SOURCE: Liberator Medical Holdings, Inc.

Liberator Medical Holdings, Inc. Logo

August 09, 2013 08:05 ET

Liberator Medical Reports Revenue of $17.5 Million for Its Third Fiscal Quarter Ended June 30, 2013

The Company Reports Net Income of $2.0 Million, or $0.04 per Share, for the Quarter

STUART, FL --(Marketwired - August 09, 2013) - Liberator Medical Holdings, Inc. (OTCQB: LBMH) today announced the financial results for its fiscal third quarter ended June 30, 2013. Sales for the three months ended June 30, 2013 increased by $2,530,000, or 16.9%, to $17,491,000, compared with sales of $14,961,000 for the three months ended June 30, 2012. For the nine months ended June 30, 2013, sales increased by $7,349,000, or 16.5%, to $51,776,000, compared with sales of $44,427,000 for the nine months ended June 30, 2012.

Income from operations for the three months ended June 30, 2013, increased by $2,189,000, or 187.6%, to $3,356,000, compared with the three months ended June 30, 2012. For the nine months ended June 30, 2013, income from operations increased by $4,888,000, or 158.5%, to $7,972,000, compared with the nine months ended June 30, 2012. 

Net income for the three months ended June 30, 2013 was $2,014,000 compared with net income of $676,000 for the three months ended June 31, 2012, representing an increase of 197.9%. Net income for the nine months ended June 30, 2013 was $4,786,000 compared with net income of $1,800,000 for the nine months ended June 30, 2012, representing an increase of 165.9%.

On June 13, 2013, the Company's Board of Directors approved a cash dividend of $0.03 per common share to its shareholders of record on July 8, 2013. The dividend was paid on July 22, 2013, and is the second cash dividend paid this year.

The Company's Board of Directors also approved a 1,000,000 share repurchase program on June 13, 2013. As of August 8, 2013, the Company has repurchased 195,000 shares since the commencement of the share buyback.

Mark Libratore, the Company's President and CEO, commented, "During the third quarter of fiscal year 2013 we generated net income of $2.0 million and increased our cash balance by $3.6 million to $10.6 million at the end of the quarter. As a result of the improvements in our operating margins and cash flows during the first three quarters of fiscal year 2013, we have paid two quarterly dividends, totaling $2.6 million, to our shareholders and initiated a buyback of 1.0 million shares of our common stock. During July 2013, we completed an acquisition of a small medical supply company and are currently evaluating other potential small company acquisitions. We expect to continue to increase our operating margins and cash flows and continue to acquire new customers through our direct-response advertising efforts at our targeted acquisition costs."

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. An Exemplary Provider™ accredited by The Compliance Team, its 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, personal mobility aids, 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 June 30, 2013 (unaudited) and September 30, 2012  
(In thousands, except dollar per share amounts)  
   
   June 30,   September 30,  
   2013   2012  
Assets         
Current Assets:           
  Cash  $10,610   $3,326  
  Accounts receivable, net of allowance of $4,984 and $5,044, respectively   8,380    10,365  
  Inventory, net of allowance for obsolete inventory of $467 and $310, respectively   1,923    2,627  
  Deferred taxes, current portion   2,365    2,254  
  Prepaid and other current assets   346    287  
   Total Current Assets   23,624    18,859  
Property and equipment, net of accumulated depreciation of $3,344and $2,888, respectively   1,155    1,250  
Deferred advertising   22,915    22,426  
Intangible assets, net of accumulated amortization of $144 and $91, respectively   232    239  
Other assets   99    88  
Total Assets  $48,025   $42,862  
            
Liabilities and Stockholders' Equity           
Current Liabilities:           
  Accounts payable  $4,255   $6,537  
  Accrued liabilities   2,442    1,221  
  Dividends payable   1,572    -  
  Other current liabilities   100    92  
   Total Current Liabilities   8,369    7,850  
Deferred tax liability   7,685    5,421  
Credit line facility   2,500    2,500  
Other long-term liabilities   64    132  
Total Liabilities   18,618    15,903  
            
Stockholders' Equity:           
Common stock, $.001 par value, 200,000 shares authorized, 52,490 and 48,232 shares issued, respectively; 52,401 and 48,143 shares outstanding at June 30, 2013, and September 30, 2012, respectively   52    48  
Additional paid-in capital   34,981    34,707  
Accumulated deficit   (5,576 )  (7,746 )
Treasury stock, at cost; 89 shares at June 30, 2013, and September 30, 2012   (50 )  (50 )
Total Stockholders' Equity   29,407    26,959  
Total Liabilities and Stockholders' Equity  $48,025   $42,862  
            
 
See accompanying notes to unaudited condensed consolidated financial statements.
 
