WEST PALM BEACH, FL--(Marketwire - March 25, 2010) - HearUSA, Inc. (NYSE Amex: EAR), a leader among the nation's hearing care providers, reported financial results for the fourth quarter and year ended December 26, 2009.
Financial Results for Fourth Quarter 2009
In the fourth quarter 2009, net revenues increased 5% to $21.7 million from
$20.7 million in the fourth quarter of 2008 and were unchanged from the
previous quarter. The 5% quarterly year-over-year increase was comprised of
a 2.3% increase in organic revenue, a 1.4% increase attributable to centers
acquired over the last 12 months and approximately $284,000 in contracted
transition services provided to the acquirer of the Canadian operations.
The loss from continuing operations totaled $315,000 in the fourth quarter of 2009, compared to a loss of $3.5 million in the fourth quarter of 2008 and income of $502,000 in the previous quarter. The loss (income) from continuing operations excludes the operating results of the company's former Canadian operations for all periods, and includes AARP program related costs of $258,000 in the fourth quarter of 2009, $152,000 in the fourth quarter of 2008, and $189,000 in the third quarter of 2009. AARP costs in 2008 include the benefit of a $981,000 gain on the restructuring of the AARP contract.
Net loss attributable to common stockholders was $172,000 or $0.00 per basic and diluted share in the fourth quarter of 2009, as compared to a net loss of $2.8 million or $(0.07) per basic and diluted share in the same year-ago period and to net income of $713,000 or $0.02 per basic and diluted share in the third quarter of 2009. Net income attributable to common shareholders included income from discontinued operations of $292,000 or $0.01 per basic and diluted share in the fourth quarter of 2009, $800,000 or $0.02 per basic and diluted share in the fourth quarter of 2008, and $427,000 or $0.01 per basic and diluted share in the third quarter of 2009.
Financial Results for Fiscal 2009
For the full year 2009, net revenues totaled $88.9 million, a decrease of
7% from $95.3 million in 2008. The 7% decrease was comprised of an 11%
decrease in organic revenue, partially offset by a 3% increase attributable
to centers acquired over the last 12 months and approximately $756,000 in
contracted transition services provided to the acquirer of the Canadian
operations.
Income from continuing operations totaled $96,000 in 2009, compared to a loss of $5.1 million in 2008. Income from continuing operations excludes the operating results of the company's former Canadian operations for all periods and includes AARP program related costs of $679,000 in 2009 and $582,000 in 2008.
Net income attributable to common stockholders was $1.4 million or $0.03 per basic and diluted share in 2009, compared to a net loss of $3.3 million or $(0.09) per basic and diluted share in 2008. Net income attributable to common shareholders included income from discontinued operations of $2.0 million or $0.04 per basic and diluted share in 2009 and $3.2 million or $0.08 per basic and diluted share in 2008.
The company made three acquisitions in 2009, with aggregate estimated trailing 12 month revenues of $2.9 million at the time of acquisition.
Management Commentary
"We are very pleased to report our first profitable year," said Stephen J.
Hansbrough, HearUSA's chairman and CEO. "As we move through 2010, we are
confident the steps we took in 2009 to control costs and prepare for growth
have positioned us well to execute our strategic plan. We are excited about
the continuing rollout of the AARP hearing care program and the expansion
of our network nationwide."
Conference Call
HearUSA will hold a conference call tomorrow (March 26, 2010) to discuss
its fourth quarter and fiscal year 2009 financial results. The company's
senior management will host the presentation, which will be followed by a
question and answer period.
To participate in the call, dial the appropriate number 5-10 minutes prior to the start time, request the HearUSA conference call and provide the conference ID: 7HEARUSA.
Date: Friday, March 26, 2010
Time: 10:30 a.m. Eastern time (7:30 a.m. Pacific time)
Domestic callers: 1-800-862-9098
International callers: 1-785-424-1051
Conference ID#: 7HEARUSA
A Web simulcast and replay will be available via the investor relations section of the company's website at www.hearusa.com.
If you have any difficulty connecting with the conference call or webcast, please contact the Liolios Group at 1-949-574-3860.
A telephone replay of the call will be available later that evening and will be accessible until April 9, 2010:
Toll-free replay number: 1-800-839-1247
International replay number: 1-402-220-0470
(No passcode required)
About HearUSA
HearUSA is the recognized leader in hearing care for the nation's top
managed care organizations through its 180 company-owned centers and
network of more than 2,000 hearing care providers. HearUSA is the nation's
only hearing care provider accredited by URAC, an independent, nonprofit
health care accrediting organization dedicated to promoting health care
quality through accreditation, certification and commendation. HearUSA is
also the administrator of the AARP Hearing Care program, designed to help
millions of Americans aged 50+ who have untreated hearing loss. For more
information about HearUSA visit www.hearusa.com, or go to
www.hearingshop.com for a wide selection of hearing related products
available for purchase online.
