STUART, FL--(Marketwire - May 20, 2009) - Liberator Medical Holdings, Inc. (OTCBB: LBMH) announces net revenues of $5.83 million for the second fiscal quarter ended March 31, 2009. This represents an annual run rate of $23.3 million. Quarter-over-quarter net revenue growth was up 309% for the quarter ended March 31, 2009, compared to net revenues of $1.43 million for the quarter ended March 31, 2008. This increase was due primarily to a substantial advertising campaign to obtain new mail order customers. The Company's results reflect its restated first quarter financial statements contained in its amended Report on Form 10-Q filed May 15, 2009.
Second Quarter 2009 Highlights
-- Net revenues totaled $5.83 million for the quarter ended March 31,
2009, up 309% from quarter ended March 31, 2008.
-- Gross profit was $3.7 million for the quarter ended March 31, 2009, up
$2.8 million or 311% from the quarter ended March 31, 2008.
-- Operating expenses were up 127% for the quarter ended March 31, 2009,
compared to the quarter ended March 31, 2008.
-- Net income for the quarter ended March 31, 2009, was $94,947 or $0.00
per basic and fully diluted share.
Mark Libratore, Liberator Medical's CEO, stated: "We are very pleased to announce another record quarter in revenue despite its being our seasonally most difficult quarter. The period ended March 31, 2009, is historically slow due primarily to customers delaying orders until yearly insurance deductibles are met. Our revenues for the first quarter FY 2007 were $708,246 compared to $657,877 for the second quarter of FY 2007 and for the first quarter FY 2008 were $1,429,465 compared to $1,425,293 for the second quarter FY 2008. Compared to our first fiscal quarter FY 2009, our revenues increased from $5,341,840 to $5,827,234, or 9%, and our second quarter FY 2009 profit of $94,947, though less than our first quarter profit of $245,722, shows that we continue to grow as anticipated. We attribute this year's success to increased advertising, robust product offerings, diversified revenue streams and high customer retention rates."
Bob Davis, Liberator Medical's CFO, said, "Operating expenses for the second quarter of FY 2009 were 58.1% of net sales compared to operating expenses for the first quarter of FY 2009 being 56.0% of net sales. The increase in operating expenses for the second quarter was $396,796. Payroll related expenses increased by $209,158, primarily as a result of hiring additional staff for the increase in sales and filling additional key positions, such as VP of Sales, human resource manager, trainer, and computer technician. Our advertising spend was increased during the second quarter, resulting in additional advertising amortization of $160,791. Bad debt expenses increased by $130,017 as a result of increased sales and increasing our reserve for bad debt as the accounts receivable increases. General and administrative expenses decreased by $104,280."
Financial Condition
As of March 31, 2009, the Company had cash of $2,945,510, an increase of $1,772,492 from September 30, 2008. Working capital as of March 31, 2009, was $4,081,587 compared to working capital of $1,730,700 at September 30, 2008. This increase in cash was due to the Company's closing a $2.5 million convertible debt placement in October 2008. The Company only used cash of $81,967 for operating activities during the quarter. The Company incurred interest expense of $272,663 for the three months ended March 31, 2009, compared to interest of $62,131 for the three months ended March 31, 2008, an increase of $210,532, primarily due to interest expense on the issuance of convertible debt.
Results of Operations
The Company's gross profit for the three months ended March 31, 2009, was up $2,837,233, or 311%, to $3,748,949 from $911,716 for the three months ended March 31, 2008. Operating expenses for the three months ended March 31, 2009, were $3,387,149, or 58% of revenue, compared to $1,494,583, or 105% of revenue, for the three months ended March 31, 2008. The increase in operating expenses is primarily attributable to increased spending levels for employees, professional fees, advertising, and allowance for bad debts to support the increase in revenues.
The Company's net income for the three months ended March 31, 2009, increased $739,945 to $94,947 compared to a net loss of $644,998 for the three months ended March 31, 2008, due substantially to higher sales volumes at substantially lower incremental operating expense.
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About Liberator Medical Holdings, Inc.
