SOURCE: HASCO Medical, Inc.

HASCO Medical, Inc.

July 31, 2014 08:31 ET

HASCO Medical Reports Record Full Year 2013 Results

2013 Total Net Revenues Up 16% to Record $72.9 Million, Driving Record Net Income of $802,000

ADDISON, TX--(Marketwired - Jul 31, 2014) - HASCO Medical, Inc. (OTCQB: HASC), a leading provider of handicap-accessible vans, parts and service, reported results for year ended December 31, 2013.

2013 Financial and Operational Highlights

  • Revenues up 16% to a record $72.9 million, marking three consecutive years of record revenue
  • Gross margin up 213 basis points to 25.0%
  • Net income a record $802,000 vs. $82,000 in 2012
  • Completed acquisition of Auto Mobility Sales, which added two locations in southeast Florida
  • Received $2.5 million order of wheelchair accessible taxicabs

Full Year 2013 Financial Summary
Net revenues for 2013 totaled a record $72.9 million, up 16% from $63.0 million in 2012. The improvement was primarily due to the increase in private pay business for van sales and the acquisition of Auto Mobility Sales. Service and other revenue increased 18% to $12.8 million in 2013.

Gross profit was a record $18.2 million or 25.0% of total net revenues, compared to $14.4 million or 22.8% of total net revenues in 2012. Gross margin for parts improved 300 basis in 2013. The increases were primarily due to the greater buying power and better utilization of capacity in service.

Net income totaled a record $802,000, as compared to net income of $82,000 in 2012.

Management Commentary
"Our record top and bottom line in 2013 was driven primarily by sales growth in handicap accessible vehicles, the acquisition of Auto Mobility Sales, and the hard work of our dedicated team," said Hal Compton, CEO of HASCO Medical.

Bob Desmarais, HASCO Medical's president of stores, commented: "While the acquisition of Auto Mobility improved our sales leadership, it also expanded our presence in Florida with the addition of two dealerships. Combined with our recently opened dealership in New York City, we now have 19 locations along the East Coast, and are seeing greater synergies between our acquisitions."

"Over the last year, we have seen significant improvements in vehicles and adaptive products introduced by major manufacturers like Braun, VMI, and Mobility SVM, which have helped stimulate sales," added Compton. "In 2014, we continue to expect record topline growth, driven by a strong and growing demand for accessible vehicles that supports our plans for further geographical expansion."

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
             
    December 31,  
    2013     2012  
             
Assets                
Current assets                
  Cash   $ 150,313     $ 850,391  
  Accounts receivable, net of allowance for doubtful accounts of $686,345 and $414,718, respectively     6,182,680       7,116,008  
  Inventory, net     11,572,060       10,489,388  
  Deferred tax asset, short-term     413,193       --  
  Prepaid expenses and other current assets     504,819       177,942  
Total current assets     18,823,065       18,633,729  
                 
Property & equipment, net of accumulated depreciation of $1,164,634 and $1,604,689, respectively     2,141,212       2,162,729  
                 
Intangible assets, net of accumulated amortization of $10,192 and $0, respectively     6,214,034       5,670,013  
Deferred tax asset, long-term-term     149,204       --  
Other non-current assets     604,965       600,848  
Total Assets   $ 27,932,480     $ 27,067,319  
                 
Liabilities and Stockholders' Equity                
Current liabilities                
  Accounts payable and accrued expenses   $ 1,849,702     $ 2,528,005  
  Cash overdraft     175,572       --  
  Customer deposits and deferred revenue     388,433       909,465  
  Line of credit     2,303,143       6,081,368  
  Notes payable - Floor Plan     12,174,639       7,421,638  
  Obligation under capital leases     366,658       510,555  
  Current portion of note payable     376,685       114,265  
  Current portion of note payable, related party     353,008       506,787  
  Other current liabilities     493,923       377,724  
Total current liabilities     18,481,763       18,449,807  
                 
Obligation under capital leases, net of current portion     817,828       531,969  
Notes payable, net of current portion     4,075,802       1,833,746  
Notes payable to related party, net of current portion     1,947,214       4,556,861  
Total liabilities     25,322,607       25,372,383  
                 
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; 993,134,076 and 987,852,772 shares issued and outstanding, respectively     993,134       987,853  
  Additional paid-in capital     6,669,056       6,560,979  
  Accumulated deficit     (5,052,317 )     (5,853,896 )
Total stockholders' equity     2,609,873       1,694,936  
                 
Total Liabilities and Stockholders' Equity   $ 27,932,480     $ 27,067,319  
                 
                 
Hasco Medical, Inc. & Subsidiaries
Consolidated Statements of Operations
       
    For the Years Ended December 31,  
    2013     2012  
             
Product sales   $ 58,800,359     $ 51,506,867  
Rental revenue     1,276,154       600,520  
Service and other     12,837,102       10,886,830  
  Total net revenues     72,913,615       62,994,217  
                 
Cost of sales     54,715,897       48,614,216  
                 
Gross profit     18,197,718       14,380,001  
                 
Operating expenses:                
  Selling and marketing     4,298,770       3,703,329  
  General and administrative     11,177,310       8,420,550  
  Amortization and depreciation     1,053,808       1,285,202  
    Total operating expenses     16,529,888       13,409,081  
                 
Income from operations     1,667,830       970,920  
                 
Other income (expense):                
  Other income     487,311       588,880  
  Impairment of intangible assets     --       (105,454 )
  Acquisition fees     --       (26,740 )
  Interest expense     (1,068,971 )     (911,958 )
    Total other income (expense)     (581,660 )     (455,272 )
                 
Income from continuing operations before income taxes     1,086,170       515,648  
                 
Provision for income taxes     62,578       6,673  
Income from continued operations     1,023,592       508,975  
(Loss) from discontinued operations     (222,038 )     (426,675 )
Net income   $ 801,554     $ 82,300  
                 
Earnings per share:                
  Basic and dilutive - continued operations   $ 0.00     $ 0.00  
  Basic and dilutive - discontinued operations   $ 0.00     $ 0.00  
                 
Weighted average shares outstanding                
  Basic and dilutive     989,545,590       948,357,991  
                   

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