HemaCare Reports Increase in Second Quarter Profit on Record Revenue
LOS ANGELES, CA -- (Marketwire - August 10, 2009) - HemaCare Corporation (OTCBB: HEMA)
announced today second quarter 2009 results, which include a 5% increase in
revenue compared to the same quarter of 2008. Income from continuing
operations was $369,000, compared to $165,000 for the same quarter of 2008,
an increase of 124%. Net income in the quarter was $357,000, or $0.04 per
share, compared to $428,000, or $0.04 per share, in the second quarter of
2008.
Gross profit from continuing operations increased $249,000, or 14%, in the
quarter to $2 million. The gross profit margin from continuing operations
in the quarter was 20%, compared to 19% in the second quarter of 2008.
General and administrative expenses for the quarter increased $102,000, or
7%, compared to the same period of 2008. For the quarter, general and
administrative expenses represented 16% of revenue, unchanged from the same
period in 2008.
Commenting on the results, John Doumitt, the Company's Chief Executive
Officer, stated, "We are pleased to report record revenues and improved
profitability in the second quarter. This is the seventh consecutive
quarter of profits from continuing operations, and we continue to see
benefits from our operational improvement and sales initiatives. We remain
committed to growing sales and margins in an increasingly competitive
environment by delivering exceptional value to customers."
About HemaCare Corporation
Founded in 1978, HemaCare is a provider of blood products and services to
the healthcare industry. HemaCare is licensed by the FDA and accredited by
the AABB. The Company focuses on the customized delivery of human
blood-related products and services.
This press release contains "forward-looking statements" under the safe
harbor provisions of 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). Statements herein that
are not historical facts are forward-looking statements pursuant to the
safe harbor provisions referenced above. You may also identify
forward-looking statements by use of the words "anticipates," "expects,"
"intends," "plans" and similar expressions. These forward-looking
statements include, but are not limited to "we continue to see benefits
from our operational improvement and sales initiatives," and "we remain
committed to growing sales and margins in an increasingly competitive
environment by delivering exceptional value to customers." 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 following: costs increasing more rapidly than
market prices could reduce profitability; changes in demand for blood
products could affect profitability; declining blood donations could affect
profitability; competition may cause a loss of customers and an inability
to pass on increases in costs thereby impacting profitability; changing
economic conditions could impact the ability of customers to pay the
Company's invoices; operations depend on services of qualified
professionals and competition for their services is strong; industry
regulations and standards could increase operating costs or result in
closure of operations; federal legislative proposals relating to the
provision of health care may have a material effect on the Company; the
discontinuation of the operation of the Company's Florida-based research
subsidiary may hinder the Company's ability to generate profits; the
decrease in reimbursement rates may affect profitability; not-for-profit
status gives advantages to competitors; pandemic or epidemic outbreak of
disease could significantly impact blood donations and have a material
adverse impact on profitability; the potential inability of the Company to
meet future capital needs could impact ability to operate; reliance on
relatively few vendors for significant supplies and services could affect
the Company's ability to operate; potential adverse effect from changes in
the healthcare industry, including consolidations, could affect access to
customers; future technological developments or alternative treatments
could jeopardize the business; limited access to insurance could affect
ability to defend against possible claims; the ability to attract, retain
and motivate management and other skilled employees; product safety and
product liability could provide exposure to claims and litigation; targeted
partner blood drives involve higher collection costs; environmental risks
could cause the Company to incur substantial costs to maintain compliance;
the threat of business interruption due to terrorism and the security
measures taken in response to terrorism could adversely impact
profitability; business interruption due to earthquakes could adversely
impact profitability; the evaluation and consideration of strategic
alternatives, and other significant projects, may distract management from
reacting appropriately to business challenges and lead to reduced
profitability; strategy to acquire companies may result in unsuitable
acquisitions or failure to successfully integrate acquired companies, which
could lead to reduced profitability; the Articles of Incorporation and
Rights Plan could delay or prevent an acquisition or sale of HemaCare;
quarterly revenue and operating results may fluctuate in future periods
and the Company may fail to meet investor expectations; the Company's stock
is traded on the OTC Bulletin Board and therefore is subject to greater
market risk than those of exchange-traded stocks since they are less
liquid; the Company's stock price could be volatile; future sales of equity
securities could dilute the Company's common stock; the lack of dividend
payments could impact the price of the Company's common stock; the
evaluation of internal control and remediation of potential problems will
be costly and time consuming and could expose weaknesses in financial
reporting; and the other risks and uncertainties discussed from time to
time in the documents HemaCare files 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 be 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 update any of these
forward-looking statements to reflect actual results or events or
circumstances after the date hereof.
HemaCare Corporation
Condensed Consolidated Data
(Unaudited)
Statements of Three Months Ended June 30, Six Months Ended June 30,
Income: 2009 2008 2009 2008
------------ ------------- ------------ -------------
Revenue $ 10,029,000 $ 9,562,000 $ 19,739,000 $ 18,168,000
Gross Profit $ 2,034,000 $ 1,785,000 $ 3,571,000 $ 3,287,000
------------ ------------- ------------ -------------
General and
administrative
expenses $ 1,617,000 $ 1,515,000 $ 3,071,000 $ 2,925,000
Other expense $ - $ 65,000 $ - $ 65,000
------------ ------------- ------------ -------------
Income before
income taxes and
discontinued
operations $ 417,000 $ 205,000 $ 500,000 $ 297,000
Provision for
income taxes $ 48,000 $ 40,000 $ 50,000 $ 45,000
------------ ------------- ------------ -------------
Net income before
discontinued
operations $ 369,000 $ 165,000 $ 450,000 $ 252,000
------------ ------------- ------------ -------------
(Loss) income from
discontinued
operations, net of
tax impact $ (12,000) $ 263,000 $ (25,000) $ 263,000
------------ ------------- ------------ -------------
Net income $ 357,000 $ 428,000 $ 425,000 $ 515,000
============ ============= ============ =============
Basic earnings per
share $ 0.04 $ 0.04 $ 0.05 $ 0.06
============ ============= ============ =============
Diluted earnings
per share $ 0.04 $ 0.04 $ 0.04 $ 0.06
============ ============= ============ =============
Weighted average
shares outstanding
- basic 10,028,000 9,635,000 9,966,000 9,272,000
============ ============= ============ =============
Weighted average
shares outstanding
- diluted 10,109,000 9,654,000 10,030,000 9,283,000
============ ============= ============ =============
Balance Sheets: June 30, December 31,
2009 2008
------------ -------------
Assets
Cash and cash
equivalents $ 894,000 $ 903,000
Other current
assets 7,038,000 8,298,000
Non-current assets 4,327,000 4,495,000
------------ -------------
Total assets $ 12,259,000 $ 13,696,000
============ =============
Liabilities and
Shareholders'
Equity
Current liabilities $ 6,535,000 $ 8,513,000
Long-term
liabilities 678,000 645,000
Shareholders'
equity 5,046,000 4,538,000
------------ -------------
Total liabilities
and shareholders'
equity $ 12,259,000 $ 13,696,000
============ =============