect. Readers are cautioned that actual results are subject to a number of risks and uncertainties, including the availability of funds and resources to pursue acquisitions, dependence on debt markets and interest rates, demand for the lending products Inspira offers at interest rates higher than at which Inspira can borrow, a novel business model, default risk and ability to collect from the borrows, granting of permits and licenses in a highly regulated business, competition, low profit market segments as well as general economic, market and business conditions, and could differ materially from what is currently expected.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Inspira Financial, Inc.
Dennis Wilson
1 (844) 877-7562
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Datum: 29.10.2015 - 13:00 Uhr
Sprache: Deutsch
News-ID 430464
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