Liberator Medical Holdings, Inc.'s subsidiary, Liberator Medical Supply, Inc., established the Liberator brand as a leading national direct-to-consumer provider of quality medical supplies to Medicare-eligible seniors. An Exemplary Provider™ accredited by The Compliance Team, its unique combination of marketing, industry expertise and customer service has demonstrated success over a broad spectrum of chronic conditions. Liberator is recognized for offering a simple, reliable way to purchase medical supplies needed on a regular, ongoing, repeat-order basis, with the convenience of direct billing to Medicare and private insurance. Approximately 85% of its revenue comes from supplying products to meet the rapidly growing requirements of general medical supplies, personal mobility aids, diabetes, urological, ostomy and mastectomy patients. Liberator communicates with patients and their doctors on a regular basis regarding prescriptions and supplies. Customers may purchase by phone, mail or internet, with repeat orders confirmed with the customer and shipped when needed.
Safe Harbor Statement
This release contains "forward-looking statements" made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including those related to the earnings and cash flow, leased space and number of employees. Forward-looking statements are subject to known and unknown risks and uncertainties which may cause the Company's actual results in future periods to be materially different from any future performance that may be suggested in this press release. Such risks and uncertainties may include, but are not limited to, the Company's need to raise equity capital and its ability to obtain equity financing on acceptable terms, if at all, regulatory limitations on the medical industry in general, working capital constraints, fluctuations in customer demand and commitments, fluctuation in quarterly results, introduction of new services and products, commercial acceptance and viability of new services and products, pricing and competition, reliance upon subcontractors and vendors, the timing of new technology and product introductions, the risk of early obsolescence of our products and the other factors detailed in our annual report on Form 10-KSB for the fiscal year ended September 30, 2008 and our other filings with the Securities and Exchange Commission. We assume no obligation to update the information contained in this news release.
Liberator Medical Holdings, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
March 31, September 30,
2009 2008
--------------- --------------
(Unaudited)
Assets
Current Assets
Cash $ 2,945,510 $ 1,173,018
Accounts receivable, net of allowance for
doubtful accounts of $2,030,958 and
$1,055,606, respectively 3,400,620 2,405,102
Prepaid expenses 112,154 321,182
Inventory, net of allowance for obsolete
inventory of $50,000 and $50,000,
respectively 967,186 785,884
Deferred advertising, current portion 1,416,977 769,851
Other 32,723 1,848
--------------- --------------
Total Current Assets 8,875,170 5,456,885
--------------- --------------
Property and Equipment
Property and Equipment, net of accumulated
depreciation of $848,370 and $714,641,
respectively 953,549 815,833
Other Assets
Deferred advertising, net of current
portion 1,227,044 660,524
Deferred loan costs 578,339 492,821
Deposits 121,121 100,089
--------------- --------------
Total Other Assets 1,926,504 1,253,434
--------------- --------------
Total Assets $ 11,755,223 $ 7,526,152
=============== ==============
Liabilities and Stockholders’ Equity
Current Liabilities
Accounts payable $ 1,829,735 $ 900,448
Accrued liabilities 386,027 289,848
Stockholder loan 1,664,649 1,664,649
Convertible notes payable, net of
unamortized discount of $2,339 and
$56,833, respectively 794,887 772,163
Capital lease obligations, current portion 64,059 50,816
Deferred rent liability, current portion 54,226 48,261
--------------- --------------
Total Current Liabilities 4,793,583 3,726,185
--------------- --------------
Long-Term Liabilities
Convertible notes payable, net of
unamortized discount of $654,025 and
$748,921, respectively 5,422,670 2,788,704
Capital lease obligations, net of current
portion 86,311 82,155
Deferred rent liability, net of current
portion 184,683 214,215
--------------- --------------
Total Long-Term Liabilities 5,693,664 3,085,074
--------------- --------------
Total Liabilities 10,487,247 6,811,259
--------------- --------------
Stockholders’ Equity
Common stock, $.001 par value, 200,000,000
shares authorized, 32,050,366 shares
issued, 31,987,166 and 32,050,366 shares
outstanding at March31, 2009 and
September30, 2008, respectively 32,050 32,050
Additional paid-in capital 11,419,010 11,177,266
Accumulated deficit (10,153,754) (10,494,423)
