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Liberator Medical Reports Revenue of $18.6 Million for Its Fiscal First Quarter Ended December 31, 2013

The Company Reports Net Income of $2.1 Million, or $0.04 per Share, for the Quarter

STUART, FL--(Marketwired - February 12, 2014) - Liberator Medical Holdings, Inc. (NYSE MKT: LBMH) today announced the financial results for its fiscal first quarter ended December 31, 2013. Financial highlights are summarized below:

                                                                      
Dollars in thousands               Q1 FY2014     Q1 FY2013     Change 
                                  -----------   -----------   --------
                                                                      
Net sales                         $    18,637   $    17,551       6.2%
                                                                      
Gross profit                           11,755        10,978       7.1%
                                                                      
Operating income                        3,500         2,258      55.0%
                                                                      
Net income                        $     2,120   $     1,352      56.8%
                                                                      

Net sales for the three months ended December 31, 2013, increased by $1,086,000, or 6.2%, to $18,637,000, compared with net sales of $17,551,000 for the three months ended December 31, 2012. The increase in net sales was due to our continued emphasis on our direct response advertising campaign to acquire new customers and on customer service to maximize the reorder rates for our recurring customer base.

Gross profit for the three months ended December 31, 2013, increased by $777,000, or 7.1%, to $11,755,000, compared with gross profit of $10,978,000 for the three months ended December 31, 2012. The increase is attributed to increased sales volumes and a reduction in product costs for the three months ended December 31, 2013, compared with the three months ended December 31, 2012.

Income from operations for the three months ended December 31, 2013, increased by $1,242,000, or 55.0%, to $3,500,000, compared with the three months ended December 31, 2012. The increase in operating income is attributed to increased gross profit driven by our increased sales volumes at reduced levels of operating expenses.

Net income for the first quarter of fiscal year 2014 was $2,120,000, or $0.04 per diluted share, compared with net income of $1,352,000, or $0.03 per diluted share, for the first quarter of fiscal year 2013.

The Company had cash of $12,195,000 at December 31, 2013, compared with cash of $12,453,000 at September 30, 2013, a decrease of $258,000. The decrease in cash for the three months ended December 31, 2013, was due to $1,518,000 of cash used in financing activities, primarily cash dividends paid to shareholders, and $47,000 of net cash used in investing activities, partially offset by $1,307,000 of cash provided by operating activities.

Other Significant Events for the First Quarter of Fiscal Year 2014

  • On November 20, 2013, the Company's common stock was listed and began trading on the NYSE MKT exchange, increasing visibility and shareholder liquidity.
  • During the first quarter of fiscal year 2014, the Company declared a quarterly cash dividend of $0.03 per common share.

Mark Libratore, the Company's President and CEO, commented, "Our financial results for the first quarter of fiscal year 2014 demonstrate our continued emphasis on growing our customer base, increasing our earnings, and improving our operating margins. The cash generated from our operations provides a quarterly cash dividend to our shareholders and the flexibility for the Company to grow through a combination of our direct response advertising efforts and strategic acquisitions that allow us to acquire new customers at competitive rates.

We will continue to manage the levels of our direct response advertising spend, implement process improvements, and explore potential acquisition targets to grow our business and increase operating margins during fiscal year 2014."

Stay up-to-date with current events by visiting Liberator Medical's website at www.liberatormedical.com or by joining the Company's E-Mail Alert List. Join by clicking the following link www.LBMH-IR.com

About Liberator Medical Holdings, Inc.

Liberator Medical Holdings, Inc.'s subsidiary, Liberator Medical Supply, Inc., established the Liberator brand as a leading national direct-to-consumer provider of quality medical supplies to Medicare-eligible seniors. Accredited by The Joint Commission, our Company's unique combination of marketing, industry expertise and customer service has demonstrated success over a broad spectrum of chronic conditions. Liberator is recognized for offering a simple, reliable way to purchase medical supplies needed on a regular, ongoing, repeat-order basis, with the convenience of direct billing to Medicare and private insurance. Liberator's revenue primarily comes from supplying products to meet the rapidly growing requirements of general medical supplies, diabetes supplies, catheters, ostomy supplies and mastectomy fashions. Liberator communicates with patients and their doctors on a regular basis regarding prescriptions and supplies. Customers may purchase by phone, mail or internet, with repeat orders confirmed with the customer and shipped when needed.

