Hasco Medical, Inc. Reports Record Full Year 2013 Results
ADDISON, TX--(Marketwired - July 31, 2014) - HASCO Medical, Inc. (OTCQB: HASC), a leading provider of handicap-accessible vans, parts and service, reported results for year ended December 31, 2013.
2013 Financial and Operational Highlights
- Revenues up 16% to a record $72.9 million, marking three consecutive years of record revenue
- Gross margin up 213 basis points to 25.0%
- Net income a record $802,000 vs. $82,000 in 2012
- Completed acquisition of Auto Mobility Sales, which added two locations in southeast Florida
- Received $2.5 million order of wheelchair accessible taxicabs
Full Year 2013 Financial Summary
Net revenues for 2013 totaled a record $72.9 million, up 16% from $63.0 million in 2012. The improvement was primarily due to the increase in private pay business for van sales and the acquisition of Auto Mobility Sales. Service and other revenue increased 18% to $12.8 million in 2013.
Gross profit was a record $18.2 million or 25.0% of total net revenues, compared to $14.4 million or 22.8% of total net revenues in 2012. Gross margin for parts improved 300 basis in 2013. The increases were primarily due to the greater buying power and better utilization of capacity in service.
Net income totaled a record $802,000, as compared to net income of $82,000 in 2012.
Management Commentary
"Our record top and bottom line in 2013 was driven primarily by sales growth in handicap accessible vehicles, the acquisition of Auto Mobility Sales, and the hard work of our dedicated team," said Hal Compton, CEO of HASCO Medical.
Bob Desmarais, HASCO Medical's president of stores, commented: "While the acquisition of Auto Mobility improved our sales leadership, it also expanded our presence in Florida with the addition of two dealerships. Combined with our recently opened dealership in New York City, we now have 19 locations along the East Coast, and are seeing greater synergies between our acquisitions."
"Over the last year, we have seen significant improvements in vehicles and adaptive products introduced by major manufacturers like Braun, VMI, and Mobility SVM, which have helped stimulate sales," added Compton. "In 2014, we continue to expect record topline growth, driven by a strong and growing demand for accessible vehicles that supports our plans for further geographical expansion."
2014 Outlook
HASCO Medical expects 2014 total net revenues to range between $75 million and $85 million, which represents an increase of 3% to 17%. The company also expects gross margin to range between 21% to 23%. The company also expects positive net income in 2014.
About HASCO Medical, Inc.
HASCO Medical is a leading provider of handicap accessible vans, parts, and service that dramatically improve the quality of living of its customers. The company operates 19 locations from Maine to Florida. The company's mobility brands include Ride-Away (www.Ride-Away.com), Auto Mobility Sales (www.automobilitysales.com), Mobility Freedom (www.MobilityFreedom.com) and Wheelchair Vans of America (www.wcvans.com). To learn more, go to www.hascomed.com.
Cautionary Note Regarding Forward-Looking Statements
This press release may contain forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. In some cases you can identify those so-called "forward looking statements" by words such as "may," "will," "should," "expects," "plans," "targets," "believes," "anticipates," "estimates," "predicts," "potential," or "continue" or the negative of those words and other comparable words. These forward looking statements are subject to risks and uncertainties, product tests, commercialization risks, availability of financing and results of financing efforts that could cause actual results to differ materially from historical results or those anticipated. Further information regarding these and other risks is described from time to time in the Company's filings with the SEC, which are available on its website at: http://www.sec.gov. We assume no obligation to update or alter our forward-looking statements made in this release or in any periodic report filed by us under the Securities Exchange Act of 1934 or any other document, whether as a result of new information, future events or otherwise, except as otherwise required by applicable federal securities laws.
