ADDISON, TX--(Marketwired - September 03, 2014) - HASCO Medical, Inc. (OTCQB: HASC), a leading provider of handicap-accessible vans, parts and service, reported results for the second quarter ended June 30, 2014.
Q2 2014 Financial and Operational Highlights
- Revenues up 28% to a record $24.0 million over Q2 2013
- Gross profit increased 18% to $5.1 million vs. the same year-ago quarter
- Net income of $260,000, which includes one-time expenses of $110,000, as compared to $251,000 in same year-ago quarter
- Opened new Ride-Away® commercial taxi location in NYC
- Secured rights to market BraunAbility® wheelchair accessible vans in Baltimore metro area
First Half 2014 Financial Highlights
- Revenues increased 32% to $44.5 million
- Gross profit up 33% to $10.4 million
- Net income increased from $52,000 to $455,000
Q2 2014 Financial Summary
Net revenues for the second quarter of 2014 totaled a record $24.0 million, up 28% from $18.7 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 $4.0 million, up 11% from the same year-ago quarter.
Gross profit was $5.1 million or 21.4% of total net revenues, compared to $4.3 million or 23.2% of total net revenues in the same year-ago quarter. The gross margin decrease is due to more competitive pricing in the marketplace, taking more deals from the competitors and pushing more business in the commercial/taxi arena versus retail only sales.
Net income totaled $260,000, as compared to net income of $251,000 in the same year-ago quarter.
First Half 2014 Financial Summary
Net revenues for the first half of 2014 totaled a record $44.5 million, up 32% from $33.7 million in the first half of 2013. Service and other revenue totaled $7.9 million, up 22% from the same year-ago period.
Gross profit was $10.4 million or 23.2% of total net revenues, compared to $7.8 million or 23.1% of total net revenues in the same year-ago period.
Net income totaled $455,000, as compared to net income of $52,000 in the same year-ago period.
Management Commentary
"In the second quarter of 2014, strong sales of handicap accessible vehicles across all of our East Coast dealerships resulted in a record topline with bottom line growth sequentially and year-over-year," said Hal Compton, CEO of HASCO Medical. "Subsequent to the quarter, we divested our durable medical equipment business, becoming a pure-play vehicular mobility provider. Based on our full focus on our leading mobility brands, strong tailwinds of a growing market and two new dealerships we're planning to open in the fall with the support of major brands like BraunAbility and VMI, we continue to expect record topline growth for the year."
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
June 30, December 31,
2014 2013
(unaudited)
------------- -------------
Assets
Current assets
Cash $ 550,507 $ 150,313
Accounts receivable, net of allowance for
doubtful accounts of $671,320 and $686,345,
respectively 7,300,778 6,182,680
Inventory, net 13,382,571 11,572,060
Deferred tax asset, short term 402,475 413,193
Current portion of note receivable 23,329 -
Prepaid expenses and other current assets 597,472 504,819
------------- -------------
Total current assets 22,257,132 18,823,065
------------- -------------
Property & equipment, net of accumulated
depreciation of $1,685,908 and $1,164,634,
respectively 2,217,218 2,141,212
Intangible assets, net of accumulated
depreciation of $32,254 and $10,192,
respectively 6,191,972 6,214,034
Deferred tax asset, long term 149,204 149,204
Note receivable, net of current portion 101,289 -
Other non-current assets 576,609 604,965
------------- -------------
Total Assets $ 31,493,424 $ 27,932,480
============= =============
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable and accrued expenses $ 2,748,078 $ 1,849,702
Cash overdraft 97,196 175,572
Customer deposits and deferred revenue 384,187 388,433
Line of credit 2,045,025 2,303,143
Note payable - floor plan 13,824,838 12,174,639
Obligation under capital leases 419,900 366,658
Current portion of notes payable 386,148 376,685
Current portion note payable, related party 349,410 353,008
Other current liabilities 1,294,860 493,923
------------- -------------
Total current liabilities 21,549,642 18,481,763
------------- -------------
Obligation under capital leases, net of
current portion 1,129,758 817,828
Notes payable, net of current portion 3,883,142 4,075,802
Notes payable to related party, net of current
portion 1,768,375 1,947,214
------------- -------------
Total liabilities 28,330,917 25,322,607
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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
998,178,741 and 993,134,076 shares issued
and outstanding, respectively 998,179 993,134
Additional paid-in capital 6,762,045 6,669,056
Accumulated deficit (4,597,717) (5,052,317)
------------- -------------
Total stockholders' equity 3,162,507 2,609,873
------------- -------------
Total Liabilities and Stockholders' Equity $ 31,493,424 $ 27,932,480
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Hasco Medical, Inc. & Subsidiaries
Consolidated Statements of Operations
(unaudited)
For the Three Months Ended
June 30,
----------------------------
2014 2013
------------- -------------
Product sales $ 19,656,944 $ 14,806,794
Rental revenue 312,593 273,133
Service and other 4,022,638 3,630,397
------------- -------------
Total net revenues 23,992,175 18,710,324
------------- -------------
------------- -------------
Cost of sales 18,869,736 14,373,055
------------- -------------
Gross profit 5,122,439 4,337,269
Operating expenses:
Selling and marketing 1,017,177 1,091,839
General and administrative 3,329,271 2,571,446
Amortization and depreciation 287,855 274,822
------------- -------------
Total operating expenses 4,634,303 3,938,107
------------- -------------
Income from operations 488,136 399,162
Other income (expense)
Other income 54,996 131,876
Interest expense (248,549) (175,817)
------------- -------------
Total other income (expense) (193,553) (43,941)
------------- -------------
Income from continuing operations before
income taxes 294,583 355,221
Provision for income taxes 88,557 17,012
------------- -------------
Income from continuing operations 206,026 338,209
Gain (loss) from discontinued operations, net
of income tax 54,227 (87,527)
------------- -------------
Net income 260,253 250,682
============= =============
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 997,706,194 988,278,663
============= =============
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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