HEARUSA, Inc.
Consolidated Statements of Operations
Year Ended Year Ended
December 26, December 27,
2009 2008
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(Dollars in thousands,)
Net revenues
Hearing aids and other products $ 81,086 $ 88,306
Services 7,848 6,991
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Total net revenues 88,934 95,297
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Operating costs and expenses
Hearing aids and other products 20,224 23,792
Services 1,733 2,116
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Total cost of products sold and services
excluding depreciation and amortization 21,957 25,908
Center operating expenses 44,152 51,365
General and administrative expenses 15,421 15,148
Depreciation and amortization 2,317 2,486
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Total operating costs and expenses 83,847 94,907
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Income from operations 5,087 390
Non-operating income (expenses) - -
Gain on foreign exchange 585 -
Gain on restructuring of contract - 981
Gain on insurance settlement 68 -
Interest income 27 42
Interest expense (4,791) (5,678)
------------ ------------
Income (loss) from continuing operations before
income tax expense 976 (4,265)
Income tax expense (880) (832)
------------ ------------
Income (loss) from continuing operations 96 (5,097)
Discontinued operations attributable to
HearUSA, Inc
Income from discontinued operations, net of
income tax expense (benefit) of $ (261) and
$295 1,031 3,156
Gain on sale of discontinued operations, net of
income tax expense of $1,236 931 -
------------ ------------
Income from discontinued operations 1,962 3,156
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Net income (loss) 2,058 (1,941)
Net income attributable to noncontrolling
interest (544) (1,260)
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Net income (loss) attributable to HearUSA, Inc. 1,514 (3,201)
Dividends on preferred stock (136) (139)
------------ ------------
Net income (loss) attributable to HearUSA, Inc.
common stockholders $ 1,378 $ (3,340)
============ ============
Loss from continuing operations attributable to
HearUSA, Inc. common stockholders per common
share - basic and diluted $ (0.01) $ (0.17)
============ ============
Net income (loss) attributable to HearUSA, Inc.
common stockholders per common share - basic
and diluted $ 0.03 $ (0.09)
============ ============
Weighted average number of shares of common
stock outstanding - basic and diluted 44,838 38,635
============ ============
Amounts Attributable to HearUSA, Inc. common
stockholders:
Income (loss) from continuing operations, net
of tax $ (448) $ (6,357)
Discontinued operations, net of tax $ 1,962 $ 3,156
------------ ------------
Net income 1,514 (3,201)
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HEARUSA, Inc.
Consolidated Balance Sheets
December 26, December 27,
ASSETS 2009 2008
------------ ------------
(Dollars in thousands)
Current assets
Cash and cash equivalents $ 7,037 $ 3,553
Short-term marketable securities 4,106 -
Accounts and notes receivable, less allowance
for doubtful accounts of $616 and $506 5,554 7,371
Inventories 1,844 1,682
Prepaid expenses and other 464 502
------------ ------------
Total current assets 19,005 13,108
Property and equipment, net 4,021 4,876
Goodwill 51,495 65,953
Intangible assets, net 12,816 15,630
Deposits and other 731 810
Restricted cash and cash equivalents 3,245 224
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Total Assets $ 91,313 $ 100,601
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 7,070 $ 5,011
Accrued expenses 2,253 3,208
Accrued salaries and other compensation 3,520 3,713
Current maturities of long-term debt 5,983 6,915
Income taxes payable 1,974 -
Dividends payable 35 34
------------ ------------
Total current liabilities 20,835 18,881
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Long-term debt 36,139 49,099
Deferred income taxes 7,335 7,284
------------ ------------
Total long-term liabilities 43,474 56,383
------------ ------------
Commitments and contingencies - -
------------ ------------
Stockholders' equity
Preferred stock (aggregate liquidation
preference $2,330, $1 par,
7,500,000 shares authorized)
Series H Junior Participating (none
outstanding) - -
Series J (233 shares outstanding) - -
------------ ------------
Total preferred stock - -
Common stock: $.10 par; 75,000,000 shares
authorized 45,381,750 and 44,828,384 shares
issued 4,538 4,483
Additional paid-in capital 137,863 136,924
Accumulated deficit (114,982) (116,360)
Accumulated other comprehensive income - 1,249
Treasury stock, at cost: 523,662 common shares (2,485) (2,485)
------------ ------------
Total HearUSA, Inc. Stockholders' Equity 24,934 23,811
Noncontrolling interest 2,070 1,526
------------ ------------
Total Stockholders' equity 27,004 25,337
------------ ------------
Total Liabilities and Stockholders' Equity $ 91,313 $ 100,601
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Company Contact:
HearUSA, Inc.
Stephen J. Hansbrough
Chairman and CEO
Tel 561-478-8770, ext 132
Investor Relations
Scott Liolios or Ron Both
Liolios Group, Inc.
Email: Email Contact
Tel 949-574-3860
