HemaCare Corporation announced operational highlights and financial results for the year ended December 31, 2017.
2017 Operational Highlights
- Expanded HemaCare’s product line for healthy and disease-state products and services which include fresh and cryopreserved isolated cells. These cells are sourced from peripheral blood, mobilized peripheral blood, bone marrow, and cord blood for our biotech, biopharma, and research organization customers.
- Achieved strong revenue growth domestically and from distribution partners in Europe, Japan, and China.
- In January 2017, HemaCare negotiated a transaction with OneBlood whereby they purchased an equity stake in HemaCare, and signed a Sales and Distribution Agreement in which both parties collaborate globally in the sales and distribution of blood-derived products. On December 28, 2017, OneBlood exercised its option to make a second tranche investment of $1.25 million in shares of HemaCare’s common stock at $3.44 per share.
- During 2017, collaboration discussions resulted in a strategic partnership with Charles River Laboratories International, Inc. whereby HemaCare’s peripheral blood mononuclear cells (PBMCs) will be integrated into Charles River’s NCG/PBMC Select Humanization Kit.
- In July 2017, HemaCare signed a long term lease to relocate its operations and corporate headquarters to a larger nearby site in the San Fernando Valley (City of Los Angeles) 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 to serve HemaCare customers’ increasingly complex requirements, and provide sufficient scalability to support the increasing demand of our global customer base.
Financial Results
For the year ended December 31, 2017, HemaCare reported total revenues of $20.2 million, compared to $13.9 million for the year ended December 31, 2016, representing an increase of $6.3 million, or approximately 46%. The increase in revenues was primarily derived from international expansion and improved results from key distributors and direct cell therapy customers.
Gross profit for the year ended December 31, 2017 was $10.6 million, or 53% of net revenues, compared to $6.4 million, or 46% of net revenues, for the year ended December 31, 2016.
HemaCare’s net income for the year ended December 31, 2017 increased to $4.4 million, as compared to $0.8 million for the year ended December 31, 2016, due not only to operating leverage and improved product mix but also to a one-time tax benefit of $1 million.
As of December 31, 2017, HemaCare had $9.3 million in cash and cash equivalents compared to $2.3 million in cash at December 31, 2016.
For complete audited December 31, 2017 Financial Statements, please click here.
