-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, FDZjJk1gYJEzxU5aKnuezM6cjaJs1lFZ+n2FGyYVMiFmYMkRAFAo8d2h9Yx3lIzr abtCRBKXUneerzkyKkU7AQ== 0000801748-03-000020.txt : 20030811 0000801748-03-000020.hdr.sgml : 20030811 20030811145430 ACCESSION NUMBER: 0000801748-03-000020 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20030811 ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20030811 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HEMACARE CORP /CA/ CENTRAL INDEX KEY: 0000801748 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-MISC HEALTH & ALLIED SERVICES, NEC [8090] IRS NUMBER: 953280412 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-15223 FILM NUMBER: 03834274 BUSINESS ADDRESS: STREET 1: 21101 OXNARD STREET CITY: WOODLAND HILLS STATE: CA ZIP: 91367 BUSINESS PHONE: 818-226-1968 MAIL ADDRESS: STREET 1: 21101 OXNARD STREEET CITY: WOODLAND HILLS STATE: CA ZIP: 91367 8-K 1 rel8k203.txt FORM 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): August 11, 2003 HEMACARE CORPORATION (Exact Name of Registrant as Specified in its Charter) CALIFORNIA (State or other jurisdiction of incorporation) 000-15223 95-3280412 (Commission File No.) (IRS Employer Identification No.) 21101 Oxnard Street Woodland Hills, CA 91367 (Address of principal executive offices and Zip Code) Registrant's telephone number, including area code: (818) 226-1968 ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS (c) Exhibits Exhibit Number Description - -------------- ----------------------------------------------- 99.1 Press Release issued by HemaCare, dated August 11, 2003 99.2 Transcript of presentation given by Judi Irving at a conference call conducted by HemaCare Corporation on August 11, 2003 ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION On August 11, 2003, HemaCare Corporation issued a press release announcing financial results for the second quarter of 2003. A copy is attached as Exhibit 99.1 to this report and is incorporated herein by reference. On August 11, 2003, HemaCare Corporation will hold an investor conference call to discuss the financial results for the second quarter of 2003. A transcript of the presentation given by Ms. Judi Irving in the call is attached to this report as Exhibit 99.2 and is incorporated herein by reference. The information in this Current Report on Form 8-K, including the exhibits, will not be treated as "filed" for the purposes of Section 18 of the Securities and Exchange Act of 1934 (the "Exchange Act") or otherwise subject to the liabilities of that section. This information will not be incorporated by reference into a filing under the Securities Act of 1933, or into another filing under the Exchange Act, unless that filing expressly refers to specific information in this report. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date: August 11, 2003 HEMACARE CORPORATION /s/ Judi Irving ------------------------- Judi Irving, Chief Executive Officer EXHIBIT INDEX Exhibit Number Description - -------------- ----------------------------------------------- 99.1 Press Release issued by HemaCare, dated August 11, 2003 99.2 Transcript of presentation given by Judi Irving at a conference call conducted by HemaCare Corporation on August 11, 2003 EX-99 3 prq203.txt EXHIBIT 99.1 - PRESS RELEASE DATED AUGUST 11, 2003 EXHIBIT 99.1 [LOGO] N E W S R E L E A S E For Immediate Release Contact: HemaCare Corporation JoAnn Mannise, Director of Investor Relations 877-310-0717 www.hemacare.com RELEASE DATE: August 11, 2003 HEMACARE REPORTS SECOND QUARTER FINANCIAL RESULTS _____________________________________________________________________ LOS ANGELES - - - - HemaCare Corporation (OTC Bulletin Board: HEMA.OB) today announced second quarter 2003 revenue of $6,937,000, virtually unchanged as compared to the same period of 2002. Net loss in the second quarter of 2003 was $272,000, or $0.04 per share basic and diluted, compared to a loss of $19,000, or nil per share basic and diluted, in the second quarter of 2002. Second quarter results reflect continuing losses in its East Coast and Mid-West blood management programs and decreases in production volumes and higher operating costs in its California operations. Second quarter revenue increases in the Company's California Mobile Program were offset by the decrease in revenues from the Sherman Oaks platelet program and blood services. Sales volumes of the Sherman Oaks operation, which remains profitable following a conversion from a paid to volunteer program in January 2003, were approximately 70% of sales in the second quarter of the prior year. Gross margin was negatively impacted by $272,000 of losses from the Company's blood management programs opened in 2002, the reduction of platelet sales, a change in the mix of blood services, higher insurance premiums and costs related to hiring and training new employees. As a result of these factors, the Company realized a $454,000 loss before a $182,000 benefit from income taxes. Commenting on the second quarter results, Judi Irving, President and Chief Executive Officer said, "We are actively addressing the production issues in our California operations. In addition, we are evaluating the potential of our programs outside of California and determining the actions necessary to return the Company to profitability." - more - 2 HemaCare will be holding an interactive investor conference call on Monday, August 11, 2003 at 4:30 pm (Eastern Daylight Time). Judi Irving, President and CEO, will review the second quarter 2003 financial results. To participate in the call, please call 800-309-8563 and ask to join HemaCare's second quarter earnings conference call. A recording will be available immediately following the call through midnight, August 18, 2003 that can be replayed by calling 800-642-1687, ID number 1969717. A webcast of the conference call will also be available via our website (www.hemacare.com) as