-----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, SKxOj1BCAHo1qUVUTXVlrg2usrTN49iYHvycIJRO9MTac/Cqqv43pygNy1YmxyqO kt5FAZgK7EkBmJnEKstO1A== 0000801748-04-000006.txt : 20040513 0000801748-04-000006.hdr.sgml : 20040513 20040513151221 ACCESSION NUMBER: 0000801748-04-000006 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20040513 ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20040513 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: 04802651 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 rel8k1q.txt FORM 8-K DATED MARCH 13, 2004 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): May 13, 2004 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 May 13, 2004 99.2 Transcript of the presentations given by Judi Irving, CEO, and Robert S. Chilton, CFO,at a conference call conducted by HemaCare Corporation on May 13, 2004 ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION On May 13, 2004, HemaCare Corporation issued a press release announcing financial results for the third quarter of 2003. A copy is attached as Exhibit 99.1 to this report and is incorporated herein by reference. On May 13, 2004, HemaCare Corporation held an investor conference call discussing the financial results for the third quarter of 2003. A transcript of the presentations given by Ms. Judi Irving, CEO, and Robert S. Chilton, CFO, 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: May 13, 2004 HEMACARE CORPORATION /s/ Robert S. Chilton ------------------------- Robert S. Chilton Chief Financial Officer EXHIBIT INDEX Exhibit Number Description - -------------- ----------------------------------------------- 99.1 Press Release issued by HemaCare, dated May 13, 2004 99.2 Transcript of the presentations given by Judi Irving, CEO, and Robert S. Chilton, CFO, at a conference call conducted by HemaCare Corporation on May 13, 2004 EX-99.1 2 pr1q04.txt PRESS RELEASE DATED MARCH 13, 2004 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: May 13, 2004 HEMACARE REPORTS FIRST QUARTER FINANCIAL RESULTS ______________________________________________________________________ LOS ANGELES - - - - HemaCare Corporation (OTC Bulletin Board: HEMA.OB) today announced first quarter 2004 results of operations that resulted in a profit of $246,000, or $0.03 per share basic and diluted, on revenue of $6,736,000. This represents the second consecutive profitable quarter since the implementation of management's restructuring plan in the third quarter of 2003. The restructuring plan closed several non-performing donor centers, principally located in the eastern United States. All of the donor centers that were not part of the restructuring plan experienced increased sales volumes and revenue in the first quarter of 2004, compared with the same period in 2003. Revenue in the first quarter of 2004 was 2.8% less than the $6,931,000 reported in the same period of 2003. Blood products revenue decreased $101,000 to $4,845,000, or 2.0%, as a result of the elimination of revenue generated by operations closed as part of the restructuring plan. Blood products revenue from ongoing donor centers increased $678,000, or 16.5%, from $4,102,000 reported in the first quarter of 2003. Blood services revenue in the quarter decreased $94,000, or 4.7%, to $1,891,000 as a result of a decrease in the number of therapeutic apheresis procedures performed, primarily in the New York market, and as a result of the closure of the Company's operations in Illinois, North Carolina, Pennsylvania and Tennessee in 2003. The first quarter results produced a gross profit of $1,431,000 compared with a gross profit of $1,000,000 for the same period in 2003. The gross profit percentage in the quarter increased to 21.2% from 14.4% for the same period in 2003. This improvement in gross profit is the result of increases in product prices and increased operational efficiencies realized from higher volumes. The Company has taken steps to improve prices on blood products as part of the renewal of the Company's hospital blood supply - more - contracts. Operational efficiencies resulting from higher volumes at the ongoing donor centers is one of the benefits from the current strategy to grow sales volume at existing facilities rather than from opening new donor centers. Commenting on the first quarter results, Judi Irving, President and Chief Executive Officer, stated, "We are very pleased to report our second consecutive profitable quarter. We are especially pleased that our efforts to focus the organization on growing sales volumes at our ongoing donor centers has produced higher revenues from all of our centers when compared with last year. We believe the successful implementation of our restructuring plan has helped to eliminate many of the distractions that has hindered management's ability to concentrate on the key drivers in our business. We plan to solidify our improvement in revenue and take further steps to improve operational efficiency. We can now dedicate our full attention to strategies that generate revenue and improved profit margins for our remaining business activities." HemaCare further announced the execution of an amendment to the existing credit agreement with Comerica Bank that extended the term of the line of credit to June 30, 2005, and revised the