Attached files
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| 8-K - FORM 8-K CURRENT REPORT - LIBERATOR MEDICAL HOLDINGS, INC. | f8k021015_8k.htm |
EXHIBIT 99.1
Liberator Medical Reports Record Revenue of $20.2 Million for Its Fiscal First Quarter Ended December 31, 2014
The Company Reports Net Income of $2.4 Million, or $0.05 per Share, for the 3 Months Ended December 31, 2014 Up 14.2% Compared to the Same Period Last Year
STUART, FL -- (Marketwired) -- 02/09/15 -- Liberator Medical Holdings, Inc. (NYSE MKT: LBMH) today announced the financial results for its fiscal first quarter ended December 31, 2014.
Net sales for the three months ended December 31, 2014, increased by $1,579,000, or 8.5%, to $20,216,000, compared with net sales of $18,637,000 for the three months ended December 31, 2013. The increase in net sales was primarily due to our continued emphasis on our direct response advertising campaign to acquire new customers and our emphasis on customer service to maximize the reorder rates for our recurring customer base.
|
| Three Months Ended December 31 | ||||||
Dollars in Thousands |
| Q1 FY2015 |
| Q1 FY2014 |
| % | ||
Net Sales |
| $ | 20,216 |
| $ | 18,637 |
| 8.5 |
Income from Operations |
| $ | 3,984 |
| $ | 3,500 |
| 13.8 |
Net Income |
| $ | 2,421 |
| $ | 2,120 |
| 14.2 |
Income from operations for the three months ended December 31, 2014, increased by $484,000, or 13.8%, to $3,984,000, compared with $3,500,000 for the three months ended December 31, 2013. The increase in operating income is primarily attributed to increased gross profits driven by our increased sales volumes as well as reductions in payroll costs as a percentage of net sales and decreased general and administration expenses.
Net income for the first quarter of fiscal year 2015 was $2,421,000 or $0.05 per diluted share, compared with net income of $2,120,000 or $0.04 per diluted share, for the first quarter of fiscal year 2013, an increase of 14.2%.
The Company had cash of $11,954,000 at December 31, 2014, compared with cash of $12,261,000 at September 30, 2014, a decrease of $307,000. The decrease in cash for the three months ended December 31, 2014, was due to $1,754,000 of cash used in financing activities and $13,000 of net cash used in investing activities, partially offset by $1,460,000 of cash provided by operating activities.
Mark Libratore, President and CEO, commented, "Our growth this quarter was driven by a 10% improvement in revenue from our existing customers. Customer retention has been and will continue to be a priority. Our improved operating margin was driven, in part by gains in labor productivity. We intend to continue to invest in operating efficiencies that streamline processes and improve quality. Our customers have many choices when it comes to their medical supplies and we will continue to find ways to improve their experience with Liberator."
Stay up-to-date with current events by visiting Liberator Medical's website at www.liberatormedical.com or by joining the Company's E-Mail Alert List. Join by clicking the following link www.LBMH-IR.com
About Liberator Medical Holdings, Inc.
Liberator Medical Holdings, Inc.'s subsidiary, Liberator Medical Supply, Inc., established the Liberator brand as a leading national direct-to-consumer provider of quality medical supplies to Medicare-eligible seniors. Accredited by The Joint Commission, our Company's unique combination of marketing, industry expertise and customer service has demonstrated success over a broad spectrum of chronic conditions. Liberator is recognized for offering a simple, reliable way to purchase medical supplies needed on a regular, ongoing, repeat-order basis, with the convenience of direct billing to Medicare and private insurance. Liberator's revenue primarily comes from supplying products to meet the rapidly growing requirements of general medical supplies, diabetes supplies, catheters, ostomy supplies and mastectomy fashions. Liberator communicates with patients and their doctors on a regular basis regarding prescriptions and supplies. Customers may purchase by phone, mail or internet, with repeat orders confirmed with the customer and shipped when needed.
Safe Harbor Statement
In this press release and in related comments by our management, our use of the words "expect," "anticipate," "possible," "potential," "target," "believe," "commit," "intend," "continue," "may," "would," "could," "should," "project," "projected," "positioned" or similar expressions is intended to identify forward-looking statements that represent our current judgment about possible future events. We believe these judgments are reasonable, but these statements are not guarantees of any events or financial results, and our actual results may differ materially due to a variety of important factors. Such risks and uncertainties may include, but are not limited to, regulatory limitations on the medical industry in general, working capital constraints, fluctuations in customer demand and commitments, fluctuation in quarterly results, introduction of new services and products, commercial acceptance and viability of new services and products, pricing and competition, reliance upon subcontractors and vendors, the timing of new technology and product introductions, and the risk of early obsolescence of our products. Liberator's most recent annual report on Form 10-K and quarterly reports on Form 10-Q provide information about these and other factors, which we may revise or supplement in future reports filed with the Securities and Exchange Commission.
