SOURCE: Liberator Medical Holdings, Inc.

Liberator Medical Holdings, Inc. Logo

February 14, 2013 07:47 ET

Liberator Medical Reports Revenue of $17.6 Million for Its First Fiscal Quarter Ended December 31, 2012

The Company Reports Net Income of $1.4 Million for the Quarter

STUART, FL--(Marketwire - February 14, 2013) -  Liberator Medical Holdings, Inc. (OTCBB: LBMH) today announced the financial results for its first fiscal quarter ended December 31, 2012. Sales for the quarter ended December 31, 2012 increased by $2,755,000, or 18.6%, to $17,551,000, compared with sales of $14,796,000 for the quarter ended December 31, 2011. The increase in sales was due to the Company's continued direct response advertising campaign to acquire new customers and strong reorder rates from its recurring customer base during the last quarter of the calendar year. Liberator's direct response advertising expenditure for the quarter ended December 31, 2012, was $2.8 million, compared with $2.7 million for the quarter ended December 31, 2011.

First Fiscal Quarter 2013 Financial Highlights

  • Revenue of $17.6 million, an increase of 18.6% over the last year's first quarter
  • Operating margins increased to 12.9% of sales compared with 5.3% a year ago
  • Net income of $1.4 million, or $0.03 per share, compared with net income of $0.5 million, or $0.01 per share, for the first quarter last year 
  • Cash generated from operations of $1.4 million, an increase of $3.3 million compared with cash used in operations of $1.9 million for the first quarter last year
  • As of December 31, 2012, the Company had $4.4 million of cash and $4.7 million available from its credit line facility.

Income from operations for the quarter ended December 31, 2012, increased by $1,479,000, or 189.9%, to $2,258,000, compared with the quarter ended December 31, 2011. The increase in operating income is primarily attributed to increased gross profits driven by our increased sales volumes as well as a reduction as a percentage of sales in operating expenses.

Mark Libratore, the Company's President and CEO, commented, "We are very pleased with our financial performance for the first quarter. We increased sales by 19% over last year at higher operating margins and generated $1.4 million in operating cash flows for the quarter. We will continue to manage the levels of our direct response advertising spend to maximize profitability and cash flows for fiscal year 2013. Based on investments we have made in our employees, infrastructure, and technology, we expect to continue to increase our operating margins and cash flows for fiscal year 2013 compared with fiscal year 2012."

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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

Certain statements in this press release that are not historical, but are forward-looking, are subject to known and unknown risks and uncertainties which may cause the Company's actual results in future periods to be materially different from any future performance that may be suggested in this press release. Such risks and uncertainties may include, but are not limited to, the Company's need to raise equity capital and its ability to obtain equity financing on acceptable terms, if at all, 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, the risk of early obsolescence of our products and the other factors listed under "Risks and Uncertainties" in our annual report on Form 10-K for the fiscal year ended September 30, 2008 and our other filings with the Securities and Exchange Commission. We assume no obligation to update the information contained in this news release.

