SOURCE: HASCO Medical, Inc.

HASCO Medical, Inc.

September 03, 2014 08:31 ET

HASCO Medical Reports Record Second Quarter 2014 Results

Q2 2014 Total Net Revenues up 28% to Record $24.0 Million, Driving Net Income of $260,000

ADDISON, TX--(Marketwired - Sep 3, 2014) - HASCO Medical, Inc. (OTCQB: HASC), a leading provider of handicap-accessible vans, parts and service, reported results for the second quarter ended June 30, 2014.

Q2 2014 Financial and Operational Highlights

  • Revenues up 28% to a record $24.0 million over Q2 2013
  • Gross profit increased 18% to $5.1 million vs. the same year-ago quarter
  • Net income of $260,000, which includes one-time expenses of $110,000, as compared to $251,000 in same year-ago quarter
  • Opened new Ride-Away® commercial taxi location in NYC
  • Secured rights to market BraunAbility® wheelchair accessible vans in Baltimore metro area

First Half 2014 Financial Highlights

  • Revenues increased 32% to $44.5 million
  • Gross profit up 33% to $10.4 million
  • Net income increased from $52,000 to $455,000

Q2 2014 Financial Summary
Net revenues for the second quarter of 2014 totaled a record $24.0 million, up 28% from $18.7 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 $4.0 million, up 11% from the same year-ago quarter.

Gross profit was $5.1 million or 21.4% of total net revenues, compared to $4.3 million or 23.2% of total net revenues in the same year-ago quarter. The gross margin decrease is due to more competitive pricing in the marketplace, taking more deals from the competitors and pushing more business in the commercial/taxi arena versus retail only sales.

Net income totaled $260,000, as compared to net income of $251,000 in the same year-ago quarter.

First Half 2014 Financial Summary
Net revenues for the first half of 2014 totaled a record $44.5 million, up 32% from $33.7 million in the first half of 2013. Service and other revenue totaled $7.9 million, up 22% from the same year-ago period.

Gross profit was $10.4 million or 23.2% of total net revenues, compared to $7.8 million or 23.1% of total net revenues in the same year-ago period.

Net income totaled $455,000, as compared to net income of $52,000 in the same year-ago period.

Management Commentary
"In the second quarter of 2014, strong sales of handicap accessible vehicles across all of our East Coast dealerships resulted in a record topline with bottom line growth sequentially and year-over-year," said Hal Compton, CEO of HASCO Medical. "Subsequent to the quarter, we divested our durable medical equipment business, becoming a pure-play vehicular mobility provider. Based on our full focus on our leading mobility brands, strong tailwinds of a growing market and two new dealerships we're planning to open in the fall with the support of major brands like BraunAbility and VMI, we continue to expect record topline growth for the year."

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  
   
    June 30,     December 31,  
    2014     2013  
    (unaudited)        
Assets                
Current assets                
  Cash   $ 550,507     $ 150,313  
  Accounts receivable, net of allowance for doubtful accounts of $671,320 and $686,345, respectively     7,300,778       6,182,680  
  Inventory, net     13,382,571       11,572,060  
  Deferred tax asset, short term     402,475       413,193  
  Current portion of note receivable     23,329       -  
  Prepaid expenses and other current assets     597,472       504,819  
Total current assets     22,257,132       18,823,065  
                 
Property & equipment, net of accumulated depreciation of $1,685,908 and $1,164,634, respectively     2,217,218       2,141,212  
Intangible assets, net of accumulated depreciation of $32,254 and $10,192, respectively     6,191,972       6,214,034  
Deferred tax asset, long term     149,204       149,204  
Note receivable, net of current portion     101,289       -  
Other non-current assets     576,609       604,965  
Total Assets   $ 31,493,424     $ 27,932,480  
                 
Liabilities and Stockholders' Equity                
Current liabilities                
  Accounts payable and accrued expenses   $ 2,748,078     $ 1,849,702  
  Cash overdraft     97,196       175,572  
  Customer deposits and deferred revenue     384,187       388,433  
  Line of credit     2,045,025       2,303,143  
  Note payable - floor plan     13,824,838       12,174,639  
  Obligation under capital leases     419,900       366,658  
  Current portion of notes payable     386,148       376,685  
  Current portion note payable, related party     349,410       353,008  
  Other current liabilities     1,294,860       493,923  
Total current liabilities     21,549,642       18,481,763  
                 
Obligation under capital leases, net of current portion     1,129,758       817,828  
Notes payable, net of current portion     3,883,142       4,075,802  
Notes payable to related party, net of current portion     1,768,375       1,947,214  
Total liabilities     28,330,917       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 998,178,741 and 993,134,076 shares issued and outstanding, respectively     998,179       993,134  
  Additional paid-in capital     6,762,045       6,669,056  
  Accumulated deficit     (4,597,717 )     (5,052,317 )
Total stockholders' equity     3,162,507       2,609,873  
                 
Total Liabilities and Stockholders' Equity   $ 31,493,424     $ 27,932,480  
                 
                 
                 
Hasco Medical, Inc. & Subsidiaries  
Consolidated Statements of Operations  
(unaudited)  
   
    For the Three Months Ended
June 30,
 
    2014     2013  
             
                 
Product sales   $ 19,656,944     $ 14,806,794  
Rental revenue     312,593       273,133  
Service and other     4,022,638       3,630,397  
  Total net revenues     23,992,175       18,710,324  
                 
Cost of sales     18,869,736       14,373,055  
                 
Gross profit     5,122,439       4,337,269  
                 
Operating expenses:                
  Selling and marketing     1,017,177       1,091,839  
  General and administrative     3,329,271       2,571,446  
  Amortization and depreciation     287,855       274,822  
    Total operating expenses     4,634,303       3,938,107  
                 
Income from operations     488,136       399,162  
                 
Other income (expense)                
  Other income     54,996       131,876  
  Interest expense     (248,549 )     (175,817 )
    Total other income (expense)     (193,553 )     (43,941 )
                 
Income from continuing operations before income taxes     294,583       355,221  
                 
Provision for income taxes     88,557       17,012  
                 
Income from continuing operations     206,026       338,209  
                 
Gain (loss) from discontinued operations, net of income tax     54,227       (87,527 )
                 
Net income     260,253       250,682  
                 
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     997,706,194       988,278,663  
                 

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