LOS ANGELES--(BUSINESS WIRE)--HemaCare Corporation (HEMA) today reported its financial results for the three and six months ended June 30, 2012. For the three month period, revenue rose by 1% to $4.27 million, while the loss from continuing operations decreased by 24% to $329,000 when compared to the year-earlier period. For the six month period, revenue rose by 7%, while the loss from continuing operations decreased by 41% to $544,000 compared to the year-earlier period.
Commenting on the results, Pete van der Wal, HemaCare’s Chief Executive Officer, stated, “While results showed improvement on the top and bottom line, higher gross profit margins and decreased operating expenses, we are not satisfied with current revenue growth and operating losses. We remain focused on our efforts to grow our higher-margin businesses with a goal of producing sustained profitable growth.”
Added van der Wal, “While no longer required to release financial results following deregistration of our shares earlier this year, we currently plan to release fully audited year-end results, as well as mid-year six month unaudited results, going forward.”
ABOUT HEMACARE CORPORATION
HemaCare Corporation is a blood services company serving healthcare providers and the scientific community for over 30 years. HemaCare and its subsidiary, Coral Blood Services, perform therapeutic apheresis services, provide human-derived biological products, and support the use of cellular therapies with apheresis collections.
The Company was founded in 1978 and is based in Van Nuys, California. It trades on the OTC Pink Market under the symbol “HEMA.”
FORWARD-LOOKING STATEMENTS
This press release also contains “forward-looking statements.” Statements herein that are not historical facts are forward-looking statements, and may be identified by use of the words “anticipates,” “expects,” “intends,” “plans” and similar expressions. The forward-looking statements in this press release include statements that we remain focused on our efforts to grow our higher-margin businesses with a goal of producing sustained profitable growth. 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: lower than expected revenues; a reduction in operating margins occasioned by costs increasing more rapidly than market prices, the reduced demand for the Company’s products and services, 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 other risks and uncertainties in the operation of the Company’s business. 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 and Subsidiaries | Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||
| Condensed Statements of Operations | June 30, | June 30, | ||||||||||||||||||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||||||||||||||||
| Revenue | $ | 4,266,000 | $ | 4,238,000 | $ | 8,747,000 | $ | 8,146,000 | ||||||||||||||||||||||
| Gross Profit | $ | 699,000 | $ | 583,000 | $ | 1,554,000 | $ | 1,281,000 | ||||||||||||||||||||||
| General and administrative expenses | $ | 1,018,000 | $ | 1,212,000 | $ | 2,078,000 | $ | 2,395,000 | ||||||||||||||||||||||
| Gain from insurance settlement | $ | 0 | $ | 197,000 | $ | 0 | $ | 197,000 | ||||||||||||||||||||||
| Loss before taxes and discontinued operations |
$ |
(319,000 |
) |
$ |
(432,000 |
) |
$ |
(524,000 |
) |
$ |
(917,000 |
) | ||||||||||||||||||
| Provision for income taxes | $ | 10,000 | $ | 0 | $ | 20,000 | $ | 10,000 | ||||||||||||||||||||||
| Net loss before discontinued operations |
$ |
(329,000 |
) |
$ |
(432,000 |
) |
$ |
(544,000 |
) |
$ |
(927,000 |
) | ||||||||||||||||||
|
Income from discontinued operations, net of tax |
$ | 0 | $ | 180,000 | $ | 1,920,000 | $ | 285,000 | ||||||||||||||||||||||
| Net (loss) income |
$ |
(329,000 |
) |
$ |
(252,000 |
) | $ | 1,376,000 |
$ |
(642,000 |
) | |||||||||||||||||||
| Basic and diluted (loss) earnings per share |
$ |
(0.03 |
) |
$ |
(0.03 |
) | $ | 0.13 |
$ |
(0.07 |
) | |||||||||||||||||||
| Weighted average shares outstanding – basic and diluted | 10,331,519 | 9,712,948 | 10,341,519 | 9,712,948 | ||||||||||||||||||||||||||
|
HemaCare Corporation and Subsidiaries
Condensed Consolidated Balance Sheets |
6/30/2012
(Unaudited) |
12/31/2011 | |||||||||||||||
| Assets: | |||||||||||||||||
| Cash and cash equivalents | $ | 1,682,000 | $ | 2,266,000 | |||||||||||||
| Other current assets | 3,483,000 | 3,418,000 | |||||||||||||||
| Non-current assets | 2,704,000 | 3,023,000 | |||||||||||||||
| Total assets | $ | 7,869,000 | $ | 8,707,000 | |||||||||||||
| Liabilities and Shareholders' Equity: | |||||||||||||||||
| Current liabilities | $ | 1,834,000 | $ | 4,054,000 | |||||||||||||
| Long-term liabilities | 475,000 | 521,000 | |||||||||||||||
| Shareholders' equity | 5,560,000 | 4,132,000 | |||||||||||||||
| Total liabilities and shareholders' equity | $ | 7,869,000 | $ | 8,707,000 | |||||||||||||