Health & Fitness
Health and Fitness
Health and Fitness
Fri, August 14, 2009
Thu, August 13, 2009
Wed, August 12, 2009
Tue, August 11, 2009 HearUSA: HearUSA Reports Second Quarter 2009 Results
WEST PALM BEACH, FL--(Marketwire - August 11, 2009) - HearUSA, Inc. (
Second Quarter 2009 Highlights
- Net income applicable to common stockholders increased to $1.1 million or $0.03 per diluted share from a loss of $520,000 or $(0.01) per diluted share in Q1 09
- Income from continuing operations increased to $963,000 from a loss of $1.1 million in Q1 09
- Divested Canadian operations for $23.1 million in cash
- Reduced long-term debt by $10.0 million during the quarter
Second Quarter 2009 Financial Results
Net income applicable to common stockholders was $1.1 million or $0.03 per diluted share in the second quarter of 2009, as compared to a net loss of $520,000 or $(0.01) per diluted share in the previous quarter and a net income of $245,000 or $0.01 per diluted share in the same period a year ago. Net income applicable to common shareholders included income from discontinued operations of $336,000 or $0.01 per diluted share in the second quarter of 2009, $685,000 or $0.02 per diluted share in the first quarter of 2009 and $974,000 or $0.02 per diluted share in the second quarter of 2008. The improvement in the second quarter was primarily the result of the company's cost reduction initiatives that are expected to save the company more than $8 million on an annualized basis when fully implemented.
Income from continuing operations increased to $963,000 in the second quarter of 2009 from a $1.1 million loss in the previous quarter and a $338,000 loss in the same year-ago period. Income from continuing operations exclude the operating results of the company's Canadian operations for all periods and include AARP program related costs of $142,000 and $90,000 in the second and first quarters of 2009, respectively.
Net revenues from continuing operations totaled $22.7 million, which was unchanged from the previous quarter and decreased approximately 11% from $25.3 million in the same year ago period. Revenues from continuing operations exclude revenues from the company's Canadian unit, which were sold on April 27, 2009. The year-over-year decrease was due to a 15% decline in organic revenue, partially offset by 3.8% increase attributable to centers acquired over the last 12 months and approximately $182,000 in contracted transition services provided to the acquirer of the Canadian unit.
"Our primary goal last fall was to reduce our operating costs in order to be profitable at reduced sales volumes," said Stephen J. Hansbrough, HearUSA's chairman and CEO. "We have achieved this goal, and with the divestiture of our Canadian operations, I believe we are now ideally positioned to roll out our national hearing care program for AARP members."
Gino Chouinard, HearUSA's president and COO, commented: "Initiatives implemented in the early part of the year to address these challenging times are paying off. We have significantly increased the efficiency of our operating model which has allowed us to dramatically reduce costs while maintaining consistently high levels of patient care. We believe our new leaner operating model can be leveraged as volumes recover, putting us in an excellent position to maximize opportunities as the economy recovers."
Subsequent to the quarter's end, HearUSA introduced a major update to the company's Web site at [ www.hearusa.com ] that includes a fresh new look, and makes learning about hearing health care and scheduling an appointment for a free evaluation simple and easy. The new site also includes an updated investor relations section which has more useful tools and information for HearUSA shareholders and members of the financial community.
