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| 8-K - FORM 8-K - LIBERATOR MEDICAL HOLDINGS, INC. | v335324_8-k.htm |
Liberator Medical Reports Revenue of $17.6 Million for Its First Fiscal Quarter Ended December 31, 2012
The Company Reports Net Income of $1.4 Million for the Quarter
STUART, FL -- (MARKETWIRE) -- 02/14/13 -- Liberator Medical Holdings, Inc. (OTCBB: LBMH) today announced the financial results for its first fiscal quarter ended December 31, 2012. Sales for the quarter ended December 31, 2012 increased by $2,755,000, or 18.6%, to $17,551,000, compared with sales of $14,796,000 for the quarter ended December 31, 2011. The increase in sales was due to the Company's continued direct response advertising campaign to acquire new customers and strong reorder rates from its recurring customer base during the last quarter of the calendar year. Liberator's direct response advertising expenditure for the quarter ended December 31, 2012, was $2.8 million, compared with $2.7 million for the quarter ended December 31, 2011.
First Fiscal Quarter 2013 Financial Highlights
| · | Revenue of $17.6 million, an increase of 18.6% over the last year's first quarter |
| · | Operating margins increased to 12.9% of sales compared with 5.3% a year ago |
| · | Net income of $1.4 million, or $0.03 per share, compared with net income of $0.5 million, or $0.01 per share, for the first quarter last year |
| · | Cash generated from operations of $1.4 million, an increase of $3.3 million compared with cash used in operations of $1.9 million for the first quarter last year |
| · | As of December 31, 2012, the Company had $4.4 million of cash and $4.7 million available from its credit line facility. |
Income from operations for the quarter ended December 31, 2012, increased by $1,479,000, or 189.9%, to $2,258,000, compared with the quarter ended December 31, 2011. The increase in operating income is primarily attributed to increased gross profits driven by our increased sales volumes as well as a reduction as a percentage of sales in operating expenses.
Mark Libratore, the Company's President and CEO, commented, "We are very pleased with our financial performance for the first quarter. We increased sales by 19% over last year at higher operating margins and generated $1.4 million in operating cash flows for the quarter. We will continue to manage the levels of our direct response advertising spend to maximize profitability and cash flows for fiscal year 2013. Based on investments we have made in our employees, infrastructure, and technology, we expect to continue to increase our operating margins and cash flows for fiscal year 2013 compared with fiscal year 2012."
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™ 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 supplies, catheters, ostomy supplies and mastectomy fashions. 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.
Safe Harbor Statement
Certain statements in this press release that are not historical, but are forward-looking, are subject to known and unknown risks and uncertainties which may cause the Company's actual results in future periods to be materially different from any future performance that may be suggested in this press release. Such risks and uncertainties may include, but are not limited to, the Company's need to raise equity capital and its ability to obtain equity financing on acceptable terms, if at all, 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, the risk of early obsolescence of our products and the other factors listed under "Risks and Uncertainties" in our annual report on Form 10-K for the fiscal year ended September 30, 2008 and our other filings with the Securities and Exchange Commission. We assume no obligation to update the information contained in this news release.
| Liberator Medical Holdings, Inc. and Subsidiaries | |
| Condensed Consolidated Balance Sheets | |
| As of December 31, 2012 (unaudited) and September 30, 2012 | |
| (In thousands, except dollar per share amounts) |
| December 31, | September 30, | |||||||
| 2012 | 2012 | |||||||
| Assets | ||||||||
| Current Assets: | ||||||||
| Cash | $ | 4,431 | $ | 3,326 | ||||
| Accounts receivable, net of allowances of $5,022 and $5,044, respectively | 9,200 | 10,365 | ||||||
| Inventory, net of allowance for obsolete inventory of $362 and $310, respectively | 2,426 | 2,627 | ||||||
| Deferred taxes, current portion | 2,310 | 2,254 | ||||||
| Prepaid and other current assets | 346 | 287 | ||||||
| Total Current Assets | 18,713 | 18,859 | ||||||
| Property and equipment, net of accumulated depreciation of $3,035 and $2,888, respectively | 1,411 | 1,250 | ||||||
| Deferred advertising | 23,032 | 22,426 | ||||||
| Intangible assets, net of accumulated amortization of $107 and $91, respectively | 223 | 239 | ||||||
| Other assets | 87 | 88 | ||||||
| Total Assets | $ | 43,466 | $ | 42,862 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable | $ | 4,525 | $ | 6,537 | ||||
| Accrued liabilities | 1,608 | 1,221 | ||||||
| Other current liabilities | 96 | 92 | ||||||
| Total Current Liabilities | 6,229 | 7,850 | ||||||
| Deferred tax liability | 6,283 | 5,421 | ||||||
| Credit line facility | 2,500 | 2,500 | ||||||
| Other long-term liabilities | 114 | 132 | ||||||
| Total Liabilities | 15,126 | 15,903 | ||||||
| Stockholders' Equity: | ||||||||
| Common stock, $.001 par value, 200,000 shares authorized, 48,266 and 48,232 shares issued, respectively; 48,177 and 48,143 shares outstanding at December 31, 2012, and September 30, 2012, respectively | 48 | 48 | ||||||
| Additional paid-in capital | 34,736 | 34,707 | ||||||
| Accumulated deficit | (6,394 | ) | (7,746 | ) | ||||
| Treasury stock, at cost; 89 shares at December 31, 2012, and September 30, 2012 | (50 | ) | (50 | ) | ||||
| Total Stockholders' Equity | 28,340 | 26,959 | ||||||
| Total Liabilities and Stockholders' Equity | $ | 43,466 | $ | 42,862 | ||||
See accompanying notes to unaudited condensed consolidated financial statements.
