Health & Fitness
Health and Fitness
Health and Fitness
Fri, May 15, 2009
Thu, May 14, 2009
Wed, May 13, 2009
Tue, May 12, 2009 HearUSA: HearUSA Reports First Quarter 2009 Results
WEST PALM BEACH, FL--(Marketwire - May 12, 2009) - HearUSA, Inc. (
First Quarter 2009 Highlights
-- Net revenues totaled $26.1 million, up 7% over the previous quarter -- Sequential quarterly decrease in net loss from $2.8 million to $520,000, primarily as a result of increased revenues and the implementation of cost control measures -- Completed acquisitions of nine hearing care centers in Q1 2009, with combined trailing 12-month revenues of $2.6 million
Financial Results for First Quarter 2009
In the first quarter 2009, net revenues totaled $26.1 million, an increase of 7% from $24.5 million in the previous quarter and a decrease of 9% from $28.7 million in the same year-ago period. The 7% increase from the previous quarter was attributable to organic growth and the impact of centers acquired during the fourth quarter of 2008 and the first quarter of 2009. The 9% year-over-year decrease was comprised of a 6% increase attributable to centers acquired over the last 12 months offset by a 15% decline in organic revenues. The company completed acquisitions of nine hearing care centers in the first quarter of 2009, with combined trailing 12-month revenues of $2.6 million.
Income from operations totaled $1.2 million in the first quarter of 2009, an improvement from both a loss of $1.7 million in the previous quarter (which included $630,000 of amortization and implementation costs associated with the AARP agreement) and income of $1.1 million in the same period a year ago (which included severance costs of $811,000). The first quarter improvement over the 2008 fourth quarter was primarily the result of higher revenues and the benefit of various cost control measures. These measures were initiated in the fourth quarter of 2008 and have continued to be implemented since the beginning of the year.
Net loss applicable to common stockholders decreased to $520,000 or ($0.01) per basic and diluted share, as compared to a net loss of $2.8 million or ($0.08) per basic and diluted share in the previous quarter and a net loss of $685,000 or ($0.02) per basic and diluted share in the same period a year ago.
"We are encouraged by the increase in revenues and significant reduction in net loss over the previous quarter," said Stephen J. Hansbrough, HearUSA's chairman and CEO. "The steps we took toward the end of 2008 are beginning to show the results we expected. Our new marketing initiatives have led to increased revenues while preserving our margins, and our cost control initiatives have resulted in significant decreases in operating costs."
Gino Chouinard, HearUSA's president and COO, said: "We previously announced cost saving measures designed to yield $5 million in savings in 2009. During the first quarter we continued to seek operating efficiencies and have found additional ways to save, including the implementation of a five percent temporary across-the-board reduction in salaries. We expect these new measures to increase our total cost savings to more than $8 million on an annualized basis."
Frank Puñal, the company's CFO, added, "The proceeds from the recent sale of our Canada unit for net cash of $20 million have also significantly improved our balance sheet and liquidity in the current second quarter. This is especially important as we weather these challenging economic times as well as position the company to maximize the opportunities we previously announced. This includes acquisitions in the U.S. at a time which has never been more favorable."
Conference Call
HearUSA will hold a conference call later today to discuss its first quarter 2009 financial results. The company's senior management will host the presentation, which will be followed by a question and answer period.
Date: Tuesday, May 12, 2009 Time: 4:30 p.m. Eastern time (1:30 p.m. Pacific time) Domestic callers: 1-800-862-9098 International callers: 1-785-424-1051 Conference ID#: 7HEARUSA Internet simulcast and replay: [ http://viavid.net/dce.aspx?sid=00006354 ]
If you have any difficulty connecting with the conference call or webcast, please contact the Liolios Group at 1-949-574-3860.
A replay of the call will be available later that evening and will be accessible until May 26, 2009:
Toll-free replay number: 1-800-695-0715 International replay number: 1-402-220-1423 (No passcode required)
About HearUSA
HearUSA, Inc. provides hearing care to patients primarily through 180 company-owned hearing care centers, which offer a complete range of quality hearing aids with an emphasis on the latest digital technology. HearUSA Centers are located in California, Florida, New York, New Jersey, Massachusetts, Ohio, Michigan, Missouri, North Carolina and Pennsylvania. The company also derives revenues from its HearUSA Hearing Care Network, comprised of over 1,900 affiliated audiologists in 49 states, as well as its website that enables online purchases of hearing related products, such as batteries, hearing aid accessories and assistive listening devices. For further information, click on "investor information" at the HearUSA website: [ www.hearusa.com ].
