HemaCare Reports Ninth Consecutive Profitable Quarter
LOS ANGELES, CA -- (Marketwire - February 26, 2010) - HemaCare Corporation (OTCBB: HEMA)
announced today fourth quarter and year end 2009 results, which showed an
8% improvement in 4th quarter 2009 net income before discontinued operations
compared to the prior year. Revenue for the quarter was $8.2 million, 17%
lower than the prior year, while revenue for the year was $36.4 million, 3%
lower than in 2008.
The Company generated fourth quarter net income of $196,000, or $0.02 per
fully diluted share, and yearly net income of $855,000, or $0.08 per fully
diluted share. For the fourth quarter of 2008, the Company generated
$179,000 in net income, or $0.02 per fully diluted share, and for the year
$979,000, or $0.10 per fully diluted share. Included in results was a loss
of $13,000 from discontinued operations in the fourth quarter of 2009. For
all of 2009, discontinued operations generated a loss of $50,000, compared
to a gain of $80,000 for 2008.
Commenting on the results, John Doumitt, the Company's Chief Executive
Officer, stated, "In 2009 the weak economy reduced demand for blood
products and led to increased price competition throughout the industry.
We responded with an emphasis on HemaCare's unique service-focused
operations that provide significantly greater value to customers and
patients. As a result, our competitive posture and operating margins have
improved."
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 unaudited financial data, which is derived from
our audited financial statements that will be included in and first issued
upon the filing of the Company's Annual Report on Form 10-K for the fiscal
year ended December 31, 2009. The unaudited financial data presented in
this press release reflects management's estimates, judgments, and
assumptions about the reported amounts of assets, liabilities, revenues,
and expenses at December 31, 2009 and for the periods then ended.
Subsequent events or transactions that occur prior to the date the Company
first issues its audited financial statements may provide additional
evidence about conditions that existed at December 31, 2009, which could
result in changes in management's estimates, judgments, and assumptions
about the reported amounts of assets, liabilities, revenues, and expenses,
and result in the audited financial statements first issued in the
Company's Annual Report on Form 10-K to differ materially from the
financial date presented in this press release.
This press release also 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. The forward-looking statements in this press release include
statements that HemaCare's unique service-focused operations provide
significantly greater value to customers and patients, and that our
competitive posture and operating margins have improved. 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: a reduction in operating margins
occasioned by costs increasing more rapidly than market prices, the reduced
demand for blood products, declining blood donations, the loss of customers
or the inability to pass on cost increases due to increased competition, an
increase in operating costs due to changes in industry regulations and
standards, a decrease in reimbursement rates; our competitive position may
decline due to the potential adverse effect from changes in the healthcare
industry, including consolidations, which could affect access to customers,
our inability to attract, retain and motivate management and other skilled
employees, an increased emphasis by our competitors on customer service may
diminish the advantages we enjoy from our service-focused operations, and
our competitors' not-for-profit status gives them advantages in acquiring
customers; 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)
Three Months Ended Twelve Months Ended
December 31, December 31,
2009 2008 2009 2008
----------- ----------- ----------- ------------
Statements of Income:
Revenue $ 8,246,000 $ 9,974,000 $36,387,000 $ 37,618,000
Gross Profit $ 1,430,000 $ 1,701,000 $ 6,452,000 $ 6,502,000
----------- ----------- ----------- ------------
General and
administrative
expenses $ 1,212,000 $ 1,513,000 $ 5,575,000 $ 5,893,000
Other income $ - $ - $ - $ 331,000
----------- ----------- ----------- ------------
Income from continuing
operations before
income taxes $ 218,000 $ 188,000 $ 877,000 $ 940,000
Provision for (benefit
from) income taxes $ 9,000 $ (4,000) $ (28,000) $ 41,000
----------- ----------- ----------- ------------
Net income from
continuing operations $ 209,000 $ 192,000 $ 905,000 $ 899,000
----------- ----------- ----------- ------------
Income (loss) from
discontinued
operations, net of tax $ (13,000) $ (13,000) $ (50,000) $ 80,000
----------- ----------- ----------- ------------
Net income $ 196,000 $ 179,000 $ 855,000 $ 979,000
=========== =========== =========== ============
Basic earnings per
share $ 0.02 $ 0.02 $ 0.09 $ 0.10
=========== =========== =========== ============
Diluted earnings per
share $ 0.02 $ 0.02 $ 0.08 $ 0.10
=========== =========== =========== ============
Weighted average shares
outstanding - basic 10,050,000 9,887,000 10,008,000 9,533,000
============ ============ ============ ============
Weighted average shares
outstanding - diluted 10,258,000 10,103,000 10,132,000 9,706,000
============ ============ ============ ============
December 31, December 31,
2009 2008
------------ ------------
Balance Sheets:
Assets
Cash and cash equivalents $ 1,007,000 $ 903,000
Other current assets 5,368,000 8,298,000
Non-current assets 4,200,000 4,495,000
------------ ------------
Total assets $ 10,575,000 $ 13,696,000
============ ============
Liabilities and Shareholders' Equity
Current liabilities $ 4,450,000 $ 8,513,000
Long-term liabilities 600,000 645,000
Shareholders' equity 5,525,000 4,538,000
------------ ------------
Total liabilities and shareholders' equity $ 10,575,000 $ 13,696,000
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