Message #17 From:
NewsBot Date: November 20, 2007 06:36:41 AM
National Health Partners Announces Letter to Shareholders
National Health Partners, Inc. (OTCBB:NHPR),
a leading provider of unique discount healthcare membership programs,
announced today that it will be providing a letter to its shareholders
of record. The text of this letter is provided below.
To our stockholders:
It has been a remarkable year thus far for National Health Partners. Our
revenue and gross profits have soared, our net loss has almost
disappeared, we’ve diversified our CARExpress
program offering, we have begun creating a direct sales force, and we
have signed agreements with some major business partners. I would like
to take this opportunity to discuss our recent accomplishments and our
exciting plans for the next 12 months.
Industry Update
The U.S. healthcare crisis continues to drive demand for our programs.
More and more companies and organizations are turning to the discount
healthcare market for solutions to the healthcare crisis because it is
simply too expensive for them to provide adequate health benefits to
their employees and members. Consider the following data from the U.S.
Department of Commerce and the National Coalition on Healthcare:
15.9% of all Americans, or 46.6 million people, were without health
insurance coverage in 2005, up from 15.6% of all Americans, or 45.3
million people, in 2004, an increase of 1.3 million people, and an
additional 61 million people are underinsured;
more than 40% of small businesses do not offer employer-sponsored
health coverage
premiums for employer-sponsored health coverage are expected to
increase from $7,000 per year in 2001 to $17,000 per year in 2011
the average cost of family coverage is now nearly $11,480 per year,
including workers contributions of nearly $2,973.
This data, while tragic, provides the underpinnings for the unique
opportunity that we are pursuing: the provision of unique and affordable
healthcare solutions.
CARExpress
CARExpress has become one of the most recognized names in the discount
healthcare market and is one of the fastest growing companies in the
healthcare industry. There are several reasons why consumers are turning
to us rather than our competitors. First, our CARExpress health savings
network is the largest in the industry. We have over 1,000,000
participating providers available to our members through our agreements
with CareMark, Aetna, Optum, Outlook Vision, Integrated Health, Three
Rivers, International Med-Care and HealthFi International –
some of the largest and most prestigious national medical networks in
the country. Second, we have begun offering new membership programs
under the name “CARExpress Plus”
that are comprised of our CARExpress health discount programs and
limited liability insurance benefits underwritten by one of the world’s
largest insurance companies. And third, we provide a level of customer
service that is unmatched in our industry. We have a full team of
primarily bilingual individuals who provide outstanding service to our
members. The culture that we have created at the company is inspiring to
all people who work there.
2007 Financial Results
Our 2007 financial results have been outstanding. Revenue for the
nine-month period ended September 30, 2007 increased almost 210% to
$3,250,182 from $1,052,473 for the nine-month period ended September 30,
2006, and the company’s gross profit increased
over 1,350% to $1,212,579 for the nine-month period ended September 30,
2007 compared to $83,455 for the nine-month period ended September 30,
2006. In addition, our net loss per share has decreased over 70% to
$(0.06) for the nine months ended September 30, 2007 from $(0.22) for
the nine months ended September 30, 2006. These numbers show substantial
improvement in all of our financial metrics and represent a tremendous
achievement for our employees and shareholders.
Our performance this past year is not the by-product of a one-year spike
in growth or a market anomaly. It is the result of effective planning,
work and dedication to delivering our members program innovations that
differentiate National Health Partners from the marketplace and will
enable us to continue to develop relationships with more and more small
businesses, associations and other organizations.
Where We Are Heading
We are in the process of transforming National Health Partners into a
truly unique and diverse health discount company. We will be turning the
company into a comprehensive, full service health discount organization –
something that none of our competitors have achieved or attempted.
We recently entered into an agreement with Internet Coupon Exchange that
will make coupons and rebates available to our members for all kinds of
prescription drugs and over-the-counter medications. These are not minor
coupons and rebates – they are significant
(currently averaging about $9 each). Not only does this provide a
substantial incentive for someone to join CARExpress and remain a member
(as the amount of the rebates alone can pay for the cost of a membership
for a family of four), but it provides us with an additional revenue
stream. Each time a coupon or rebate is used, we receive a fee. In
addition, we recently entered into an agreement with Swanson Health
Products through which our members will receive 10% off the cost of
Swanson vitamins and nutritional supplements purchase through our
website.
We will be entering into agreements with many more companies through
which we will make a variety of healthcare-related products and services
available to our members at discounted prices. In some cases these
agreements will provide additional revenue-sharing opportunities to us.
In all cases, they will provide tremendous ancillary benefits to our
members that will keep our members coming back to our website. We also
intend to enter into an agreement to provide our membership with access
to a world-class health and wellness website. They will be able to
access all kinds of health and wellness related information and purchase
related products and services at discounted prices. The more reasons our
members have to use our website and the benefits of our various
programs, the longer they will remain a member of ours.
