SOURCE: Liberator Medical Holdings, Inc.

Liberator Medical Holdings, Inc.

December 23, 2013 16:05 ET

Liberator Medical Reports Revenue of $69 Million for Its Fiscal Year Ended September 30, 2013

The Company Reports Net Income of $7 Million, or $0.14 per Share, for the Year

STUART, FL--(Marketwired - Dec 23, 2013) - Liberator Medical Holdings, Inc. (NYSE MKT: LBMH) today announced the financial results for its fiscal year ended September 30, 2013. Financial highlights are summarized below:

               
In thousands, except per share data FY 2013   FY 2012     Change  
                   
Net Sales $ 69,111   $ 60,943     13.4 %
                   
Operating income   11,759     4,307     173.0 %
                   
Net income   7,078     2,501     183.0 %
                   
Earnings per diluted share   0.14     0.05     180.0 %
                   
Cash flow from operating activities   13,633     (546 )   n/a  
                   
Dividends declared per share $ 0.08   $ 0.00     n/a  
                   

Net sales for fiscal year 2013 increased by $8,168,000, or 13.4%, to $69,111,000, compared with sales of $60,943,000 for fiscal year 2012 due to the Company's continued direct response advertising campaign to acquire new customers and its emphasis on customer service to maximize the reorder rates for its recurring customer base.

Income from operations for fiscal year 2013 increased by $7,452,000, or 173.0%, to $11,759,000, compared with fiscal year 2012. The increase in operating income was attributed to increased gross profits driven by the Company's increased sales volumes and lower shipping costs, as well as a reduction in operating expenses for fiscal year 2013.

Net income for fiscal year 2013 was $7,078,000, or $0.14 per diluted share, compared with net income of $2,501,000, or $0.05per diluted share, for fiscal year 2012.

The Company had cash of $12,453,000 at September 30, 2013, compared with $3,326,000 at September 30, 2012, an increase of $9,127,000. The increase in cash during fiscal year 2013 was the result of $13,633,000 of cash generated by the Company's operating activities, partially offset by $686,000 of cash used in investing activities and $3,820,000 of cash used in financing activities.

Other Significant Events for Fiscal Year 2013

  • On November 20, 2013, the Company's common stock was listed and began trading on the NYSE MKT exchange, increasing visibility and shareholder liquidity.

  • During fiscal year 2013, the Company declared three quarterly cash dividends totaling $0.08 per common share for its shareholders.

Mark Libratore, the Company's President and CEO, commented, "Our financial results for fiscal year 2013 were a direct result of a shift in our business model at the beginning of the year to manage the levels of our direct response advertising spend to maximize profitability and cash flows. We generated $11.8 million in operating income and $13.6 million in cash flows from our operations. As a result of the improvements in our operating margins and cash flows during fiscal year 2013, we initiated a quarterly cash dividend and have paid $4.2 million in cash dividends to our shareholders.

"We will continue to manage the levels of our direct response advertising spend to maximize profitability and cash flows for fiscal year 2014. We continue to explore potential acquisition targets during fiscal year 2014 that allow us to acquire new customers at competitive rates and are accretive to our earnings. Based on investments we have made in our employees, infrastructure, and technology, we will continue to implement process improvements designed to increase our operating margins during fiscal year 2014."

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, 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
Consolidated Balance Sheets
As of September 30, 2013 and 2012
(In thousands, except dollar per share amounts)
 
  2013     2012  
               
Assets              
Current Assets:              
Cash $ 12,453     $ 3,326  
Accounts receivable, net of allowances of $4,502 and $5,044, respectively   7,836       10,365  
Inventory, net of allowance for obsolete inventory of $308 and $310, respectively   2,187       2,627  
Deferred tax assets   2,067       2,254  
Prepaid and other current assets   219       287  
               
Total Current Assets   24,762       18,859  
Property and equipment, net of accumulated depreciation of $3,492 and $2,888, respectively   1,044       1,250  
Deferred advertising, net   22,705       22,426  
Intangible assets, net of accumulated amortization of $169 and $91, respectively   414       239  
Other assets   174       88  
               
Total Assets $ 49,099     $ 42,862  
               
Liabilities and Stockholders' Equity              
Current Liabilities:              
Accounts payable $ 4,915     $ 6,537  
Accrued liabilities   1,354       1,129  
Dividends payable   1,569       -  
Income tax payable   1,195       92  
Other current liabilities   111       92  
               
Total Current Liabilities   9,144       7,850  
Deferred tax liability   8,561       5,421  
Credit line facility   1,500       2,500  
Other long-term liabilities   63       132  
               
