SOURCE: Liberator Medical Holdings, Inc.

Liberator Medical Holdings, Inc. Logo

December 15, 2014 16:15 ET

Liberator Medical Reports Revenue of $74.5 Million for Its Fiscal Year Ended September 30, 2014

The Company Reports Net Income of $7.8 Million, or $0.15 per Share, for the Year

STUART, FL--(Marketwired - December 15, 2014) - Liberator Medical Holdings, Inc. (NYSE MKT: LBMH) today announced the financial results for its fiscal year ended September 30, 2014. Financial highlights are summarized below:

              
  In thousands, except per share data  FY 2014  FY 2013  Change  
              
  Net Sales  $ 74,569  $ 69,111  7.9 %
                  
  Operating income    12,709    11,759  8.1 %
                  
  Net income    7,802    7,078  10.2 %
                  
  Earnings per diluted share    0.15    0.14  7.1 %
                  
  Dividends declared per share  $ 0.12  $ 0.08  50 %
            

Net sales for fiscal year 2014 increased by $5,458,000, or 7.9%, to $74,569,000, compared with sales of $69,111,000 for fiscal year 2013. The increase in 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.

Income from operations for fiscal year 2014 increased by $950,000, or 8.1%, to $12,709,000, compared with fiscal year 2013. The increase in operating income was 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.

Net income for fiscal year 2014 was $7,802,000, or $0.15 per diluted share, compared with net income of $7,078,000, or $0.14 per diluted share, for fiscal year 2013.

The Company had cash of $12,261,000 at September 30, 2014, compared with $12,453,000 at September 30, 2013, a decrease of $192,000. The decrease in cash during fiscal year 2014 was due to $5,528,000 of cash provided by operating activities, offset by $360,000 of cash used in investing activities and $5,360,000 of cash used in financing activities.

Other Significant Events for Fiscal Year 2014

  • Our shares were selected to join the Russell Global, Russell 3000 and Russell Microcap Indexes
  • The average annual order value for recurring customers increased to $1,982 per customer
  • Liberator Medical Supply, Inc. named as the 21st largest Medicare provider in 2013 from 26th largest in 2012 by HME News
  • During fiscal year 2014, the Company declared four quarterly cash dividends totaling $0.1225 per common share for its shareholders. The dividend for shareholders of record September 26, 2014 was increased 8.3% to $0.0325 per common share

Mark Libratore, the Company's President and CEO, commented, "I am pleased to report that we were able to grow sales and profits in fiscal 2014. During the year we made investments in critical business systems, staff skills and financial controls while returning over $6.3 million to our shareholders. In fiscal 2014 we expanded the scope and reach of our sales and marketing activities. We increased our participation in commercial insurance plans and launched a sales initiative to healthcare professionals. In fiscal 2015 we will work to grow our customer base by leveraging our direct response advertising. We will continue to evaluate potential acquisitions that are accretive to earnings and assess new products and services that fit our model."

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, 2014 and 2013
(In thousands, except dollar per share amounts)
 
 
   2014    2013  
               
Assets              
Current Assets:              
 Cash  $ 12,261    $ 12,453  
 Accounts receivable, net of allowances of $4,569 and $4,502, respectively    8,866      7,836  
 Inventory, net of allowance for obsolete inventory of $181 and $308, respectively    1,954      2,187  
 Deferred tax assets    2,005      2,067  
 Prepaid and other current assets    449      219  
  Total Current Assets    25,535      24,762  
Property and equipment, net of accumulated depreciation of $4,016 and $3,492, respectively    1,260      1,044  
Deferred advertising, net    26,936      22,705  
Intangible assets, net of accumulated amortization of $281 and $169, respectively    420      414  
Other assets    178      174  
Total Assets  $ 54,329    $ 49,099  
               
Liabilities and Stockholders' Equity              
Current Liabilities:              
 Accounts payable  $ 6,085    $ 4,915  
 Accrued liabilities    1,758      1,354  
 Dividends payable    1,728      1,569  
 Income tax payable    178      1,195  
 Other current liabilities    161      111  
  Total Current Liabilities    9,910      9,144  
Deferred tax liabilities    10,031      8,561  
Credit line facility    1,500      1,500  
Other long-term liabilities    453      63  
Total Liabilities    21,894      19,268  
               
Commitments and contingencies (see Note 9)              
               
