EX-99.1 2 v178668_ex99-1.htm Unassociated Document



Company Contact:
Investor Relations
HearUSA, Inc.
Scott Liolios or Ron Both
Stephen J. Hansbrough
Liolios Group, Inc.
Chairman and CEO
Email: info@liolios.com
Tel 561-478-8770, ext 132
Tel 949-574-3860


HearUSA Reports Fourth Quarter and Fiscal 2009 Results
 
Q4 2009 Revenue up 5% Year-over-Year to $21.7 Million; Annual Revenue of $88.9 Million and Net Income of $0.03 Per Share

West Palm Beach, Fla. -- March 25, 2010 -- HearUSA, Inc. (NYSE Amex: EAR), a leader among the nation’s hearing care providers, reported financial results for the fourth quarter and year ended December 26, 2009.

Financial Results for Fourth Quarter 2009
 
In the fourth quarter 2009, net revenues increased 5% to $21.7 million from $20.7 million in the fourth quarter of 2008 and were unchanged from the previous quarter. The 5% quarterly year-over-year increase was comprised of a 2.3% increase in organic revenue, a 1.4% increase attributable to centers acquired over the last 12 months and approximately $284,000 in contracted transition services provided to the acquirer of the Canadian operations.

The loss from continuing operations totaled $315,000 in the fourth quarter of 2009, compared to a loss of $3.5 million in the fourth quarter of 2008 and income of $502,000 in the previous quarter. The loss (income) from continuing operations excludes the operating results of the company’s former Canadian operations for all periods, and includes AARP program related costs of $258,000 in the fourth quarter of 2009, $152,000 in the fourth quarter of 2008, and $189,000 in the third quarter of 2009. AARP costs in 2008 include the benefit of a $981,000 gain on the restructuring of the AARP contract.

Net loss attributable to common stockholders was $172,000 or $0.00 per basic and diluted share in the fourth quarter of 2009, as compared to a net loss of $2.8 million or $(0.07) per basic and diluted share in the same year-ago period and to net income of $713,000 or $0.02 per basic and diluted share in the third quarter of 2009. Net income attributable to common shareholders included income from discontinued operations of $292,000 or $0.01 per basic and diluted share in the fourth quarter of 2009, $800,000 or $0.02 per basic and diluted share in the fourth quarter of 2008, and $427,000 or $0.01 per basic and diluted share in the third quarter of 2009.

Financial Results for Fiscal 2009
 
For the full year 2009, net revenues totaled $88.9 million, a decrease of 7% from $95.3 million in 2008. The 7% decrease was comprised of an 11% decrease in organic revenue, partially offset by a 3% increase attributable to centers acquired over the last 12 months and approximately $756,000 in contracted transition services provided to the acquirer of the Canadian operations.

Income from continuing operations totaled $96,000 in 2009, compared to a loss of $5.1 million in 2008. Income from continuing operations excludes the operating results of the company’s former Canadian operations for all periods and includes AARP program related costs of $679,000 in 2009 and $582,000 in 2008.
 

 

Net income attributable to common stockholders was $1.4 million or $0.03 per basic and diluted share in 2009, compared to a net loss of $3.3 million or $(0.09) per basic and diluted share in 2008. Net income attributable to common shareholders included income from discontinued operations of $2.0 million or $0.04 per basic and diluted share in 2009 and $3.2 million or $0.08 per basic and diluted share in 2008.

The company made three acquisitions in 2009, with aggregate estimated trailing 12 month revenues of $2.9 million at the time of acquisition.

Management Commentary
 
"We are very pleased to report our first profitable year,” said Stephen J. Hansbrough, HearUSA's chairman and CEO. "As we move through 2010, we are confident the steps we took in 2009 to control costs and prepare for growth have positioned us well to execute our strategic plan. We are excited about the continuing rollout of the AARP hearing care program and the expansion of our network nationwide.”

Conference Call
 
HearUSA will hold a conference call tomorrow, March 26, 2010, to discuss its fourth quarter and fiscal year 2009 financial results. The company’s senior management will host the presentation, which will be followed by a question and answer period.

To participate in the call, dial the appropriate number 5-10 minutes prior to the start time, request the HearUSA conference call and provide the conference ID: 7HEARUSA.

Date: Friday, March 26, 2010
Time: 10:30 a.m. Eastern time (7:30 a.m. Pacific time)
Domestic callers: 1-800-862-9098
International callers: 1-785-424-1051
Conference ID#: 7HEARUSA

A Web simulcast and replay will be available via the investor relations section of the company’s website at www.hearusa.com.

If you have any difficulty connecting with the conference call or webcast, please contact the Liolios Group at 1-949-574-3860.

A telephone replay of the call will be available later that evening and will be accessible until April 9, 2010:

Toll-free replay number: 1-800-839-1247
International replay number: 1-402-220-0470
(No passcode required)

About HearUSA
 
HearUSA is the recognized leader in hearing care for the nation's top managed care organizations through its 180 company-owned centers and network of more than 2,000 hearing care providers. HearUSA is the nation's only hearing care provider accredited by URAC, an independent, nonprofit health care accrediting organization dedicated to promoting health care quality through accreditation, certification and commendation. HearUSA is also the administrator of the AARP Hearing Care program, designed to help millions of Americans aged 50+ who have untreated hearing loss. For more information about HearUSA visit www.hearusa.com, or go to www.hearingshop.com for a wide selection of hearing related products available for purchase online.
 