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Securities Litigation Reform Act of 1995 including those relating to the steps taken in response to the economic downturn and the company's expectation of achieving a total cost savings of more than $8 million on an annualized basis. These statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Potential risks and uncertainties include such factors as the company's ability to maintain cost controls and limit expenses; management's assumptions relating to its forecasted costs and savings; and other risks and uncertainties described in the company's filings with the Securities and Exchange Commission, including the company's Form 10-K for the fiscal year ended December 27, 2008.
HearUSA, INC. UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS March 28, March 29, 2009 2008 --------- --------- (Dollars in thousands, except per share amounts) Net revenues Hearing aids and other products $ 24,128 $ 26,680 Services 1,947 2,008 --------- --------- Total net revenues 26,075 28,688 --------- --------- Operating costs and expenses Hearing aids and other products 6,623 7,588 Services 545 545 --------- --------- Total cost of products sold and services 7,168 8,133 Center operating expenses 12,950 14,023 General and administrative expenses 4,077 4,759 Depreciation and amortization 648 662 --------- --------- Total operating costs and expenses 24,843 27,577 --------- --------- Income from operations 1,232 1,111 Non-operating income (expenses) Interest income - 16 Interest expense (1,351) (1,241) --------- --------- Loss from continuing operations before income tax expense (119) (114) Income tax expense (251) (200) --------- --------- Net loss (370) (314) Joint venture net income attributable to non-controlling interest (115) (336) --------- --------- Net loss - controlling interest (485) (650) Dividends on preferred stock (35) (35) --------- --------- Net loss - controlling interest applicable to common stockholders $ (520) $ (685) ========= ========= Net loss - controlling interest applicable to common stockholders per common share - basic and diluted $ (0.01) $ (0.02) ========= ========= Weighted average number of shares of common stock outstanding - basic and diluted 44,818 38,588 ========= ========= HearUSA, INC. UNAUDITED CONSOLIDATED BALANCE SHEETS March 28, December 27, 2009 2008 ---------- ---------- (Dollars in thousands, ASSETS except par values) Current assets Cash and cash equivalents $ 3,084 $ 3,553 Accounts and notes receivable, less allowance for doubtful accounts of $552 and $506 7,050 7,371 Inventories 1,669 1,682 Prepaid expenses and other 893 502 ---------- ---------- Total current assets 12,696 13,108 Property and equipment, net 5,140 4,876 Goodwill 67,869 65,953 Intangible assets, net 15,673 15,630 Deposits and other 838 810 Restricted cash and cash equivalents 224 224 ---------- ---------- Total Assets $ 102,440 $ 100,601 ========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable $ 8,269 $ 5,011 Accrued expenses 2,611 3,208 Accrued salaries and other compensation 3,429 3,713 Current maturities of long-term debt 7,214 6,915 Dividends payable 35 34 ---------- ---------- Total current liabilities 21,558 18,881 ---------- ---------- Long-term debt 48,474 49,099 Deferred income taxes 7,519 7,284 ---------- ---------- Total long-term liabilities 55,993 56,383 ---------- ---------- Commitments and contingencies - - ---------- ---------- Stockholders' equity Preferred stock (aggregate liquidation preference $2,330, $1 par, 7,500,000 shares authorized) - - Series H Junior Participating (none outstanding) - - Series J (233 shares outstanding) - - ---------- ---------- Total preferred stock - - Common stock: $.10 par; 75,000,000 shares authorized 44,861,290 and 44,828,384 shares issued 4,486 4,483 Additional paid-in capital 137,108 136,924 Accumulated deficit (116,880) (116,360) Accumulated other comprehensive income 1,019 1,249 Treasury stock, at cost: 523,662 common shares (2,485) (2,485) Non-controlling interest 1,641 1,526 ---------- ---------- Total stockholders' equity 24,889 25,337 ---------- ---------- Total Liabilities and Stockholders’ Equity $ 102,440 $ 100,601 ========== ==========
