Hear AtLast Holdings Inc (HRAL)

[lazyfaire]

Gross margin 57%. Annual revenue increases 77%.


HearAtLast Files Year-End Report and Issues Corporate Update

MISSISSAUGA, ON--(Marketwire - 08/12/09) - (Pinksheets:HRAL - News) HearAtLast Holdings, Inc., a leading provider of suitable affordable solutions to clients with hearing needs in the billion dollar hearing loss market, announced today financial results for the Fiscal Year ended March 31, 2009.

Total revenues for the year ended March 31, 2009 increased 77% to $2.42 million, compared to $1.36 million for the previous year. Gross margin was 57.58% for the latest year, down from 58.71% from the same period in 2008.

In spite of the substantial increase in revenues for the latest fiscal year, this was below the Company's potential revenue and profitability targets, mainly due to the fact that only 17% of the Hearing Stores opened, are just approaching 2.5 years of operation. HearAtLast is still in their growth stage and the majority of these locations are not yet considered to be operating as mature or seasoned stores. There are currently 5 Hearing Stores that we consider to be termed as 'seasoned locations,' representing only 17% of the total stores operating. However, these Clinics contributed approximately 33% of the total revenue for the year ended March 31, 2009. The remaining HearAtLast locations are maturing at the projected pace and are expected to contribute to the overall revenues at a similar rate.

"We anticipate that as we continue to grow, as our locations reach critical mass and as we expand our list of active patients, HearAtLast will continue to see strong revenue growth due to client retention and the economies of scale which will dually impact the Company's gross margins," stated Matthew Sacco, CEO of HearAtLast Holdings, Inc.

"As our business model indicates, this is a 5-year plan and HearAtLast is well underway in achieving its sales projections of 350k in year 4 and 400k in year 5 per clinic," states Louis Isabella, CFO.

http://www.marketwire.com/press-release/Hearatlast-Holdings-Inc-1029879.html