SOURCE: Liberator Medical Holdings, Inc.

Liberator Medical Holdings, Inc. Logo

February 09, 2015 16:30 ET

Liberator Medical Reports Record Revenue of $20.2 Million for Its Fiscal First Quarter Ended December 31, 2014

The Company Reports Net Income of $2.4 Million, or $0.05 per Share, for the 3 Months Ended December 31, 2014 Up 14.2% Compared to the Same Period Last Year

STUART, FL--(Marketwired - February 09, 2015) - Liberator Medical Holdings, Inc. (NYSE MKT: LBMH) today announced the financial results for its fiscal first quarter ended December 31, 2014.

Net sales for the three months ended December 31, 2014, increased by $1,579,000, or 8.5%, to $20,216,000, compared with net sales of $18,637,000 for the three months ended December 31, 2013. The increase in net sales was primarily due to our continued emphasis on our direct response advertising campaign to acquire new customers and our emphasis on customer service to maximize the reorder rates for our recurring customer base. 

  Three Months Ended December 31
Dollars in Thousands Q1 FY2015 Q1 FY2014 %
Net Sales $ 20,216 $ 18,637 8.5
Income from Operations $ 3,984 $ 3,500 13.8
Net Income $ 2,421 $ 2,120 14.2

Income from operations for the three months ended December 31, 2014, increased by $484,000, or 13.8%, to $3,984,000, compared with $3,500,000 for the three months ended December 31, 2013. The increase in operating income is primarily attributed to increased gross profits driven by our increased sales volumes as well as reductions in payroll costs as a percentage of net sales and decreased general and administration expenses.

Net income for the first quarter of fiscal year 2015 was $2,421,000 or $0.05 per diluted share, compared with net income of $2,120,000 or $0.04 per diluted share, for the first quarter of fiscal year 2013, an increase of 14.2%.

The Company had cash of $11,954,000 at December 31, 2014, compared with cash of $12,261,000 at September 30, 2014, a decrease of $307,000. The decrease in cash for the three months ended December 31, 2014, was due to $1,754,000 of cash used in financing activities and $13,000 of net cash used in investing activities, partially offset by $1,460,000 of cash provided by operating activities.

Mark Libratore, President and CEO, commented, "Our growth this quarter was driven by a 10% improvement in revenue from our existing customers. Customer retention has been and will continue to be a priority. Our improved operating margin was driven, in part by gains in labor productivity. We intend to continue to invest in operating efficiencies that streamline processes and improve quality. Our customers have many choices when it comes to their medical supplies and we will continue to find ways to improve their experience with Liberator."

Stay up-to-date with current events by visiting Liberator Medical's website at www.liberatormedical.com or by joining the Company's E-Mail Alert List. Join by clicking the following link www.LBMH-IR.com

About Liberator Medical Holdings, Inc.

Liberator Medical Holdings, Inc.'s subsidiary, Liberator Medical Supply, Inc., established the Liberator brand as a leading national direct-to-consumer provider of quality medical supplies to Medicare-eligible seniors. Accredited by The Joint Commission, our Company's unique combination of marketing, industry expertise and customer service has demonstrated success over a broad spectrum of chronic conditions. Liberator is recognized for offering a simple, reliable way to purchase medical supplies needed on a regular, ongoing, repeat-order basis, with the convenience of direct billing to Medicare and private insurance. Liberator's revenue primarily comes from supplying products to meet the rapidly growing requirements of general medical supplies, diabetes supplies, catheters, ostomy supplies and mastectomy fashions . Liberator communicates with patients and their doctors on a regular basis regarding prescriptions and supplies. Customers may purchase by phone, mail or internet, with repeat orders confirmed with the customer and shipped when needed.

Safe Harbor Statement

In this press release and in related comments by our management, our use of the words "expect," "anticipate," "possible," "potential," "target," "believe," "commit," "intend," "continue," "may," "would," "could," "should," "project," "projected," "positioned" or similar expressions is intended to identify forward-looking statements that represent our current judgment about possible future events. We believe these judgments are reasonable, but these statements are not guarantees of any events or financial results, and our actual results may differ materially due to a variety of important factors. Such risks and uncertainties may include, but are not limited to, regulatory limitations on the medical industry in general, working capital constraints, fluctuations in customer demand and commitments, fluctuation in quarterly results, introduction of new services and products, commercial acceptance and viability of new services and products, pricing and competition, reliance upon subcontractors and vendors, the timing of new technology and product introductions, and the risk of early obsolescence of our products. Liberator's most recent annual report on Form 10-K and quarterly reports on Form 10-Q provide information about these and other factors, which we may revise or supplement in future reports filed with the Securities and Exchange Commission.