well as through Street Events (www.streetevents.com) and going to the Individual Investor Center. ABOUT HEMACARE CORPORATION Founded in 1978, HemaCare is a national provider of blood products and services and the only publicly traded company engaged in the blood services industry in the U.S. HemaCare is licensed by the FDA and accredited by the American Association of Blood Banks. The Company focuses on providing cost effective, high quality solutions to the blood-related needs of U.S. hospitals. This press release contains "forward-looking statements" within the meaning of the term in the Private Securities Litigation Reform Act of 1995 (Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended). Additional written or oral forward-looking statements may be made by the Company from time to time in filings with the Securities and Exchange Commission or otherwise. Statements contained herein that are not historical facts are forward-looking statements pursuant to the safe harbor provisions referenced above. Forward-looking statements are inherently subject to risks and uncertainties some of which cannot be predicted or quantified. Such risks and uncertainties include, without limi- tation, the risks and uncertainties set forth from time to time in reports filed by the Company with the Securities and Exchange Commission. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Consequently, future events and actual results could differ materially from those set forth in, contemplated by, or underlined in the forward-looking statements contained herein. The Company undertakes no obligation to publicly release any revision to these forward-looking statements made to reflect events or circumstances after the date hereof. (Financial Table Follows) HEMACARE CORPORATION CONDENSED CONSOLIDATED DATA (Unaudited)
Three Months Ended June 30, Six Months Ended June 30, 2003 2002 2003 2002 ------------- ------------ ------------ ------------ STATEMENTS OF OPERATIONS Revenues $ 6,937,000 $ 6,940,000 $13,868,000 $13,261,000 ============ ============ ============ ============ Loss before income taxes $ (454,000) $ (31,000) $ (440,000) $ (250,000) ============ ============ ============ ============ Net loss $ (272,000) $ (19,000) $ (264,000) $ (157,000) ============ ============ ============ ============ Basic and diluted per share amounts $ (0.04) $ (0.00) $ (0.03) $ (0.02) ============ ============ ============ ============ Weighted average shares outstanding - basic and diluted 7,751,060 7,611,000 7,751,060 7,601,000 ============ ============ ============ ============ June 30, 2003 December 31, 2002 -------------- ----------------- BALANCE SHEET Assets - ------ Cash and marketable securities $ 714,000 $ 1,048,000 Other current assets 5,669,000 6,424,000 Non-current assets 6,101,000 5,983,000 ------------ ------------ Total assets $12,484,000 $13,455,000 ============ ============ Liabilities and Shareholders' Equity - ------------------------------------ Current liabilities $ 4,186,000 $ 3,998,000 Long-term liabilities 475,000 1,370,000 Shareholders' equity 7,823,000 8,087,000 ------------ ------------ Total liabilities and shareholders' equity $12,484,000 $13,455,000 ============ ============
### EX-99 4 scrp203.txt EXHIBIT 99.2 - TRANSCRIPT OF CONFERENCE CALL DATED AUGUST 11, 2003 EXHIBIT 99.2 HEMACARE CORPORATION August 11, 2003, 4:30 PM (Eastern Time) 2nd Quarter Investor Conference Call Script JoAnn Mannise: - -------------- Good afternoon. My name is JoAnn Mannise, and I am the Director of Investor Relations at HemaCare. I would like to welcome everyone here today to our 2003 Second Quarter Financial Results Conference Call. With us here today is HemaCare's Chairman, Jay Steffenhagen and Judi Irving, the Company's President and Chief Executive Officer. During this call there will be forward-looking statements on a number of subjects that are based on the Company's current expectations and are subject to number of risks and uncertainties. Actual results could differ materially. Our press releases and 2002 annual report on Form 10-K as well as our SEC filings, identify factors that could affect those results. I refer you to those documents. And now I would like to introduce Judi Irving who will start with our prepared comments. Judi Irving: - ------------ I'd like to welcome all of you to today's call. The second quarter has been a difficult one for HemaCare. As we reported in the press release and 10Q, our loss for the second quarter was approximately $272,000 with year-to-date losses of $264,000. Second quarter results reflect continuing losses in our East Coast and Mid-West Blood Management Programs and decreases in production volumes and higher operating costs in our California operations. We are actively addressing the production issues in our California operations. We are evaluating the potential of our programs outside of California and determining the actions necessary to return the Company to profitability. Compared to our first quarter results, we saw some softening in our California platelet and mobile whole blood gross profits, although both of these programs remain profitable. This profit decline was due to a high rate of donor deferrals and an uptick in per unit labor costs due to a drop in collections without corresponding decreases in labor hours, and costs related to the turnover and training of staff, and insurance rate increases in the second quarter for health, workers' compensation and other insurance. Overall Sherman Oaks platelet volumes, subsequent to the transition from paid to volunteer donors as of January 1, continue to reflect retention rates of over 70% compared to the fourth quarter of last year. Our blood management programs opened in 2001 and 2002 continue to struggle. Although overall production rose in these centers, they are not meeting projections and continue to generate significant losses. Blood services