Welcome!

News Feed Item

Liberator Medical Reports Revenue of $17.6 Million for Its Fiscal Second Quarter Ended March 31, 2014

The Company Reports Net Income of $1.6 Million, or $0.03 per share, for the Quarter

STUART, FL--(Marketwired - May 15, 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                       Q2 FY2014   Q2 FY2013     Change 
                                         ----------- ----------- -----------
                                                                            
Net sales                                $    17,619 $    16,734        5.3%
                                                                            
Operating income                               2,597       2,358       10.1%
                                                                            
Net income                               $     1,613 $     1,420       13.6%

Net sales for the three months ended March 31, 2014, increased by $885,000, or 5.3%, to $17,619,000, compared with net sales of $16,734,000 for the three months ended March 31, 2013. Net sales for the six months ended March 31, 2014, increased by $1,971,000, or 5.7%, to $36,256,000, compared with net sales of $34,285,000 for the six months ended March 31, 2013. The increase in net sales was primarily due to our continued emphasis on our direct response advertising campaign to acquire new customers and our emphasis on customer service to maximize the reorder rates for our recurring customer base.

Income from operations for the three months ended March 31, 2014, increased by $239,000, or 10.1%, to $2,597,000, compared with the three months ended March 31, 2013. For the six months ended March 31, 2014, income from operations increased by $1,481,000, or 32.1%, to $6,097,000, compared with the six months ended March 31, 2013. The increase in operating income is primarily attributed to increased gross profits driven by our increased sales volumes as well as a reduction as a percentage of sales in payroll and bad debts expense, partially offset by an increase in general and administrative expenses.

Net income for the second quarter of fiscal year 2014 was $1,613,000 or $0.03 per diluted share, compared with net income of $1,420,000, or $0.03 per diluted share, for the second quarter of fiscal year 2013. Net income for the six months ended March 31, 2014 was $3,733,000 or $0.07 per diluted share, compared with net income of $2,772,000, or $0.05 per diluted share, for the six months ended March 31, 2013.

The Company had cash of $9,573,000 at March 31, 2014, compared with cash of $12,453,000 at September 30, 2013, a decrease of $2,880,000. The decrease in cash for the six months ended March 31, 2014, is primarily attributable to $3,411,000 used for taxes, $944,000 of which will be applied to future periods, dividend payments of $3,141,000 and $2,090,000 in increased advertising expenditures.

Mark Libratore, the Company's President and CEO, commented, "In the second quarter we encountered our normal seasonal sales weakness associated with the renewal of calendar year deductibles, continued delayed payments due to Medicare's industry wide auditing of medical supply claims and a significant increase in income tax payments. I am pleased to report that Liberator achieved positive revenue and operating margin growth in our fiscal second quarter.

"As we have done from time-to-time we have taken the opportunity to pulse our advertising expenditures. It is our intent to utilize excess cash to grow our customer base. Our experience has demonstrated the benefit over time of our advertising expenditures including, but not limited to the invaluable insights we gain. We will continue to manage our advertising expenditures to balance growth and cash flow to maximize the return realized by our shareholders."

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 March 31, 2014 (unaudited) and September 30, 2013          
               (In thousands, except dollar per share amounts)              
                                                                            
                                                March 31,     September 30, 
                                                   2014            2013     
                                              --------------  --------------
Assets                                                                      
Current Assets:                                                             
  Cash                                          $     9,573     $    12,453 
  Accounts receivable, net of allowances of                                 
   $4,659 and $4,502, respectively                    9,147           7,836 
  Inventory, net of allowance for obsolete                                  
   inventory of $327 and $308, respectively           2,346           2,187 
  Prepaid income taxes                                  944               - 
  Deferred tax assets                                 2,131           2,067 
  Prepaid and other current assets                      521             219 
                                              --------------  --------------
    Total Current Assets                             24,662          24,762 
Property and equipment, net of accumulated                                  
 depreciation of $3,776 and $3,492,                                         
 respectively                                           845           1,044 
Deferred advertising, net                            25,070          22,705 
Intangible assets, net of accumulated                                       
 amortization of $223 and $169, respectively            478             414 
Other assets                                            178             174 
                                              --------------  --------------
Total Assets                                    $    51,233     $    49,099 
                                              ==============  ==============
                                                                            
Liabilities and Stockholders' Equity                                        
Current Liabilities:                                                        
  Accounts payable                              $     5,740     $     4,915 
  Accrued liabilities                                 1,499           1,354 
  Dividends payable                                   1,584           1,569 
  Income tax payable                                    181           1,195 
  Other current liabilities                              85             111 
                                              --------------  --------------
    Total Current Liabilities                         9,089           9,144 
    Deferred tax liabilities                          9,338           8,561 
Credit line facility                                  1,500           1,500 
Other long-term liabilities                              32              63 
                                              --------------  --------------
Total Liabilities                                    19,959          19,268 
                                              --------------  --------------
                                                                            
Stockholders' Equity:                                                       
Common stock, $0.001 par value, 200,000 shares                              
 authorized, 53,168 and 52,637 shares issued,                               
 respectively; 52,814 and 52,283 shares                                     
 outstanding at March 31, 2014, and September                               
 30, 2013, respectively                                  53              53 
Additional paid-in capital                           35,977          35,111 
Accumulated deficit                                  (4,276)         (4,853)
Treasury stock, at cost; 354 shares at March                                
 31, 2014, and September 30, 2013                      (480)           (480)
                                              --------------  --------------
Total Stockholders' Equity                           31,274          29,831 
                                              --------------  --------------
Total Liabilities and Stockholders' Equity      $    51,233     $    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 and six months ended March 31, 2014 and 2013         
                                 (Unaudited)                                
                  (in thousands, except per share amounts)                  
                                                                            
