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| 8-K - CURRENT REPORT - LIBERATOR MEDICAL HOLDINGS, INC. | v321397_8k.htm |
| EX-99.2 - EXHIBIT 99.2 - LIBERATOR MEDICAL HOLDINGS, INC. | v321397_ex99-2.htm |
Liberator Medical Reports Net Revenues of $15.0 Million for Third Fiscal Quarter of 2012
The Company Reports Net Income of $676,000 for Its Third Fiscal Quarter
STUART, Fla., Aug. 15, 2012 (GLOBE NEWSWIRE) -- Liberator Medical Holdings, Inc. (OTCBB:LBMH) announced net revenues of $15.0 million for the three months ended June 30, 2012, an increase of $1.7 million, or 12.3%, compared with sales of $13.3 million for the three months ended June 30, 2011. Sales for the nine months ended June 30, 2012, increased by $6.2 million, or 16.3%, to $44.4 million, compared with sales of $38.2 million for the nine months ended June 30, 2011. The increase in sales was primarily due to the Company's continued emphasis on its direct response advertising campaign to obtain new customers and its customer service to maximize the reorder rates for its recurring customer base.
Income from operations for the three months ended June 30, 2012, increased by $0.8 million, or 203.9%, to $1.2 million, compared with income from operations of $0.4 million for the three months ended June 30, 2011. Income from operations for the nine months ended June 30, 2012, increased by $1.0 million, or 46.2%, to $3.1 million, compared with income from operations of $2.1 million for the nine months ended June 30, 2011. The increase in operating income was due to increased gross profits driven by our increased sales volumes as well as a reduction as a percentage of sales in advertising, bad debt, and general and administrative expenses, partially offset by an increase in payroll expenses.
Third Quarter 2012 Highlights
| · | Net revenues of $15.0 million for the third fiscal quarter of 2012, an increase of $1.7 million, or 12.3%, compared with the third fiscal quarter of 2011. |
| · | Income from operations for the third fiscal quarter of 2012 increased by $0.8 million, or 203.9%, to $1.2 million, compared with the third fiscal quarter of 2011. |
| · | Net Income of $676,000 for the third fiscal quarter of 2012, an increase of $586,000, or 651%, compared with the third fiscal quarter of 2011. For the nine months ended June 30, 2012, net income increased $1.6 million, or 813% (including a $902,000 non-cash expense for embedded derivatives in the first quarter of FY2011), compared with the nine months ended June 30, 2011. |
| · | At June 30, 2012, current assets of $17.8 million exceeded current liabilities of $6.5 million by $11.3 million. |
Mark Libratore, CEO, stated: "We have continued to increase our sales and have increased our profitability during the first three quarters of fiscal year 2012 compared with fiscal year 2011. Our direct-response advertising campaign has generated new customers at lower costs per acquired customer this year compared with last year's advertising results, which has driven our increased sales and profitability. I am confident that our overall advertising strategy and continued emphasis on operational efficiencies will enable us to continue to attract new customers in a growing medical supply market, retain our existing customer base, and deliver positive financial results."
