Liberator Medical Holdings Inc fka LBMH

[dffhogs]

Liberator Medical Reports Revenue of $17.5 Million for Its Third Fiscal Quarter Ended June 30, 2013

STUART, FL --(Marketwired - August 09, 2013) - Liberator Medical Holdings, Inc. (OTCQB: LBMH) today announced the financial results for its fiscal third quarter ended June 30, 2013. Sales for the three months ended June 30, 2013 increased by $2,530,000, or 16.9%, to $17,491,000, compared with sales of $14,961,000 for the three months ended June 30, 2012. For the nine months ended June 30, 2013, sales increased by $7,349,000, or 16.5%, to $51,776,000, compared with sales of $44,427,000 for the nine months ended June 30, 2012.

Income from operations for the three months ended June 30, 2013, increased by $2,189,000, or 187.6%, to $3,356,000, compared with the three months ended June 30, 2012. For the nine months ended June 30, 2013, income from operations increased by $4,888,000, or 158.5%, to $7,972,000, compared with the nine months ended June 30, 2012.

Net income for the three months ended June 30, 2013 was $2,014,000 compared with net income of $676,000 for the three months ended June 31, 2012, representing an increase of 197.9%. Net income for the nine months ended June 30, 2013 was $4,786,000 compared with net income of $1,800,000 for the nine months ended June 30, 2012, representing an increase of 165.9%.

On June 13, 2013, the Company's Board of Directors approved a cash dividend of $0.03 per common share to its shareholders of record on July 8, 2013. The dividend was paid on July 22, 2013, and is the second cash dividend paid this year.

The Company's Board of Directors also approved a 1,000,000 share repurchase program on June 13, 2013. As of August 8, 2013, the Company has repurchased 195,000 shares since the commencement of the share buyback.

Mark Libratore, the Company's President and CEO, commented, "During the third quarter of fiscal year 2013 we generated net income of $2.0 million and increased our cash balance by $3.6 million to $10.6 million at the end of the quarter. As a result of the improvements in our operating margins and cash flows during the first three quarters of fiscal year 2013, we have paid two quarterly dividends, totaling $2.6 million, to our shareholders and initiated a buyback of 1.0 million shares of our common stock. During July 2013, we completed an acquisition of a small medical supply company and are currently evaluating other potential small company acquisitions. We expect to continue to increase our operating margins and cash flows and continue to acquire new customers through our direct-response advertising efforts at our targeted acquisition costs."

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. An Exemplary Provider™ accredited by The Compliance Team, its unique combination of marketing, industry expertise and customer service has demonstrated success over a broad spectrum of chronic conditions. Liberator 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. Liberator's revenue primarily comes from supplying products to meet the rapidly growing requirements of general medical supplies, personal mobility aids, diabetes supplies, catheters, ostomy supplies and mastectomy fashions. Liberator 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 our management, our 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 our 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 our actual results may differ materially due to a variety of important factors. Such risks and uncertainties may include, but are not limited to, 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, and the risk of early obsolescence of our products. Liberator'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.

Liberator Medical Holdings, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
As of June 30, 2013 (unaudited) and September 30, 2012
(In thousands, except dollar per share amounts)

June 30, September 30,
2013 2012
------------- -------------
Assets
Current Assets:
Cash $ 10,610 $ 3,326
Accounts receivable, net of allowance of
$4,984 and $5,044, respectively 8,380 10,365
Inventory, net of allowance for obsolete
inventory of $467 and $310, respectively 1,923 2,627
Deferred taxes, current portion 2,365 2,254
Prepaid and other current assets 346 287
------------- -------------
Total Current Assets 23,624 18,859
Property and equipment, net of accumulated
depreciation of $3,344and $2,888,
respectively 1,155 1,250
Deferred advertising 22,915 22,426
Intangible assets, net of accumulated
amortization of $144 and $91, respectively 232 239
Other assets 99 88
------------- -------------
Total Assets $ 48,025 $ 42,862
============= =============

Liabilities and Stockholders' Equity
Current Liabilities:
Accounts payable $ 4,255 $ 6,537
Accrued liabilities 2,442 1,221
Dividends payable 1,572 -
Other current liabilities 100 92
------------- -------------
Total Current Liabilities 8,369 7,850
Deferred tax liability 7,685 5,421
Credit line facility 2,500 2,500
Other long-term liabilities 64 132
------------- -------------
Total Liabilities 18,618 15,903
------------- -------------

Stockholders' Equity:
Common stock, $.001 par value, 200,000 shares
authorized, 52,490 and 48,232 shares issued,
respectively; 52,401 and 48,143 shares
outstanding at June 30, 2013, and September
30, 2012, respectively 52 48
Additional paid-in capital 34,981 34,707
Accumulated deficit (5,576) (7,746)
Treasury stock, at cost; 89 shares at June 30,
2013, and September 30, 2012 (50) (50)
------------- -------------
Total Stockholders' Equity 29,407 26,959
------------- -------------
Total Liabilities and Stockholders' Equity $ 48,025 $ 42,862
============= =============


See accompanying notes to unaudited condensed consolidated financial statements.


