SOURCE: Liberator Medical Holdings, Inc.

Liberator Medical Holdings, Inc. Logo

December 14, 2015 18:29 ET

Liberator Medical Reports Revenue of $81.6 Million for Its Fiscal Year Ended September 30, 2015, Declares Cash Dividend of Up to $0.0325 per Share

The Company Reports Net Income of $7.3 Million, or $0.14 per Share, for the Year

STUART, FL--(Marketwired - December 14, 2015) - Liberator Medical Holdings, Inc. (NYSE MKT: LBMH) (the "Company") today announced the financial results for its fiscal year ended September 30, 2015. Financial highlights are summarized below:

                   
In thousands, except per share data   FY 2015   FY 2014   Change  
                   
Net Sales   $ 81,602   $ 74,569   9.4 %
Operating income     11,947     12,709   -6.0 %
Net income     7,308     7,802   -6.3 %
Earnings per diluted share     0.14     0.15   -6.7 %
Dividends declared per share   $ 0.13   $ 0.12   8.3 %

Net sales for fiscal year 2015 increased by $7,033,000, or 9.4%, to $81,602,000, compared with sales of $74,569,000 for fiscal year 2014. The increase in sales was primarily due to the Company's continued emphasis on its direct response advertising campaign to acquire new customers and the Company's emphasis on customer service to maximize the reorder rates for its recurring customer base.

Income from operations for fiscal year 2015 decreased by $762,000, or 6.0%, to $11,947,000, compared with fiscal year 2014. The decrease in operating income was primarily attributed to increases in legal and settlement costs, advertising expense, and bad debt expense, partially offset by increased gross profits driven by increased sales volumes and a reduction as a percentage of sales in payroll costs and other general and administration expenses.

Net income for fiscal year 2015 was $7,308,000, or $0.14 per diluted share, compared with net income of $7,802,000, or $0.15 per diluted share, for fiscal year 2014.

The Company had cash of $9,433,000 at September 30, 2015, compared with $12,261,000 at September 30, 2014, a decrease of $2,828,000. The decrease in cash during fiscal year 2015 was due to $3,698,000 of cash provided by operating activities, partially offset by $116,000 of cash used in investing activities and $6,410,000 of cash used in financing activities.

The Company Declares Cash Dividend of Up to $0.0325 per Share

On December 11, 2015, the Company's Board of Directors declared a dividend of up to $0.0325 per share of the Company's common stock, which is payable as follows:

  • $0.02 per share in cash on January 8, 2016, to holders of record of shares of the Company's common stock at the close of business on December 23, 2015; and
  • up to $0.0125 per share in cash which will be paid within two business days before, or on, the closing date of the previously announced acquisition of the Company by C. R. Bard, Inc. ("Bard"), to holders of record of shares of the Company's common stock at the close of business on that date, but only if, after giving effect to such payment, cash balances on a consolidated basis equal or exceed a threshold of $547,000 (subject to certain reductions agreed upon with Bard).

If a stockholder transfers its shares of common stock before the $0.0125 dividend is paid (including if a stockholder transfers its shares after December 23, 2015), that stockholder will lose its right to payment of the $0.0125 dividend.

This is the twelfth consecutive quarterly cash dividend to be paid by the Company, commencing with the dividend paid in May 2013.

The Company's policy is to pay a sustainable quarterly dividend to its shareholders. The Company's Board of Directors evaluates on a quarterly basis the amount and timing of future dividends based on the Company's operating results, financial condition, capital requirements and general business conditions. The amount and timing of dividends may vary, and the payment of any dividend does not assure that the Company will be able to pay or will declare dividends in the future. The Company's ability to continue paying dividends has been limited under the merger agreement with Bard, as described in our preliminary proxy statement, filed with the U.S. Securities and Exchange Commission on December 11, 2015.

Other Significant Events for Fiscal Year 2015

  • On December 8, 2015, the Company repaid the outstanding balance and terminated its credit line facility with PNC Bank, National Association.

Mark Libratore, the Company's President and CEO, commented, "I am pleased to report that we were able to grow sales in fiscal 2015. In fiscal 2015, we expanded the scope and reach of our sales and marketing activities and strengthened our customer base through our proven direct response advertising efforts and uncompromising customer service. We look forward to continuing to provide this high level of service to our customers in 2016."