 
 
Liberator Medical Holdings, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
As of December 31, 2014 (unaudited) and September 30, 2014
(In thousands, except dollar per share amounts)
 
  December 31,
2014
  September 30,
2014
 
         
             
Assets            
Current Assets:            
 Cash $ 11,954   $ 12,261  
 Accounts receivable, net of allowances of $4,617 and $4,569, respectively   9,606     8,866  
 Inventory, net of allowance for obsolete inventory of $181   2,078     1,954  
 Deferred tax assets   2,033     2,005  
 Prepaid and other current assets   716     449  
  Total Current Assets   26,387     25,535  
Property and equipment, net of accumulated depreciation of $4,106 and $4,016, respectively   1,210     1,260  
Deferred advertising, net   28,342     26,936  
Intangible assets, net of accumulated amortization of $310 and $281, respectively   391     420  
Other assets   164     178  
  Total Assets $ 56,494   $ 54,329  
             
Liabilities and Stockholders' Equity            
Current Liabilities:            
 Accounts payable $ 6,187   $ 6,085  
 Accrued liabilities   1,554     1,758  
 Dividends payable   1,728     1,728  
 Income tax payable   1,322     178  
 Other current liabilities   150     161  
  Total Current Liabilities   10,941     9,910  
Deferred tax liabilities   10,449     10,031  
Credit line facility   1,500     1,500  
Other long-term liabilities   468     453  
  Total Liabilities   23,358     21,894  
             
Commitments and contingencies (see Note 7)            
             
Stockholders' Equity:            
 Common stock, $0.001 par value, 200,000 shares authorized, 53,520 shares issued and 53,166 shares outstanding at December 31, 2014, and September 30, 2014   54     54  
 Additional paid-in capital   36,393     36,385  
 Accumulated deficit   (2,831 )   (3,524 )
 Treasury stock, at cost; 354 shares at December 31, 2014, and September 30, 2014   (480 )   (480 )
  Total Stockholders' Equity   33,136     32,435  
  Total Liabilities and Stockholders' Equity $ 56,494   $ 54,329  
             
See accompanying notes to unaudited condensed consolidated financial statements.  
 
 
Liberator Medical Holdings, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
For the three months ended December 31, 2014 and 2013
(Unaudited)
(in thousands, except per share amounts)
 
  Three Months Ended December 31,  
              
  2014    2013  
              
Net Sales $ 20,216    $ 18,637  
              
Cost of Sales   7,585      6,882  
              
Gross Profit   12,631      11,755  
              
Operating Expenses:             
 Payroll, taxes and benefits   3,762      3,657  
 Advertising   2,615      2,326  
 Bad debts   943      824  
 Depreciation and amortization   119      171  
 General and administrative   1,208      1,277  
Total Operating Expenses   8,647      8,255  
              
Income from Operations   3,984      3,500  
              
Other Expenses   (12 )    (13 )
              
Income before Income Taxes   3,972      3,487  
              
Provision for Income Taxes   1,551      1,367  
              
Net Income $ 2,421    $ 2,120  
              
Basic earnings per share:             
Weighted average shares outstanding   53,166      52,358  
Earnings per share $ 0.05    $ 0.04  
              
Diluted earnings per share:             
Weighted average shares outstanding   53,695      53,228  
Earnings per share $ 0.05    $ 0.04  
              
Dividends declared per common share $ 0.03    $ 0.03  
        
See accompanying notes to unaudited condensed consolidated financial statements.
 
 
Liberator Medical Holdings, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
For the three months ended December 31, 2014 and 2013
(Unaudited)
(in thousands)
              
   Three Months Ended
December 31,
 
   2014   2013  
              
Cash flow from operating activities:             
Net Income  $ 2,421   $ 2,120  
Adjustments to reconcile net income to net cash provided by operating activities:             
 Depreciation and amortization    2,717     2,482  
 Equity based compensation    8     32  
 Provision for doubtful accounts and contractual adjustments    927     1,027  
 Deferred income taxes    390     (120 )
 Reserve for inventory obsolescence    -     13  
Changes in operating assets and liabilities:             
 Accounts receivable    (1,667 )   (2,779 )
 Deferred advertising    (4,004 )   (2,918 )
 Inventory    (124 )   (307 )
 Other assets    (260 )   (402 )
 Income taxes prepaid and payable    1,150     486  
 Accounts payable    101     1,466  
 Accrued liabilities    (204 )   215  
 Other liabilities    5     (8 )
Net Cash Flow Provided by Operating Activities    1,460     1,307  
              
Cash flow from investing activities:             
Purchase of property and equipment    (13 )   (51 )
Proceeds from sale of property and equipment    -     4  
Net Cash Flow Used in Investing Activities    (13 )   (47 )
              
Cash flow from financing activities:             
Proceeds from exercise of employee stock options    -     72  
Cash dividends paid    (1,728 )   (1,569 )
Payments of capital lease obligations    (26 )   (21 )
Net Cash Flow Used in Financing Activities    (1,754 )   (1,518 )
              
Net decrease in cash    (307 )   (258 )
              
Cash at beginning of period    12,261     12,453  
Cash at end of period  $ 11,954   $ 12,195  
              
Supplemental disclosure of cash flow information:             
Cash paid for interest  $ 12   $ 15  
Cash paid for income taxes  $ 10   $ 1,000  
              
Supplemental schedule of non-cash financing activities:             
Capital expenditures funded by capital lease borrowings or term notes  $ 26   $ -  
Cash dividends declared, but not yet paid  $ 1,728   $ 1,572  
              
See accompanying notes to unaudited condensed consolidated financial statements.  

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