SUBSCRIBE TO TMCnet
TMCnet - World's Largest Communications and Technology Community

TMCNet:  Liberator Medical Reports Revenue of $18.6 Million for Its Fiscal Third Quarter Ended June 30, 2014

[August 14, 2014]

Liberator Medical Reports Revenue of $18.6 Million for Its Fiscal Third Quarter Ended June 30, 2014

(Marketwire Via Acquire Media NewsEdge) STUART, FL -- (Marketwired) -- 08/14/14 -- Liberator Medical Holdings, Inc. (NYSE MKT: LBMH) today announced the financial results for its fiscal third quarter ended June 30, 2014.

Net sales for the three months ended June 30, 2014, increased by $1,087,000, or 6.2%, to $18,578,000, compared with net sales of $17,491,000 for the three months ended June 30, 2013. Net sales for the nine months ended June 30, 2014, increased by $3,058,000, or 5.9%, to $54,834,000, compared with net sales of $51,776,000 for the nine months ended June 30, 2013. The increase in net sales was primarily due to our continued emphasis on our direct response advertising campaign to acquire new customers and our emphasis on customer service to maximize the reorder rates for our recurring customer base.


---------------------------------------------------------------------------- Three Months Ended June 30 Nine Months Ended June 30 ---------------------------------------------------------------------------- Dollars in Thousands Q3 FY2014 Q3 FY2013 % Q3 FY2014 Q3 FY2013 % ---------------------------------------------------------------------------- Net Sales $ 18,578 $ 17,491 6.2 $ 54,834 $ 51,776 5.9 ---------------------------------------------------------------------------- Gross Profit $ 11,751 $ 10,893 7.6 $ 34,514 $ 32,604 5.9 ---------------------------------------------------------------------------- Net Income $ 1,983 $ 2,014 (1.5) $ 5,716 $ 4,786 19.4 ---------------------------------------------------------------------------- Income from operations for the three months ended June 30, 2014, decreased by $240,000, or 7.2%, to $3,116,000, compared with the three months ended June 30, 2013. The decrease in operating income is primarily attributed to an increase in advertising expense, general and administrative expenses, and bad debt expense.  For the nine months ended June 30, 2014, income from operations increased by $1,241,000, or 15.6%, to $9,213,000, compared with the nine months ended June 30, 2013. 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 payroll and bad debts expense.

Net income for the third quarter of fiscal year 2014 was $1,983,000 or $0.04 per diluted share, compared with net income of $2,014,000 or $0.04 per diluted share, for the third quarter of fiscal year 2013. Net income for the nine months ended June 30, 2014 was $5,716,000 or $0.11 per diluted share, compared with net income of $4,786,000 or $0.09 per diluted share, for the nine months ended June 30, 2013 an increase of 19.4%.

The Company had cash of $10,264,000 at June 30, 2014, compared with cash of $12,453,000 at September 30, 2013, a decrease of $2,189,000. The decrease in cash for the nine months ended June 30, 2014, was primarily due to $3,945,000 of cash used in financing activities and, $310,000 of cash used in investing activities, partially offset by $2,066,000 of cash provided by operating activities.

"During our fiscal third quarter we made key investments in our organizational infrastructure to improve the efficiency and performance of our customer-facing staff. These expenditures resulted in higher general and administrative expenses in the quarter. We are investing in acquiring and serving our customers, which is central to our mission as a healthcare products provider and to achieving the maximum return on our advertising expenditures. We are pleased that we have grown sales and income over the last nine months and we will continue to make investments that support our growth and create efficiencies that improve our operating margins," commented Mark Libratore, President and CEO.  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. Accredited by The Joint Commission, our Company's 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, 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 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.