Stockholders' Equity:              
Common stock, $.001 par value, 200,000 shares authorized, 53,520 and 52,637 shares issued, respectively; 53,166 and 52,283 shares outstanding at September 30, 2014 and 2013, respectively    54      53  
Additional paid-in capital    36,385      35,111  
Accumulated deficit    (3,524 )    (4,853 )
Treasury stock, at cost; 354 shares at September 30, 2014 and 2013    (480 )    (480 )
               
Total Stockholders' Equity    32,435      29,831  
Total Liabilities and Stockholders' Equity  $ 54,329    $ 49,099  
               
 
Liberator Medical Holdings, Inc. and Subsidiaries
Consolidated Statements of Operations
For the fiscal years ended September 30, 2014 and 2013
(In thousands, except dollar per share amounts)
 
                 
    2014     2013  
             
Net Sales   $ 74,569     $ 69,111  
Cost of Sales     27,808       25,689  
                 
Gross Profit     46,761       43,422  
Operating Expenses:                
 Payroll, taxes and benefits     14,788       14,311  
 Advertising     9,902       8,908  
 Bad debts     3,279       3,069  
 Depreciation and amortization     663       683  
 General and administrative     5,420       4,692  
             
  Total Operating Expenses     34,052       31,663  
             
Income from Operations     12,709       11,759  
             
Other Expense                
 Interest expense     (50 )     (83 )
  Total Other Expense     (50 )     (83 )
Income before Income Taxes     12,659       11,676  
Provision for Income Taxes     4,857       4,598  
Net Income   $ 7,802     $ 7,078  
Basic earnings per share:                
Weighted average shares outstanding     52,704       50,115  
Earnings per share   $ 0.15     $ 0.14  
Diluted earnings per share:                
Weighted average shares outstanding     53,679       52,375  
Earnings per share   $ 0.15     $ 0.14  
                 
Dividends declared per common share *   $ 0.12     $ 0.08  
                 
* Four and three quarterly dividends were declared during fiscal years 2014 and 2013, respectively
 
 
Liberator Medical Holdings, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
For the fiscal years ended September 30, 2014 and 2013
(In thousands)
 
   2014    2013  
           
Cash flow from operating activities:              
 Net income  $ 7,802    $ 7,078  
               
 Adjustments to reconcile net income to net cash provided by operating activities:              
  Depreciation and amortization    10,473      9,404  
  Stock-based compensation    201      76  
  Provision for doubtful accounts and contractual adjustments    3,506      3,407  
  Deferred income taxes    1,532      3,321  
  Reserve for inventory obsolescence    14      126  
 Changes in operating assets and liabilities, net of acquisition:              
  Accounts receivable    (4,535 )    (787 )
  Deferred advertising    (14,043 )    (9,000 )
  Inventory    255      368  
  Other assets    (205 )    40  
  Income taxes prepaid and payable    (1,024 )    1,104  
  Accounts payable    1,171      (1,724 )
  Accrued liabilities    405      235  
  Other liabilities    (24 )    (15 )
            
Net Cash Flows Provided by Operating Activities    5,528      13,633  
            
Cash flows from investing activities              
 Purchase of property and equipment and other    (194 )    (367 )
 Proceeds from sale of property and equipment    4      -  
 Acquisition of business, net of cash acquired    (170 )    (319 )
Net Cash Flows Used in Investing Activities    (360 )    (686 )
            
Cash flows from financing activities              
 Repayments to credit line facility    -      (1,000 )
 Costs associated with credit line facility    (21 )    (21 )
 Proceeds from employee stock purchase plan    -      48  
 Proceeds from exercise of options and warrants    896      270  
 Income tax benefit related to exercise of stock options    178      -  
 Cash dividends paid    (6,314 )    (2,616 )
 Purchase of treasury stock    -      (430 )
 Payments of capital lease obligations    (99 )    (71 )
            
Net Cash Flows Used in Financing Activities    (5,360 )    (3,820 )
            
Net (decrease) increase in cash    (192 )    9,127  
               
Cash at beginning of period    12,453      3,326  
            
Cash at end of period  $ 12,261    $ 12,453  
            
Supplemental disclosure of cash flow information:              
Cash paid for interest  $ 51    $ 84  
Cash paid for income taxes  $ 4,170      171  
               
Supplemental schedule of non-cash investing and financing activities:              
Capital expenditures funded by capital lease borrowings or term notes  $ 562    $ 23  
Cash dividends declared, but not yet paid  $ 1,728    $ 1,569  
         

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