STUART, Fla., Feb. 15, 2012 (GLOBE NEWSWIRE) -- Liberator Medical Holdings, Inc. (OTCBB:LBMH) today announced first fiscal quarter net revenues of $14.8 million, an increase of $2.6 million, or 21.1%, compared with the first fiscal quarter of 2011.
Gross profit for the first fiscal quarter, which ended December 31, 2011, increased by $1 million, or 13.0%, to $8.8 million, compared with gross profit of $7.8 million for the first fiscal quarter of 2011. Net income increased from a loss of ($202,000) for the first fiscal quarter of 2011 to a profit of $454,000, or $0.01 per share, for the first fiscal quarter of 2012. The loss for the first fiscal quarter 2011 included a non-cash charge against income of $902,000 for the change in fair value of derivative liabilities.
Liberator Results Preview:
- Net revenues of $14.8 million
- Gross profit of $8.8 million
- Net income of $454,000
- Cash on hand of $2 million as of December 31, 2011
- Current assets of $16.5 million and current liabilities of $5.4 million as of December 31, 2011
- Trailing 12 months sales of $55.3 million
Mr. Libratore, CEO, stated: "We have increased sales for fifteen consecutive quarters. Our sales growth has been and will continue to be driven by our direct response advertising campaign, primarily through television ads at remnant (discounted) rates and pay-per-click ads on the Internet. During the first quarter of fiscal year 2012, we generated positive results from our investments in technology designed to increase our productivity and increase our response time to our customers' medical supply needs. Over the next few quarters, we will implement additional phases of our technology plan that should expand our capacity to support future growth and improved productivity. We continue to execute on our business plan, which includes investing in our infrastructure and technology, maintaining a strong balance sheet, and improving cash and profitability. We will continue to strive to systematically improve efficiency and reduce cost throughout the organization and seek additional product lines, vendor relationships, and additional third party payer relationships. I am confident that we will continue to grow and improve performance."
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. An Exemplary Provider(TM) accredited by The Compliance Team, its 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 demand for urological, ostomy, mastectomy and diabetes patients. 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.
| Liberator Medical Holdings, Inc. and Subsidiaries | ||
| Condensed Consolidated Balance Sheets | ||
| As of December 31, 2011 (unaudited) and September 30, 2011 | ||
| (In thousands, except dollar per share amounts) | ||
| December | September | |
| 31, 2011 | 30, 2011 | |
| Assets | ||
| Current Assets: | ||
| Cash | $ 2,045 | $ 3,016 |
| Accounts receivable, net of allowance of $4,793 and $4,177, respectively | 9,146 | 7,860 |
| Inventory, net of allowance for obsolete inventory of $151 and $144, respectively | 2,884 | 3,009 |
| Deferred taxes, current portion | 1,921 | 1,877 |
| Prepaid and other current assets | 513 | 333 |
| Total Current Assets | 16,509 | 16,095 |
| Property and equipment, net of accumulated depreciation of $2,369 and $2,186, respectively | 1,501 | 1,626 |
| Deferred advertising | 17,967 | 17,191 |
| Intangible assets, net of accumulated amortization of $41 and $25, respectively | 289 | 305 |
| Other assets | 157 | 163 |
| Total Assets | $ 36,423 | $ 35,380 |
| Liabilities and Stockholders' Equity | ||
| Current Liabilities: | ||
| Accounts payable | $ 4,063 | $ 5,008 |
| Accrued liabilities | 1,244 | 1,119 |
| Other current liabilities | 84 | 103 |
| Total Current Liabilities | 5,391 | 6,230 |
| Deferred tax liability | 3,698 | 3,347 |
| Credit line facility | 2,500 | 1,500 |
| Other long-term liabilities | 50 | 48 |
| Total Liabilities | 11,639 | 11,125 |
| Stockholders' Equity: | ||
| Common stock, $.001 par value, 200,000 shares authorized, 48,177 and 48,135 shares issued, respectively; 48,088 and 48,046 shares outstanding at December 31, 2011, and September 30, 2011, respectively | 48 | 48 |