Hasco Medical, Inc. & Subsidiaries
Consolidated Balance Sheets
December 31,
2013 2012
----------- -----------
Assets
Current assets
Cash $ 150,313 $ 850,391
Accounts receivable, net of allowance for
doubtful accounts of $686,345 and $414,718,
respectively 6,182,680 7,116,008
Inventory, net 11,572,060 10,489,388
Deferred tax asset, short-term 413,193 --
Prepaid expenses and other current assets 504,819 177,942
----------- -----------
Total current assets 18,823,065 18,633,729
----------- -----------
Property & equipment, net of accumulated
depreciation of $1,164,634 and $1,604,689,
respectively 2,141,212 2,162,729
Intangible assets, net of accumulated amortization
of $10,192 and $0, respectively 6,214,034 5,670,013
Deferred tax asset, long-term-term 149,204 --
Other non-current assets 604,965 600,848
----------- -----------
Total Assets $27,932,480 $27,067,319
=========== ===========
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable and accrued expenses $ 1,849,702 $ 2,528,005
Cash overdraft 175,572 --
Customer deposits and deferred revenue 388,433 909,465
Line of credit 2,303,143 6,081,368
Notes payable - Floor Plan 12,174,639 7,421,638
Obligation under capital leases 366,658 510,555
Current portion of note payable 376,685 114,265
Current portion of note payable, related party 353,008 506,787
Other current liabilities 493,923 377,724
----------- -----------
Total current liabilities 18,481,763 18,449,807
----------- -----------
Obligation under capital leases, net of current
portion 817,828 531,969
Notes payable, net of current portion 4,075,802 1,833,746
Notes payable to related party, net of current
portion 1,947,214 4,556,861
----------- -----------
Total liabilities 25,322,607 25,372,383
----------- -----------
Stockholders' Equity
Preferred stock, $0.001 par value, 3,000,000
shares authorized, none issued and outstanding -- --
Common stock, $0.001 par value, 2,000,000,000
shares authorized; 993,134,076 and 987,852,772
shares issued and outstanding, respectively 993,134 987,853
Additional paid-in capital 6,669,056 6,560,979
Accumulated deficit (5,052,317) (5,853,896)
----------- -----------
Total stockholders' equity 2,609,873 1,694,936
----------- -----------
----------- -----------
Total Liabilities and Stockholders' Equity $27,932,480 $27,067,319
=========== ===========
Hasco Medical, Inc. & Subsidiaries
Consolidated Statements of Operations
For the Years Ended December 31,
----------------------------------
2013 2012
---------------- ----------------
Product sales $ 58,800,359 $ 51,506,867
Rental revenue 1,276,154 600,520
Service and other 12,837,102 10,886,830
---------------- ----------------
Total net revenues 72,913,615 62,994,217
---------------- ----------------
---------------- ----------------
Cost of sales 54,715,897 48,614,216
---------------- ----------------
Gross profit 18,197,718 14,380,001
Operating expenses:
Selling and marketing 4,298,770 3,703,329
General and administrative 11,177,310 8,420,550
Amortization and depreciation 1,053,808 1,285,202
---------------- ----------------
Total operating expenses 16,529,888 13,409,081
---------------- ----------------
Income from operations 1,667,830 970,920
Other income (expense):
Other income 487,311 588,880
Impairment of intangible assets -- (105,454)
Acquisition fees -- (26,740)
Interest expense (1,068,971) (911,958)
---------------- ----------------
Total other income (expense) (581,660) (455,272)
---------------- ----------------
Income from continuing operations before
income taxes 1,086,170 515,648
Provision for income taxes 62,578 6,673
---------------- ----------------
Income from continued operations 1,023,592 508,975
(Loss) from discontinued operations (222,038) (426,675)
---------------- ----------------
Net income $ 801,554 $ 82,300
================ ================
Earnings per share:
Basic and dilutive - continued
operations $ 0.00 $ 0.00
================ ================
Basic and dilutive - discontinued
operations $ 0.00 $ 0.00
================ ================
Weighted average shares outstanding
Basic and dilutive 989,545,590 948,357,991
================ ================
Company Contact:
HASCO Medical, Inc.
214-302-0930
Email Contact
Investor Relations Contacts:
Liolios Group, Inc.
Ron Both, Senior Managing Director
949-574-3860
Email Contact
Help employers find you! Check out all the jobs and post your resume.