Safe Harbor Statement

In this press release and in related comments by our management, our use of the words "expect," "anticipate," "possible," "potential," "target," "believe," "commit," "intend," "continue," "may," "would," "could," "should," "project," "projected," "positioned" or similar expressions is intended to identify forward-looking statements that represent our current judgment about possible future events. We believe these judgments are reasonable, but these statements are not guarantees of any events or financial results, and our actual results may differ materially due to a variety of important factors. Such risks and uncertainties may include, but are not limited to, regulatory limitations on the medical industry in general, working capital constraints, fluctuations in customer demand and commitments, fluctuation in quarterly results, introduction of new services and products, commercial acceptance and viability of new services and products, pricing and competition, reliance upon subcontractors and vendors, the timing of new technology and product introductions, and the risk of early obsolescence of our products. Liberator's most recent annual report on Form 10-K and quarterly reports on Form 10-Q provide information about these and other factors, which we may revise or supplement in future reports filed with the Securities and Exchange Commission.

                                                                            
                                                                            
             Liberator Medical Holdings, Inc. and Subsidiaries              
                   Condensed Consolidated Balance Sheets                    
        As of December 31, 2013 (unaudited) and September 30, 2013          
              (In thousands, except dollar per share amounts)               
                                                                            
                                              December 31,    September 30, 
                                                  2013            2013      
                                             --------------  -------------- 
                    Assets                                                  
Current Assets:                                                             
  Cash                                       $       12,195  $       12,453 
  Accounts receivable, net of allowances of                                 
   $4,745 and $4,502, respectively                    9,589           7,836 
  Inventory, net of allowance for obsolete                                  
   inventory of $321 and $308, respectively           2,482           2,187 
  Deferred tax assets                                 2,112           2,067 
  Prepaid and other current assets                      626             219 
                                             --------------  -------------- 
  Total Current Assets                               27,004          24,762 
Property and equipment, net of accumulated                                  
 depreciation of $3,637 and $3,492,                                         
 respectively                                           944           1,044 
Deferred advertising, net                            23,311          22,705 
Intangible assets, net of accumulated                                       
 amortization of $194 and $169, respectively            388             414 
Other assets                                            170             174 
                                             --------------  -------------- 
Total Assets                                 $       51,817  $       49,099 
                                             --------------  -------------- 
                                                                            
     Liabilities and Stockholders' Equity                                   
Current Liabilities:                                                        
  Accounts payable                           $        6,381  $        4,915 
  Accrued liabilities                                 1,569           1,354 
  Dividends payable                                   1,572           1,569 
  Income tax payable                                  1,681           1,195 
  Other current liabilities                              93             111 
                                             --------------  -------------- 
    Total Current Liabilities                        11,296           9,144 
Deferred tax liabilities                              8,487           8,561 
Credit line facility                                  1,500           1,500 
Other long-term liabilities                              51              63 
                                             --------------  -------------- 
Total Liabilities                                    21,334          19,268 
                                             --------------  -------------- 
                                                                            
Stockholders' Equity:                                                       
Common stock, $.001 par value, 200,000 shares                               
 authorized, 52,757 and 52,637 shares issued,                               
 respectively; 52,403 and 52,283 shares                                     
 outstanding at December 31, 2013, and                                      
 September 30, 2013, respectively                        53              53 
Additional paid-in capital                           35,215          35,111 
Accumulated deficit                                  (4,305)         (4,853)
Treasury stock, at cost; 354 shares at                                      
 December 31, 2013, and September 30, 2013             (480)           (480)
                                             --------------  -------------- 
Total Stockholders' Equity                           30,483          29,831 
                                             --------------  -------------- 
Total Liabilities and Stockholders' Equity   $       51,817  $       49,099 
                                             ==============  ============== 
                                                                            
                                                                            

See accompanying notes to unaudited condensed consolidated financial statements.

