Health & Fitness
Health and Fitness
Health and Fitness
Thu, November 12, 2009
Wed, November 11, 2009
Tue, November 10, 2009 
WEST PALM BEACH, FL--(Marketwire - November 10, 2009) - HearUSA, Inc. (
Third Quarter 2009 Financial Results
Net revenues from continuing operations decreased 4% to $21.8 million from $22.7 million in the previous quarter and decreased 11% from $24.5 million in the same year-ago period. Revenues from continuing operations exclude revenues from the company's Canadian unit, which was sold on April 27, 2009. The year-over-year decrease was due to a 14% decline in organic revenue, partially offset by a 2% increase attributable to centers acquired over the last 12 months and approximately $290,000 in contracted transition services provided to the acquirer of the Canadian unit.
Net income attributable to common stockholders was $713,000 or $0.02 per diluted share in the third quarter of 2009, as compared to net income of $1.1 million or $0.03 per diluted share in the previous quarter and a net loss of $75,000 or $(0.00) per diluted share in the same period a year ago. Net income attributable to common shareholders included income from discontinued operations of $427,000 or $0.01 per diluted share in the third quarter of 2009, $336,000 or $0.01 per diluted share in the second quarter of 2009 and $720,000 or $0.02 per diluted share in the third quarter of 2008.
Income from continuing operations totaled $502,000 in the third quarter of 2009, compared to $963,000 in the previous quarter and a loss of $278,000 in the same year-ago period. Income from continuing operations excludes the operating results of the company's Canadian operations for all periods and includes AARP program related costs of $189,000 in the third quarter of 2009, $142,000 in the second quarter of 2009, and $428,000 in the third quarter of 2008.
Management Commentary
"Our ability to exercise strong cost controls along with effective resource management allowed us to achieve another profitable quarter in this challenging economic climate," said Stephen J. Hansbrough, HearUSA's chairman and CEO. "We have made the tough calls and avoided the unprofitable strategies that benefit sales at the expense of profits. We believe this approach has enabled us to establish a cost structure that can maximize the potential of a rising top line in 2010."
Gino Chouinard, HearUSA's president and COO, added, "In 2009, our main focus has been to realign our expense structure and return the company to profitability. Thanks to our margin improvement initiatives and $8 million in annual expense reductions, we have now achieved two consecutive quarters of positive net income. In 2010, we will focus on generating revenue growth by maximizing new and existing third party relationships, implementing new marketing strategies, expanding internal training and motivational programs, and making accretive acquisitions."
Conference Call
HearUSA will hold a conference call later today to discuss its third 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, November 10, 2009 Time: 4:30 p.m. Eastern time (1:30 p.m. Pacific time) Domestic callers: 1-800-894-5910 International callers: 1-785-424-1052 Conference ID#: 7HEARUSA
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 November 24, 2009:
Toll-free replay number: 1-800-388-9074 International replay number: 1-402-220-1117 (No passcode required)
About HearUSA, Inc.
HearUSA is the recognized leader in hearing care for the nation's top managed care organizations through its network of more than 2,000 hearing care providers, including 178 company-owned locations. HearUSA is 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. HearUSA is also the administrator of the AARP Hearing Care program, designed to help millions of Americans aged 50+ who have untreated hearing loss. For more information about HearUSA visit [ www.hearusa.com ], or go to [ www.hearingshop.com ] for a wide selection of hearing related products available for purchase online.
HearUSA, INC. UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS For the Three Months Ended September 26, 2009 and September 27, 2008 (unaudited) September 26, September 27, 2009 2008 ------------- ------------- (Dollars in thousands, except per share amounts) Net revenues Hearing aids and other products $ 19,616 $ 22,716 Services 2,212 1,813 ------------- ------------- Total net revenues 21,828 24,529 ------------- ------------- Operating costs and expenses Hearing aids and other products 4,543 5,963 Services 441 571 ------------- ------------- Total cost of products sold and services excluding depreciation and amortization 4,984 6,534 Center operating expenses 10,811 12,781 General and administrative expenses 3,694 3,217 Depreciation and amortization 593 520 ------------- ------------- Total operating costs and expenses 20,082 23,052 ------------- ------------- Income from operations 1,746 1,477 Non-operating income (expenses) Gain on foreign exchange 99 - Interest income 4 7 Interest expense (1,137) (1,548) ------------- ------------- Income (loss) from continuing operations before income tax expense and discontinued operations 712 (64) Income tax expense (210) (214) ------------- ------------- Income (loss) from continuing operations 502 (278) Discontinued operations Income (loss) from discontinued operations, net of income tax expense (15) 720 Gain on sale of discontinued operations 529 - Income tax expense on gain on sale of discontinued operations (87) - ------------- ------------- Income from discontinued operations 427 720 ------------- ------------- Net income 929 442 Net income attributable to noncontrolling interest (182) (482) ------------- ------------- Net income (loss) attributable to controlling interest 747 (40) Dividends on preferred stock (34) (35) ------------- ------------- Net income (loss) attributable to common stockholders $ 713 $ (75) ============= ============= Income (loss) from continuing operations attributable to common stockholders per common share - basic $ 0.01 $ (0.02) ============= ============= Income (loss) from continuing operations attributable to common stockholders per common share - diluted $ 0.01 $ (0.02) ============= ============= Net income (loss) attributable to common stockholders per common share - basic $ 0.02 $ (0.00) ============= ============= Net income (loss) attributable to common stockholders per common share - diluted $ 0.02 $ (0.00) ============= ============= Weighted average number of shares of common stock outstanding - basic 44,838 38,408 ============= ============= Weighted average number of shares of common stock outstanding - diluted 45,810 38,408 ============= ============= HearUSA, INC. UNAUDITED CONSOLIDATED BALANCE SHEETS (unaudited) September 26, December 27, ASSETS 2009 2008 ------------- ------------- (Dollars in thousands, except for par values) Current assets Cash and cash equivalents $ 8,436 $ 3,553 Short-term marketable securities 6,406 - Accounts and notes receivable, less allowance for doubtful accounts of $644 and $506 5,628 7,371 Inventories 1,882 1,682 Prepaid expenses and other 797 502 ------------- ------------- Total current assets 23,149 13,108 Property and equipment, net 4,150 4,876 Goodwill 51,309 65,953 Intangible assets, net 12,997 15,630 Deposits and other 770 810 Restricted cash and cash equivalents 3,225 224 ------------- ------------- Total Assets $ 95,600 $ 100,601 ============= ============= LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable $ 9,885 $ 5,011 Accrued expenses 3,217 3,208 Accrued salaries and other compensation 3,103 3,713 Current maturities of long-term debt 6,372 6,915 Income taxes payable 1,870 - Dividends payable 35 34 ------------- ------------- Total current liabilities 24,482 18,881 ------------- ------------- Long-term debt 37,308 49,099 Deferred income taxes 7,085 7,284 ------------- ------------- Total long-term liabilities 44,393 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, 44,880,045 and 44,828,384 shares issued 4,488 4,483 Additional paid-in capital 137,577 136,924 Accumulated deficit (114,810) (116,360) Accumulated other comprehensive income - 1,249 Treasury stock, at cost: 523,662 common shares (2,485) (2,485) Noncontrolling interest 1,955 1,526 ------------- ------------- Total Stockholders' equity 26,725 25,337 ------------- ------------- Total Liabilities and Stockholders' Equity $ 95,600 $ 100,601 ============= =============
