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HemaCare Reports Eighth Consecutive Profitable Quarter

^{Published on 2009-11-09 05:16:59 - Market Wire}
 

LOS ANGELES, CA--(Marketwire - November 9, 2009) - HemaCare Corporation (OTCBB: [ HEMA ]) announced today third quarter 2009 results, which include a 168% increase in income from operations compared to the same quarter of 2008. Income from operations was $158,000 versus $59,000 for the third quarter of 2008, and $659,000 on a year-to-date basis, compared to $422,000 in 2008. Net income in the quarter was $233,000, or $0.02 per share, compared to $285,000, or $0.03 per share, in the third quarter of 2008; however, the prior year period included a non-recurring gain of $396,000 related to litigation settlement.

Gross profit from continuing operations decreased $58,000, or 4%, in the quarter to $1.5 million, primarily driven by an 11% decrease in revenue compared to prior year, attributable to a 17% decrease in blood products revenue. This was the result of increased competition caused by an unprecedented excess supply of blood products in the United States due to the recent downturn in the economy. Gross profit margin from continuing operations in the quarter was 17%, compared to 16% in the third quarter of 2008.

Commenting on the results, John Doumitt, the Company's Chief Executive Officer, stated, "While this was a challenging revenue quarter for the Company, we are pleased to have maintained profitability and are gratified that we were able to recently add new customers who recognize the important value we provide."

 HemaCare Corporation Condensed Consolidated Data (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, Statements of Income: 2009 2008 2009 2008 ----------- ----------- ----------- ------------ Revenue $ 8,401,000 $ 9,474,000 $28,140,000 $ 27,642,000 Gross profit $ 1,453,000 $ 1,511,000 $ 5,027,000 $ 4,797,000 General and administrative expenses $ 1,295,000 $ 1,452,000 $ 4,368,000 $ 4,375,000 ----------- ----------- ----------- ------------ Income from operations $ 158,000 $ 59,000 $ 659,000 $ 422,000 Other income $ - $ 396,000 $ - $ 331,000 ----------- ----------- ----------- ------------ Income before income taxes and discontinued operations $ 158,000 $ 455,000 $ 659,000 $ 753,000 (Benefit from) provision for income taxes $ (88,000) $ - $ (38,000) $ 45,000 ----------- ----------- ----------- ------------ Income from continuing operations $ 246,000 $ 455,000 $ 697,000 $ 708,000 ----------- ----------- ----------- ------------ (Loss) income from discontinued operations, net of tax impact $ (13,000) $ (170,000) $ (37,000) $ 92,000 ----------- ----------- ----------- ------------ Net income $ 233,000 $ 285,000 $ 660,000 $ 800,000 =========== =========== =========== ============ Basic earnings per share $ 0.02 $ 0.03 $ 0.07 $ 0.08 =========== =========== =========== ============ Diluted earnings per share $ 0.02 $ 0.03 $ 0.07 $ 0.08 =========== =========== =========== ============ Weighted average shares outstanding - basic 10,050,000 9,696,000 9,994,000 9,415,000 =========== =========== =========== ============ Weighted average shares outstanding - diluted 10,257,000 9,942,000 10,086,000 9,415,000 =========== =========== =========== ============ Balance Sheets: September 30, December 31, 2009 2008 ----------- ----------- Assets Cash and cash equivalents $ 1,325,000 $ 903,000 Other current assets 6,157,000 8,298,000 Non-current assets 4,292,000 4,495,000 ----------- ----------- Total assets $11,774,000 $13,696,000 =========== =========== Liabilities and Shareholders' Equity Current liabilities $ 5,809,000 $ 8,513,000 Long-term liabilities 659,000 645,000 Shareholders' equity 5,306,000 4,538,000 ----------- ----------- Total liabilities and shareholders' equity $11,774,000 $13,696,000 =========== ===========