| Additional paid-in capital | 34,579 | 34,504 |
| Accumulated deficit | (9,793) | (10,247) |
| Treasury stock, at cost; 89 shares at December 31, 2011, and September 30, 2011 | (50) | (50) |
| Total Stockholders' Equity | 24,784 | 24,255 |
| Total Liabilities and Stockholders' Equity | $ 36,423 | $ 35,380 |
| See accompanying notes to consolidated financial statements | ||
| Liberator Medical Holdings, Inc. and Subsidiaries | ||
| Condensed Consolidated Statements of Operations | ||
| For the three months ended December 31, 2011 and 2010 | ||
| (Unaudited) | ||
| (in thousands, except per share amounts) | ||
| Three Months Ended December 31, | ||
| 2011 | 2010 | |
| Sales | $ 14,796 | $ 12,220 |
| Cost of Sales | 6,003 | 4,439 |
| Gross Profit | 8,793 | 7,781 |
| Operating Expenses | ||
| Payroll, taxes and benefits | 3,464 | 2,841 |
| Advertising | 1,968 | 1,901 |
| Bad debts | 1,130 | 892 |
| Depreciation and amortization | 199 | 166 |
| General and administrative | 1,253 | 925 |
| Total Operating Expenses | 8,014 | 6,725 |
| Income from Operations | 779 | 1,056 |
| Other Income (Expense) | ||
| Interest expense | (12) | (31) |
| Change in fair value of derivative liabilities | — | (902) |
| Interest income | — | 2 |
| Gain on sale of assets | — | 2 |
| Total Other Income (Expense) | (12) | (929) |
| Income (Loss) before Income Taxes | 767 | 127 |
| Provision for (Benefit from) Income Taxes | 313 | 329 |
| Net Loss | $ 454 | $ (202) |
| Basic earnings (loss) per share: | ||
| Weighted average shares outstanding | 48,057 | 47,419 |
| Earnings (loss) per share | $ 0.01 | $ (0.00) |
| Diluted earnings (loss) per share: | ||
| Weighted average shares outstanding | 52,321 | 47,419 |
| Earnings (loss) per share | $ 0.01 | $ (0.00) |
| See accompanying notes to unaudited condensed consolidated financial statements. | ||
| Liberator Medical Holdings, Inc. and Subsidiaries | ||
| Condensed Consolidated Statements of Cash Flows | ||
| For the three months ended December 31, 2011 and 2010 | ||
| (Unaudited) | ||
| (in thousands) | ||
| Three Months Ended | ||
| December 31, | ||
| 2011 | 2010 | |
| Cash flow from operating activities: | ||
| Net Loss | $ 454 | $ (202) |
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
| Depreciation and amortization | 2,123 | 2,011 |
| Change in fair value of derivative liabilities | — | 902 |
| Equity based compensation | 38 | 128 |
| Provision for doubtful accounts and sales returns and adjustments | 1,163 | 980 |
| Non-cash interest related to convertible notes payable | — | 21 |
| Deferred income taxes | 307 | 328 |
| Gain on sale of assets | — | (2) |
| Reserve for inventory obsolescense | 6 | — |
| Changes in operating assets and liabilities: | ||
| Accounts receivable | (2,449) | (659) |
| Deferred advertising | (2,700) | (3,887) |
| Inventory | 119 | (383) |
| Other assets | (175) | (140) |
| Accounts payable | (945) | 1,804 |
| Accrued expenses | 142 | (283) |
| Other liabilities | (27) | (21) |
| Net Cash Flow Provided by (Used in) Operating Activities | (1,944) | 597 |
| Cash flow from investing activities: | ||
| Purchase of property and equipment | (40) | (75) |
| Proceeds from the sale of assets | — | 3 |
| Net Cash Flow Used in Investing Activities | (40) | (72) |
| Cash flow from financing activities: | ||
| Proceeds from employee stock purchase plan | 20 | 59 |
| Proceeds from credit line facility | 1,000 | — |
| Borrowings (payments) of debt and capital lease obligations | (7) | (582) |
| Net Cash Flow Provided by (Used in) Financing Activities | 1,013 | (523) |
| Net increase (decrease) in cash | (971) | 2 |
| Cash at beginning of period | 3,016 | 7,428 |
| Cash at end of period | $ 2,045 | $ 7,430 |
| Supplemental disclosure of cash flow information: | ||
| Cash paid for interest | $ 12 | $ 47 |
| Supplemental schedule of non-cash investing and financing activities: | ||
| Capital expenditures funded by capital lease borrowing | $ 18 | $ — |
| Common stock issued for conversion of debt | $ — | $ 5,100 |
| See accompanying notes to unaudited condensed consolidated financial statements. | ||
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 to the SEC.