SOURCE: Southern Home Medical Equipment, Inc.

July 19, 2011 10:36 ET

Southern Home Medical Announces Record Revenues and Profits for the Second Quarter

Revenues Increase 69% and Net Income Grows Sevenfold Year-Over-Year

LYMAN, SC--(Marketwire - Jul 19, 2011) - Southern Home Medical Equipment, Inc. (PINKSHEETS: SHOM), a holding company providing healthcare services, staffing and durable medical equipment to medical institutions, announced today its record financial results for the three months ended June 30, 2011.

Revenues for the second quarter of 2011 were a record $315,308, an increase of 69% compared to revenues of $186,291 reported in the year-ago quarter. Net income was a record $68,927 in the second quarter of 2011 compared to $9,448 in the second quarter of 2010. Common shares outstanding were 221,740,396 and 130,490,396, for the quarters ended June 30, 2011 and 2010, respectively.

"Our second quarter financial results are the culmination of consecutive month-to-month record revenue growth and profitability. During the second quarter, we expanded our existing Encore franchises and reported increases in oxygen sales within our Apnea Rx division. Furthermore, by introducing cross-marketing programs like Respi-Care, we've been able to serve a much broader patient population, while keeping our costs down. A greater portion of our revenues are dropping to the bottom-line," said President and CEO of Southern Home Medical, Jeff Sarvis.

During the second quarter, SHOM announced its intent to merge with a network of medical clinics based in the Washington, DC area. The Company projects revenues of $7 million for the combined entity in its first year of operations. Sarvis commented, "We are now working with a relentless focus on growing our existing operations, while attending to our merger due diligence and audit with Scott & Company. The latter is preparing us to become a fully reporting company. While the process is very time consuming for our managers and staff, we appreciate our shareholders' patience and believe the best is yet to come for our Company. We are excited to communicate our progress going forward and expect a record second half of 2011."

About Southern Home Medical Equipment, Inc.
Southern Home Medical Equipment, Inc. is a holding company with a focus on servicing the needs of the U.S. healthcare industry. The Company has quality health care professionals to address national shortages in hospitals, rehab centers, nursing homes and other medical facilities. Personnel are available 24/7/365 and include: RNs, LPNs, CNAs, RTs, billing specialists, customer service specialists, delivery techs and marketing reps. The Company has contractual agreements with partner businesses located in Charleston, Columbia, Greenville, Florence and Lake Hartwell of South Carolina; Nashville, Tennessee; Baltimore, Maryland; Dunwoody, Georgia; and Philadelphia, Pennsylvania. Southern Home Medical is leveraging the success of these business models to expand sales opportunities in these areas of health, medical, staffing and durable medical equipment needs. For more information, visit www.southernhomemedical.com.

The statements in the press release that relate to the Company's expectations with regard to the future impact on the Company's results from acquisitions or actions in development are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The statements in this document may also contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. When used in this press release, the words "anticipate," "believe," "estimate," "may," "intend," "expect" and similar expressions identify such forward-looking statements. Forward-looking statements are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those contained in such statements. Such risks, uncertainties, and factors include, but are not limited to, future capital needs, changes, and delays in product development plans and schedules, or market acceptance.

Contact Information