ADDISON, TX--(Marketwired - August 20, 2014) - HASCO Medical, Inc. (OTCQB: HASC), a leading provider of handicap-accessible vans, parts and service, reported results for the first quarter ended March 31, 2014.
Q1 2014 Financial and Operational Highlights
- Revenues up 38% to a record $20.7 million, marking five consecutive quarters of record revenue
- Gross margin up 176 basis points to 25.4%
- Net income of $194,000 vs. a net loss of $199,000 in same year-ago quarter
- Delivered a record number of taxi orders totaling more than 100, which were sold primarily through the company's Ride-Away® Commercial Taxi location in NYC
Q1 2014 Financial Summary
Net revenues for the first quarter of 2014 totaled a record $20.7 million, up 38% from $15.0 million in the same year-ago quarter. The improvement was primarily due to the increase in private-pay business for van sales, as well as the contribution of Auto Mobility Sales that the company acquired last September. Service and other revenue totaled $3.9 million, up 36% from the same year-ago quarter.
Gross profit was a record $5.3 million or 25.4% of total net revenues, compared to $3.5 million or 23.7% of total net revenues in the same year-ago quarter. The increase is primarily due to the greater buying power and better utilization of capacity in service.
Net income totaled $194,000, as compared to net loss of $199,000 in the same year-ago quarter.
Management Commentary
"Our record first quarter results reflects strong sales of handicap accessible vehicles across all our East Coast dealerships," said Hal Compton, CEO of HASCO Medical. "We expect this sales momentum to be maintained with the help of two new dealerships we're planning to open in the Fall with the support of major brands like BraunAbility and VMI. As we look to the remainder of 2014, we expect our excellent customer service, high-quality products and custom solutions, and the strong tailwinds of a growing market to drive another record year."
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
March 31, December 31,
2014 2013
(unaudited)
------------ ------------
Assets
Current assets
Cash $ 909,004 $ 150,313
Accounts receivable, net of allowance for
doubtful accounts of $675,509 and $686,345,
respectively 5,817,869 6,182,680
Inventory, net 10,981,334 11,572,060
Deferred tax asset, short term 413,193 413,193
Prepaid expenses and other current assets 654,411 504,819
------------ ------------
Total current assets 18,775,811 18,823,065
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Property & equipment, net of accumulated
depreciation of $1,387,930 and $1,164,634,
respectively 2,164,217 2,141,212
Intangible assets, net of accumulated
depreciation of $21,223 and $10,192,
respectively 6,203,003 6,214,034
Deferred tax asset, long term 149,204 149,204
Other non-current assets 586,930 604,965
------------ ------------
Total Assets $ 27,879,165 $ 27,932,480
============ ============
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable and accrued expenses $ 2,361,956 $ 1,849,702
Cash overdraft -- 175,572
Customer deposits and deferred revenue 389,305 388,433
Line of credit 928,810 2,303,143
Note payable - floor plan 12,655,167 12,174,639
Obligation under capital leases 321,712 366,658
Current portion of notes payable 382,966 376,685
Current portion note payable, related party 335,312 353,008
Other current liabilities 875,085 493,923
------------ ------------
Total current liabilities 18,250,313 18,481,763
------------ ------------
Obligation under capital leases, net of current
portion 960,816 817,828
Notes payable, net of current portion 3,947,856 4,075,802
Notes payable to related party, net of current
portion 1,838,927 1,947,214
------------ ------------
Total liabilities 24,997,912 25,322,607
------------ ------------
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; and 996,938,389 and
993,134,076 shares issued and outstanding,
respectively 996,938 993,134
Additional paid-in capital 6,742,285 6,669,056
Accumulated deficit (4,857,970) (5,052,317)
------------ ------------
Total stockholders' equity 2,881,253 2,609,873
------------ ------------
Total Liabilities and Stockholders' Equity $ 27,879,165 $ 27,932,480
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Hasco Medical, Inc. & Subsidiaries
Consolidated Statements of Operations
(unaudited)
For the Three Months Ended
March 31,
--------------------------
2014 2013
------------ ------------
Product sales $ 16,588,280 $ 11,855,547
Rental revenue 245,005 273,395
Service and other 3,852,318 2,826,546
------------ ------------
Total net revenues 20,685,603 14,955,488
------------ ------------
------------ ------------
Cost of sales 15,425,817 11,415,351
------------ ------------
Gross profit 5,259,786 3,540,137
Operating expenses:
Selling and marketing 953,798 917,500
General and administrative 3,415,207 2,486,904
Amortization and depreciation 234,327 319,974
------------ ------------
Total operating expenses 4,603,332 3,724,378
------------ ------------
Income (loss) from operations 656,454 (184,241)
Other income (expense)
Other income 20,989 49,192
Interest expense (302,838) (193,577)
------------ ------------
Total other income (expense) (281,849) (144,385)
------------ ------------
Income (loss) from continuing operations before
income taxes 374,605 (328,626)
Provision for (benefit from) income taxes 170,218 (261,000)
------------ ------------
Income (loss) from continuing operations 204,387 (67,626)
(Loss) from discontinued operations, net of
income tax (10,040) (131,086)
------------ ------------
Net income (loss) $ 194,347 $ (198,712)
============ ============
Earnings per share:
Basic and dilutive-Continuing Operations $ 0.00 0.00
============ ============
Basic and dilutive-Discontinued Operations $ 0.00 $ 0.00
============ ============
Weighted average shares outstanding:
Basic and dilutive 994,619,535 988,069,704
============ ============
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
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