                                                                            
                                                                            
             Liberator Medical Holdings, Inc. and Subsidiaries              
              Condensed Consolidated Statements of Operations               
           For the three months ended December 31, 2013 and 2012            
                                (Unaudited)                                 
                  (in thousands, except per share amounts)                  
                                                                            
                                                      Three Months Ended    
                                                         December 31,       
                                                   ------------------------ 
                                                       2013         2012    
                                                   -----------  ----------- 
                                                                            
Net Sales                                          $    18,637  $    17,551 
                                                                            
Cost of Sales                                            6,882        6,573 
                                                   -----------  ----------- 
                                                                            
Gross Profit                                            11,755       10,978 
                                                   -----------  ----------- 
                                                                            
Operating Expenses:                                                         
  Payroll, taxes and benefits                            3,657        3,843 
  Advertising                                            2,326        2,203 
  Bad debts                                                824        1,278 
  Depreciation and amortization                            171          164 
  General and administrative                             1,277        1,232 
                                                   -----------  ----------- 
Total Operating Expenses                                 8,255        8,720 
                                                   -----------  ----------- 
                                                                            
Income from Operations                                   3,500        2,258 
                                                   -----------  ----------- 
                                                                            
Other Expenses                                             (13)         (21)
                                                   -----------  ----------- 
                                                                            
Income before Income Taxes                               3,487        2,237 
                                                                            
Provision for Income Taxes                               1,367          885 
                                                   -----------  ----------- 
                                                                            
Net Income                                         $     2,120  $     1,352 
                                                   ===========  =========== 
                                                                            
Basic earnings per share:                                                   
Weighted average shares outstanding                     52,358       48,147 
Earnings per share                                 $      0.04  $      0.03 
                                                                            
Diluted earnings per share:                                                 
Weighted average shares outstanding                     53,228       52,143 
Earnings per share                                 $      0.04  $      0.03 
                                                                            
Dividends declared per common share                $      0.03  $         - 
                                                                            

See accompanying notes to unaudited condensed consolidated financial statements.

                                                                            
                                                                            
             Liberator Medical Holdings, Inc. and Subsidiaries              
              Condensed Consolidated Statements of Cash Flows               
           For the three months ended December 31, 2013 and 2012            
                                (Unaudited)                                 
                               (in thousands)                               
                                                      Three Months Ended    
                                                         December 31,       
                                                   ------------------------ 
                                                       2013         2012    
                                                   -----------  ----------- 
Cash flow from operating activities:                                        
  Net Income                                       $     2,120  $     1,352 
  Adjustments to reconcile net income to net cash                           
   provided by operating activities:                                        
    Depreciation and amortization                        2,482        2,310 
    Equity based compensation                               32           10 
    Provision for doubtful accounts and contractual                         
     adjustments                                         1,027        1,335 
    Deferred income taxes                                 (120)         805 
    Reserve for inventory obsolescence                      13           53 
  Changes in operating assets and liabilities:                              
    Accounts receivable                                 (2,779)        (169)
    Deferred advertising                                (2,918)      (2,753)
    Inventory                                             (307)         148 
    Other assets                                          (402)         (57)
    Accounts payable                                     1,952       (2,013)
    Accrued liabilities                                    215          393 
    Other liabilities                                       (8)           3 
                                                   -----------  ----------- 
Net Cash Flow Provided by Operating Activities           1,307        1,417 
                                                   -----------  ----------- 
                                                                            
Cash flow from investing activities:                                        
  Purchase of property and equipment                       (51)        (308)
  Proceeds from sale of property and equipment               4            - 
                                                   -----------  ----------- 
Net Cash Flow Used in Investing Activities                 (47)        (308)
                                                   -----------  ----------- 
                                                                            
Cash flow from financing activities:                                        
  Proceeds from employee stock purchase plan                 -           13 
  Proceeds from exercise of employee stock options          72            - 
  Cash dividends paid                                   (1,569)           - 
  Payments of capital lease obligations                    (22)         (17)
                                                   -----------  ----------- 
Net Cash Flow Used in Financing Activities              (1,518)          (4)
                                                   -----------  ----------- 
                                                                            
Net increase (decrease) in cash                           (258)       1,105 
                                                                            
Cash at beginning of period                             12,453        3,326 
                                                   -----------  ----------- 
Cash at end of period                              $    12,195  $     4,431 
                                                   ===========  =========== 
                                                                            
Supplemental disclosure of cash flow information:                           
Cash paid for interest                             $        15  $        21 
Cash paid for income taxes                         $     1,000  $         5 
                                                                            
Supplemental schedule of non-cash financing                                 
 activities:                                                                
Cash dividends declared, but not yet paid          $     1,572  $         - 
                                                                            

See accompanying notes to unaudited condensed consolidated financial statements.

Contacts:

Individual Investor Relations Contact
WSR Communications
772-219-7525
[email protected]
http://wsrcommunications.ir.stockpr.com/liberatormedical

Institutional Investor Contact
Lyn Davis
Littlebanc Advisors, LLC
561-948-3005
[email protected]
www.littlebanc.com

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