HemaCare Reports Strong 2015 Results

April 11, 2016

(Los Angeles, CA – April 11, 2016) HemaCare Corporation (OTCBB:HEMA) today reported financial results for 2015, showing strong gains in both revenue and gross profit margins compared to the prior year. For the full year, revenue from continuing operations more than doubled to $9.7 million, while gross profit margin rose to 45% from 27%. Loss from continuing operations narrowed to $1.38 million from $4.75 million, and after a gain from the sale of the Company’s Therapeutic Apheresis business, 2015 net income totaled $3.24 million.

Pete van der Wal, HemaCare’s President and Chief Executive, stated, “2015 was a pivotal year for us, as we divested the last of our non-core businesses, allowing us to intently focus exclusively on the high margin, rapid growth opportunities presented by our BioResearch Products and Services business, which sells human blood cells and other biological materials to companies and research institutions involved in immunotherapy research, cell therapy and regenerative medicine. We now have the people, facilities, and business plan, along with a substantially improved balance sheet, to produce further gains in revenue and gross profit margin in 2016 and beyond.”

 

HEMACARE CORPORATION
BALANCE SHEETS
ASSETS December 31,
2015 2014
CURRENT ASSETS
Cash and cash equivalents $2,515,000 $213,000
Accounts receivable, net 1,851,000 1,572,000
Product inventories and supplies, net 2,066,000 1,576,000
Prepaid expenses and other current assets 192,000 147,000
Current portion of restricted cash 107,000 107,000
Assets held for sale, net 126,000
      TOTAL CURRENT ASSETS 6,731,000 3,741,000
OTHER ASSETS
Property and equipment, net 1,043,000 1,242,000
Restricted cash, net of current portion 428,000 428,000
Other assets 64,000 67,000
      TOTAL NONCURRENT ASSETS 1,535,000 1,737,000
TOTAL ASSETS $8,266,000 $5,478,000
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable $615,000 $1,724,000
Accounts payable – service agreement 1,101,000
Accrued payroll and payroll taxes 974,000 658,000
Factor borrowing 419,000
Other accrued expenses 74,000 110,000
Current portion of deferred rent 120,000 105,000
Current portion of capital lease obligations 16,000
Liabilities held for sale, current portion 88,000
Related party payable, current portion 150,000
      TOTAL CURRENT LIABILITIES 2,884,000 3,270,000
LONG-TERM LIABILITIES
Deferred rent, net of current portion 84,000 196,000
      TOTAL LONG-TERM CURRENT LIABILITIES 84,000 196,000
TOTAL LIABILITIES 2,968,000 3,466,000
SHAREHOLDERS’ EQUITY
Common stock, no par, 40,000,000 and 20,000,000 shares authorized, respectively, 10,747,828 shares issued and outstanding 16,963,000 16,913,000
Accumulated deficit (11,665,000) (14,901,000)
      TOTAL SHAREHOLDERS’ EQUITY 5,298,000 2,012,000
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $8,266,000 $5,478,000

 

HEMACARE CORPORATION
STATEMENTS OF INCOME (unaudited)
FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014
2015 2014
REVENUE
     (Bioresearch products and services)
$9,702,000 $4,809,000
COST OF REVENUE
     (Bioresearch products and services)
5,292,000 3,515,000
     GROSS PROFIT 4,410,000 1,294,000
GENERAL AND ADMINISTRATIVE EXPENSES 5,790,000 6,043,000
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAX EXPENSE (1,380,000) (4,749,000)
     Provision for income taxes (22,000) (45,000)
LOSS FROM CONTINUING OPERATIONS, NET OF TAXES (1,402,000) (4,794,000)
     DISCONTINUED OPERATIONS, NET OF TAX:
Therapeutic aphaeresis division
4,638,000 1,221,000
               NET INCOME (LOSS) $3,236,000 ($3,573,000)

 

About HemaCare

Since 1978, HemaCare Bioresearch Products & Services has been the trusted research partner of choice from concept to commercialization. Built on a 38-year history in apheresis collection, HemaCare is a leader in Cell and Tissue Collection, Processing and Cell Therapy, providing the high-quality biological material needed to ensure quality research outcomes that meet the unique needs of the scientific community. For more information please visit www.hemacare.com.

Media Contact:

Rochelle Martel
(818) 728-8868
rmartel@hemacare.com

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.