HemaCare Reports First Half 2018 Results

Aug. 21, 2018 12:10 UTC

LOS ANGELES--(BUSINESS WIRE)-- HemaCare Corp. (OTC Pink: HEMA), a provider of human blood products and services in support of the rapidly expanding field of immune therapy, including stem cell therapy, today announced operational highlights and financial results for the six months ended June 30, 2018.

First Half 2018 Operational Highlights

  • Significant revenue growth attributable to existing and new cell therapy and global customers and key distributors.
  • International revenue growth was approximately 70% compared to prior year which represented 26% of revenues for the six months ended June 30, 2018.
  • Product and services revenue growth was primarily due to customized cell isolation, processing and cryopreservation, and specialized collections of leukopaks and mobilized peripheral blood.
  • Construction of our new state-of-the-art facility is on schedule and HemaCare is expected to relocate its operations and corporate headquarters toward the end of 2018. The new single story 40,000 square foot facility will allow HemaCare to optimize process flow, utilize flexible production environments, and enable significantly enhanced cGMP technical capabilities to better serve HemaCare customers’ increasingly complex cell therapy requirements, and provide necessary scalability to support the increasing demand of our global customer base.

Financial Results

For the six months ended June 30, 2018, HemaCare reported total revenues of $13.1 million, compared to $8.7 million for the six months ended June 30, 2017, representing an increase of $4.4 million, or approximately 51%.

Gross margin for the six months ended June 30, 2018 increased to 57% from 52% in the same period last year, due to an improved product mix and operating leverage.

HemaCare’s net income for the six months ended June 30, 2018 increased to $2.1 million, as compared to $552,00 for the prior-year period.

As of June 30, 2018, HemaCare had $10.3 million in cash and cash equivalents compared to $9.3 million at December 31, 2017.

Cash provided by operations for the first six months of 2018 was $1.2 million, compared with $281,000 for the prior-year period.

For complete unaudited First Half 2018 Financial Statements, please click here.

Pete van der Wal, HemaCare’s President and Chief Executive, stated, “We sustained our steady growth during the first half of 2018 by increasing the depth and breadth of our customer and collaboration partner relationships. The Cell Therapy industry is becoming acutely aware of the critical importance for quality starting material and the value of having access to HemaCare’s robust pool of reliable and recallable donors. As a result, demand for HemaCare’s products and services to support cell therapy process development has continued to increase rapidly and position us well for future capabilities.”

“We continue to leverage our core strengths as well as add new capabilities to support research discoveries and cell therapy development. Our recent leadership and technical team additions, focused on the cell therapy industry, will accelerate an expanded cGMP product offering in our new facility. This includes further processed cGMP starting material, biorepository capabilities, and enhanced cold chain logistics services. These expanded products and services coupled with our 40-year history of superior leukapheresis expertise will strengthen an existing high-quality offering for our research, drug discovery, and cell therapy customers,” said van der Wal.

 
HEMACARE CORPORATION
BALANCE SHEETS
         
ASSETS
         
    (Unaudited)   (Audited)
   

June 30, 2018

 

December 31, 2017

CURRENT ASSETS        
Cash and cash equivalents   $ 10,282,000     $ 9,251,000  
Accounts receivable, net     4,154,000       2,959,000  
Product inventories and supplies, net     3,045,000       2,520,000  
Prepaid expenses and other current assets     255,000       162,000  
         
TOTAL CURRENT ASSETS     17,736,000       14,892,000  
         
OTHER ASSETS        
Property and equipment, net     1,650,000       1,358,000  
Deferred Income Taxes     612,000       1,128,000  
Other assets     43,000       70,000  
         
TOTAL NONCURRENT ASSETS     2,305,000       2,556,000  
         
TOTAL ASSETS   $ 20,041,000     $ 17,448,000  
         
LIABILITIES AND SHAREHOLDERS' EQUITY
         
CURRENT LIABILITIES        
Accounts payable   $ 946,000     $ 682,000  
Accrued payroll and payroll taxes     1,370,000       1,658,000  
Other accrued expenses     190,000       210,000  
Current portion of deferred rent     -       9,000  
Current portion of capital lease obligations     220,000       99,000  
         
TOTAL CURRENT LIABILITIES     2,726,000       2,658,000  
         
LONG-TERM LIABILITIES        
Long-term portion of capital lease obligation     269,000       93,000  
         
TOTAL LIABILITIES     2,995,000       2,751,000  
         
SHAREHOLDERS' EQUITY        
Common stock, no par, 40,000,000 shares authorized,        
12,139,045 and 12,011,545 shares issued and outstanding     21,368,000       21,149,000  
Accumulated deficit     (4,322,000 )     (6,452,000 )
         
TOTAL SHAREHOLDERS' EQUITY     17,046,000       14,697,000  
         
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY   $ 20,041,000     $ 17,448,000  
                 
                 
HEMACARE CORPORATION
STATEMENTS OF INCOME (unaudited)
         
    Six months ended   Six months ended
   

June 30, 2018

 

June 30, 2017

         
REVENUE   $ 13,070,000     $ 8,657,000  
         
COST OF REVENUE     5,638,000       4,160,000  
         
GROSS PROFIT     7,432,000       4,497,000  
         
GENERAL AND ADMINISTRATIVE EXPENSES     4,509,000       3,917,000  
         
OTHER INCOME (EXPENSE)     (3,000 )     (6,000 )
         
INCOME FROM OPERATIONS BEFORE INCOME TAXES     2,920,000       574,000  
         
Provision for income taxes     (790,000 )     (22,000 )
         
NET INCOME   $ 2,130,000     $ 552,000  
                 
                 

About HemaCare

HemaCare is a global leader in the customization of human-derived biological products and services for biomedical research, drug discovery, and cellular therapy process development. The company’s network of FDA-registered, GMP/GTP-compliant collection centers ensure fresh donor material is available to customers and for use within HemaCare’s isolation laboratory. Human biological material including peripheral blood, bone marrow, and cord blood is isolated into various primary cells types for fresh and frozen distribution. For 40 years, HemaCare has developed an extensive registry of repeat donors and provides human-derived primary blood cells and tissues for biomedical and drug discovery research and cell therapy clinical trials, and supports commercialization with apheresis collections, directly enabling customers to advance both autologous and allogeneic cellular therapies.

For more information please visit www.hemacare.com.

Forward Looking Statements

This press release contains forward-looking statements. The words “believe,” “may,” “will,” “potentially,” “estimate,” “continue,” “anticipate,” “intend,” “could,” “would,” “project,” “plan,” “expect” and similar expressions that convey uncertainty of future events or outcomes are intended to identify forward-looking statements. Forward-looking statements in this press release address the following subjects, among others: plans to develop, market, and expand current and future products; expectations of revenue growth; plans for facility relocation; and plans to hire and retain critical personnel. Forward-looking statements are inherently subject to risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements, including, without limitation, the following: the ability of our donors to provide sufficient quality source material; our ability and the ability of our suppliers to maintain compliance with cGMP and other regulatory obligations; the results of regulatory inspections; adverse developments in our customer-base or the markets we serve; results of the Company’s collaboration with strategic partners; adverse changes in regulatory, social and political conditions affecting our industry; our ability to timely and effectively implement 2018 staffing, operations, and product menu changes; our ability to manage growth; and general market, economic and business conditions. Forward-looking statements are made as of the date of this release, and we expressly disclaim any obligation or undertaking to update forward-looking statements.

 

Contacts

HemaCare Media Contact:
Rochelle Martel, 818-728-8868
rmartel@hemacare.com

 
 

Source: HemaCare Corporation

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