SUN VALLEY, Calif., Aug. 5, 2009 (GLOBE NEWSWIRE) -- Emergent Group Inc. (NYSE Amex Equities: LZR), a leading provider of mobile medical lasers and surgical equipment, today announced record second quarter 2009 sales and net income as the company's financial performance and sound growth strategies continued to stand out in a challenging economic environment.
Following are highlights of the second quarter 2009 results:
* Revenue increased 59% to a record $7,788,765 for the second quarter ended June 30, 2009 versus $4,901,549 in the prior year period ended June 30, 2008. This was the company's eighth consecutive quarter of revenue growth. * EBITDA (earnings before interest, taxes, depreciation and amortization) rose 70% to $2,126,000 versus $1,251,000 in the prior year period. * Income before income taxes and minority interest was up 52% to $1,606,451 versus the $1,056,830 reported in the prior year period. * Net income increased 22% to a record $869,064, or $0.12 per diluted share, compared with $711,368, or $0.12 per diluted share, reported in the prior year period. There were 7,089,544 diluted weighted average shares outstanding for the second quarter of 2009 versus 5,981,569 in the prior year period. * The quarter included a provision for income taxes of $573,500 compared with $75,000 a year earlier. * Emergent has federal net operating loss carryforwards totaling $7,600,000 as of December 31, 2008, which are available to offset taxable income for 2009 and subsequent periods.
"Emergent Group continued to benefit in the second quarter from sound management and growth strategies that have made it a standout in the midst of a difficult economic landscape," said Chairman and CEO Bruce J. Haber. "As we've said in prior quarterly earnings reports, we continue to look for growth opportunities in fiscal 2009. On May 27, for example, we announced the acquisition of New York Cryosurgery Equipment LLC, a physician partnership specializing in rentals of mobile cryosurgery equipment and technicians to hospitals for treatment of prostate and renal cancer. This transaction, although not material to our results, strengthened our presence in the New York market and capitalized on upcoming federal rules limiting physician ownership of equipment."
Haber noted that the company is also continuing to:
* expand rentals of per-procedure medical equipment and sales of accompanying consumable items, * capitalize on the growing number of medical procedures, * assist hospitals and physician groups to maximize cost-effective medical technology through rentals rather than purchases, and * present equipment manufacturers with new revenue streams by partnering with them on rental opportunities.
"In late June," Haber added, "we were pleased to see that Emergent Group was selected by Russell Investments for inclusion in its Russell Microcap(r) Index, which measures the performance of the U.S. equity market's microcap segment and makes up less than 3% of that market. This was yet another sign of the recognition Emergent Group is receiving for its success in navigating the current business environment and capitalizing on positive healthcare trends."
About Emergent Group Inc.
Emergent Group Inc., through its wholly owned subsidiary, PRI Medical Technologies, Inc. ("PRI Medical"), provides mobile medical laser and surgical equipment in 16 states on a per-procedure basis to hospitals, outpatient surgery centers and physicians' offices. Surgical equipment is provided to customers along with technical support personnel to ensure that such equipment is operating correctly. PRI Medical currently offers its services in five states in the western United States and 11 states along the eastern seaboard. Emergent Group, Inc. is a member of the Russell Microcap(r) Index. For investor and product information, visit Emergent Group's website, www.emergentgroupinc.com.
Forward-Looking Statements
Statements in this news release may contain forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1993 and Section 21E of the Securities Exchange Act of 1934. Such statements may involve various risks and uncertainties, some of which may be discussed in the Company's most recent report on Form 10-K and subsequently filed SEC reports. There is no assurance any forward-looking statements will prove accurate, as actual results and future events could differ materially from those presently anticipated.