2
Liberator Medical Holdings, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
As of December 31, 2014 (unaudited) and September 30, 2014
(In thousands, except dollar per share amounts)
|
| December 31, 2014 |
| September 30, 2014 | ||
Assets |
|
|
|
|
|
|
Current Assets: |
|
|
|
|
|
|
Cash |
| $ | 11,954 |
| $ | 12,261 |
Accounts receivable, net of allowances of $4,617 and $4,569, respectively |
|
| 9,606 |
|
| 8,866 |
Inventory, net of allowance for obsolete inventory of $181 |
|
| 2,078 |
|
| 1,954 |
Deferred tax assets |
|
| 2,033 |
|
| 2,005 |
Prepaid and other current assets |
|
| 716 |
|
| 449 |
Total Current Assets |
|
| 26,387 |
|
| 25,535 |
Property and equipment, net of accumulated depreciation of $4,106 and $4,016, respectively |
|
| 1,210 |
|
| 1,260 |
Deferred advertising, net |
|
| 28,342 |
|
| 26,936 |
Intangible assets, net of accumulated amortization of $310 and $281, respectively |
|
| 391 |
|
| 420 |
Other assets |
|
| 164 |
|
| 178 |
Total Assets |
| $ | 56,494 |
| $ | 54,329 |
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
Current Liabilities: |
|
|
|
|
|
|
Accounts payable |
| $ | 6,187 |
| $ | 6,085 |
Accrued liabilities |
|
| 1,554 |
|
| 1,758 |
Dividends payable |
|
| 1,728 |
|
| 1,728 |
Income tax payable |
|
| 1,322 |
|
| 178 |
Other current liabilities |
|
| 150 |
|
| 161 |
Total Current Liabilities |
|
| 10,941 |
|
| 9,910 |
Deferred tax liabilities |
|
| 10,449 |
|
| 10,031 |
Credit line facility |
|
| 1,500 |
|
| 1,500 |
Other long-term liabilities |
|
| 468 |
|
| 453 |
Total Liabilities |
|
| 23,358 |
|
| 21,894 |
|
|
|
|
|
|
|
Commitments and contingencies (see Note 7) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' Equity: |
|
|
|
|
|
|
Common stock, $0.001 par value, 200,000 shares authorized, 53,520 shares issued and 53,166 shares outstanding at December 31, 2014, and September 30, 2014 |
|
| 54 |
|
| 54 |
Additional paid-in capital |
|
| 36,393 |
|
| 36,385 |
Accumulated deficit |
|
| (2,831) |
|
| (3,524) |
Treasury stock, at cost; 354 shares at December 31, 2014, and September 30, 2014 |
|
| (480) |
|
| (480) |
Total Stockholders' Equity |
|
| 33,136 |
|
| 32,435 |
Total Liabilities and Stockholders' Equity |
| $ | 56,494 |
| $ | 54,329 |
See accompanying notes to unaudited condensed consolidated financial statements.
3
Liberator Medical Holdings, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
For the three months ended December 31, 2014 and 2013
(Unaudited)
(in thousands, except per share amounts)
|
| Three Months Ended December 31, | ||||
|
| 2014 |
| 2013 | ||
|
|
|
|
|
|
|
Net Sales |
| $ | 20,216 |
| $ | 18,637 |
|
|
|
|
|
|
|
Cost of Sales |
|
| 7,585 |
|
| 6,882 |
|
|
|
|
|
|
|
Gross Profit |
|
| 12,631 |
|
| 11,755 |
|
|
|
|
|
|
|
Operating Expenses: |
|
|
|
|
|
|
Payroll, taxes and benefits |
|
| 3,762 |
|
| 3,657 |
Advertising |
|
| 2,615 |
|
| 2,326 |
Bad debts |
|
| 943 |
|
| 824 |
Depreciation and amortization |
|
| 119 |
|
| 171 |
General and administrative |
|
| 1,208 |
|
| 1,277 |
Total Operating Expenses |
|
| 8,647 |
|
| 8,255 |
|
|
|
|
|
|
|
Income from Operations |
|
| 3,984 |
|
| 3,500 |
|
|
|
|
|
|
|
Other Expenses |
|
| (12) |
|
| (13) |
|
|
|
|
|
|
|
Income before Income Taxes |
|
| 3,972 |
|
| 3,487 |
|
|
|
|
|
|
|
Provision for Income Taxes |
|
| 1,551 |
|
| 1,367 |
|
|
|
|
|
|
|
Net Income |
| $ | 2,421 |
| $ | 2,120 |
|
|
|
|
|
|
|
Basic earnings per share: |
|
|
|
|
|
|
Weighted average shares outstanding |
|
| 53,166 |
|
| 52,358 |
Earnings per share |
| $ | 0.05 |
| $ | 0.04 |
|
|
|
|
|
|
|
Diluted earnings per share: |
|
|
|
|
|
|
Weighted average shares outstanding |
|
| 53,695 |
|
| 53,228 |
Earnings per share |
| $ | 0.05 |
| $ | 0.04 |
|
|
|
|
|
|
|
Dividends declared per common share |
| $ | 0.03 |
| $ | 0.03 |
See accompanying notes to unaudited condensed consolidated financial statements.