Total Liabilities   19,268       15,903  
               
Commitments and contingencies (see Note 9)              
               
Stockholders' Equity:              
Common stock, $.001 par value, 200,000 shares authorized, 52,637 and 48,232 shares issued, respectively; 52,283 and 48,143 shares outstanding at September 30, 2013 and 2012, respectively   53       48  
Additional paid-in capital   35,111       34,707  
Accumulated deficit   (4,853 )     (7,746 )
Treasury stock, at cost; 354 and 89 shares at September 30, 2013 and 2012, respectively   (480 )     (50 )
               
Total Stockholders' Equity   29,831       26,959  
               
Total Liabilities and Stockholders' Equity $ 49,099     $ 42,862  
               
               
See accompanying notes to consolidated financial statements.            
               
               
               
Liberator Medical Holdings, Inc. and Subsidiaries
Consolidated Statements of Operations
For the fiscal years ended September 30, 2013 and 2012
(In thousands, except dollar per share amounts)
               
  2013     2012  
           
Net Sales $ 69,111     $ 60,943  
               
Cost of Sales   25,689       23,924  
               
               
Gross Profit   43,422       37,019  
               
           
Operating Expenses:              
Payroll, taxes and benefits   14,311       14,136  
Advertising   8,908       8,099  
Bad debts   3,069       4,664  
Depreciation and amortization   683       794  
General and administrative   4,692       5,019  
           
Total Operating Expenses   31,663       32,712  
           
Income from Operations   11,759       4,307  
           
               
Other Expense              
Interest expense   (83 )     (75 )
           
Total Other Expense   (83 )     (75 )
           
Income before Income Taxes   11,676       4,232  
               
Provision for Income Taxes   4,598       1,731  
               
Net Income $ 7,078     $ 2,501  
           
Basic earnings per share:              
Weighted average shares outstanding   50,115       48,097  
Earnings per share $ 0.14     $ 0.05  
               
Diluted earnings per share:              
Weighted average shares outstanding   52,375       52,266  
Earnings per share $ 0.14     $ 0.05  
               
Dividends declared per common share * $ 0.08     $ --  
               
* Three quarterly dividends were declared during fiscal year 2013
 
 
See accompanying notes to consolidated financial statements.
 
 
 
Liberator Medical Holdings, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
For the fiscal years ended September 30, 2013 and 2012
(In thousands)
 
  2013     2012  
           
Cash flow from operating activities:              
Net income $ 7,078     $ 2,501  
               
Adjustments to reconcile net income to net cash provided by (used in) operating activities:              
Depreciation and amortization   9,404       8,672  
Stock-based compensation   76       122  
Provision for doubtful accounts and contractual adjustments   3,407       4,787  
Deferred income taxes   3,321       1,697  
Reserve for inventory obsolescence   126       166  
Changes in operating assets and liabilities, net of acquisition:              
Accounts receivable   (787 )     (7,293 )
Deferred advertising   (9,000 )     (13,113 )
Inventory   368       216  
Other assets   40       143  
Accounts payable   (1,724 )     1,529  
Accrued liabilities   1,339       116  
Other liabilities   (15 )     (89 )
           
Net Cash Flows Provided by (Used in) Operating Activities   13,633       (546 )
           
Cash flows from investing activities              
Purchase of property and equipment and other   (367 )     (151 )
Acquisition of business, net of cash acquired   (319 )     --  
           
Net Cash Flows Used in Investing Activities   (686 )     (151 )
           
Cash flows from financing activities              
Proceeds from (repayments to) credit line facility   (1,000 )     1,000  
Costs associated with credit line facility   (21 )     (21 )
Proceeds from employee stock purchase plan   48       67  
Proceeds from exercise of options and warrants   270       --  
Cash dividends paid   (2,616 )     --  
Purchase of treasury stock   (430 )     --  
Payments of capital lease obligations   (71 )     (39 )
           
Net Cash Flows Provided by (Used in) Financing Activities   (3,820 )     1,007  
           
Net increase in cash   9,127       310  
               
Cash at beginning of period   3,326       3,016  
           
Cash at end of period $ 12,453     $ 3,326  
           
Supplemental disclosure of cash flow information:              
Cash paid for interest $ 84     $ 73  
Cash paid for income taxes $ 171       --  
               
Supplemental schedule of non-cash investing and financing activities:              
Capital expenditures funded by capital lease borrowings $ 23     $ 202  
Cash dividends declared, but not yet paid $ 1,569       --  
               
               
See accompanying notes to consolidated financial statements.            
               

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