SOURCE: HASCO Medical, Inc.

Hasco Medical, Inc.

May 29, 2012 08:30 ET

HASCO Medical Announces First Quarter 2012 Financial Results

Company Reports Record Revenues of $8.8 Million

MOBILE, AL--(Marketwire - May 29, 2012) - HASCO Medical, Inc. (OTCBB: HASC), www.HascoMed.com, a Company that conducts sales of handicap accessible vans, parts, service and rental operation in sixteen locations from Maine to Florida and sales of medical equipment and supplies in Alabama, Florida and Mississippi, announced its first quarter 2012 financial results.

Within the past year, HASCO Medical has changed itself from being primarily a home healthcare provider to being primarily a seller of handicap accessible vans, parts, services and rentals of handicap accessible vans. This change has had dramatic positive impact on the financial results as reported for the first quarter of 2012. This change was affected by the acquisition of Mobility Freedom in May 2011 and the acquisition of Ride-Away in March 2012.

Financial Highlights:

  • Net Revenues increased to $8,825,230 for the period ending March 31, 2012 compared to $484,329 for the same period in 2011 representing an increase of $8,340,901.
  • Gross profit increased to $2,542,421 for the period ending March 31, 2012 compared to $328,490 for the same period in 2011 representing an increase of $2,213,931.
  • The Company reported a net income of $51,650 for the period ending March 31, 2012 compared to a net loss of $155,656 for the same period in 2011 representing an increase of $207,306.

Operational Highlights:

  • Company continued roll-up strategy by completing Ride-Away acquisition.
  • Company is now the largest Braun dealer in the United States.
  • Ride-Away and Mobility Freedom now carry the new Bruno chariot vehicle lifts and the valet signature seats.
  • HASCO will be implementing new software that will combine our mobility companies on one platform.

"We are very pleased with our revenue growth this quarter over the same period a year ago. The closing of the acquisition of Ride-Away has provided significant revenue growth for HASCO Medical as well as geographic expansion," stated Hal Compton, CEO of HASCO Medical. "With the addition of Mobility Freedom and Ride-Away under our umbrella of subsidiaries, HASCO is now one of the largest providers of wheelchair accessible vans and adaptive equipment in the country. Ride-Away alone increased our geographic footprint into Massachusetts, Maine, Maryland, Pennsylvania, New Hampshire, Vermont and Virginia. We will continue to look for synergistic companies to acquire as we execute on our roll-up strategy, as well as continue to grow organically through our current operations."

About HASCO Medical, Inc.
HASCO Medical ("HASC" or the Company) provides products and services that dramatically improve the quality of living for its customers. The Company now consists of Southern Medical and Mobility, Inc. and Certified Medical on the DME side and Ride-Away, Mobility Freedom, Wheelchair Vans of America and Certified Auto on the Van Conversion/Rental side of the company.

-Financial Charts Follow-

HASCO Medical, Inc. & Subsidiaries
Consolidated Balance Sheets
March 31, December 31,
2012 2011
(unaudited) (audited)
Assets
Current assets
Cash $ 686,907 $ 212,460
Accounts receivable, net of allowance for doubtful accounts of $417,850 and $328,177 respectively 4,896,833 1,042,953
Inventory 15,016,879 2,444,563
Prepaid expenses 417,268 89,207
Total current assets 21,017,887 3,789,183
Property & equipment, net of accumulated depreciation of $708,221 and $634,857, respectively 1,697,412 526,571
Intangible property, net of accumulated amortization of $181,897 and $123,804, respectively 7,521,915 3,695,755
Other non-current assets 261,210 420
Total Assets $ 30,498,424 $ 8,011,929
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable and accrued expenses $ 4,042,939 $ 599,008
Other current liabilities 378,078 180,780
Customer deposits and deferred revenue 907,083 175,464
Note Payable - Floor Plan 8,561,501 2,028,318
Line of Credit 6,481,928 898,713
Current portion of Notes Payable 436,132 108,901
Current portion of loans and notes payable, related parties 163,498 154,346
Total current liabilities 20,971,159 4,145,530
Notes payable, net of current portion 5,090,850 1,947,994
Notes payable to related party, net of current portion 1,731,948 1,784,020
Total liabilities 27,793,957 7,877,544
Stockholders' Equity
Preferred stock, $.001 par value, 3,000,000 shares authorized, none issued and outstanding
Common stock, $.001 par value, 2,000,000,000 shares authorized; and 972,675,204 and 794,578,818 shares issued and outstanding, respectively 972,675 794,579
Additional paid-in capital 6,347,340 4,007,004
Accumulated deficit (4,615,548 ) (4,667,198)
Total stockholders' equity 2,704,467 134,385
Total Liabilities and Stockholders' Equity $ 30,498,424 $ 8,011,929
HASCO Medical, Inc. & Subsidiaries
Consolidated Statements of Operation
(Unaudited)*
For the Three Months Ended
March 31,
2012 2011
Revenues, net $ 8,825,230 $ 484,329
Cost of sales 6,282,809 155,839
Gross Profit 2,542,421 328,490
Operating expenses:
Selling and Marketing 557,541 --
General and administrative 1,714,223 468,455
Amortization and depreciation 97,623 7,108
Total operating expenses 2,369,387 475,563
Income (loss) from operations 173,034 (147,073 )
Other income (expense):
Other income 72,709 --
Acquisition Fees (27,740 ) --
Interest expenses (156,748 ) (8,583 )
Total other income (expense) (111,779 ) (8,583 )
Income (loss) from operations before income taxes 61,255 (155,656 )
Provision for income taxes 9,605 --
Net income (loss) $ 51,650 $ (155,656 )
Earnings per share:
Basic and dilutive $ 0 $ (0.00 )
Weighted average shares outstanding
Basic and dilutive 841,486,000 750,238,020
Hasco Medical, Inc. & Subsidiaries
Consolidated Statements of Cash Flows
(unaudited)
For the three Months Ended
March 31,
2012 2011
Cash Flows from Operating Activities:
Net income (loss) $ 51,650 $ (155,656 )
Adjustment to reconcile Net Income to net cash provided by operations:
Depreciation and amortization 97,623 26,901
Issuance of stock in settlement of services 18,432 3,000
Bad debt expense -- 6,256
Fair value of options issued to employees -- 3,260
Changes in assets and liabilities:
Accounts receivable 213,698 (25,379 )
Inventory (1,510,632 ) (3,989 )
Prepaid expenses (113,113 ) 16,901
Accounts payable 1,959,673 7,808
Accrued expenses and other liabilities 197,298 --
Customer deposits and deferred revenue (119,755 ) --
Net Cash (Used) Provided by Operating Activities 794,874 (120,898 )
Cash Flows from Investing Activities:
Purchase of property and equipment (91,958 ) (29,232 )
Decrease (increase) in other assets (2,135 ) --
Net Cash (Used) by Investing Activities (94,093 ) (29,232 )
Cash Flows from Financing Activities:
Overdraft liability -- (46,023 )
Lines of credit and floor plan, net (149,169 ) --
Proceeds from sale of common stock -- 20,000
Proceeds from loan payable - related party -- 200,000
Repayments of loan payable - related party (42,920 ) (15,000 )
Repayment of notes payable (34,245 ) (5,338 )
Net cash provided (used) by financing activities (226,334 ) 153,639
Net increase/decrease in Cash 474,447 3,509
Cash at beginning of period 212,460 423
Cash at end of period $ 686,907 $ 3,932

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.

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