generated solid results in the second quarter with approximately 1700 procedures and gross profit margins of 28%, although the total lagged behind last years' results. We have continued to focus on our marketing efforts in our two key markets of California and New York. We are closely monitoring our blood management operations. As we reported in the first quarter 10Q, we are taking steps that we believe are necessary to return the company to profitability. An important part of this process has been evaluating the potential of each business unit and determining the actions necessary to ensure a sound footing going forward. As a result, we may terminate some activities in 2003. I will now provide some specific comments on the second quarter 2003 financial results compared to the second quarter of 2002, including our balance sheet and liquidity. Our net loss for the second quarter of 2003 was $272,000, net of a tax benefit of $182,000, or $0.04 per share basic and diluted. This compares to a loss of $19,000 or nil per share basic and diluted in the second quarter of 2002. Revenues during the most recent quarter were $6.9 million, virtually unchanged from the prior year. Our gross profit margin decreased to $378,000 or 5.4% in 2003 compared to $987,000 or 14.2 % in 2002. Revenues from our blood products segment increased during the second quarter of 2003 by 7.4% to $5.1 million. These increases were driven by our California mobile program and the expansion of our blood management programs. Our gross profit margin for this segment was negative $130,000 or -2.6% in the second quarter of 2003, compared to $271,000 or 5.7% in 2002. The decrease in the gross profit percentage was mainly due to continued losses at our new blood management programs of $272,000, additional expenses for health and other insurance, costs related to the hiring and training of new employees, and a decrease in sales volume in our Sherman Oaks platelet program. Our mature blood products programs, opened prior to 2002, which includes our Sherman Oaks platelet program, provided second quarter revenues of $2.6 million in 2003 compared to $3.2 million in the same period of 2002. The decrease in revenues is mainly due to a 30% decrease in platelet collections at our Sherman Oaks program, the termination of our blood management programs at Long Beach Medical Center in August of 2002 and at the University of Irvine Medical Center in January 2003. Gross profit margin from our mature blood management programs was $27,000 or 1.1% in the second quarter of 2003, compared to $453,000 or 14.2% in the second quarter of 2002. In addition to the decrease in revenues discussed earlier, our gross profit was further affected by increased expenses associated with insurance and costs relating to the hiring and training of new recruitment and clinical staff, the inclusion of our Chicago program as a mature blood management program, and to unusually high rate of donor deferrals and aborted procedures. Our California mobile program provided quarterly revenue of $1.9 million compared to $1.3 million in the prior year, an increase of 45%. The increase in revenue reflects higher collections and better unit pricing. Our gross profit from California mobiles was $115,000 or 5.9% in 2003 compared to a loss of $38,000 in 2002 or negative 2.8%. Our gross profit, although improved from the same quarter of the prior year, was negatively impacted due to an equipment failure resulting in reduced manufacturing of fresh frozen plasma and sales of other blood components. Our new blood management programs generated $573,000 in revenues and $272,000 in losses during the second quarter of 2003 compared to $214,000 in revenues and $144,000 in losses in the second quarter of 2002. Although whole blood and platelet production for these new centers has increased 200% and 40% respectively, these volumes are not sufficient to generate operating profits. Our revenues from the blood services segment were $1.8 million, or 16% less than in the second quarter of 2002. The decrease reflects an 8% reduction in the number of procedures performed and a reduction in the average revenue per procedure, due to a change in the mix of the services and related albumin sales. The decrease in the number of procedures reflects fluctuations in demand, primarily in California. Our gross profit margin during the second quarter of 2003 was 28% of revenues compared to 33% in the same period of 2002. Our general and administrative expenses were $832,000 or 12% of revenues, in the second quarter of 2003, compared to $1,018,000 or 15% of revenues in the second quarter of 2002. The decrease of $186,000 reflects a reduction in legal and professional fees associated with the American Red Cross litigation which was settled in the latter part of 2002. This reduction was partially offset by additional expenses we incurred due to the expansion of our information technology department to support our blood bank computer system and other technological initiatives, and higher health insurance, workers' comp, and professional liability insurance premiums. As of June 30, 2003, our cash balance was $714,000 and unused availability on our line of credit was $1,550,000. Our working capital was $2.2 million. During 2003, we have reduced our debt by approximately $400,000. We also focused our efforts on accelerating the collection of our accounts receivable. As a result, we reduced the number of days to collect from 62 days at December 31, 2002, to 57 days as of the end of this quarter. That concludes our prepared remarks. We will now open the call for questions. Question and Answer Session - --------------------------- JoAnn Mannise: - -------------- I'd like to thank everyone for attending the call today and for your continued support. We look forward to your participation in our third quarter 2003 conference call. -----END PRIVACY-ENHANCED MESSAGE-----