HemaCare Reports Strong First Half 2016 Results
(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.