ADDISON, TX--(Marketwired - Feb 20, 2014) - HASCO Medical, Inc. (OTCQB: HASC), www.HascoMed.com, a company that conducts sales of handicap accessible vans, parts, service and rental operations in eighteen locations from Maine to Florida and sales of medical equipment and supplies in Florida announced today that it has filed an amended Annual Report on Form 10-K/A for the year ended December 31, 2012. The restatement impacts the financial results for the second, third and fourth quarters of 2011 and all quarters of 2012.
The adjustments to the previously filed financial statements correct the Company's initial purchase accounting for the acquisitions of Mobility Freedom, Inc. in May 2011 and Ride-Away Handicap Equipment Corp. in March 2012 as well as subsequent adjustments made to the initial entries during 2011 and 2012. The Company also corrected certain classification and inventory accounting errors in both years.
The Company's revised operating results for the year ended December 31, 2012 include net income of $82,300 compared to previously reported net income of $401,908. The change in net income is primarily due to increased depreciation expense and adjustments related to inventory accounting, partially offset by decreases in amortization expense and the tax impact of these adjustments. Net revenues of $63.9 million for the year ended December 31, 2012 did not change from the amount previously reported and continue to represent a substantial increase over 2011, primarily as a result of the Company's acquisitions. Revised earnings before interest, taxes, depreciation and amortization (EBITDA) increased by $262,692 from $2,159,100 to $2,421,792.
The Company's revised balance sheet as of December 31, 2012 reflects changes to previously recorded intangible assets associated with the purchase accounting for the Mobility Freedom and Ride-Away transactions. Intangible assets now reflect the recognition of Primary Market Areas associated with our most significant vehicle vendors. These areas provide us with dedicated territories within which our vendors contractually agree not to sell their vehicles to other dealers. Goodwill and trade name assets related to these acquisitions were also revalued. All intangible assets are now categorized as indefinite-lived assets and will be subject to annual impairment testing, but will not have any associated amortization expense.
The revised balance sheet also includes increases in fixed assets due to the recognition of capital lease assets that had previously been classified as operating leases. The leased assets, which comprise our vehicle rental fleet, were initially acquired with the Ride-Away transaction and the Company continues to acquire vehicles through this program. The addition of the leased assets adds approximately $650,000 to the Company's tangible net asset base.
The amended filing also includes a reassessment of the Company's internal controls over financial reporting. While the Company has determined there was a material weakness in 2012, management has already taken steps to remediate the material weakness.
The Company's restated financial statements are further indication of management's continued commitment to accurate financial reporting.
About HASCO Medical, Inc.
HASCO Medical (www.HascoMed.com ) provides products and services that dramatically improve the quality of living for its customers. The Company consists of 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) on the Van Conversion/Rental side of the company and Certified Medical on the durable medical equipment side.
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.