(tables and notes follow)
Emergent Group Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
June 30, December 31,
2009 2008
----------- -----------
ASSETS (Unaudited)
Current assets
Cash $ 3,890,331 $ 4,586,107
Accounts receivable, net of allowance for
doubtful accounts of $73,434 and $58,984 4,329,541 3,759,834
Inventory, net 833,863 837,143
Prepaid expenses 358,835 231,763
Deferred tax assets 986,000 986,000
----------- -----------
Total current assets 10,398,570 10,400,847
Property and equipment, net of accumulated
depreciation and amortization of
$8,213,809 and $7,247,482 6,237,069 6,070,228
Goodwill 1,120,058 1,120,058
Deferred income taxes 478,881 1,261,000
Other intangible assets, net of accumulated
amortization of $260,065 and $226,997 377,584 403,152
Deposits and other assets 81,886 84,934
----------- -----------
Total assets $18,694,048 $19,340,219
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Current portion of capital lease
obligations $ 1,933,566 $ 1,909,057
Dividends payable -- 1,989,750
Accounts payable 1,973,129 1,538,797
Accrued expenses and other liabilities 1,564,934 1,997,312
----------- -----------
Total current liabilities 5,471,629 7,434,916
Capital lease obligations, net of current
portion 3,017,385 3,344,820
----------- -----------
Total liabilities 8,489,014 10,779,736
----------- -----------
Shareholders' equity
Preferred stock, $0.001 par value,
non-voting 10,000,000 shares authorized,
no shares issued and outstanding -- --
Common stock, $0.04 par value, 100,000,000
shares authorized 6,741,054 and 6,631,576
shares issued and outstanding 269,639 265,260
Additional paid-in capital 16,339,098 16,235,368
Accumulated deficit (7,068,311) (8,636,575)
----------- -----------
Total Emergent Group equity 9,540,426 7,864,053
Minority Interest 664,608 696,430
----------- -----------
Total shareholders' equity 10,205,034 8,560,483
----------- -----------
Total liabilities and shareholders' equity $18,694,048 $19,340,219
=========== ===========
Emergent Group Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
------------------------ ------------------------
2009 2008 2009 2008
----------- ----------- ----------- -----------
Revenue $ 7,788,765 $ 4,901,549 $15,123,808 $ 9,405,838
Cost of goods sold 4,625,102 2,690,183 9,036,560 5,316,017
----------- ----------- ----------- -----------
Gross profit 3,163,663 2,211,366 6,087,248 4,089,821
Selling, general,
and administrative
expenses 1,496,742 1,131,241 2,952,164 2,255,094
----------- ----------- ----------- -----------
Income from
operations 1,666,921 1,080,125 3,135,084 1,834,727
Other income
(expense)
Interest expense,
net (87,503) (63,704) (175,989) (126,136)
Gain on disposal
of property and
equipment 1,950 28,937 2,550 28,937
Other income, net 25,083 11,472 30,260 24,124
----------- ----------- ----------- -----------
Total other
income (expense) (60,470) (23,295) (143,179) (73,075)
----------- ----------- ----------- -----------
Income before
provision for
income taxes
and minority
interest 1,606,451 1,056,830 2,991,905 1,761,652
Provision for
income taxes (573,500) (75,000) (1,051,634) (135,500)
----------- ----------- ----------- -----------
Income before
minority interest 1,032,951 981,830 1,940,271 1,626,152
Minority interest
in income of
consolidated
limited liability
companies (163,887) (270,462) (372,007) (482,884)
----------- ----------- ----------- -----------
Net income $ 869,064 $ 711,368 $ 1,568,264 $ 1,143,268
=========== =========== =========== ===========
Basic earnings
per share $ 0.13 $ 0.12 $ 0.23 $ 0.20
=========== =========== =========== ===========
Diluted earnings
per share $ 0.12 $ 0.12 $ 0.22 $ 0.19
=========== =========== =========== ===========
Basic weighted
average shares
outstanding 6,725,579 5,725,802 6,692,057 5,688,150
=========== =========== =========== ===========
Diluted weighted-
average shares
outstanding 7,089,544 5,981,569 7,048,247 5,947,420
=========== =========== =========== ===========