Attached files
| file | filename |
|---|---|
| 10-Q - EMERGENT FORM 10-Q - EMERGENT GROUP INC/NY | form10q.htm |
| EX-10.1 - EXHIBIT 10.1 - EMERGENT GROUP INC/NY | ex101.htm |
| EX-31.B - EXHIBIT 31(B) - EMERGENT GROUP INC/NY | ex31b.htm |
| EX-31.A - EXHIBIT 31(A) - EMERGENT GROUP INC/NY | ex31a.htm |
| EX-32.A - EXHIBIT 31 (A) - EMERGENT GROUP INC/NY | ex32a.htm |
| EX-32.B - EXHIBIT 32 (B) - EMERGENT GROUP INC/NY | ex32b.htm |
Exhibit 99.1
Press
Release Source: Emergent Group Inc.
Emergent
Group Inc. Reports Record Third Quarter
Revenue and Net Income
Revenue
and Net Income Rise 25% and 12%, Respectively, With EBITDA Up 42%
SUN
VALLEY, Calif., Nov. 4, 2009 (GLOBE NEWSWIRE) -- Emergent Group Inc. (NYSE Amex
Equities:LZR), a leading provider of mobile medical lasers and surgical
equipment, today announced record third quarter 2009 sales and net income as the
company continued to move forward with its growth strategies despite the current
general economic climate.
Following
are financial highlights for the quarter ended September 30, 2009:
|
*
|
Revenue
increased 25% to a record $7,981,464 versus $6,394,974 for the prior
year's third quarter ended September 30, 2008. This was the company's
ninth consecutive quarter of revenue
growth.
|
|
*
|
EBITDA
(earnings before interest, taxes, depreciation and amortization) rose 42%
to $2,101,177 versus $1,483,698 in the prior year
period.
|
|
*
|
Income
before income taxes and minority interest was up 50% to $1,608,679 versus
the $1,074,266 reported in the prior year
period.
|
|
*
|
Net
income increased 12% to $830,656, or $0.12 per diluted share, compared
with $741,810, or $0.11 per diluted share, reported in the prior year's
third quarter. The comparison includes a provision for income taxes of
$553,000 in the most recent quarter versus $77,792 a year earlier, a
difference of $0.07 per diluted share attributed to the reversal of a
deferred tax valuation allowance in the fourth quarter of 2008. Diluted
weighted average shares outstanding were also higher in the current
quarter at 7,089,598 versus 6,606,416 for the prior year
period.
|
|
*
|
Emergent
had federal net operating loss carryforwards totaling $7,600,000 as of
December 31, 2008, which have been available to offset taxable income for
2009 and subsequent periods.
|
|
*
|
At
the end of the quarter, the company had a cash balance of $5,957,808,
amounting to $0.84 per diluted
share.
|
"Emergent
Group reported yet another solid quarter, with significant gains in revenue, net
earnings and EBITDA," said Chairman and CEO Bruce J. Haber. "We continue to be
an aggressive player in technician-assisted equipment rentals and the sales of
accompanying consumable items. We are capitalizing on the growing need for
certain medical procedures and the desire of hospitals and physician groups to
conserve cash and reduce expenses by turning to rentals instead of equipment
purchases and staff increases. And we continue to help manufacturers find new
revenue streams by partnering with our strong sales force to find new rental
opportunities and sales of related consumable products. Our business model --
generating strong cash flow with a focus on prudent management of cash and other
resources -- has allowed us to expand our competitive position, reduce our debt,
increase our cash balances and pay shareholders a cumulative dividend of $ 0.90
per share over the last four years. We look forward to another good year for
Emergent Group in 2009 and sound prospects for the future."
Emergent
Group reported these results for the first nine months of 2009:
|
*
|
Revenue
increased 46% to $23,105,272 for the nine months ended September 30, 2009
versus $15,800,812 in the prior year period ended September 30,
2008.
|
|
*
|
EBITDA
(earnings before interest, taxes, depreciation and amortization) rose 64%
to $6,055,785 versus $3,682,238 in the prior year
period.
|
|
*
|
Income
before income taxes and minority interest was up 62% to $4,600,583 versus
the $2,835,918 reported in the prior year
period.
|
|
*
|
Net
income increased 27% to $2,398,919, or $0.34 per diluted share, compared
with $1,885,078, or $0.30 per diluted share, reported in the prior year
period. The comparison includes a provision for income taxes of $1,604,634
for the nine months ended September 30, 2009 versus $213,472 a year
earlier. There were 7,059,774 diluted weighted average shares outstanding
for the nine months versus 6,284,005 in the prior year
period.
|
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 21 E 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.
