SOURCE: HASCO Medical, Inc.

HASCO Medical, Inc.

August 20, 2014 08:31 ET

HASCO Medical Reports Record First Quarter 2014 Results

Q1 2014 Total Net Revenues up 38% to Record $20.7 Million, Driving Net Income of $194,000

ADDISON, TX--(Marketwired - Aug 20, 2014) - HASCO Medical, Inc. (OTCQB: HASC), a leading provider of handicap-accessible vans, parts and service, reported results for the first quarter ended March 31, 2014.

Q1 2014 Financial and Operational Highlights

  • Revenues up 38% to a record $20.7 million, marking five consecutive quarters of record revenue

  • Gross margin up 176 basis points to 25.4%

  • Net income of $194,000 vs. a net loss of $199,000 in same year-ago quarter

  • Delivered a record number of taxi orders totaling more than 100, which were sold primarily through the company's Ride-Away® Commercial Taxi location in NYC

Q1 2014 Financial Summary
Net revenues for the first quarter of 2014 totaled a record $20.7 million, up 38% from $15.0 million in the same year-ago quarter. The improvement was primarily due to the increase in private-pay business for van sales, as well as the contribution of Auto Mobility Sales that the company acquired last September. Service and other revenue totaled $3.9 million, up 36% from the same year-ago quarter.

Gross profit was a record $5.3 million or 25.4% of total net revenues, compared to $3.5 million or 23.7% of total net revenues in the same year-ago quarter. The increase is primarily due to the greater buying power and better utilization of capacity in service.

Net income totaled $194,000, as compared to net loss of $199,000 in the same year-ago quarter.

Management Commentary
"Our record first quarter results reflects strong sales of handicap accessible vehicles across all our East Coast dealerships," said Hal Compton, CEO of HASCO Medical. "We expect this sales momentum to be maintained with the help of two new dealerships we're planning to open in the Fall with the support of major brands like BraunAbility and VMI. As we look to the remainder of 2014, we expect our excellent customer service, high-quality products and custom solutions, and the strong tailwinds of a growing market to drive another record year."

2014 Outlook
HASCO Medical expects 2014 total net revenues to range between $75 million and $85 million, which represents an increase of 3% to 17%. The company also expects gross margin to range between 21% to 23%. The company also expects positive net income in 2014.

About HASCO Medical, Inc.
HASCO Medical is a leading provider of handicap accessible vans, parts, and service that dramatically improve the quality of living of its customers. The company operates 19 locations from Maine to Florida. The company's mobility brands include 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). To learn more, go to www.hascomed.com.

Cautionary Note Regarding Forward-Looking Statements
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.

   
Hasco Medical, Inc. & Subsidiaries  
Consolidated Balance Sheets  
   
           
  March 31,     December 31,  
  2014     2013  
  (unaudited)        
Assets              
Current assets              
  Cash $ 909,004     $ 150,313  
  Accounts receivable, net of allowance for doubtful accounts of $675,509 and $686,345, respectively   5,817,869       6,182,680  
  Inventory, net   10,981,334       11,572,060  
  Deferred tax asset, short term   413,193       413,193  
  Prepaid expenses and other current assets   654,411       504,819  
Total current assets   18,775,811       18,823,065  
               
Property & equipment, net of accumulated depreciation of $1,387,930 and $1,164,634, respectively   2,164,217       2,141,212  
               
Intangible assets, net of accumulated depreciation of $21,223 and $10,192, respectively   6,203,003       6,214,034  
Deferred tax asset, long term   149,204       149,204  
Other non-current assets   586,930       604,965  
Total Assets $ 27,879,165     $ 27,932,480  
               
Liabilities and Stockholders' Equity              
Current liabilities              
  Accounts payable and accrued expenses $ 2,361,956     $ 1,849,702  
  Cash overdraft   --       175,572  
  Customer deposits and deferred revenue   389,305       388,433  
  Line of credit   928,810       2,303,143  
  Note payable - floor plan   12,655,167       12,174,639  
  Obligation under capital leases   321,712       366,658  
  Current portion of notes payable   382,966       376,685  
  Current portion note payable, related party   335,312       353,008  
  Other current liabilities   875,085       493,923  
Total current liabilities   18,250,313       18,481,763  
               
Obligation under capital leases, net of current portion   960,816       817,828  
Notes payable, net of current portion   3,947,856       4,075,802  
Notes payable to related party, net of current portion   1,838,927       1,947,214  
Total liabilities   24,997,912       25,322,607  
               
Stockholders' Equity              
  Preferred stock, $0.001 par value, 3,000,000 shares authorized, none issued and outstanding   --       --  
  Common stock, $0.001 par value, 2,000,000,000 shares authorized; and 996,938,389 and 993,134,076 shares issued and outstanding, respectively   996,938       993,134  
  Additional paid-in capital   6,742,285       6,669,056  
  Accumulated deficit   (4,857,970 )     (5,052,317 )
Total stockholders' equity   2,881,253       2,609,873  
               
Total Liabilities and Stockholders' Equity $ 27,879,165     $ 27,932,480  
               
               
               
Hasco Medical, Inc. & Subsidiaries  
Consolidated Statements of Operations  
(unaudited)  
   
           
  For the Three Months Ended
March 31,
 
  2014     2013  
               
Product sales $ 16,588,280     $ 11,855,547  
Rental revenue   245,005       273,395  
Service and other   3,852,318       2,826,546  
  Total net revenues   20,685,603       14,955,488  
               
Cost of sales   15,425,817       11,415,351  
               
Gross profit   5,259,786       3,540,137  
               
Operating expenses:              
  Selling and marketing   953,798       917,500  
  General and administrative   3,415,207       2,486,904  
  Amortization and depreciation   234,327       319,974  
    Total operating expenses   4,603,332       3,724,378  
               
Income (loss) from operations   656,454       (184,241 )
               
Other income (expense)              
  Other income   20,989       49,192  
  Interest expense   (302,838 )     (193,577 )
    Total other income (expense)   (281,849 )     (144,385 )
               
Income (loss) from continuing operations before income taxes   374,605       (328,626 )
               
Provision for (benefit from) income taxes   170,218       (261,000 )
               
Income (loss) from continuing operations   204,387       (67,626 )
(Loss) from discontinued operations, net of income tax   (10,040 )     (131,086 )
Net income (loss) $ 194,347     $ (198,712 )
               
Earnings per share:              
  Basic and dilutive-Continuing Operations $ 0.00       0.00  
  Basic and dilutive-Discontinued Operations $ 0.00     $ 0.00  
               
Weighted average shares outstanding:              
  Basic and dilutive   994,619,535       988,069,704  
               

Contact Information

  • Company Contact:
    HASCO Medical, Inc.
    214-302-0930
    Email Contact

    Investor Relations Contacts:
    Liolios Group, Inc.
    Ron Both, Senior Managing Director
    949-574-3860
    Email Contact