HemaCare Reports Strong First Half 2015 Revenue Growth

September 21, 2015

(Los Angeles, CA – September 21, 2015) HemaCare Corporation (OTCBB: HEMA), today reported financial results for the six months ended June 30, 2015. For the period, revenue more than doubled to $4.29 million from $2.07 million, gross profit margin percentage improved to 43% from 21%, and loss from operations narrowed to $0.82 million from $2.61 million in the year-earlier period. Reflecting the recent sale of the Company’s Therapeutic Apheresis operations, Company total cash as of June 30 was $2.656 million, and there was no outstanding debt. Financial results for the year ended December 31, 2014 are available on the Company’s website.

Commenting on the results, HemaCare’s President and Chief Executive Officer, Pete van der Wal, stated, “2015 will be the first full year reflecting our sharpened focus on cell collection, processing and therapy, and we are pleased with our results for the first half of the year. Having completed the last of a series of divestitures of non-core businesses, we now have sufficient financial resources to build upon our early success in penetrating the emerging, rapid-growth cell therapy market.”

 

HEMACARE CORPORATION
BALANCE SHEETS
(Unaudited) (Audited)
ASSETS 2015
June 30
2014
December 31
CURRENT ASSETS
Cash and cash equivalents $2,121,000 $213,000
Accounts receivable, net 1,568,000 1,572,000
Product inventories and supplies, net 1,707,000 1,576,000
Prepaid expenses and other current assets 1,403,000 147,000
Current portion of restricted cash 107,000 107,000
Assets held for sale, net 126,000
      TOTAL CURRENT ASSETS 6,906,000 3,741,000
OTHER ASSETS
Property and equipment, net 1,068,000 1,242,000
Restricted cash, net of current portion 428,000 428,000
Other assets 70,000 67,000
      TOTAL NONCURRENT ASSETS 1,566,000 1,737,000
TOTAL ASSETS $8,472,000 $5,478,000
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable $2,060,000 $1,724,000
Accrued payroll and payroll taxes 644,000 658,000
Factor borrowing 419,000
Other accrued expenses 124,000 110,000
Current portion of deferred rent 113,000 105,000
Current portion of capital lease obligations 2,000 16,000
Liabilities held for sale, current portion 88,000
Related party payable, current portion 150,000
      TOTAL CURRENT LIABILITIES 2,943,000 3,270,000
LONG-TERM LIABILITIES
Deferred rent, net of current portion 151,000 196,000
      TOTAL LONG-TERM LIABILITIES 151,000 196,000
TOTAL LIABILITIES 3,094,000 3,466,000
SHAREHOLDERS’ EQUITY
Common stock 16,954,000 16,913,000
Accumulated deficit (11,576,000) (14,901,000)
      TOTAL SHAREHOLDERS’ EQUITY 5,378,000 2,012,000
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $8,472,000 $5,478,000

 

HEMACARE CORPORATION
STATEMENTS OF INCOME (unaudited)
Six months ended Six months ended
June 30, 2015 June 30, 2014
REVENUE
Blood and bioresearch products
$4,294,000 $2,066,000
OPERATING COSTS AND EXPENSES
     Blood and bioresearch products
2,464,000 1,632,000
GROSS PROFIT 1,830,000 434,000
GENERAL AND ADMINISTRATIVE EXPENSES 2,653,000 3,045,000
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES (823,000) (2,611,000)
Provision for income taxes 26,000 (20,000)
LOSS FROM CONTINUING OPERATIONS, NET OF TAXES (849,000) (2,631,000)
INCOME FROM DISCONTINUED OPERATIONS, NET OF TAX:
Therapeutic aphaeresis division
4,174,000 626,000
NET INCOME (LOSS) $3,325,000 ($2,005,000)

 

About HemaCare

Built on a 37-year history of apheresis collection in an FDA registered, cGMP compliant donor collection center, HemaCare Corporation is a leading global provider of human-derived biological products and services, and facilitates the implementation of cellular therapy-based clinical trials.

HemaCare is a leader in Cell and Tissue Collection, Processing, and Cell Therapy, providing high-quality controlled, consistent, customized primary cells and blood components derived from both healthy and disease state peripheral blood, bone marrow, and cord blood to researchers in cellular therapy and other health and biotech related organizations needed to ensure quality research outcomes that meet the unique needs of the scientific community for preclinical and clinical applications in biologics, immunotherapy, cell therapy, assay development, and medical devices.

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.