ADDISON, TX--(Marketwired - Nov 13, 2014) - HASCO Medical, Inc. (PINKSHEETS: HASC), a leading provider of handicap-accessible vans, parts and service, reported results for the third quarter ended September 30, 2014.
Q3 2014 Financial and Operational Highlights
Revenues up 22% to $23.8 million over Q3 2013
Service and other revenue up 31% to $4.2 million vs. year-ago quarter
Gross profit increased 34% to $6.3 million over the same year-ago quarter
Net income increased 93% to a record $0.8 million vs. Q3 2013
Completed divestiture of Certified Medical's durable medical equipment business, now only public company operating as a pure-play vehicular mobility provider
Secured the rights to market BraunAbility® and Vantage Mobility International (VMI) wheelchair accessible vans in Miami, Florida
First Nine Months of 2014 Financial Highlights
Revenues increased 29% to a record $68.4 million
Gross profit up 34% to a record $16.6 million
Net income increased 168% to a record $1.3 million
Q3 2014 Financial Summary
Net revenues for the third quarter of 2014 totaled $23.8 million, up 22% from $19.5 million in the same year-ago quarter. Service and other revenue totaled $4.2 million, up 31% from the same year-ago quarter. The improvements were primarily due to the increase in private-pay business for van sales, as well as the contribution of Auto Mobility Sales which was acquired last September. The increase in service and other revenue is also due to the contribution of custom configuration and sale of nearly 30 taxis.
Gross profit was $6.3 million or 26.5% of total net revenues, compared to $4.7 million or 24.2% of total net revenues in the same year-ago quarter. The gross margin increase is due to an increase in service revenue which is a higher margin segment.
Net income totaled a record $802,000, as compared to net income of $417,000 in the same year-ago quarter.
First Nine Months of 2014 Financial Summary
Net revenues for the first nine months of 2014 totaled a record $68.4 million, up 29% from $53.0 million in the first nine months of 2013. Service and other revenue totaled $12.0 million, up 26% from the same year-ago period.
Gross profit was a record $16.6 million or 24.3% of total net revenues, compared to $12.3 million or 23.3% of total net revenues in the same year-ago period. The gross margin improvement is due to the greater buying power and utilization of capacity in service.
Net income totaled a record $1.3 million, as compared to net income of $0.5 million in the same year-ago period.
Management Commentary
"Our third quarter record profitability reflects the increasing success of our brands and stores across the East Coast, as well as the effective execution of our growth plan by our management team," said Hal Compton, CEO of HASCO Medical. "To support continued growth, we are expanding our footprint on the East Coast. This includes the opening of a new wheelchair accessible van dealership to service customers in the Baltimore metropolitan area, which marks our 20th location.
"With the support of major brands like BraunAbility and VMI, we plan to open another dealership in the current quarter that will support our continued organic growth. We will remain opportunistic for additional stores in the highly fragmented, large and thriving vehicular mobility market.
"We are in the process of approving store demos and marketing materials designed to provide more interactivity and up-sell opportunities, which we expect to roll out in the current quarter. In addition, we are testing new mobility products from Pride Mobility and Harmar in two of our stores, and expect to launch the roll out to all of our stores in the first quarter of 2015.
"We see our expanding customer base driving further growth in recurring, high-margin service revenue, and we remain on track for a record topline and continued growth in profitability for the year."
About HASCO Medical, Inc.
HASCO Medical is a leading provider of handicap accessible vans, parts, and service that dramatically improve the quality of living of its customers. The company operates 20 locations from Maine to Florida. The company's mobility brands include Ride-Away (www.Ride-Away.com), Mobility Freedom (www.MobilityFreedom.com) and Wheelchair Vans of America (www.wcvans.com). To learn more, go to www.hascomed.com.
Cautionary Note Regarding Forward-Looking Statements
This press release may contain forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. In some cases you can identify those so-called "forward looking statements" by words such as "may," "will," "should," "expects," "plans," "targets," "believes," "anticipates," "estimates," "predicts," "potential," or "continue" or the negative of those words and other comparable words. These forward looking statements are subject to risks and uncertainties, product tests, commercialization risks, availability of financing and results of financing efforts that could cause actual results to differ materially from historical results or those anticipated. Further information regarding these and other risks is described from time to time in the Company's filings with the SEC, which are available on its website at: http://www.sec.gov. We assume no obligation to update or alter our forward-looking statements made in this release or in any periodic report filed by us under the Securities Exchange Act of 1934 or any other document, whether as a result of new information, future events or otherwise, except as otherwise required by applicable federal securities laws.
Hasco Medical, Inc. & Subsidiaries
Consolidated Balance Sheets
(unaudited)
September 30, December 31,
2014 2013
Assets
Current assets
Cash $ 610,714 $ 150,313
Accounts receivable, net of allowance for doubtful accounts of $661,250 and $686,345, respectively 8,424,671 6,182,680
Inventory, net 13,782,135 11,572,060
Deferred tax asset, short term 489,014 413,193
Current portion of note receivable 25,505 -
Prepaid expenses and other current assets 519,285 504,819
Total current assets 23,851,324 18,823,065
Property & equipment, net of accumulated depreciation of $1,774,036 and $1,164,634, respectively 2,097,319 2,141,212
Intangible assets, net of accumulated depreciation of $43,285 and $10,192, respectively 6,180,941 6,214,034
Deferred tax asset, long term 181,212 149,204
Note receivable, net of current portion 94,950 -
Other non-current assets 596,609 604,965
Total Assets $ 33,002,355 $ 27,932,480
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable and accrued expenses $ 2,763,262 $ 1,849,702
Cash overdraft -- 175,572
Customer deposits and deferred revenue 298,804 388,433
Line of credit 3,140,346 2,303,143
Note payable - floor plan 13,160,906 12,174,639
Obligation under capital leases 406,392 366,658
Current portion of notes payable 392,597 376,685
Current portion note payable, related party 355,640 353,008
Other current liabilities 2,012,063 493,923
Total current liabilities 22,530,010 18,481,763
Obligation under capital leases, net of current portion 1,008,521 817,828
Notes payable, net of current portion 3,746,157 4,075,802
Notes payable to related party, net of current portion 1,699,567 1,947,214
Total liabilities 28,984,255 25,322,607
Stockholders' Equity
Preferred stock, $0.001 par value, 3,000,000 shares authorized, none issued and outstanding -- --
Common stock, $0.001 par value, 2,000,000,000 shares authorized; and 1,000,575,949 and 993,134,076 shares issued and outstanding, respectively
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