Conference Call
HearUSA will hold a conference call later today to discuss its second 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, August 11, 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=0000675B ]
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 August 25, 2009:
Toll-free replay number: 1-800-283-8520
International replay number: 1-402-220-0870
(No passcode required)
About HearUSA
HearUSA, Inc. provides hearing care to patients primarily through 178 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 1,900 affiliated audiologists in 49 states, as well as its website, [ www.hearingshop.com ], for online purchases of hearing related products. HearUSA is currently the nation's only hearing care network accredited by URAC, an independent, nonprofit health care accrediting organization dedicated to promoting health care quality through accreditation, certification and commendation. For more information about HearUSA, visit [ 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 For the Three Months Ended June 27, 2009 and June 28, 2008 (unaudited) June 27, June 28, 2009 2008 ---------- ---------- (Dollars in thousands, except per share amounts) Net revenues Hearing aids and other products $ 20,653 $ 23,605 Services 2,014 1,735 ---------- ---------- Total net revenues 22,667 25,340 ---------- ---------- Operating costs and expenses Hearing aids and other products 5,072 6,627 Services 388 551 ---------- ---------- Total cost of products sold and services excluding depreciation and amortization 5,460 7,178 Center operating expenses 10,908 12,933 General and administrative expenses 3,661 3,617 Depreciation and amortization 588 518 ---------- ---------- Total operating costs and expenses 20,617 24,246 ---------- ---------- Income from operations 2,050 1,094 Non-operating income (expenses) Gain on foreign exchange 375 - Interest income - 6 Interest expense (1,252) (1,232) ---------- ---------- Income (loss) from continuing operations before income tax expense and discontinued operations 1,173 (132) Income tax expense (210) (206) ---------- ---------- Income (loss) from continuing operations 963 (338) Discontinued operations Gain on sale from discontinued operations 1,632 - Income tax expense on gain on sale of discontinued operations (1,546) - Income from discontinued operations, net of income tax expense (benefit) of $(270) and $113 250 974 ---------- ---------- Income from discontinued operations 336 974 ---------- ---------- Net income 1,299 636 Net income attributable to non-controlling interest (131) (356) ---------- ---------- Net income attributable to controlling interest 1,168 280 Dividends on preferred stock (35) (35) ---------- ---------- Net income attributable to common stockholders $ 1,133 $ 245 ========== ========== Income (loss) from continuing operations attributable to common stockholders per common share - basic $ 0.02 $ (0.02) ========== ========== Income (loss) from continuing operations attributable to common stockholders per common share - diluted $ 0.02 $ (0.02) ========== ========== Net income attributable to common stockholders per common share - basic $ 0.03 $ 0.01 ========== ========== Net income attributable to common stockholders per common share - diluted $ 0.03 $ 0.01 ========== ========== Weighted average number of shares of common stock outstanding - basic 44,837 38,562 ========== ========== Weighted average number of shares of common stock outstanding -diluted 45,340 38,562 ========== ========== HearUSA, INC. UNAUDITED CONSOLIDATED BALANCE SHEETS (unaudited) June 27, December 27, ASSETS 2009 2008 ---------- ---------- (Dollars in thousands, except for par values) Current assets Cash and cash equivalents $ 7,567 $ 3,553 Short-term marketable securities 9,402 Accounts and notes receivable, less allowance for doubtful accounts of $601 and $506 5,243 7,371 Inventories 1,546 1,682 Prepaid expenses and other 699 502 ---------- ---------- Total current assets 24,457 13,108 Property and equipment, net 4,125 4,876 Goodwill 51,309 65,953 Intangible assets, net 13,173 15,630 Deposits and other 790 810 Restricted cash and cash equivalents 224 224 ---------- ---------- Total Assets $ 94,078 $ 100,601 ========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable $ 6,710 $ 5,011 Accrued expenses 4,102 3,208 Accrued salaries and other compensation 3,387 3,713 Current maturities of long-term debt 6,890 6,915 Taxes Payable 1,682 - Dividends payable 35 34 ---------- ---------- Total current liabilities 22,806 18,881 ---------- ---------- Long-term debt 38,809 49,099 Deferred income taxes 6,875 7,284 ---------- ---------- Total long-term liabilities 45,684 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, respectively 4,486 4,483 Additional paid-in capital 137,333 136,924 Accumulated deficit (115,519) (116,360) Accumulated other comprehensive income - 1,249 Treasury stock, at cost: 523,662 common shares (2,485) (2,485) Noncontrolling interest 1,773 1,526 ---------- ---------- Total Stockholders' equity 25,588 25,337 ---------- ---------- Total Liabilities and Stockholders' Equity $ 94,078 $ 100,601 ========== ==========