Liberator Medical Holdings, Inc. and Subsidiaries Condensed Consolidated Balance Sheets As of June 30, 2014 (unaudited) and September 30, 2013 (In thousands, except dollar per share amounts) June 30, September 30, 2014 2013 ------------- ------------- Assets Current Assets: Cash $ 10,264 $ 12,453 Accounts receivable, net of allowances of $4,552 and $4,502, respectively 8,998 7,836 Inventory, net of allowance for obsolete inventory of $339 and $308, respectively 2,085 2,187 Deferred tax assets 2,110 2,067 Prepaid and other current assets 931 219 ------------- ------------- Total Current Assets 24,388 24,762 Property and equipment, net of accumulated depreciation of $3,913 and $3,492, respectively 908 1,044 Deferred advertising, net 25,721 22,705 Intangible assets, net of accumulated amortization of $252 and $169, respectively 449 414 Other assets 175 174 ------------- ------------- Total Assets $ 51,641 $ 49,099 ============= ============= Liabilities and Stockholders' Equity Current Liabilities: Accounts payable $ 5,080 $ 4,915 Accrued liabilities 1,738 1,354 Dividends payable 1,589 1,569 Income tax payable 227 1,195 Other current liabilities 83 111 ------------- ------------- Total Current Liabilities 8,668 9,144 Deferred tax liabilities 9,447 8,561 Credit line facility 1,500 1,500 Other long-term liabilities 126 63 ------------- ------------- Total Liabilities 19,790 19,268 ------------- ------------- Stockholders' Equity: Common stock, $0.001 par value, 200,000 shares authorized, 53,318 and 52,637 shares issued, respectively; 52,964 and 52,283 shares outstanding at June 30, 2014, and September 30, 2013, respectively 53 53 Additional paid-in capital 36,160 35,111 Accumulated deficit (3,882) (4,853) Treasury stock, at cost; 354 shares at June 30, 2014, and September 30, 2013 (480) (480) ------------- ------------- Total Stockholders' Equity 31,851 29,831 ------------- ------------- Total Liabilities and Stockholders' Equity $ 51,641 $ 49,099 ============= ============= 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, 2014 and 2013 (Unaudited) (in thousands, except per share amounts) Three Months Ended Nine Months Ended June 30, June 30, -------------------- -------------------- 2014 2013 2014 2013 --------- --------- --------- --------- Net Sales $ 18,578 $ 17,491 $ 54,834 $ 51,776 Cost of Sales 6,827 6,598 20,320 19,172 --------- --------- --------- --------- Gross Profit 11,751 10,893 34,514 32,604 --------- --------- --------- --------- Operating Expenses Payroll, taxes and benefits 3,650 3,570 10,988 11,079 Advertising 2,553 2,146 7,250 6,617 Bad debts 845 541 2,487 2,986 Depreciation and amortization 166 171 505 509 General and administrative 1,421 1,109 4,071 3,441 --------- --------- --------- --------- Total Operating Expenses 8,635 7,537 25,301 24,632 --------- --------- --------- --------- Income from Operations 3,116 3,356 9,213 7,972 --------- --------- --------- --------- Other Expenses (12) (20) (38) (62) --------- --------- --------- --------- Income before Income Taxes 3,104 3,336 9,175 7,910 Provision for Income Taxes 1,121 1,322 3,459 3,124 --------- --------- --------- --------- Net Income $ 1,983 $ 2,014 $ 5,716 $ 4,786 ========= ========= ========= ========= Basic earnings per share: Weighted average shares outstanding 52,823 51,837 52,585 49,387 Earnings per share $ 0.04 $ 0.04 $ 0.11 $ 0.10 Diluted earnings per share: Weighted average shares outstanding 53,619 52,393 53,513 52,386 Earnings per share $ 0.04 $ 0.04 $ 0.11 $ 0.09 Dividends declared per common share* $ 0.03 $ 0.05 $ 0.09 $ 0.05  * Two quarterly dividends were declared during the three months ended June 30, 2013 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, 2014 and 2013 (Unaudited) (in thousands) Nine Months Ended June 30, ------------------------ 2014 2013 ----------- ----------- Cash flow from operating activities: Net Income $ 5,716 $ 4,786 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 7,702 6,996 Equity based compensation 184 63 Provision for doubtful accounts and contractual adjustments 2,685 3,214 Deferred income taxes 843 2,153 Reserve for inventory obsolescence 31 157 Changes in operating assets and liabilities: Accounts receivable (3,848) (1,230) Deferred advertising (10,213) (6,975) Inventory 107 547 Other assets (692) (95) Income taxes prepaid and payable (968) 860 Accounts payable 165 (2,282) Accrued liabilities 376 374 Other liabilities (22) (7) ----------- ----------- Net Cash Flow Provided by Operating Activities 2,066 8,561 ----------- ----------- Cash flow from investing activities: Purchase of property and equipment (153) (361) Proceeds from sale of property and equipment 4 - Acquisition of business (161) - ----------- ----------- Net Cash Flow Used in Investing Activities (310) (361) ----------- ----------- Cash flow from financing activities: Proceeds from employee stock purchase plan - 48 Proceeds from exercise of stock options and warrants 694 153 Cash dividends paid (4,725) (1,044) Costs associated with credit line facility (21) (21) Income tax benefit related to exercise of stock options 171 - Payments of capital lease obligations (64) (52) ----------- ----------- Net Cash Flow Used in Financing Activities (3,945) (916) ----------- ----------- Net increase (decrease) in cash (2,189) 7,284 Cash at beginning of period 12,453 3,326 ----------- ----------- Cash at end of period $ 10,264 $ 10,610 =========== =========== See accompanying notes to unaudited condensed consolidated financial statements.

Contacts:Individual Investor Relations ContactWSR Communications772-219-7525IR@WSRcommunications.comhttp://wsrcommunications.ir.stockpr.com/liberatormedicalInstitutional Investor ContactRobert J. DavisLiberator Medical Holdings, Inc.772-463-3737bdavis@liberatormedical.comwww.liberatormedical.com Source: Liberator Medical Holdings, Inc.

[ Back To Technology News's Homepage ]

OTHER NEWS PROVIDERS







Technology Marketing Corporation

800 Connecticut Ave, 1st Floor East, Norwalk, CT 06854 USA
Ph: 800-243-6002, 203-852-6800
Fx: 203-866-3326

General comments: tmc@tmcnet.com.
Comments about this site: webmaster@tmcnet.com.

STAY CURRENT YOUR WAY

© 2014 Technology Marketing Corporation. All rights reserved | Privacy Policy