--------------- --------------
1,297,306 714,893
Less: Treasury stock, at cost (63,200
shares) (29,330) --
--------------- --------------
Total Stockholders’ Equity 1,267,976 714,893
--------------- --------------
Total Liabilities and Stockholders’ Equity $ 11,755,223 $ 7,526,152
=============== ==============
Liberator Medical Holdings, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
For the three and six months ended March 31, 2009 and 2008
(Unaudited)
Three Months Ended Six Months Ended
March 31, March 31,
------------------------- ------------------------
2009 2008 2009 2008
------------ ------------ ------------ -----------
Sales $ 5,827,234 $ 1,425,293 $ 11,169,074 $ 2,854,759
Cost of Sales 2,078,285 513,577 3,919,411 1,035,202
------------ ------------ ------------ -----------
Gross Profit 3,748,949 911,716 7,249,663 1,819,557
------------ ------------ ------------ -----------
Operating Expenses
Payroll, taxes and
benefits 1,274,261 590,062 2,339,364 1,157,547
Advertising 458,585 77,195 756,378 144,861
Bad debts 808,999 151,019 1,487,981 305,935
Depreciation 67,419 45,900 133,729 91,800
General and
administrative 777,885 630,407 1,660,050 1,230,197
------------ ------------ ------------ -----------
Total Operating
Expenses 3,387,149 1,494,583 6,377,502 2,930,340
------------ ------------ ------------ -----------
Income (Loss) from
Operations 361,800 (582,867) 872,161 (1,110,783)
------------ ------------ ------------ -----------
Other Income (Expense)
Interest Expense (272,663) (62,131) (545,175) (113,389)
Interest Income 5,810 -- 13,683 --
------------ ------------ ------------ -----------
Total Other Income
(Expense) (266,853) (62,131) (531,492) (113,389)
------------ ------------ ------------ -----------
Income (Loss) before
Income Taxes 94,947 (644,998) 340,669 (1,224,172)
Provision for Income
Taxes -- -- -- --
------------ ------------ ------------ -----------
Net Income (Loss) $ 94,947 $ (644,998) $ 340,669 $(1,224,172)
============ ============ ============ ===========
Basic earnings
(loss)per share:
Weighted average shares
outstanding 32,020,904 31,864,212 32,035,299 31,583,528
Earnings (loss)per
share $ 0.00 $ (0.02) $ 0.01 $ (0.04)
Diluted earnings
(loss)per share:
Weighted average shares
outstanding 35,941,071 31,864,212 35,955,466 31,583,528
Earnings (loss)per
share $ 0.00 $ (0.02) $ 0.01 $ (0.04)
Liberator Medical Holdings, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
For the six months ended March 31, 2009 and 2008
(Unaudited)
2009 2008
---------------- ----------------
Cash flow from operating activities:
Net Income (Loss) $ 340,669 $ (1,224,172)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization 838,427 236,661
Equity based compensation 271,835 269,252
Bad debt expense 1,487,981 305,935
Non-cash interest related to convertible
note payable 321,918 4,359
Amortization of loan issuance costs 20,369 --
Changes in operating assets and
liabilities:
Accounts receivable (2,483,499) (652,727)
Prepaid expenses and other current assets (44,184) 218,169
Deposits (21,032) (2,335)
Inventory (181,302) (3,938)
Accounts payable 929,287 380,156
Accrued expenses 139,979 6,384
Deferred rent (23,567) (20,991)
Deferred loan costs 239,496 --
Deferred advertising (1,918,344) (237,031)
---------------- ----------------
Net Cash Flow Used in Operating
Activities (81,967) (720,278)
---------------- ----------------
Cash flow from investing activities:
Purchase of property and equipment (223,923) (135,294)
---------------- ----------------
Net Cash Flow Used in Investing
Activities (223,923) (135,294)
---------------- ----------------
Cash flow from financing activities:
Proceeds from sale of stock -- 686,075
Proceeds from issuance of convertible
notes 2,500,000 175,295
Broker commissions (203,056) --
Legal and other fees paid (122,609) --
Purchase of treasury stock (29,330) --
Payments of long-term debt and capital
lease obligations (66,623) (78,391)
---------------- ----------------
Net Cash Flow Provided by Financing
Activities 2,078,382 782,979
---------------- ----------------
Net (decrease)increase in cash 1,772,492 (72,593)
Cash at beginning of period 1,173,018 176,820
---------------- ----------------
Cash at end of period $ 2,945,510 $ 104,227
---------------- ----------------
Supplemental disclosure of cash flow
information:
Cash paid for interest $ 179,457 $ 109,030
Supplemental schedule of non-cash
investing and financing activities:
Capital expenditures funded by capital
lease borrowings $ 47,522 $ --
Contact:
Liberator Medical Holdings, Inc.
Mark Libratore
President & CEO
772-287-2414
investors@liberatormedical.com
Investor Relations Contact
Gerald Kieft or Ryan Audin
Wall Street Resources, Inc.
772-219-7525
LiberatorIR@wallstreetresources.net
http://www.wallstreetresources.net
