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HemaCare Corp. (fka HEMA) RSS Feed

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10/19/07
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HemaCare Corporation HEMA What do they do?: HemaCare Corporation provides the customized delivery of blood products and services. HemaCare collects, processes and distributes blood products to hospitals and research related organizations. The Company operates and manages donor centers and mobile donor vehicles to collect transfusable blood products from donors, and also collects human-derived blood products which are utilized by health research related organizations. Additionally, HemaCare provides blood related services, principally therapeutic apheresis procedures, stem cell collection and other blood treatments, to patients with a variety of disorders. Blood related therapeutic services are usually provided under contract as an outside purchased service. HemaCare has operated in Southern California since 1978. In 1998, HemaCare expanded its operations to include portions of the eastern U.S. In 2003, new management reduced the number of geographic regions served as part of a restructuring plan to return HemaCare to profitability. Since 2003, HemaCare's earnings have improved as a result of the successful implementation of management's plan. In August 2006, HemaCare acquired Florida-based Teragenix Corporation, subsequently renamed HemaCare BioScience, Inc., which sources, processes and distributes human biological specimens, manufactures quality control products and provides clinical trial management and support services. Leadership & Management Board of Directors Julian Steffenhagen Chairman of the Board / Interim CEO Over a period of 27 years, Mr. Steffenhagen held several management positions at Beckman Coulter, Inc., Master of Business Administration degree from the University of Michigan. Teresa S. Sligh, MD President and Medical Director Translational Research Group, Inc. Terry Van Der Tuuk Vice Chairman Graphic Technology Masters of Business Administration degree from The Wharton School, University of Pennsylvania. Steven Gerber, MD Managing Director/Director of Research Wedbush Morgan Securities Robert S. Chilton Executive Vice President and CFO Mr. Chilton previously was with KPMG Peat Marwick. Mr. Chilton received his Masters in Business Administration and Bachelor of Arts degrees from the University of California, Los Angeles and is a Certified Public Accountant. Medical Directors Joshua Levy, MD National Medical Director David Ciavarella, MD Instructor at Harvard Medical School. Jacquelyn Hedlund, MD Melanie Osby, MD Share Structure: Authorized Shares 20M Outstanding as of May 2007: 8.8Million Float: 7.3 Million t/a: U.S. Stock Transfer Corp., Suite 200 1745 Gardena Ave. Glendale, CA 91204-2991 Website: http://www.hemacare.com Contact:investor@hemacare.com. SEC FILINGS http://www.sec.gov/cgi-bin/browse-edgar?company=HemaCare&CIK=&filenum=&State=&SIC=&owner=include&action=getcompany</a</a</a</a</a</a</a</a</a' Daily Chart: What Happened to the pps?? Essentially it needs to bounce alot. The story as of 11/08/07 On October 17th HEMA filed a 8-k form with the SEC stating that the company was defaulting on notes related to the acquisition of Teragenix/HemaBio. HemaBio was apparently loosing money and HemaCare was setting up the closing of HemaBio. At that time pps fell to .80, then the fun began. Praetorian Capital Offshore hedgefund which owned 1.2M shares decided to exit their position dumping their shares into the market and bringing the pps down to .26. Just as the charts were lining up for a rebound the company submitted another 8-k filing. This time they announced that HemaBio was closed and pps dropped on 11/8 to a low of .13 and closed at .19. The notes in default are secured by assets of HemaBio - so what closing it anyways. HemaCare is cleaning up thier business and eliminating the failing division which they paid too much for. By default, the debt for the notes will be removed as the note holders put claim on the HemaBio assets. Wait it gets better, those notes are subordinate to the Bank to which HemaCare has a credit line established with. Thus, HemaCare is woring with Comercia bank to close HemaBio's failing division. Outcome: As stated in the 8-k filings HemaCare has nonrecurring restructuring charges which will be recognized in Q3 and Q4 07. Clearing the way to higher profitability in 2008. Do the math, company market cap is only 1.67M as of close 11/8. It was as high as 29M earlier this year and 11.5M early October. The compay is restructuring for higher profitability and is set to continue operations. WHAT NOW? Well the fundamentals of the company haven't changed this week, they had 36.4M in Revenue 2006 and were on track as of last qtr to beat that number. Book value is 1.13pps. Praetorian Capital Offshore Hedge fund. Held 1.2M shares purchased in 2006 with an average pps over 2.00. May 2007 sold 5,000 10/18 sold 130k 10/19 sold 130k 10/22 sold 77,100 10/23 sold 140k As of 10/23 still held 792,900 shares 10/30 sold 5k for .342 10/31 sold 240k for .3084 share remaning 547,900 Since our last Form 13G filing dated October 19, 2007, through the date of this filing, the Funds made the following transactions: November 1, 2007 sold 117,500 shares November 2, 2007 sold 80,000 shares November 5, 2007 sold 35,000 shares November 6, 2007 sold 10,000 shares November 7, 2007 sold 47,500 shares November 8, 2007 sold 257,900 shares Since we no longer own more than 5% of the shares of the issuer, no further Form 13G filings will be made unless we are one again required to do so. Financial HighlightsAll numbers in thousands Annual PERIOD ENDING 31-Dec-06 31-Dec-05 31-Dec-04 Total Revenue 36,484 31,227 26,836 Cost of Revenue 29,755 24,651 21,020 Gross Profit 6,729 6,576 5,816 QTRLY PERIOD ENDING 30-Jun-07 31-Mar-07 31-Dec-06 30-Sep-06 Total Revenue 9,646 9,356 10,687 9,177 Cost of Revenue 8,321 8,229 8,827 7,446 Gross Profit 1,325 1,127 1,860 1,731 Balance Sheet Total Cash (mrq): 908.00K Total Cash Per Share (mrq): 0.103 Total Debt (mrq): 3.20M Total Debt/Equity (mrq): 0.322 Current Ratio (mrq): 1.238 Book Value Per Share (mrq): 1.13 Link to Yahoo Finance HEMA for Financials etc: http://finance.yahoo.com/q?s=HEMA.OB Earnings Announecement Nov 14,07 California Deptaertment of Corpotations filings: http://kepler.sos.ca.gov/corpdata/ShowAllList?QueryCorpNumber=C0873552 Corporation HEMACARE CORPORATION Number: C0873552 Date Filed: 9/18/1978 Status: active Jurisdiction: California Corporation HEMACARE BIOSCIENCE, INC. Number: C2932596 Date Filed: 10/11/2006 Status: active Jurisdiction: FLORIDA
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