Pacific Health Care Organization, Inc. Reports its 2021 Year-End Financial Results

Rhea-AI Summary

Pacific Health Care Organization (OTCQB: PFHO) announced its annual financial results for the fiscal year ended December 31, 2021. Total revenue decreased to $5,403,110 from $6,042,718 in 2020. Net income rose to $995,020 or $0.08 per share, compared to $549,570 or $0.04 per share in the previous year. Significant income was recognized from forgiven PPP loans totaling $684,785. However, net cash provided by operating activities fell by 39% to $386,391. Cash at year-end increased to $10,085,372.

Positive

• Net income increased to $995,020, or $0.08 per share, from $549,570, or $0.04 per share in 2020.
• Forgiveness of PPP loans resulted in $684,785 in other income, boosting overall financial performance.
• Year-end cash position improved to $10,085,372 from $9,498,457.

Negative

• Total revenue decreased by 10.6% from $6,042,718 in 2020 to $5,403,110 in 2021.
• Net cash provided by operating activities decreased by 39% from $987,441 in 2020 to $386,391 in 2021.
• Expectations of reduced other income in future periods due to lack of further forgivable loans.

Newport Beach, April 14, 2022 (GLOBE NEWSWIRE) -- Pacific Health Care Organization, Inc., (the “Company”) (OTCQB: PFHO) today filed with the Securities and Exchange Commission (the “Commission”) its annual report on Form 10-K announcing financial results for the fiscal year ended December 31, 2021.

Results

The Company reported total revenue of $5,403,110  for the year ended December 31, 2021, compared to $6,042,718 for the year ended December 31, 2020. The Company reported net income of $995,020 or $0.08 per basic and fully diluted shares for the year ended December 31, 2021, compared to net income of $549,570 or $0.04 per basic and fully diluted share for the year ended December 31, 2020.

In February 2021 the principal and interest on the Paycheck Protection Program (“PPP”) loans in the aggregate amount of $460,700 (the “first draw PPP loans”) issued to PHCO, MMC and MMM in April and May 2020 were forgiven in full.  In December 2021 the principal and interest on the section 311 of the Economic Aid Act Paycheck Protection Program Second Draw Loans in the amount of $218,900 (the “second draw PPP loan”) issued to MMM in April 2021 were also forgiven in full. As a result, we realized income from paycheck protection loan forgiveness of $684,785 and loan interest expense from paycheck protection loans of $5,185 during the year ended December 31, 2021, resulting in total other income during 2021 of $679,600. During the year ended December 31, 2020, we realized no other income (expense). We do not expect there to be further similar forgivable loans in future periods and as a result, we expect other income (expense) to be significantly less in future periods than during the year ended December 31, 2021.

Net cash provided by operating activities was $386,391  during the year ended December 31, 2021, compared to $987,441 for the same period in 2020, a decrease of $601,050 or 39% percent.  During the year ended December 31, 2021, net cash used in investing activities decreased to $18,376 from $53,848 during the year ended December 31, 2020.  Net cash provided by financing activities during the year ended December 31, 2021, was $218,900 compared to $460,700 during the year ended December 31, 2020.  Cash at December 31, 2021 and 2020, was $10,085,372 and $9,498,457, respectively.

About Pacific Health Care Organization, Inc.

The Company specializes in workers’ compensation cost containment.  The Company’s business objective is to deliver value to its clients that reduces their workers’ compensation related medical claims expense in a manner that will assure that injured employees receive high quality healthcare that allows them to recover from injury and return to gainful employment without undue delay.  Workers’ compensation costs continue to increase due to rising medical costs, inflation, fraud and other factors.  Medical and indemnity costs associated with workers’ compensation in the state of California, where the Company maintains its principal operations, are billions of dollars annually.  Through its wholly owned subsidiaries, the Company provides a range of effective workers’ compensation cost containment services, including but not limited to, Health Care Organizations, Medical Provider Networks, medical case management, utilization review, medical bill review, workers’ compensation carve-outs and Medicare set-aside services. We also provide lien representation and expert witness testimony, ancillary to our other services. We offer our services as a bundled solution, as standalone services, or as add-on services.

“Safe Harbor” Statement: Statements included in this press release, other than statements or characterizations of historical fact, are forward-looking statements.  Forward-looking statements are based on management’s current judgment, expectations, estimates, projections and assumptions about future events.  While management believes these assumptions are reasonable, such statements are not guarantees of future results and involve certain risks and uncertainties which are difficult to predict.  Therefore, actual results and trends may differ materially from what is forecast in any forward-looking statement due to a variety of factors.  Additional information regarding these factors, such as the potential loss of one or more key customers or the impacts of the COVID-19 pandemic on our business and results of operations, is contained in the Company’s filings with the Commission, including without limitation, its annual reports on Form 10-K and its quarterly reports on Form 10-Q.    

All forward-looking statements speak only as of the date they were made.  The Company does not undertake any obligation to update or publicly release any revisions to any forward-looking statements to reflect events, circumstances or changes in expectations after the date of this press release.

To view the Company’s annual report on Form 10-K for the year ended December 31, 2021, filed with the Commission today and the Company’s annual, quarterly and current reports and other information the Company files with or furnishes to the U.S. Securities and Exchange Commission go to:  http://www.sec.gov. You may also view our annual reports on Form 10-K and our quarterly reports on Form 10-Q on our website at http://www.pacifichealthcareorganization.com .

FAQ

What were the total revenues for Pacific Health Care Organization (PFHO) in 2021?

Pacific Health Care Organization reported total revenues of $5,403,110 for the fiscal year ended December 31, 2021.

How did PFHO's net income for 2021 compare to 2020?

PFHO's net income for 2021 was $995,020, which is an increase from $549,570 in 2020.

What is the cash position of PFHO at the end of 2021?

At the end of 2021, PFHO had a cash position of $10,085,372, up from $9,498,457 in 2020.

What impact did PPP loan forgiveness have on PFHO's financial results?

PFHO recognized $684,785 in other income from the forgiveness of PPP loans, which significantly boosted its financial performance.

What challenges is PFHO facing in future financial periods?

PFHO expects reduced other income in future periods due to the lack of additional forgivable PPP loans.