Liberator Medical Holdings, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
For the three and nine months ended June 30, 2013 and 2012
(Unaudited)
(in thousands, except per share amounts)

Three Months Ended Nine Months Ended
June 30, June 30,
-------------------- --------------------
2013 2012 2013 2012
--------- --------- --------- ---------

Sales $ 17,491 $ 14,961 $ 51,776 $ 44,427

Cost of Sales 6,598 5,836 19,172 17,526
--------- --------- --------- ---------

Gross Profit 10,893 9,125 32,604 26,901
--------- --------- --------- ---------

Operating Expenses
Payroll, taxes and benefits 3,570 3,526 11,079 10,567
Advertising 2,146 1,956 6,617 5,896
Bad debts 541 1,028 2,986 3,001
Depreciation and amortization 171 206 509 615
General and administrative 1,109 1,242 3,441 3,738
--------- --------- --------- ---------
Total Operating Expenses 7,537 7,958 24,632 23,817
--------- --------- --------- ---------

Income from Operations 3,356 1,167 7,972 3,084
--------- --------- --------- ---------

Other Expense
Interest expense (20) (21) (62) (53)
--------- --------- --------- ---------
Total Other Expense (20) (21) (62) (53)
--------- --------- --------- ---------

Income before Income Taxes 3,336 1,146 7,910 3,031

Provision for Income Taxes 1,322 470 3,124 1,231
--------- --------- --------- ---------

Net Income $ 2,014 $ 676 $ 4,786 $ 1,800
========= ========= ========= =========

Basic earnings per share:
Weighted average shares
outstanding 51,837 48,098 49,387 48,081
Earnings per share $ 0.04 $ 0.01 $ 0.10 $ 0.04

Diluted earnings per share:
Weighted average shares
outstanding 52,393 52,279 52,386 52,273
Earnings per share $ 0.04 $ 0.01 $ 0.09 $ 0.03

Dividends declared per common
share * $ 0.05 - $ 0.05 $ -

* Two quarterly dividends were declared during the three months ended June 30, 2013.

See accompanying notes to unaudited condensed consolidated financial statements.


Liberator Medical Holdings, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
For the nine months ended June 30, 2013 and 2012
(Unaudited)
(in thousands)

Nine Months Ended
June 30,
----------------------
2013 2012
---------- ----------
Cash flow from operating activities:
Net Income $ 4,786 $ 1,800
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 6,996 6,386
Equity based compensation 63 115
Provision for doubtful accounts and contractual
adjustments 3,214 3,039
Deferred income taxes 2,153 1,208
Reserve for inventory obsolescence 157 98
Changes in operating assets and liabilities:
Accounts receivable (1,230) (5,220)
Deferred advertising (6,975) (9,104)
Inventory 547 344
Other assets (95) (252)
Accounts payable (2,282) (20)
Accrued liabilities 1,234 326
Other liabilities (7) (78)
---------- ----------
Net Cash Flow Provided by (Used in) Operating
Activities 8,561 (1,358)
---------- ----------

Cash flow from investing activities:
Purchase of property and equipment (361) (112)
---------- ----------
Net Cash Flow Used in Investing Activities (361) (112)
---------- ----------

Cash flow from financing activities:
Proceeds from exercise of options and warrants 153 -
Proceeds from employee stock purchase plan 48 56
Proceeds from credit line facility - 1,000
Costs associated with credit line facility (21) (21)
Cash dividends paid (1,044) -
Payments of debt and capital lease obligations (52) (22)
---------- ----------
Net Cash Flow Provided by (Used in) Financing
Activities (916) 1,013
---------- ----------

Net increase (decrease) in cash 7,284 (457)

Cash at beginning of period 3,326 3,016
---------- ----------
Cash at end of period $ 10,610 $ 2,559
========== ==========

Supplemental disclosure of cash flow information:
Cash paid for interest $ 63 $ 51
Cash paid for income taxes $ 104 $ -

Supplemental schedule of non-cash investing and
financing activities:
Capital expenditures funded by capital lease
borrowing $ - $ 120
Cash dividends declared, but not yet paid $ 1,572 $ -

See accompanying notes to unaudited condensed consolidated financial statements


Contacts:



Individual Investor Relations Contact

WSR Communications

772-219-7525

[e-mail]

http://wsrcommunications.ir.stockpr.com/liberatormedical



Institutional Investor Contact

Lyn Davis

Littlebanc Advisors, LLC

561-948-3005

[e-mail]

www.littlebanc.com