We are also in the process of changing the mix of business partners with
whom we work. In the past, we used a variety of marketing companies to
sell our CARExpress programs to consumers. This was costly financially
and produced members with very lower retention rates. Our efforts are
now focused exclusively on entering into agreements with small
businesses, associations, unions, chambers of commerce and related
organizations, as well as insurance brokers and agents. We recently
announced agreements with TotalHR, Inc., a leading provider of employee
leasing and employment services and Consultancy Services International,
Inc. (CSI), a leading insurance agency that designs, implements and
administers employee benefit programs by such companies. We are
currently in discussions with a number of small business groups,
associations and employee leasing companies, including Hispanic chambers
of commerce, some union groups, an association that will be making our
membership programs available to tens of thousands of households per
year and that may purchase our membership programs for each of its
members. Through organizations such as these, we gain access to a large
number of uninsured or underinsured people who genuinely need our
programs and will want to remain a CARExpress member for a long period
of time.
While the majority of the business opportunities that we are pursuing
have been spearheaded by our incumbent management, many of these
opportunities are being generated by Frederick Wolf. We recently
announced the hiring of Fred earlier this month and he is already
producing a substantial number of opportunities for us. Fred has
relationships in place with the types of associations and organizations
that we are targeting, which is of the utmost importance for us to be
able enter into deals with them. We intend to seek other people like
Fred who may be able to join our company and assist us in pursuing even
more of these opportunities.
Outlook for 2008
As we continue to generate monthly recurring revenue from our
fast-growing membership base and expanding program offerings, we expect
2008 to be the fourth consecutive year for which we have achieved
year-over-year revenue growth of over 200%. We expect to begin
generating positive cash flow from operating activities and net profits
from operations during the first half of 2008. Once we achieve these
results, we will submit an application to have our common stock listed
on the NASDAQ or AMEX.
We are performing exceptionally well and have achieved our remarkable
results in the face of various crises that have enveloped the company at
different times during the year. We are working diligently to achieve
our goal of increasing stockholder value and believe we have made the
right investments in the people, programs and partnerships to allow us
to grow quickly and efficiently in 2008. Our stock is currently trading
at price-to-sales ratio of less than 3, which is an incredibly low
valuation for a high-growth company like us. Most high-growth companies
trade at a substantially higher price-to-sales ratio. We believe the
price of our stock will increase substantially as it reflects the growth
that we are experiencing and the results that we are generating.
I would like to express my appreciation to our shareholders for all of
the support they have provided to the company and its management team
and for the patience they have displayed as long-term investors. We are
accomplishing something very special and it is our goal to make sure
that our shareholders reap the benefits of our success.
On behalf of our entire team, we thank you for your continued support
and confidence in National Health Partners.
Sincerely,
/s/ David M. Daniels
David M. Daniels
President & Chief Executive Officer
This letter contains "forward-looking statements" within the meaning
of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. All statements
other than statements of historical fact contained herein, including,
without limitation, statements regarding the company's future financial
position, business strategy, budgets, projected revenue and costs, and
plans and objectives of management for future operations, are
forward-looking statements. Forward-looking statements generally can be
identified by the use of forward-looking terminology such as "may,"
"will," "expects," "intends," "plans," "projects," "estimates,"
"anticipates," or "believes" or the negative thereof or any variation
thereon or similar terminology or expressions. Forward-looking
statements are subject to risks and uncertainties that could cause
actual results to differ materially from results proposed in such
statements. Although the company believes that the expectations
reflected in such forward-looking statements are reasonable, it can
provide no assurance that such expectations will prove to have been
correct. Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date made. Except
as required by law, the company assumes no obligation to update or
revise any of the information contained in this letter.
National Health Partners, Inc. is a national healthcare savings
organization that provides discount healthcare membership programs to
uninsured and underinsured people through a national healthcare savings
network called “CARExpress.”
CARExpress is one of the largest networks of hospitals, doctors,
dentists, pharmacists and other healthcare providers in the country and
is comprised of over 1,000,000 medical professionals that belong to such
PPOs as CareMark and Aetna. The company’s
primary target customer group is the 47 million Americans who have no
health insurance of any kind. The company’s
secondary target customer group includes the 61 million Americans who
lack complete health insurance coverage. The company is headquartered in
Horsham, Pennsylvania. For more information on the company, please visit
its website at www.nationalhealthpartners.com.
Safe Harbor Provision
This press release contains “forward-looking
statements” within the meaning of Section 27A
of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. All statements other than
statements of historical fact contained herein, including, without
limitation, statements regarding the company’s
future financial position, business strategy, budgets, projected
revenues and costs, and plans and objectives of management for future
operations, are forward-looking statements. Forward-looking statements
generally can be identified by the use of forward-looking terminology
such as “may,” “will,”
“expects,” “intends,”
“plans,” “projects,”
“estimates,” “anticipates,”
or “believes” or
the negative thereof or any variation thereon or similar terminology or
expressions. Forward-looking statements are subject to risks and
uncertainties that could cause actual results to differ materially from
results proposed in such statements. Although the company believes that
the expectations reflected in such forward-looking statements are
reasonable, it can provide no assurance that such expectations will
prove to have been correct. Important factors that could cause actual
results to differ materially from the company’s
expectations include, but are not limited to, its ability to fund future
growth and implement its business strategy, its ability to develop and
expand the market for its CARExpress membership programs, demand for and
acceptance of its CARExpress membership programs, its dependence on a
limited number of preferred provider organizations and other provider
networks for healthcare providers, as well as those factors set forth in
the company’s most recently filed
post-effective amendment to its registration statement on Form SB-2 and
its other filings and submissions with the Securities and Exchange
Commission. Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date made. Except
as required by law, the company assumes no obligation to update or
revise any of the information contained in this press release.
