HemaCare Reports Strong, Profitable 2016 Results

March 13, 2017

(Los Angeles, CA – March 13, 2017) HemaCare Corporation (OTCBB: HEMA) today reported financial results for 2016, showing robust gains in revenue, gross profit, and net income from continuing operations compared to the prior year. For the full year, revenue from continuing operations grew 43% to $13.8 million, while gross profit of $7.1 million (51% of sales) increased by 62% over the prior year (45% of sales). Net income from continuing operations totaled $781,000, versus a prior year loss. For complete audited December 31, 2016 Financial Statements, please click here.

Pete van der Wal, HemaCare’s President and Chief Executive, stated, “2016 was another pivotal year for us as we achieved operational profitability and continued to expand our global customer base, realizing a 240% increase in international revenues. Our rapid revenue growth gives management a high level of confidence that our customers value the quality of HemaCare’s bioresearch products and services. This was further validated by the January 2017 purchase of $2.5 million of HemaCare’s common stock at $3.44 per share, and a discretionary option to purchase up to a total of $5 million of shares at the same price over the next two years, by a subsidiary of OneBlood, an industry-leading blood center. In 2017, we will continue to build our sales and marketing team, increase our operational capabilities, enlarge our portfolio of healthy and disease-state products, and continue to expand into additional strategic markets. Furthermore, we will continue to strengthen our leadership position as a critical supplier to customers performing cell therapy research, process development, and commercialization. This includes expanding our highly functional cryopreserved isolated cell product line, as well as our superior leukapheresis collections for autologous and allogeneic cell therapies.”

 

HEMACARE CORPORATION
BALANCE SHEETS
ASSETS December 31,
2016 2015
CURRENT ASSETS
Cash and cash equivalents $2,271,000 $2,515,000
Accounts receivable, net 2,269,000 1,851,000
Product inventories and supplies, net 1,935,000 2,066,000
Prepaid expenses and other current assets 158,000 192,000
Current portion of restricted cash 119,000 107,000
      TOTAL CURRENT ASSETS 6,752,000 6,731,000
OTHER ASSETS
Property and equipment, net 1,038,000 1,043,000
Restricted cash, net of current portion 309,000 428,000
Other assets 64,000 64,000
      TOTAL NONCURRENT ASSETS 1,411,000 1,535,000
TOTAL ASSETS $8,163,000 $8,266,000
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable $437,000 $615,000
Accounts payable – service agreement 1,101,000
Accrued payroll and payroll taxes 1,252,000 974,000
Other accrued expenses 103,000 74,000
Current portion of deferred rent 77,000 120,000
Current portion of capital lease obligations 47,000
      TOTAL CURRENT LIABILITIES 1,916,000 2,884,000
LONG-TERM LIABILITIES
Deferred rent, net of current portion 7,000 84,000
Long-term portion of capital lease obligations 66,000
      TOTAL LONG-TERM CURRENT LIABILITIES 73,000 84,000
TOTAL LIABILITIES 1,989,000 2,968,000
SHAREHOLDERS’ EQUITY
Common stock, no par, 40,000,000 shares authorized, 10,698,312 and 10,747,828 shares issued and outstanding 17,058,000 16,963,000
Accumulated deficit (10,884,000) (11,665,000)
      TOTAL SHAREHOLDERS’ EQUITY 6,174,000 5,298,000
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $8,163,000 $8,266,000

 

HEMACARE CORPORATION
STATEMENTS OF INCOME (unaudited)
FOR THE YEARS ENDED DECEMBER 31, 2016 AND 2015
2016 2015
REVENUE
     (Bioresearch products and services)
$13,876,000 $9,702,000
COST OF REVENUE
     (Bioresearch products and services)
6,751,000 5,292,000
     GROSS PROFIT
          (Bioresearch products and services)
7,125,000 4,410,000
GENERAL AND ADMINISTRATIVE EXPENSES 6,326,000 5,790,000
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAX EXPENSE 799,000 (1,380,000)
     Provision for income taxes (18,000) (22,000)
INCOME (LOSS) FROM OPERATIONS BEFORE, NET OF TAXES 781,000 1,402,000
     DISCONTINUED OPERATIONS, NET OF TAX:
Therapeutic aphaeresis division
4,638,000
               NET INCOME $781,000 $3,236,000

 

About HemaCare

HemaCare specializes in the customization of human-derived biological products and services for customer’s research and cell therapy protocols. HemaCare’s network of FDA-registered, GMP/GTP-compliant collection centers ensures donor material is available for fresh shipment to customers, as well as for internal use within HemaCare’s isolation laboratory. In this laboratory, human biological material such as peripheral blood, bone marrow, and cord blood from donor and patient subjects is isolated into various primary cell types for distribution to customers in fresh and frozen formats. HemaCare’s extensive registry of well-characterized repeat donors provides consistent primary human cells and biological products for advanced biomedical research and cellular therapy process development.

For 39 years, HemaCare has provided human-derived primary blood cells and tissues for biomedical research, supported cell therapy clinical trials and commercialization with apheresis collections, and provided a wide range of consulting services. HemaCare directly supports benchtop immunology and oncology research, compound screening for drug discovery, and assay development and qualification, as well as enables customers to advance both autologous and allogeneic cellular therapies. 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.