| Liberator Medical Holdings, Inc. and Subsidiaries |
| Condensed Consolidated Statements of Operations |
| For the three months ended December 31, 2012 and 2011 |
| (Unaudited) |
| (in thousands, except per share amounts) |
| Three Months Ended December 31, | ||||||||
| 2012 | 2011 | |||||||
| Sales | $ | 17,551 | $ | 14,796 | ||||
| Cost of Sales | 6,573 | 6,003 | ||||||
| Gross Profit | 10,978 | 8,793 | ||||||
| Operating Expenses | ||||||||
| Payroll, taxes and benefits | 3,843 | 3,464 | ||||||
| Advertising | 2,203 | 1,968 | ||||||
| Bad debts | 1,278 | 1,130 | ||||||
| Depreciation and amortization | 164 | 199 | ||||||
| General and administrative | 1,232 | 1,253 | ||||||
| Total Operating Expenses | 8,720 | 8,014 | ||||||
| Income from Operations | 2,258 | 779 | ||||||
| Other Expense | ||||||||
| Interest expense | (21 | ) | (12 | ) | ||||
| Total Other Expense | (21 | ) | (12 | ) | ||||
| Income before Income Taxes | 2,237 | 767 | ||||||
| Provision for Income Taxes | 885 | 313 | ||||||
| Net Income | $ | 1,352 | $ | 454 | ||||
| Basic earnings per share: | ||||||||
| Weighted average shares outstanding | 48,147 | 48,057 | ||||||
| Earnings per share | $ | 0.03 | $ | 0.01 | ||||
| Diluted earnings per share: | ||||||||
| Weighted average shares outstanding | 52,143 | 52,321 | ||||||
| Earnings per share | $ | 0.03 | $ | 0.01 | ||||
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, 2012 and 2011 |
| (Unaudited) |
| (in thousands) |
| Three Months Ended | ||||||||
| December 31, | ||||||||
| 2012 | 2011 | |||||||
| Cash flow from operating activities: | ||||||||
| Net Income | $ | 1,352 | $ | 454 | ||||
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||
| Depreciation and amortization | 2,310 | 2,123 | ||||||
| Equity based compensation | 10 | 38 | ||||||
| Provision for doubtful accounts and contractual adjustments | 1,335 | 1,163 | ||||||
| Deferred income taxes | 805 | 307 | ||||||
| Reserve for inventory obsolescence | 53 | 6 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (169 | ) | (2,449 | ) | ||||
| Deferred advertising | (2,753 | ) | (2,700 | ) | ||||
| Inventory | 148 | 119 | ||||||
| Other assets | (57 | ) | (175 | ) | ||||
| Accounts payable | (2,013 | ) | (945 | ) | ||||
| Accrued liabilities | 393 | 142 | ||||||
| Other liabilities | 3 | (27 | ) | |||||
| Net Cash Flow Provided by (Used in) Operating Activities | 1,417 | (1,944 | ) | |||||
| Cash flow from investing activities: | ||||||||
| Purchase of property and equipment | (308 | ) | (40 | ) | ||||
| Net Cash Flow Used in Investing Activities | (308 | ) | (40 | ) | ||||
| Cash flow from financing activities: | ||||||||
| Proceeds from employee stock purchase plan | 13 | 20 | ||||||
| Proceeds from credit line facility | - | 1,000 | ||||||
| Payments of debt and capital lease obligations | (17 | ) | (7 | ) | ||||
| Net Cash Flow Provided by (Used in) Financing Activities | (4 | ) | 1,013 | |||||
| Net increase (decrease) in cash | 1,105 | (971 | ) | |||||
| Cash at beginning of period | 3,326 | 3,016 | ||||||
| Cash at end of period | $ | 4,431 | $ | 2,045 | ||||
| Supplemental disclosure of cash flow information: | ||||||||
| Cash paid for interest | $ | 21 | $ | 12 | ||||
| Cash paid for income taxes | $ | 5 | $ | - | ||||
| Supplemental schedule of non-cash investing and financing activities: | ||||||||
| Capital expenditures funded by capital lease borrowing | $ | - | $ | 18 | ||||
See accompanying notes to unaudited condensed consolidated financial statements.
Contacts:
Individual Investor Relations Contact
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
Released February 14, 2013