HemaCare Reports Strong First Half 2016 Results

September 6, 2016

(Los Angeles, CA – September 6, 2016) HemaCare Corporation (OTCBB:HEMA) a leader in cell and tissue collection, processing, and cell therapy solutions, today reported financial results for the first six months of 2016, showing continued strong gains in both revenue and gross profit margins compared to the prior year. For the first half of 2016, revenue from continuing operations increased by 35% to $5.8 million, while gross profit margin rose to 51% from 43%. Loss from continuing operations narrowed to $79,000 from $849,000.

Pete van der Wal, HemaCare’s President and Chief Executive, stated, “We are pleased with the first half results for 2016, which we believe validate our strategic plan to 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 have the momentum to produce further growth for the balance of 2016 and beyond.”

 

HEMACARE CORPORATION
BALANCE SHEETS
(Unaudited) (Audited)
ASSETS 2016
June 30
2015
December 31
CURRENT ASSETS
Cash and cash equivalents $2,113,000 $2,515,000
Accounts receivable, net 1,905,000 1,851,000
Product inventories and supplies, net 2,029,000 2,066,000
Prepaid expenses and other current assets 214,000 192,000
Current portion of restricted cash 107,000
      TOTAL CURRENT ASSETS 6,261,000 6,731,000
OTHER ASSETS
Property and equipment, net 1,029,000 1,043,000
Restricted cash, net of current portion 428,000 428,000
Other assets 64,000 64,000
      TOTAL NONCURRENT ASSETS 1,521,000 1,535,000
TOTAL ASSETS $7,782,000 $8,266,000
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable $408,000 $615,000
Accounts payable – service agreement 788,000 1,101,000
Accrued payroll and payroll taxes 933,000 974,000
Other accrued expenses 81,000 74,000
Current portion of deferred rent 125,000 120,000
Current portion of capital lease obligations 45,000
      TOTAL CURRENT LIABILITIES 2,380,000 2,884,000
LONG-TERM LIABILITIES
Deferred rent, net of current portion 18,000 84,000
Long-term portion of capital lease obligations 90,000
      TOTAL LONG-TERM LIABILITIES 108,000 84,000
TOTAL LIABILITIES
Commitments and contingencies, note 10
2,488,000 2,968,000
SHAREHOLDERS’ EQUITY
Common stock, no par, 40,000,000 and 20,000,000 shares authorized, 10,737,786 and 10,747,828 shares issued and outstanding 17,038,000 16,963,000
Accumulated deficit (11,744,000) (11,665,000)
      TOTAL SHAREHOLDERS’ EQUITY 5,294,000 5,298,000
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $7,782,000 $8,266,000

 

HEMACARE CORPORATION
STATEMENTS OF INCOME (unaudited)
Six months ended Six months ended
June 30, 2016 June 30, 2015
REVENUE $5,779,000 $4,294,000
     COST OF REVENUE 2,849,000 2,464,000
          GROSS PROFIT 2,930,000 1,830,000
GENERAL AND ADMINISTRATIVE EXPENSES 2,999,000 2,639,000
OTHER INCOME (EXPENSE) (4,000) (14,000)
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES (73,000) (823,000)
Provision for income taxes (6,000) (26,000)
LOSS FROM CONTINUING OPERATIONS NET OF TAXES (79,000) (849,000)
DISCONTINUED OPERATIONS, NET OF TAX:
Therapeutic aphaeresis division
4,174,000
NET INCOME (LOSS) ($79,000) $3,325,000

 

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, providing the high-quality biological material needed to ensure quality research outcomes that meet the unique needs of the scientific community. HemaCare’s expertise extends to serving biopharmaceutical firms with autologous and allogeneic collections used for Cell Therapy research, process development, and clinical trials. 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.