SOURCE: HASCO Medical, Inc.

HASCO Medical, Inc.

November 13, 2014 08:31 ET

HASCO Medical Reports Record Third Quarter 2014 Results

Q3 2014 Total Net Revenues up 22% to $23.8 Million, Driving Record Net Income of $802,000

ADDISON, TX--(Marketwired - Nov 13, 2014) - HASCO Medical, Inc. (PINKSHEETS: HASC), a leading provider of handicap-accessible vans, parts and service, reported results for the third quarter ended September 30, 2014.

Q3 2014 Financial and Operational Highlights

  • Revenues up 22% to $23.8 million over Q3 2013
  • Service and other revenue up 31% to $4.2 million vs. year-ago quarter
  • Gross profit increased 34% to $6.3 million over the same year-ago quarter
  • Net income increased 93% to a record $0.8 million vs. Q3 2013
  • Completed divestiture of Certified Medical's durable medical equipment business, now only public company operating as a pure-play vehicular mobility provider
  • Secured the rights to market BraunAbility® and Vantage Mobility International (VMI) wheelchair accessible vans in Miami, Florida

First Nine Months of 2014 Financial Highlights

  • Revenues increased 29% to a record $68.4 million
  • Gross profit up 34% to a record $16.6 million
  • Net income increased 168% to a record $1.3 million

Q3 2014 Financial Summary
Net revenues for the third quarter of 2014 totaled $23.8 million, up 22% from $19.5 million in the same year-ago quarter. Service and other revenue totaled $4.2 million, up 31% from the same year-ago quarter. The improvements were primarily due to the increase in private-pay business for van sales, as well as the contribution of Auto Mobility Sales which was acquired last September. The increase in service and other revenue is also due to the contribution of custom configuration and sale of nearly 30 taxis.

Gross profit was $6.3 million or 26.5% of total net revenues, compared to $4.7 million or 24.2% of total net revenues in the same year-ago quarter. The gross margin increase is due to an increase in service revenue which is a higher margin segment.

Net income totaled a record $802,000, as compared to net income of $417,000 in the same year-ago quarter.

First Nine Months of 2014 Financial Summary
Net revenues for the first nine months of 2014 totaled a record $68.4 million, up 29% from $53.0 million in the first nine months of 2013. Service and other revenue totaled $12.0 million, up 26% from the same year-ago period.

Gross profit was a record $16.6 million or 24.3% of total net revenues, compared to $12.3 million or 23.3% of total net revenues in the same year-ago period. The gross margin improvement is due to the greater buying power and utilization of capacity in service.

Net income totaled a record $1.3 million, as compared to net income of $0.5 million in the same year-ago period.

Management Commentary
"Our third quarter record profitability reflects the increasing success of our brands and stores across the East Coast, as well as the effective execution of our growth plan by our management team," said Hal Compton, CEO of HASCO Medical. "To support continued growth, we are expanding our footprint on the East Coast. This includes the opening of a new wheelchair accessible van dealership to service customers in the Baltimore metropolitan area, which marks our 20th location.

"With the support of major brands like BraunAbility and VMI, we plan to open another dealership in the current quarter that will support our continued organic growth. We will remain opportunistic for additional stores in the highly fragmented, large and thriving vehicular mobility market.

"We are in the process of approving store demos and marketing materials designed to provide more interactivity and up-sell opportunities, which we expect to roll out in the current quarter. In addition, we are testing new mobility products from Pride Mobility and Harmar in two of our stores, and expect to launch the roll out to all of our stores in the first quarter of 2015.