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, the Company's unique combination of marketing, industry expertise and customer service has demonstrated success over a broad spectrum of chronic conditions. The Company 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. The Company's revenue primarily comes from supplying products to meet the rapidly growing requirements of general medical supplies including, urological products, ostomy supplies, mastectomy fashions and diabetes supplies. The Company 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 management, the 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 management's 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 actual results may differ materially due to a variety of important factors. Such risks and uncertainties may include, but are not limited to: the satisfaction of closing conditions to the acquisition by Bard; the possibility that the acquisition will not be completed or, if completed, not completed in the expected timeframe; the potential that the expected benefits and opportunities of the acquisition may not be realized or may take longer to realize than expected; 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 the Company's products; and adverse litigation or government action. The Company'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.

Additional Information about the Transaction

In connection with the proposed merger with C. R. Bard, Inc. and the required shareholder approval, the Company filed with the U.S. Securities and Exchange Commission (SEC) a preliminary proxy statement on December 11, 2015. The Company also intends to file with the SEC and mail to its shareholders a definitive proxy statement. THE COMPANY'S SHAREHOLDERS ARE URGED TO READ THE PRELIMINARY PROXY STATEMENT AND THE DEFINITIVE PROXY STATEMENT AND OTHER RELEVANT MATERIALS CAREFULLY WHEN THEY BECOME AVAILABLE, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE MERGER AND THE COMPANY. The Company and its executive officers and directors may be deemed to be participants in the solicitation of proxies from the Company's shareholders with respect to the merger. Information about the Company's executive officers and directors and their ownership of the Company stock is set forth in the proxy statement for the Company's 2015 Annual Meeting of Shareholders, which was filed with the SEC on August 11, 2015. Other information regarding the interests of the participants in the proxy solicitation is set forth in the preliminary proxy statement, as it may be amended, that was filed with the SEC on December 11, 2015, and will be set forth in the definitive proxy statement that the Company intends to file with the SEC. Shareholders may obtain free copies of the proxy statement and the other documents filed by the Company with the SEC (when they are available) at the SEC's website at www.sec.gov. In addition, shareholders may obtain free copies of the proxy statement and other documents filed with the SEC by the Company by going to the Company's Investor Relations page on its corporate website at www.ir.liberatormedical.com, by contacting the Company's investor relations by telephone at (772) 287-2414, or by mail at Liberator Medical Holdings, Inc., 2979 SE Gran Park Way, Stuart, Florida 34997, Attention: Investor Relations.

 
Liberator Medical Holdings, Inc. and Subsidiaries
Consolidated Balance Sheets
As of September 30, 2015 and 2014
(In thousands, except dollar per share amounts)
 
    2015   2014
             
Assets            
Current Assets:            
  Cash   $ 9,433   $ 12,261
  Accounts receivable, net of allowances of $5,989 and $4,569, respectively     10,333     8,866
  Inventory, net of allowance for obsolete inventory of $221 and $181, respectively     6,248     1,954
  Deferred tax assets     2,897     2,005
  Prepaid and other current assets     670     449
    Total Current Assets     29,581     25,535
Property and equipment, net of accumulated depreciation of $4,425 and $4,016, respectively     993     1,260
Deferred advertising, net     31,536     26,936
Intangible assets, net of accumulated amortization of $397 and $281, respectively     304     420
Other assets     158     178
Total Assets   $ 62,572   $ 54,329
             
Liabilities and Stockholders' Equity            
Current Liabilities:            
  Accounts payable   $ 9,915   $ 6,085
  Accrued liabilities     2,683     1,758
  Dividends payable     1,741     1,728
  Credit line facility     1,500     -
  Income tax payable     531     178
  Other current liabilities     103     161
    Total Current Liabilities     16,473     9,910
Deferred tax liabilities     11,973     10,031
Credit line facility     -     1,500
Other long-term liabilities     421     453
Total Liabilities     28,867     21,894
             
Commitments and contingencies (see Note 9)            
             