Exhibit 99.1
(cont'd)
|
Emergent
Group Inc. and Subsidiaries
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||||||||
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Condensed
Consolidated Balance Sheets
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||||||||
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September
30,
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December
31,
|
|||||||
|
2009
|
2008
|
|||||||
|
ASSETS
|
(Unaudited)
|
|||||||
|
Current
assets
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||||||||
| Cash | $ | 5,957,808 | $ | 4,586,107 | ||||
|
Accounts
receivable, net of allowance for doubtful
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||||||||
|
accounts
of $ 80,400 and $58,984
|
4,305,605 | 3,759,834 | ||||||
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Inventory,
net
|
834,828 | 837,143 | ||||||
|
Prepaid
expenses
|
321,092 | 231,763 | ||||||
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Deferred
income taxes
|
506,923 | 986,000 | ||||||
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Total
current assets
|
11,926,256 | 10,400,847 | ||||||
|
Property
and equipment, net of accumulated depreciation and
|
||||||||
|
amortization
of $8,500,276 and $7,247,482
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5,787,670 | 6,070,228 | ||||||
| 1,120,058 | 1,120,058 | |||||||
|
Deferred
income taxes
|
522,955 | 1,261,000 | ||||||
|
Other
intangible assets, net of accumulated amortization of
|
||||||||
|
$276,912
and $226,997
|
482,454 | 403,152 | ||||||
|
Deposits
and other assets
|
81,094 | 84,934 | ||||||
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Total
assets
|
$ | 19,920,487 | $ | 19,340,219 | ||||
|
LIABILITIES
AND SHAREHOLDERS' EQUITY
|
||||||||
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Current
liabilities
|
||||||||
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Current
portion of capital lease obligations
|
$ | 1,911,641 | $ | 1,909,057 | ||||
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Dividends
payable
|
- | 1,989,750 | ||||||
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Accounts
payable
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1,825,009 | 1,538,797 | ||||||
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Accrued
expenses and other liabilities
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2,256,561 | 1,997,312 | ||||||
|
Total
current liabilities
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5,993,211 | 7,434,916 | ||||||
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Capital lease
obligations, net of current portion
|
2,768,261 | 3,344,820 | ||||||
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Total
liabilities
|
8,761,472 | 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
|
||||||||
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6,746,296
and 6,631,576 shares issued and outstanding
|
269,849 | 265,260 | ||||||
|
Additional
paid-in capital
|
16,403,768 | 16,235,368 | ||||||
|
Accumulated
deficit
|
(6,237,655 | ) | (8,636,575 | ) | ||||
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Total
Emergent Group equity
|
10,435,962 | 7,864,053 | ||||||
|
Minority
Interest
|
723,053 | 696,430 | ||||||
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Total
shareholders' equity
|
11,159,015 | 8,560,483 | ||||||
|
Total
liabilities and shareholders' equity
|
$ | 19,920,487 | $ | 19,340,219 | ||||
Exhibit 99.1
(cont'd)
|
Emergent
Group Inc. and Subsidiaries
|
||||||||||||||||
|
Condensed
Consolidated Statements of Income
|
||||||||||||||||
|
(Unaudited)
|
||||||||||||||||
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Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
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September
30,
|
September
30,
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|||||||||||||||
|
2009
|
2008
|
2009
|
2008
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|||||||||||||
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Revenue
|
$ | 7,981,464 | $ | 6,394,974 | $ | 23,105,272 | $ | 15,800,812 | ||||||||
|
Cost
of goods sold
|
4,802,495 | 3,751,747 | 13,839,056 | 9,067,764 | ||||||||||||
|
Gross
profit
|
3,178,969 | 2,643,227 | 9,266,216 | 6,733,048 | ||||||||||||
| Selling, general, and administrative expenses | 1,490,174 | 1,498,459 | 4,442,338 | 3,753,553 | ||||||||||||
|
Income
from operations
|
1,688,795 | 1,144,768 | 4,823,878 | 2,979,495 | ||||||||||||
|
Other
income (expense)
|
||||||||||||||||
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Interest
expense, net
|
(85,692 | ) | (79,800 | ) | (261,681 | ) | (205,936 | ) | ||||||||
| Gain on disposal of property and equipment | 5,500 | - | 8,050 | 28,937 | ||||||||||||
|
Other
income, net
|
76 | 9,298 | 30,336 | 33,422 | ||||||||||||
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Total
other income (expense)
|
(80,116 | ) | (70,502 | ) | (223,295 | ) | (143,577 | ) | ||||||||
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Income
before provision for income taxes
|
||||||||||||||||
|
and
minority interest
|
1,608,679 | 1,074,266 | 4,600,583 | 2,835,918 | ||||||||||||
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Provision
for income taxes
|
(553,000 | ) | (77,972 | ) | (1,604,634 | ) | (213,472 | ) | ||||||||
|
Income
before minority interest
|
1,055,679 | 996,294 | 2,995,949 | 2,622,446 | ||||||||||||
|
Minority
interest in income of consolidated
|
||||||||||||||||
|
limited
liability companies
|
(225,023 | ) | (254,484 | ) | (597,030 | ) | (737,368 | ) | ||||||||
|
Net
income
|
$ | 830,656 | $ | 741,810 | $ | 2,398,919 | $ | 1,885,078 | ||||||||
|
Basic
earnings per share
|
$ | 0.12 | $ | 0.12 | $ | 0.36 | $ | 0.32 | ||||||||
|
Diluted
earnings per share
|
$ | 0.12 | $ | 0.11 | $ | 0.34 | $ | 0.30 | ||||||||
|
Basic
weighted-average shares outstanding
|
6,745,663 | 6,183,074 | 6,710,175 | 5,856,867 | ||||||||||||
|
Diluted
weighted-average shares outstanding
|
7,089,598 | 6,606,416 | 7,059,774 | 6,284,005 | ||||||||||||
CONTACT:
Emergent Group Inc.
Bruce J.
Haber
(914)
235-5550, x. 12
bhaber@primedical
. net