Liberator Medical Holdings, Inc. and Subsidiaries  
Condensed Consolidated Balance Sheets  
As of December 31, 2012 (unaudited) and September 30, 2012  
(In thousands, except dollar per share amounts)  
    December 31,     September
    2012     2012  
Current Assets:                
  Cash   $ 4,431     $ 3,326  
  Accounts receivable, net of allowances of $5,022 and $5,044, respectively     9,200       10,365  
  Inventory, net of allowance for obsolete inventory of $362 and $310, respectively     2,426       2,627  
  Deferred taxes, current portion     2,310       2,254  
  Prepaid and other current assets     346       287  
    Total Current Assets     18,713       18,859  
Property and equipment, net of accumulated depreciation of $3,035 and $2,888, respectively     1,411       1,250  
Deferred advertising     23,032       22,426  
Intangible assets, net of accumulated amortization of $107 and $91, respectively     223       239  
Other assets     87       88  
Total Assets   $ 43,466     $ 42,862  
Liabilities and Stockholders' Equity                
Current Liabilities:                
  Accounts payable   $ 4,525     $ 6,537  
  Accrued liabilities     1,608       1,221  
  Other current liabilities     96       92  
    Total Current Liabilities     6,229       7,850  
Deferred tax liability     6,283       5,421  
Credit line facility     2,500       2,500  
Other long-term liabilities     114       132  
Total Liabilities     15,126       15,903  
Stockholders' Equity:                
Common stock, $.001 par value, 200,000 shares authorized, 48,266 and 48,232 shares issued, respectively; 48,177 and 48,143 shares outstanding at December 31, 2012, and September 30, 2012, respectively     48       48  
Additional paid-in capital     34,736       34,707  
Accumulated deficit     (6,394 )     (7,746 )
Treasury stock, at cost; 89 shares at December 31, 2012, and September 30, 2012     (50 )     (50 )
Total Stockholders' Equity     28,340       26,959  
Total Liabilities and Stockholders' Equity   $ 43,466     $ 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 months ended December 31, 2012 and 2011  
(in thousands, except per share amounts)  
    Three Months Ended
December 31,
    2012      2011   
Sales   $ 17,551     $ 14,796  
Cost of Sales     6,573       6,003  
Gross Profit     10,978       8,793  
Operating Expenses                
  Payroll, taxes and benefits     3,843       3,464  
  Advertising     2,203       1,968  
  Bad debts     1,278       1,130  
  Depreciation and amortization     164       199  
  General and administrative     1,232       1,253  
Total Operating Expenses     8,720       8,014  
Income from Operations     2,258       779  
Other Expense                
  Interest expense     (21 )     (12 )
Total Other Expense     (21 )     (12 )
Income before Income Taxes     2,237       767  
Provision for Income Taxes     885       313  
Net Income   $ 1,352     $ 454  
Basic earnings per share:                
Weighted average shares outstanding     48,147       48,057  
Earnings per share   $ 0.03     $ 0.01  
Diluted earnings per share:                
Weighted average shares outstanding     52,143       52,321  
Earnings per share   $ 0.03     $ 0.01  

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, 2012 and 2011  
(in thousands)  
    Three Months Ended  
    December 31,  
    2012       2011   
Cash flow from operating activities:                
  Net Income   $ 1,352     $ 454  
  Adjustments to reconcile net income to net cash provided by (used in) operating activities:                
    Depreciation and amortization     2,310       2,123  
    Equity based compensation     10       38  
    Provision for doubtful accounts and contractual adjustments     1,335       1,163  
    Deferred income taxes     805       307  
    Reserve for inventory obsolescence     53       6  
  Changes in operating assets and liabilities:                
    Accounts receivable     (169 )     (2,449 )
    Deferred advertising     (2,753 )     (2,700 )
    Inventory     148       119  
    Other assets     (57 )     (175 )
    Accounts payable     (2,013 )     (945 )
    Accrued liabilities     393       142  
    Other liabilities     3       (27 )
Net Cash Flow Provided by (Used in) Operating Activities     1,417       (1,944 )
Cash flow from investing activities:                
  Purchase of property and equipment     (308 )     (40 )
Net Cash Flow Used in Investing Activities     (308 )     (40 )
Cash flow from financing activities:                
  Proceeds from employee stock purchase plan     13       20  
  Proceeds from credit line facility     -       1,000  
  Payments of debt and capital lease obligations     (17 )     (7 )
Net Cash Flow Provided by (Used in) Financing Activities     (4 )     1,013  
Net increase (decrease) in cash     1,105       (971 )
Cash at beginning of period     3,326       3,016  
Cash at end of period   $ 4,431     $ 2,045  
Supplemental disclosure of cash flow information:                
Cash paid for interest   $ 21     $ 12  
Cash paid for income taxes   $ 5     $ -  
Supplemental schedule of non-cash investing and financing activities:                
Capital expenditures funded by capital lease borrowing   $ -     $ 18  

See accompanying notes to unaudited condensed consolidated financial statements.

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