Stockholders' Equity:            
Common stock, $0.001 par value, 200,000 shares authorized, 53,927 and 53,520 shares issued, respectively; 53,573 and 53,166 shares outstanding at September 30, 2015 and 2014, respectively     54     54
Additional paid-in capital     37,290     36,385
Accumulated deficit     (3,159)     (3,524)
Treasury stock, at cost; 354 shares at September 30, 2015 and 2014     (480)     (480)
Total Stockholders' Equity     33,705     32,435
Total Liabilities and Stockholders' Equity   $ 62,572   $ 54,329
             
See accompanying notes to consolidated financial statements
 
 
 
Liberator Medical Holdings, Inc. and Subsidiaries
Consolidated Statements of Operations
For the fiscal years ended September 30, 2015, 2014 and 2013
(In thousands, except dollar per share amounts)
 
  2015   2014   2013
                 
Net Sales $ 81,602   $ 74,569   $ 69,111
                 
Cost of Sales   31,531     27,808     25,689
                 
Gross Profit   50,071     46,761     43,422
                 
Operating Expenses:                
  Payroll, taxes and benefits   15,457     14,788     14,311
  Advertising   11,157     9,902     8,908
  Bad debts   4,408     3,279     3,069
  Depreciation and amortization   525     663     683
  General and administrative   5,977     5,420     4,692
  Litigation settlement   600     -     -
    Total Operating Expenses   38,124     34,052     31,663
                 
Income from Operations   11,947     12,709     11,759
                 
Other expenses   (63)     (50)     (83)
                 
Income before Income Taxes   11,884     12,659     11,676
                 
Provision for Income Taxes   4,576     4,857     4,598
                 
Net Income $ 7,308   $ 7,802   $ 7,078
                 
Basic earnings per share:                
Weighted average shares outstanding   53,341     52,704     50,115
Earnings per share $ 0.14   $ 0.15   $ 0.14
                 
Diluted earnings per share:                
Weighted average shares outstanding   53,717     53,679     52,375
Earnings per share $ 0.14   $ 0.15   $ 0.14
                 
Dividends declared per common share $ 0.13   $ 0.12   $ 0.08
                 
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, 2015 and 2014
(In thousands)
            
    Common  Shares  
Common  Stock
  Additional  Paid in  Capital   Accumulated  Deficit   Treasury  Stock   Stockholders'  Equity
Balance at October 1, 2012   48,143   $ 48   $ 34,707   $ (7,746)   $ (50)   $ 26,959
  Options issued to employees and directors   -     -     76     -     -     76
  Common stock issued for exercise of options and warrants   4,294     5     265     -     -     270
  Common stock issued for employee stock purchase plan   111     -
    63     -     -     63
  Purchase of treasury stock   (265)     -
    -     -     (430)     (430)
  Net income   -
    -
    -     7,078     -     7,078
  Cash dividends declared, $0.08 per share   -
    -
    -     (4,185)     -     (4,185)
  Balance at September 30, 2013   52,283   $ 53   $ 35,111   $ (4,853)   $ (480)   $ 29,831
  Options issued to employees and directors   -     -     89     -     -     89
  Common stock issued to directors   26     -     112     -     -     112
  Common stock issued for exercise of options and warrants   857     1     895     -     -     896
  Income tax benefit related to exercise of stock options   -     -     178     -     -     178
  Net income   -     -     -     7,802     -     7,802
  Cash dividends declared, $0.12 per share   -     -     -     (6,473)     -     (6,473)
  Balance at September 30, 2014   53,166   $ 54   $ 36,385   $ (3,524)   $ (480)   $ 32,435
  Options issued to employees and directors   -     -     31     -     -     31
  Common stock issued to directors   88     -     200     -     -     200
  Common stock issued for exercise of options and warrants   319     -     656     -     -     656
  Income tax benefit related to exercise of stock options   -     -     18     -     -     18
  Net income   -     -     -     7,308     -     7,308
  Cash dividends declared, $0.13 per share   -     -     -     (6,943)     -     (6,943)
Balance at September 30, 2015   53,573   $ 54   $ 37,290   $ (3,159)   $ (480)   $ 33,705
                                   
See accompanying notes to consolidated financial statements

Contact Information