HemaCare Reports First Half 2018 Results

August 21, 2018

(Los Angeles, CA – August 21, 2018) HemaCare Corporation (OTC Pink: HEMA), a provider of human blood products and services in support of the rapidly expanding field of immune therapy, including stem cell therapy, today announced operational highlights and financial results for the six months ended June 30, 2018.

First Half 2018 Operational Highlights

  • Significant revenue growth attributable to existing and new cell therapy and global customers and key distributors.
  • International revenue growth was approximately 70% compared to prior year which represented 26% of revenues for the six months ended June 30, 2018.
  • Product and services revenue growth was primarily due to customized cell isolation, processing and cryopreservation, and specialized collections of leukopaks and mobilized peripheral blood.
  • Construction of our new state-of-the-art facility is on schedule and HemaCare is expected to relocate its operations and corporate headquarters toward the end of 2018. The new single story 40,000 square foot facility will allow HemaCare to optimize process flow, utilize flexible production environments, and enable significantly enhanced cGMP technical capabilities to better serve HemaCare customers’ increasingly complex cell therapy requirements, and provide necessary scalability to support the increasing demand of our global customer base.

Financial Results

For the six months ended June 30, 2018, HemaCare reported total revenues of $13.1 million, compared to $8.7 million for the six months ended June 30, 2017, representing an increase of $4.4 million, or approximately 51%.

Gross margin for the six months ended June 30, 2018 increased to 57% from 52% in the same period last year, due to an improved product mix and operating leverage.

HemaCare’s net income for the six months ended June 30, 2018 increased to $2.1 million, as compared to $552,000 for the prior-year period.

As of June 30, 2018, HemaCare had $10.3 million in cash and cash equivalents compared to $9.3 million at December 31, 2017.

Cash provided by operations for the first six months of 2018 was $1.2 million, compared with $281,000 for the prior-year period.

For complete unaudited First Half 2018 Financial Statements, please click here.

Pete van der Wal, HemaCare’s President and Chief Executive, stated “We sustained our steady growth during the first half of 2018 by increasing the depth and breadth of our customer and collaboration partner relationships. The Cell Therapy industry is becoming acutely aware of the critical importance for quality starting material and the value of having access to HemaCare’s robust pool of reliable and recallable donors. As a result, demand for HemaCare’s products and services to support cell therapy process development has continued to increase rapidly and position us well for future capabilities.”

“We continue to leverage our core strengths as well as add new capabilities to support research discoveries and cell therapy development. Our recent leadership and technical team additions, focused on the cell therapy industry, will accelerate an expanded cGMP product offering in our new facility. This includes further processed cGMP starting material, biorepository capabilities, and enhanced cold chain logistics services. These expanded products and services coupled with our 40-year history of superior leukapheresis expertise will strengthen an existing high-quality offering for our research, drug discovery, and cell therapy customers,” said van der Wal.


(Unaudited) (Audited)
June 30
December 31
Cash and cash equivalents $10,282,000 $9,251,000
Accounts receivable, net 4,154,000 2,959,000
Product inventories and supplies, net 3,045,000 2,520,000
Prepaid expenses and other current assets 255,000 162,000
      TOTAL CURRENT ASSETS 17,736,000 14,892,000
Property and equipment, net 1,650,000 1,358,000
Deferred income taxes 612,000 1,128,000
Other assets 43,000 70,000
      TOTAL NONCURRENT ASSETS 2,305,000 2,556,000
TOTAL ASSETS $20,041,000 $17,448,000
Accounts payable $946,000 $682,000
Accrued payroll and payroll taxes 1,370,000 1,658,000
Other accrued expenses 190,000 210,000
Current portion of deferred rent 9,000
Current portion of capital lease obligations 220,000 99,000
      TOTAL CURRENT LIABILITIES 2,726,000 2,658,000
Long-term portion of capital lease obligations 269,000 93,000
TOTAL LIABILITIES 2,995,000 2,751,000
Common stock, no par, 40,000,000 shares authorized, 12,139,045 and 12,011,545 shares issued and outstanding 21,368,000 21,149,000
Accumulated deficit (4,322,000) (6,452,000)
      TOTAL SHAREHOLDERS’ EQUITY 17,046,000 14,697,000


Six months ended Six months ended
June 30, 2018 June 30, 2017
REVENUE $13,070,000 $8,657,000
     COST OF REVENUE 5,638,000 4,160,000
          GROSS PROFIT 7,432,000 4,497,000
OTHER INCOME (EXPENSE) (3,000) (6,000)
     Provision for income taxes (790,000) (22,000)
               NET INCOME $2,130,000 $552,000


About HemaCare

HemaCare is a global leader in the customization of human-derived biological products and services for biomedical research, drug discovery, and cellular therapy process development. The company’s network of FDA-registered, GMP/GTP-compliant collection centers ensure fresh donor material is available to customers and for use within HemaCare’s isolation laboratory. Human biological material including peripheral blood, bone marrow, and cord blood is isolated into various primary cells types for fresh and frozen distribution. For 40 years, HemaCare has developed an extensive registry of repeat donors and provides human-derived primary blood cells and tissues for biomedical and drug discovery research and cell therapy clinical trials, and supports commercialization with apheresis collections, directly enabling customers to advance both autologous and allogeneic cellular therapies.

For more information please visit www.hemacare.com.

Media Contact:

Rochelle Martel
(818) 728-8868

Forward-Looking Statements

This press release contains forward-looking statements. The words “believe,” “may,” “will,” “potentially,” “estimate,” “continue,” “anticipate,” “intend,” “could,” “would,” “project,” “plan,” “expect” and similar expressions that convey uncertainty of future events or outcomes are intended to identify forward-looking statements. Forward-looking statements in this press release address the following subjects, among others: plans to develop, market, and expand current and future products; expectations of revenue growth; plans for facility relocation; and plans to hire and retain critical personnel. Forward-looking statements are inherently subject to risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements, including, without limitation, the following: the ability of our donors to provide sufficient quality source material; our ability and the ability of our suppliers to maintain compliance with cGMP and other regulatory obligations; the results of regulatory inspections; adverse developments in our customer-base or the markets we serve; results of the Company’s collaboration with strategic partners; adverse changes in regulatory, social and political conditions affecting our industry; our ability to timely and effectively implement 2018 staffing, operations, and product menu changes; our ability to manage growth; and general market, economic and business conditions. Forward-looking statements are made as of the date of this release, and we expressly disclaim any obligation or undertaking to update forward-looking statements.