 

 


HEARUSA, Inc.
Consolidated Statements of Operations
   
Year Ended
   
Year Ended
 
   
December 26,
2009
   
December 27,
2008
 
   
(Dollars in thousands,)
 
Net revenues
           
Hearing aids and other products
  $ 81,086     $ 88,306  
Services
    7,848       6,991  
Total net revenues
    88,934       95,297  
                 
Operating costs and expenses
               
Hearing aids and other products
    20,224       23,792  
Services
    1,733       2,116  
Total cost of products sold and services excluding depreciation and amortization
    21,957       25,908  
                 
Center operating expenses
    44,152       51,365  
General and administrative expenses
    15,421       15,148  
Depreciation and amortization
    2,317       2,486  
Total operating costs and expenses
    83,847       94,907  
Income from operations
    5,087       390  
Non-operating income (expenses)
    -       -  
Gain on foreign exchange
    585       -  
Gain on restructuring of contract
    -       981  
Gain on insurance settlement
    68       -  
Interest income
    27       42  
Interest expense
    (4,791 )     (5,678 )
Income (loss) from continuing operations before income tax expense
    976       (4,265 )
Income tax expense
    (880 )     (832 )
Income (loss) from continuing operations
    96       (5,097 )
Discontinued operations attributable to HearUSA, Inc
               
Income from discontinued operations, net of income tax expense (benefit) of $ (261) and $295
    1,031       3,156  
Gain on sale of discontinued operations, net of income tax expense of $1,236
    931       -  
Income from discontinued operations
    1,962       3,156  
Net income (loss)
    2,058       (1,941 )
                 
Net income attributable to noncontrolling interest
    (544 )     (1,260 )
Net income (loss) attributable to HearUSA, Inc.
    1,514       (3,201 )
Dividends on preferred stock
    (136 )     (139 )
Net income (loss) attributable to HearUSA, Inc. common stockholders
  $ 1,378     $ (3,340 )
Loss from continuing operations attributable to HearUSA, Inc. common stockholders per common share – basic and diluted
  $   (0.01 )   $ (0.17 )
                 
Net income (loss) attributable to HearUSA, Inc. common stockholders per common share – basic and diluted
  $ 0.03     $ (0.09 )
                 
Weighted average number of shares of common stock outstanding – basic and diluted
    44,838       38,635  
                 
Amounts Attributable to HearUSA, Inc. common stockholders:
               
                 
Income (loss) from continuing operations, net of tax
  $ (448 )   $ (6,357 )
Discontinued operations, net of tax
  $   1,962     $   3,156  
                 
Net income (loss)
    1,514       (3,201 )
 

 

 
HEARUSA, Inc.
Consolidated Balance Sheets

ASSETS
 
December 26,
2009
   
December 27,
2008
 
   
(Dollars in thousands)
 
Current assets
           
Cash and cash equivalents
  $ 7,037     $ 3,553  
Short-term marketable securities
    4,106       -  
Accounts and notes receivable, less allowance for
               
   doubtful accounts of $616 and $506
    5,554       7,371  
Inventories
    1,844       1,682  
Prepaid expenses and other
    464       502  
Total current assets
    19,005       13,108  
Property and equipment, net
    4,021       4,876  
Goodwill
    51,495       65,953  
Intangible assets, net
    12,816       15,630  
Deposits and other
    731       810  
Restricted cash and cash equivalents
    3,245       224  
Total Assets
  $ 91,313     $ 100,601  
   
LIABILITIES AND STOCKHOLDERS’ EQUITY
 
Current liabilities
               
Accounts payable
  $ 7,070     $ 5,011  
Accrued expenses
    2,253       3,208  
Accrued salaries and other compensation
    3,520       3,713  
Current maturities of long-term debt
    5,983       6,915  
Income taxes payable
    1,974       -  
Dividends payable
    35       34  
Total current liabilities
    20,835       18,881  
Long-term debt
    36,139       49,099  
Deferred income taxes
    7,335       7,284  
Total long-term liabilities
    43,474       56,383  
Commitments and contingencies
    -       -  
                 
Stockholders’ equity
               
Preferred stock (aggregate liquidation preference $2,330, $1 par,
   7,500,000 shares authorized)
               
Series H Junior Participating (none outstanding)
    -       -  
Series J (233 shares outstanding)
    -       -  
Total preferred stock
    -       -  
                 
Common stock: $.10 par; 75,000,000 shares authorized
45,381,750  and 44,828,384 shares issued
    4,538       4,483  
Additional paid-in capital
    137,863       136,924  
Accumulated deficit
    (114,982 )     (116,360 )
Accumulated other comprehensive income
    -       1,249  
Treasury stock, at cost: 523,662 common shares
    (2,485 )     (2,485 )
Total HearUSA, Inc. Stockholders’ Equity
    24,934       23,811  
Noncontrolling interest
    2,070       1,526  
Total Stockholders’ equity
    27,004       25,337  
Total Liabilities and Stockholders’ Equity
  $ 91,313     $ 100,601