HemaCare Reports Strong First Half 2017 Results

August 21, 2017

(Los Angeles, CA – August 21, 2017) HemaCare Corporation (OTC Pink: HEMA) today reported financial results for the six months ended June 30, 2017, showing continued robust gains in revenue, gross profit, and net income compared to the same period of 2016. Revenue from operations grew 50% to $8.7 million, while gross profit of $4.5 million (52% of sales) increased by 53% compared to the same period in 2016 (51% of sales). Net income increased to $552,000, versus a prior-year loss. For complete unaudited June 30, 2017 Financial Statements, please click here.

Pete van der Wal, HemaCare’s President and Chief Executive, stated, “HemaCare continues to strengthen our leadership position as a critical supplier to customers performing cell therapy research, process development, and commercialization. Our portfolio of products and services includes leukapheresis patient collections for autologous cell therapy processing, which leads to the use of patients’ own cells to fight disease. Additionally, we provide superior leukapheresis starting material from a highly characterized, recallable donor pool, which is critical when manufacturing off-the-shelf allogeneic therapy products.”

He further stated, “We have secured long-term access to a state-of-the-art facility allowing HemaCare to optimize process flow, utilize flexible production environments to serve our customers’ increasingly complex requirements, and provide sufficient scalability to support the increasing demand of our global customer base.”

 

HEMACARE CORPORATION
BALANCE SHEETS
(Unaudited)(Audited)
ASSETS2017
June 30
2016
December 31
CURRENT ASSETS
Cash and cash equivalents$4,803,000$2,271,000
Accounts receivable, net2,774,0002,269,000
Product inventories and supplies, net1,937,0001,935,000
Prepaid expenses and other current assets181,000158,000
Current portion of restricted cash119,000119,000
      TOTAL CURRENT ASSETS9,814,0006,752,000
OTHER ASSETS
Property and equipment, net1,217,0001,038,000
Restricted cash, net of current portion309,000309,000
Other assets70,000 64,000
      TOTAL NONCURRENT ASSETS1,596,0001,411,000
TOTAL ASSETS$11,410,000$8,163,000
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable$579,000$437,000
Accrued payroll and payroll taxes1,081,0001,252,000
Other accrued expenses183,000103,000
Current portion of deferred rent16,00077,000
Current portion of capital lease obligations96,00047,000
      TOTAL CURRENT LIABILITIES1,955,0001,916,000
LONG-TERM LIABILITIES
Deferred rent, net of current portion4,0007,000
Long-term portion of capital lease obligations143,00066,000
      TOTAL LONG- TERM LIABILITIES147,00073,000
TOTAL LIABILITIES2,102,0001,989,000
SHAREHOLDERS’ EQUITY
Common stock, no par, 40,000,000 shares authorized, 11,612,759 and 10,698,312 shares issued and outstanding19,640,00017,058,000
Accumulated deficit(10,332,000)(10,884,000)
      TOTAL SHAREHOLDERS’ EQUITY9,308,0006,174,000
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY$11,410,000$8,163,000

 

HEMACARE CORPORATION
STATEMENTS OF INCOME (unaudited)
Six months endedSix months ended
June 30, 2017June 30, 2016
REVENUE$8,657,000$5,779,000
     COST OF REVENUE4,160,0002,849,000
          GROSS PROFIT4,497,0002,930,000
GENERAL AND ADMINISTRATIVE EXPENSES3,917,0002,999,000
OTHER INCOME (EXPENSE)(6,000)(4,000)
INCOME FROM OPERATIONS BEFORE INCOME TAXES574,000(73,000)
     Provision for income taxes(22,000)(6,000)
               NET INCOME (LOSS)$552,000($79,000)

 

About HemaCare

HemaCare Corporation is a provider of human blood products and services in support of the rapidly expanding field of immune therapy, including stem cell therapy. Our expertise has evolved through 39 years in the business of blood collection, processing and storage. In addition, we have established a robust donor recruitment and management system which supports an extensive registry of well-characterized repeat donors. HemaCare’s controlled procedures ensure a readily available inventory of high-quality, consistent and selectable primary human cells and biological products for advanced biomedical research. Our customers are engaged in basic research and development of clinical therapies that are designed to manipulate the immune system for treatment and cure of cancer, degenerative diseases and immune and genetic disorders. HemaCare’s products and services address several key markets, including immune therapy research, cell manufacturing for clinical therapy, and clinical laboratory instrument development. We specialize in custom cell collections for customers who may require donors with specific attributes (phenotypic or disease state, for example), or sub-sets of immune cells that can be selected in our laboratory using the latest technology. HemaCare’s products and services address all stages of cell therapy development, from basic biological research in academic institutions to pharmaceutical cell development in large drug companies.

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.