financial covenants to levels more favorable to the Company. As of March 31, 2004, the Company was in full compliance with the revised covenants. Finally, HemaCare also announced the termination of the donor center management contract with Presbyterian Intercommunity Hospital, located in Whittier, California, in the second quarter of 2004. The Company recorded revenues of $555,000 as a result of this contract in 2003, and $165,000 in the first quarter of 2004. HemaCare will be holding an interactive investor conference call on Thursday, May 13, 2004 at 1:00 pm (Eastern Daylight Time). Judi Irving, President and CEO, and Robert Chilton, Executive Vice President and CFO, will review the first quarter 2004 financial results. To participate in the call, please call 800-309-8563 and ask to join HemaCare's first quarter earnings conference call. A recording will be available two hours following the call through midnight, May 18, 2004 that can be replayed by calling 800- 642-1687, ID number 7271110. ABOUT HEMACARE CORPORATION Founded in 1978, HemaCare is a national provider of blood products and services, and is believed to be the only publicly traded company engaged in the blood industry in the United States. 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 and others. 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 limitation, 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. - more - HemaCare Corporation Condensed Consolidated Data (Unaudited)
Three Months Ended March 31, 2004 2003 ------------ ----------- Statements of Operations: Revenues $6,736,000 $6,931,000 Gross profit $1,431,000 $1,000,000 Income before income taxes $ 246,000 $ 14,000 Provision (benefit) for income taxes $ 0 $ 6,000 ___________ ___________ Net income $ 264,000 $ 8,000 =========== =========== Basic and diluted per share amounts $ 0.03 $ 0.00 =========== =========== Weighted average shares outstanding - basic 7,756,000 7,751,000 =========== =========== Weighted average shares outstanding - diluted 7,947,000 7,834,000 =========== ===========
March 31, 2004 ------------ Balance Sheets Assets - ------ Cash and marketable securities $ 911,000 Other current assets 4,323,000 Non-current assets 3,180,000 ----------- Total assets $8,414,000 =========== Liabilities and Shareholders' Equity - ----------------------------- Current liabilities $3,471,000 Long-term liabilities 1,286,000 Shareholders' equity 3,657,000 ----------- Total liabilities and shareholders' equity $8,414,000 ===========
### EX-99.2 3 scrptq1.txt TRANSCRIPT OF THE PRESENTATION FOR THE MARCH 13, 2004 INVESTOR CONFERENCE CALL EXHIBIT 99.2 1st Quarter 2004 Results 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 first quarter 2004 Financial Results Conference Call. With us here today is Judi Irving, HemaCare's President and Chief Executive Officer, and Robert Chilton, Executive Vice President and Chief Financial 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 various risks and uncertainties. Actual results could differ materially. Our press releases and quarterly reports on Form 10-Q, as well as our other SEC filings, identify factors that could affect those results. I refer you to those documents. We do not undertake to update forward-looking statements to reflect later events and circumstances or actual outcomes. And now I would like to introduce Judi Irving who will start with our prepared comments. Judi Irving: - ------------ Thank you, JoAnn. Welcome to all of you. Today we announced our financial results for the first quarter ended March 31, 2004. We reported net income of $246,000, which represents our second consecutive quarter of profitable results. Our improved performance reflects our attention to generating increased sales at our ongoing facilities now that we have eliminated the distractions associated with our recently closed facilities. As of January 2004, we successfully completed the restructuring plan that we began implementing in the third quarter of 2003. We can now dedicate our full attention to those strategies that generate greater revenue and improved profit margins for our remaining business activities. As a result of the implementation of our restructuring plan, and the related closure of specific business units, revenue declined $195,000 to $6,736,000 in the first quarter of 2004 when compared to the same period in 2003. However, our remaining blood product collection facilities reported a sizeable revenue gain of $678,000, or 16.5%, to $4,780,000 compared with the first quarter of last year. This positive result contributed to the generation of $246,000 of net income for the quarter compared with $8,000 of net income for the same period in 2003. Although we are pleased with our recent results, we continue to work on delivering consistent operating results. The nature of our business is such that both seasonal and unpredictable fluctuations in demand and availability of donor products, may significantly impact our operating results. Our goal is to strengthen our business model to minimize these fluctuations in the future. Complicating this objective is the scheduled termination of our donor center management contract with Presbyterian Intercommunity Hospital in the second quarter of 2004. However, we feel confident that we can meet