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. The Company has posted presentation material on its website at:
http://content.stockpr.com/lbmh/media/7668c8288eb4534dbc260de75000ba1a.pdf
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 requirements of general medical supplies, personal mobility aids, diabetes, urological, ostomy and mastectomy 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 June 30, 2012 (unaudited) and September 30, 2011 (In thousands, except dollar per share amounts) | ||||||||
| June 30, | September 30, | |||||||
| 2012 | 2011 | |||||||
| Assets | ||||||||
| Current Assets: | ||||||||
| Cash | $ | 2,559 | $ | 3,016 | ||||
| Accounts receivable, net of allowances of $4,425 and $4,177, respectively | 10,041 | 7,860 | ||||||
| Inventory, net of allowance for obsolete inventory of $242 and $144, respectively | 2,567 | 3,009 | ||||||
| Deferred taxes, current portion | 1,998 | 1,877 | ||||||
| Prepaid and other current assets | 674 | 333 | ||||||
| Total Current Assets | 17,839 | 16,095 | ||||||
| Property and equipment, net of accumulated depreciation of $2,725 and $2,186, respectively | 1,292 | 1,626 | ||||||
| Deferred advertising | 20,524 | 17,191 | ||||||
| Intangible assets, net of accumulated amortization of $74 and $25, respectively | 256 | 305 | ||||||
| Other assets | 95 | 163 | ||||||
| Total Assets | $ | 40,006 | $ | 35,380 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable | $ | 4,988 | $ | 5,008 | ||||
| Accrued liabilities | 1,420 | 1,119 | ||||||
| Other current liabilities | 70 | 103 | ||||||
| Total Current Liabilities | 6,478 | 6,230 | ||||||
| Deferred tax liability | 4,676 | 3,347 | ||||||
| Credit line facility | 2,500 | 1,500 | ||||||
| Other long-term liabilities | 101 | 48 | ||||||
| Total Liabilities | 13,755 | 11,125 | ||||||
| Stockholders' Equity: | ||||||||
| Common stock, $.001 par value, 200,000 shares authorized, 48,232and 48,135 shares issued, respectively; 48,143 and 48,046 shares outstanding at June 30, 2012, and September 30, 2011, respectively | 48 | 48 | ||||||
| Additional paid-in capital | 34,700 | 34,504 | ||||||
| Accumulated deficit | (8,447 | ) | (10,247 | ) | ||||
| Treasury stock, at cost; 89 shares at June 30, 2012, and September 30, 2011 | (50 | ) | (50 | ) | ||||
| Total Stockholders' Equity | 26,251 | 24,255 | ||||||
| Total Liabilities and Stockholders' Equity | $ | 40,006 | $ | 35,380 | ||||
See accompanying notes to unaudited condensed consolidated financial statements.
| Liberator Medical Holdings, Inc. and Subsidiaries Condensed Consolidated Statements of Operations For the three and nine months ended June 30, 2012 and 2011 (Unaudited) (in thousands, except per share amounts) | ||||||||||||||||
| Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| Sales | $ | 14,961 | $ | 13,319 | $ | 44,427 | $ | 38,203 | ||||||||
| Cost of Sales | 5,836 | 5,237 | 17,526 | 14,450 | ||||||||||||
| Gross Profit | 9,125 | 8,082 | 26,901 | 23,753 | ||||||||||||
| Operating Expenses | ||||||||||||||||
| Payroll, taxes and benefits | 3,526 | 3,072 | 10,567 | 8,843 | ||||||||||||
| Advertising | 1,956 | 2,132 | 5,896 | 6,052 | ||||||||||||
| Bad debts | 1,028 | 1,098 | 3,001 | 2,867 | ||||||||||||
| Depreciation and amortization | 206 | 191 | 615 | 528 | ||||||||||||
| General and administrative | 1,242 | 1,205 | 3,738 | 3,354 | ||||||||||||
| Total Operating Expenses | 7,958 | 7,698 | 23,817 | 21,644 | ||||||||||||
| Income from Operations | 1,167 | 384 | 3,084 | 2,109 | ||||||||||||
| Other Income (Expense) | ||||||||||||||||
| Interest expense | (21 | ) | (3 | ) | (53 | ) | (35 | ) | ||||||||
| Change in fair value of derivative liabilities | — | — | — | (902 | ) | |||||||||||
| Gain on sale of assets | — | — | — | 2 | ||||||||||||