4
Liberator Medical Holdings, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
For the three months ended December 31, 2014 and 2013
(Unaudited)
(in thousands)
|
| Three Months Ended December 31, | ||||
|
| 2014 |
| 2013 | ||
|
|
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|
|
|
|
Cash flow from operating activities: |
|
|
|
|
|
|
Net Income |
| $ | 2,421 |
| $ | 2,120 |
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
Depreciation and amortization |
|
| 2,717 |
|
| 2,482 |
Equity based compensation |
|
| 8 |
|
| 32 |
Provision for doubtful accounts and contractual adjustments |
|
| 927 |
|
| 1,027 |
Deferred income taxes |
|
| 390 |
|
| (120) |
Reserve for inventory obsolescence |
|
| - |
|
| 13 |
Changes in operating assets and liabilities: |
|
|
|
|
|
|
Accounts receivable |
|
| (1,667) |
|
| (2,779) |
Deferred advertising |
|
| (4,004) |
|
| (2,918) |
Inventory |
|
| (124) |
|
| (307) |
Other assets |
|
| (260) |
|
| (402) |
Income taxes prepaid and payable |
|
| 1,150 |
|
| 486 |
Accounts payable |
|
| 101 |
|
| 1,466 |
Accrued liabilities |
|
| (204) |
|
| 215 |
Other liabilities |
|
| 5 |
|
| (8) |
Net Cash Flow Provided by Operating Activities |
|
| 1,460 |
|
| 1,307 |
|
|
|
|
|
|
|
Cash flow from investing activities: |
|
|
|
|
|
|
Purchase of property and equipment |
|
| (13) |
|
| (51) |
Proceeds from sale of property and equipment |
|
| - |
|
| 4 |
Net Cash Flow Used in Investing Activities |
|
| (13) |
|
| (47) |
|
|
|
|
|
|
|
Cash flow from financing activities: |
|
|
|
|
|
|
Proceeds from exercise of employee stock options |
|
| - |
|
| 72 |
Cash dividends paid |
|
| (1,728) |
|
| (1,569) |
Payments of capital lease obligations |
|
| (26) |
|
| (21) |
Net Cash Flow Used in Financing Activities |
|
| (1,754) |
|
| (1,518) |
|
|
|
|
|
|
|
Net decrease in cash |
|
| (307) |
|
| (258) |
|
|
|
|
|
|
|
Cash at beginning of period |
|
| 12,261 |
|
| 12,453 |
Cash at end of period |
| $ | 11,954 |
| $ | 12,195 |
|
|
|
|
|
|
|
Supplemental disclosure of cash flow information: |
|
|
|
|
|
|
Cash paid for interest |
| $ | 12 |
| $ | 15 |
Cash paid for income taxes |
| $ | 10 |
| $ | 1,000 |
|
|
|
|
|
|
|
Supplemental schedule of non-cash financing activities: |
|
|
|
|
|
|
Capital expenditures funded by capital lease borrowings or term notes |
| $ | 26 |
| $ | - |
Cash dividends declared, but not yet paid |
| $ | 1,728 |
| $ | 1,572 |
See accompanying notes to unaudited condensed consolidated financial statements.
5
Contacts:
Individual Investor Relations Contact
WSR Communications
772-219-7525
IR@WSRcommunications.com
http://ir.liberatormedical.com/
Institutional Investor Contact
Robert J. Davis
Liberator Medical Holdings, Inc.
772-463-3737
bdavis@liberatormedical.com
http://ir.liberatormedical.com/
Source: Liberator Medical Holdings, Inc.
Released February 9, 2015
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