these challenges and continue the progress we have started. I would like to now turn the call over to Bob Chilton, who will review the operating results in more detail. Bob Chilton: - ------------ Thank you, Judi. I would like to provide some additional detail information regarding the financial results we announced earlier today. As Judi mentioned, HemaCare's first quarter results produced net income of $246,000, or $.03 per share basic and diluted, compared with $8,000 for the first quarter of 2003. One of the main reasons for this positive result is the fact that the Company's ongoing facilities generated $678,000 more revenue, or a 16.5% increase, during the quarter when compared with the same period in 2003. The Company finished the quarter with a total decrease in revenue of $195,000 to $6,736,000, or 2.8%, compared with the first quarter of 2003. As Judi mentioned, this is mostly attributable to the elimination of the revenue from the blood products segment produced by the donor centers closed as part of the restructuring plan implemented in the third quarter of 2003. In addition, there was a $94,000 decline in blood service revenue during the quarter compared with last year that was also partially attributable to the closure of donor centers, but also is a result of reduced therapeutic apheresis procedure volume primarily from the New York market. As we have noted in the past, the number of these procedures we perform can fluctuate from quarter to quarter. Gross profit from the blood products segment increased $525,000, or 200%, during the first quarter of 2004 compared with 2003. This was due to the closure of non-performing donor centers related to the implementation of management's restructuring plan, and increased operating efficiencies derived from larger sales volumes at the ongoing donor centers. During the first quarter of 2003, the closed donor centers generated operating losses of $194,000. The closure of these facilities eliminated these operating losses in the first quarter of 2004. In addition, as a result of increasing sales volumes at the ongoing donor centers, gross profits from these centers increased 72.6% to $787,000. The gross profit percentage for the ongoing donor centers during the first quarter improved to 16.5%, compared with 11.1% during the same period in 2003. General and administrative expenses increased in the first quarter of 2004 by $199,000, or 20.2%, when compared with 2003. This is primarily the result of an increase in the bad debt provision of $124,000, and an increase in insurance expense of $69,000. The increase in the bad debt provision was the result of management's assessment that the rate of receivable write offs in the past two quarters, primarily from closed centers, might continue into future quarters. The increase in insurance expense was the result of a substantial increase in professional liability insurance when this policy was renewed in mid 2003. The balance sheet as of March 31, 2004 shows cash and cash equivalents of $911,000 which is comparable to $935,000 as of the end of 2003. Working capital increased substantially to $1,763,000 from $1,179,000 as of the end of 2003. The main reason for this improvement is an increase in net receivables and the reclassification of $300,000 in notes payable with Comerica Bank to long-term from current as a result of the execution of an amendment to the Comerica credit agreement that extended the term of the line of credit to June 30, 2005. Net accounts receivable increased to $3,442,000 from $3,128,000 as of December 31, 2003. The Company has experienced some increase in days sales outstanding during the quarter. As of March 31, 2004, this collection statistic stood at 47 days, compared with only 42 days as of December 31, 2003; however, management's efforts to aggressively pursue outstanding receivables over the first year has produced positive results since the days sales outstanding level as of March 31, 2003 stood at 57 days. As I previously mentioned, the Company recently entered into an amendment to the existing credit facility with Comerica Bank. This amendment extended the term of the line of credit one year to June 30, 2005, and recasts the financial covenants to levels more favorable to the Company. As a result of this amendment, the Company was in full compliance with all of the financial covenants documented in the amended credit facility. The Company is expected to have sufficient resources to satisfy working capital requirements and finance operations into 2005. This concludes my prepared remarks regarding the first quarter 2004 financial results. I would like to now turn the call back over to Judi for some concluding remarks. Judi Irving: - ------------ Thank you Bob. In closing, we are very proud of the significant progress we have made over the past year. Today, HemaCare is more efficient and focused. We have a stronger management team and we are excited about the future. There are challenges ahead of us and we must strive diligently to solidify our gains as we build for the future. This concludes our prepared remarks. We are now prepared to open the conference for your questions. Operator, would you please provide the callers with the necessary instructions. -----END PRIVACY-ENHANCED MESSAGE-----