| Interest income | — | 1 | — | 5 | ||||||||||||
| Total Other Income (Expense) | (21 | )) | (2 | ) | (53 | ) | (930 | ) | ||||||||
| Income before Income Taxes | 1,146 | 382 | 3,031 | 1,179 | ||||||||||||
| Provision for Income Taxes | 470 | 292 | 1,231 | 982 | ||||||||||||
| Net Income | $ | 676 | $ | 90 | $ | 1,800 | $ | 197 | ||||||||
| Basic earnings per share: | ||||||||||||||||
| Weighted average shares outstanding | 48,098 | 48,018 | 48,081 | 47,809 | ||||||||||||
| Earnings per share | $ | 0.01 | $ | 0.00 | $ | 0.04 | $ | 0.00 | ||||||||
| Diluted earnings per share: | ||||||||||||||||
| Weighted average shares outstanding | 52,279 | 54,175 | 52,273 | 53,751 | ||||||||||||
| Earnings per share | $ | 0.01 | $ | 0.00 | $ | 0.03 | $ | 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 nine months ended June 30, 2012 and 2011 (Unaudited) (in thousands) | ||||||||
| Nine Months Ended | ||||||||
| June 30, | ||||||||
| 2012 | 2011 | |||||||
| Cash flow from operating activities: | ||||||||
| Net Income | $ | 1,800 | $ | 197 | ||||
| Adjustments to reconcile net income to net cash used in operating activities: | ||||||||
| Depreciation and amortization | 6,386 | 6,458 | ||||||
| Change in fair value of derivative liabilities | — | 902 | ||||||
| Equity based compensation | 115 | 328 | ||||||
| Provision for doubtful accounts and contractual adjustments | 3,039 | 3,059 | ||||||
| Non-cash interest related to convertible notes payable | — | 21 | ||||||
| Deferred income taxes | 1,208 | 982 | ||||||
| Reserve for inventory obsolescence | 98 | 28 | ||||||
| Gain on sale of assets | — | (2 | ) | |||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (5,220 | ) | (4,326 | ) | ||||
| Deferred advertising | (9,104 | ) | (12,765 | ) | ||||
| Inventory | 344 | (622 | ) | |||||
| Other assets | (252 | ) | (36 | ) | ||||
| Accounts payable | (20 | ) | 1,667 | |||||
| Accrued liabilities | 326 | 60 | ||||||
| Other liabilities | (78 | ) | (58 | ) | ||||
| Net Cash Flow Used in Operating Activities | (1,358 | ) | (4,107 | ) | ||||
| Cash flow from investing activities: | ||||||||
| Purchase of property and equipment | (112 | ) | (306 | ) | ||||
| Acquisition of SGV Medical Supplies (see Note 3) | — | (466 | ) | |||||
| Proceeds from the sale of assets | — | 3 | ||||||
| Net Cash Flow Used in Investing Activities | (112 | ) | (769 | ) | ||||
| Cash flow from financing activities: | ||||||||
| Proceeds from employee stock purchase plan | 56 | 64 | ||||||
| Proceeds from credit line facility | 1,000 | 500 | ||||||
| Costs associated with credit line facility | (21 | ) | (51 | ) | ||||
| Payments of debt and capital lease obligations | (22 | ) | (613 | ) | ||||
| Net Cash Flow Provided by (Used in) Financing Activities | 1,013 | (100 | ) | |||||
| Net decrease in cash | (457 | ) | (4,976 | ) | ||||
| Cash at beginning of period | 3,016 | 7,428 | ||||||
| Cash at end of period | $ | 2,559 | $ | 2,452 | ||||
| Supplemental disclosure of cash flow information: | ||||||||
| Cash paid for interest | $ | 51 | $ | 51 | ||||
| Cash paid for income taxes | $ | — | $ | 5 | ||||
| Supplemental schedule of non-cash investing and financing activities: | ||||||||
| Capital expenditures funded by capital lease borrowing | $ | 120 | $ | — | ||||
| 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 filed with the Securities and Exchange Commission.
CONTACT: Individual Investor Relations Contact
Gerald Kieft
WSR Communications
772-219-7525
IR@WSRcommunications.com
http://wsrcommunications.ir.stockpr.com/liberatormedical
Institutional Investor Contact:
Lyn Davis
Littlebanc Advisors, LLC
561-948-3005
ld@littlebanc.com
www.littlebanc.com
Source: Liberator Medical Holdings, Inc.
Released August 15, 2012