   
Liberator Medical Holdings, Inc. and Subsidiaries  
Condensed Consolidated Statements of Operations  
For the three and nine months ended June 30, 2013 and 2012  
(Unaudited)  
(in thousands, except per share amounts)  
   
   Three Months Ended June 30,   Nine Months Ended June 30,  
   2013   2012   2013   2012  
                      
Sales  $17,491   $14,961   $51,776   $44,427  
                      
Cost of Sales   6,598    5,836    19,172    17,526  
                      
Gross Profit   10,893    9,125    32,604    26,901  
                      
Operating Expenses                     
  Payroll, taxes and benefits   3,570    3,526    11,079    10,567  
  Advertising   2,146    1,956    6,617    5,896  
  Bad debts   541    1,028    2,986    3,001  
  Depreciation and amortization   171    206    509    615  
  General and administrative   1,109    1,242    3,441    3,738  
Total Operating Expenses   7,537    7,958    24,632    23,817  
                      
Income from Operations   3,356    1,167    7,972    3,084  
                      
Other Expense                     
  Interest expense   (20 )  (21 )  (62 )  (53 )
Total Other Expense   (20 )  (21 )  (62 )  (53 )
                      
Income before Income Taxes   3,336    1,146    7,910    3,031  
                      
Provision for Income Taxes   1,322    470    3,124    1,231  
                      
Net Income  $2,014   $676   $4,786   $1,800  
                      
Basic earnings per share:                     
Weighted average shares outstanding   51,837    48,098    49,387    48,081  
Earnings per share  $0.04   $0.01   $0.10   $0.04  
                      
Diluted earnings per share:                     
Weighted average shares outstanding   52,393    52,279    52,386    52,273  
Earnings per share  $0.04   $0.01   $0.09   $0.03  
                      
Dividends declared per common share *  $0.05    -   $0.05   $-  
 
* Two quarterly dividends were declared during the three months ended June 30, 2013.
 
See accompanying notes to unaudited condensed consolidated financial statements.
 
   
Liberator Medical Holdings, Inc. and Subsidiaries  
Condensed Consolidated Statements of Cash Flows  
For the nine months ended June 30, 2013 and 2012  
(Unaudited)  
(in thousands)  
   
   Nine Months Ended  
   June 30,  
   2013   2012  
Cash flow from operating activities:           
  Net Income  $4,786   $1,800  
  Adjustments to reconcile net income to net cash provided by operating activities:           
   Depreciation and amortization   6,996    6,386  
   Equity based compensation   63    115  
   Provision for doubtful accounts and contractual adjustments   3,214    3,039  
   Deferred income taxes   2,153    1,208  
   Reserve for inventory obsolescence   157    98  
  Changes in operating assets and liabilities:           
   Accounts receivable   (1,230 )  (5,220 )
   Deferred advertising   (6,975 )  (9,104 )
   Inventory   547    344  
   Other assets   (95 )  (252 )
   Accounts payable   (2,282 )  (20 )
   Accrued liabilities   1,234    326  
   Other liabilities   (7 )  (78 )
Net Cash Flow Provided by (Used in) Operating Activities   8,561    (1,358 )
            
Cash flow from investing activities:           
  Purchase of property and equipment   (361 )  (112 )
Net Cash Flow Used in Investing Activities   (361 )  (112 )
            
Cash flow from financing activities:           
  Proceeds from exercise of options and warrants   153    -  
  Proceeds from employee stock purchase plan   48    56  
  Proceeds from credit line facility   -    1,000  
  Costs associated with credit line facility   (21 )  (21 )
  Cash dividends paid   (1,044 )  -  
  Payments of debt and capital lease obligations   (52 )  (22 )
Net Cash Flow Provided by (Used in) Financing Activities   (916 )  1,013  
            
Net increase (decrease) in cash   7,284    (457 )
            
Cash at beginning of period   3,326    3,016  
Cash at end of period  $10,610   $2,559  
            
Supplemental disclosure of cash flow information:           
Cash paid for interest  $63   $51  
Cash paid for income taxes  $104   $-  
            
Supplemental schedule of non-cash investing and financing activities:           
Capital expenditures funded by capital lease borrowing  $-   $120  
Cash dividends declared, but not yet paid  $1,572   $-  
 
See accompanying notes to unaudited condensed consolidated financial statements
 

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