"We see our expanding customer base driving further growth in recurring, high-margin service revenue, and we remain on track for a record topline and continued growth in profitability 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 20 locations from Maine to Florida. The company's mobility brands include Ride-Away (www.Ride-Away.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  
(unaudited)  
   
    September 30,     December 31,  
    2014     2013  
             
Assets                
Current assets                
  Cash   $ 610,714     $ 150,313  
  Accounts receivable, net of allowance for doubtful accounts of $661,250 and $686,345, respectively     8,424,671       6,182,680  
  Inventory, net     13,782,135       11,572,060  
  Deferred tax asset, short term     489,014       413,193  
  Current portion of note receivable     25,505       -  
  Prepaid expenses and other current assets     519,285       504,819  
Total current assets     23,851,324       18,823,065  
                 
Property & equipment, net of accumulated depreciation of $1,774,036 and $1,164,634, respectively     2,097,319       2,141,212  
Intangible assets, net of accumulated depreciation of $43,285 and $10,192, respectively     6,180,941       6,214,034  
Deferred tax asset, long term     181,212       149,204  
Note receivable, net of current portion     94,950       -  
Other non-current assets     596,609       604,965  
Total Assets   $ 33,002,355     $ 27,932,480  
                 
Liabilities and Stockholders' Equity                
Current liabilities                
  Accounts payable and accrued expenses   $ 2,763,262     $ 1,849,702  
  Cash overdraft     --       175,572  
  Customer deposits and deferred revenue     298,804       388,433  
  Line of credit     3,140,346       2,303,143  
  Note payable - floor plan     13,160,906       12,174,639  
  Obligation under capital leases     406,392       366,658  
  Current portion of notes payable     392,597       376,685  
  Current portion note payable, related party     355,640       353,008  
  Other current liabilities     2,012,063       493,923  
Total current liabilities     22,530,010       18,481,763  
                 
Obligation under capital leases, net of current portion     1,008,521       817,828  
Notes payable, net of current portion     3,746,157       4,075,802  
Notes payable to related party, net of current portion     1,699,567       1,947,214  
Total liabilities     28,984,255       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 1,000,575,949 and 993,134,076 shares issued and outstanding, respectively     1,000,576       993,134  
  Additional paid-in capital     6,813,312       6,669,056  
  Accumulated deficit     (3,795,788 )     (5,052,317 )
Total stockholders' equity     4,018,100       2,609,873  
                 
Total Liabilities and Stockholders' Equity   $ 33,002,355     $ 27,932,480  
                 
                 
                 
Hasco Medical, Inc. & Subsidiaries  
Consolidated Statements of Operations  
(unaudited)  
   
    For the three months ended September 30,     For the Nine Months Ended September 30,  
    2014     2013     2014     2013  
                                 
Product sales   $ 19,276,144     $ 15,905,123     $ 55,390,038     $ 42,452,448  
Rental revenue     373,732       368,371       931,330       912,129  
Service and other     4,166,311       3,182,724       12,041,267       9,586,757  
  Total net revenues     23,816,187       19,456,218       68,362,635       52,951,334  
                                 
Cost of sales     17,515,451       14,743,910       51,766,472       40,611,949  
                                 
Gross profit     6,300,736       4,712,308       16,596,163       12,339,385  
                                 
Operating expenses:                                
Selling and marketing     1,063,863       1,203,124       3,034,563       3,204,763  
General and administrative     3,432,786       2,453,602       10,115,358       7,357,365  
Amortization and depreciation     242,511       169,838       753,703       540,036  
Total operating expenses     4,739,160       3,826,564       13,903,624       11,102,164  
                                 
Income from operations     1,561,576       885,744       2,692,539       1,237,221  
                                 
Other income (expense)     (118,371 )     47,399       (73,607 )     103,576  
Interest expense     (299,768 )     (215,984 )     (820,606 )     (585,367 )
Total other income (expense)     (418,139 )     (168,585 )     (894,213 )     (481,791 )
                                 
Income from continuing operations before income taxes     1,143,437       717,159       1,798,326       755,430  
                                 
Provision for income taxes     525,802       236,563       784,578       51,143  
                                 
Income from continuing operations     617,635       480,596       1,013,748       704,287  
                                 
Gain (loss) from discontinued operations, net of income tax     184,294       (64,075 )     242,781       (235,775 )
                                 
Net income     801,929       416,521       1,256,529       468,512  
                                 
Earnings per share:                                
Basic and dilutive-continuing operations   $ -     $ -     $ -     $ -  
Basic and dilutive-discontinued operations   $ -     $ -     $ -     $ -  
                                 
Weighted average shares outstanding:                                
Basic and dilutive     999,941,212       989,460,705       997,460,295       988,694,780  
                                 
                                 

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