Assure Holdings Announces Changes to Continue Streamlining Operations on Path to Becoming Cash Flow Positive from Operations
DENVER, July 14, 2022 (GLOBE NEWSWIRE) -- Assure Holdings Corp. (the “Company” or “Assure”) (NASDAQ: IONM), a provider of intraoperative neuromonitoring (“IONM”) and remote neurology services, today announced its plan to continue streamlining operations that prioritizes reaching positive operating cash flow.
The plan to becoming operating cash flow positive utilizes four key levers:
- Previous and current cash cutting measures will realize $4 million of savings on an annualized basis1. This was achieved through a trimming of the workforce, salary reductions for the management team, limiting the use of outside consultants and reducing operating expenses.
- The Company rationalized its operational footprint by withdrawing from certain low performing markets thereby enabling Assure to focus on its fast growing profitable core.
- Assure is continuing to invest in its managed care and revenue cycle management functions and tools as the Company accelerates collections and signs new in-network agreements.
- The Company is prioritizing growth resources in markets with substantial existing operational density, servicing facility-wide outsourcing agreements and entering new markets with very strong profitability profiles.
John A. Farlinger, Assure’s executive chairman and CEO, said, “We are taking a more defensive position in 2022, prioritizing becoming operating cash flow positive even if it means slightly slower growth. Our plan reduces our structural costs while funding long-term improvements that benefit the Company’s profitability. We expect that Assure’s business will be leaner and more profitable in the second half of 2022 even as we continue to progress against our objective of performing 25,000 total managed cases for fiscal year 2022, a record number representing an increase of more than 40% compared with 2021 managed case volume.”
Farlinger continued, “This realignment included some difficult decisions, but was necessary to put Assure on track for sustained success. Discontinuing operations in unprofitable markets enables us to focus on our strong, profitable core and reallocate resources to our most promising growth opportunities.”
Farlinger concluded, “Our top priority is reducing our cost structure and accelerating the process of becoming operating cash flow positive. As part of that effort, Assure has maintained its strong cash collections pace since reporting record results in the first quarter of 2022.”
1 Annualized January 2022 run-rate expenses will be reduced by an excess of $4 million dollars.
About Assure Holdings
Assure Holdings Corp. is a best-in-class provider of outsourced intraoperative neuromonitoring and remote neurology services. The Company delivers a turnkey suite of clinical and operational services to support surgeons and medical facilities during invasive procedures that place the nervous system at risk including neurosurgery, spine, cardiovascular, orthopedic and ear, nose and throat surgeries. Assure employs highly trained technologists that provide a direct point of contact in the operating room. Physicians employed through Assure subsidiaries simultaneously monitor the functional integrity of patients’ neural structures throughout the procedure communicating in real-time with the surgeon and technologist. Accredited by The Joint Commission, Assure’s mission is to provide exceptional surgical care and a positive patient experience. For more information, visit the company’s website at www.assureneuromonitoring.com.
This news release may contain “forward-looking statements” within the meaning of applicable securities laws, including, but not limited to comments with respect to: our ability to achieve positive operating cash flow and profitability on an accelerated timeline, the potential benefits of the strategic actions in decreasing cash costs, the Company’s business being leaner and more profitable in the second half of 2022, continued progress against the Company’s goal of performing 25,000 total managed cases, the effect of discontinuing operations in unprofitable markets and expectations with respect to the Company’s growth and development and the quality and results of future services. Forward-looking statements may generally be identified by the use of the words "anticipates," "expects," "intends," "plans," "should," "could," "would," "may," "will," "believes," "estimates," "potential," "target," or "continue" and variations or similar expressions. These statements are based upon the current expectations and beliefs of management and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties include, but are not limited to: the uncertainty surrounding the spread of COVID-19 and the impact it will have on the Company’s operations and business, its remote neurology business, and economic activity in general; and risks and uncertainties discussed in our most recent annual and quarterly reports filed with the United States Securities and Exchange Commission, including our annual report on Form 10-K filed on March 14, 2022, and available on the Company’s EDGAR profile at www.sec.gov, which risks and uncertainties are incorporated herein by reference. Except as required by law, Assure does not intend, and undertakes no obligation, to update any forward-looking statements to reflect, in particular, new information or future events.
Scott Kozak, Investor and Media Relations
Assure Holdings Corp.
Released July 14, 2022