                               Three Months Ended    Six Months Ended March 
                                    March 31,                  31,          
                             ----------------------- -----------------------
                                                                            
                                2014        2013        2014        2013    
                             ----------- ----------- ----------- -----------
                                                                            
Net Sales                      $ 17,619    $ 16,734    $ 36,256    $ 34,285 
                                                                            
Cost of Sales                     6,611       6,000      13,493      12,574 
                                                                            
Gross Profit                     11,008      10,734      22,763      21,711 
                                                                            
Operating Expenses                                                          
  Payroll, taxes and benefits     3,681       3,666       7,338       7,509 
  Advertising                     2,371       2,269       4,697       4,471 
  Bad debts                         818       1,167       1,642       2,445 
  Depreciation and                                                          
   amortization                     168         174         339         338 
  General and administrative      1,373       1,100       2,650       2,332 
Total Operating Expenses          8,411       8,376      16,666      17,095 
                                                                            
Income from Operations            2,597       2,358       6,097       4,616 
                                                                            
Other Expenses                      (13)        (21)        (26)        (42)
                                                                            
Income before Income Taxes        2,584       2,337       6,071       4,574 
                                                                            
Provision for Income Taxes          971         917       2,338       1,802 
                                                                            
Net Income                     $  1,613    $  1,420    $  3,733    $  2,772 
                             =========== =========== =========== ===========
                                                                            
Basic earnings per share:                                                   
Weighted average shares                                                     
 outstanding                     52,578      48,177      52,467      48,162 
Earnings per share             $   0.03    $   0.03    $   0.07    $   0.06 
                                                                            
Diluted earnings per share:                                                 
Weighted average shares                                                     
 outstanding                     53,602      52,277      53,450      52,214 
Earnings per share             $   0.03    $   0.03    $   0.07    $   0.05 
                                                                            
Dividends declared per common                                               
 share                         $   0.03           -    $   0.06           - 
                                                                                
                                                                                
See accompanying notes to unaudited condensed consolidated financial statements.
                                                                            
                                                                            
             Liberator Medical Holdings, Inc. and Subsidiaries              
               Condensed Consolidated Statements of Cash Flows              
              For the six months ended March 31, 2014 and 2013              
                                 (Unaudited)                                
                                (in thousands)                              
                                                                            
                                                      Six Months Ended      
                                                          March 31,         
                                                 ---------------------------
                                                     2014          2013     
                                                 ------------- -------------
Cash flow from operating activities:                                        
  Net Income                                       $    3,733    $    2,772 
  Adjustments to reconcile net income to net cash                           
   provided by operating activities:                                        
    Depreciation and amortization                       5,003         4,708 
    Equity based compensation                             164            47 
    Provision for doubtful accounts and                                     
     contractual adjustments                            1,804         2,479 
    Deferred income taxes                                 713         1,476 
    Reserve for inventory obsolescence                     19           103 
  Changes in operating assets and liabilities:                              
    Accounts receivable                                (3,114)         (948)
    Deferred advertising                               (7,030)       (4,940)
    Inventory                                            (142)          227 
    Other assets                                         (284)         (164)
    Income taxes prepaid and payable                   (1,958)          260 
    Accounts payable                                      824        (2,084)
    Accrued liabilities                                   109           135 
    Other liabilities                                     (15)           (1)
                                                 ------------- -------------
Net Cash Flow Provided by (Used in) Operating                               
 Activities                                              (174)        4,070 
                                                 ------------- -------------
                                                                            
Cash flow from investing activities:                                        
  Purchase of property and equipment                      (75)         (347)
  Proceeds from sale of property and equipment              4             - 
  Acquisition of business                                (134)            - 
                                                 ------------- -------------
Net Cash Flow Used in Investing Activities               (205)         (347)
                                                 ------------- -------------
                                                                            
Cash flow from financing activities:                                        
  Proceeds from employee stock purchase plan                -            42 
  Proceeds from exercise of stock options and                               
   warrants                                               531             - 
  Cash dividends paid                                  (3,141)            - 
  Costs associated with credit line facility              (21)          (21)
  Income tax benefit related to exercise of stock                           
   options                                                171             - 
  Payments of capital lease obligations                   (41)          (35)
                                                 ------------- -------------
Net Cash Flow Used in Financing Activities             (2,501)          (14)
                                                 ------------- -------------
                                                                            
Net increase (decrease) in cash                        (2,880)        3,709 
                                                                            
Cash at beginning of period                            12,453         3,326 
                                                 ------------- -------------
Cash at end of period                              $    9,573    $    7,035 
                                                 ============= =============
                                                                            
Supplemental disclosure of cash flow information:                           
Cash paid for interest                             $       27    $       42 
Cash paid for income taxes                         $    3,411    $       47 
                                                                            
Supplemental schedule of non-cash financing                                 
 activities:                                                                
Cash dividends declared, but not yet paid          $    1,584    $        - 
                                                                                
                                                                                
See accompanying notes to unaudited condensed consolidated financial statements.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Data is an unusual currency; it is not restricted by the same transactional limitations as money or people. In fact, the more that you leverage your data across multiple business use cases, the more valuable it becomes to the organization. And the same can be said about the organization’s analytics. In his session at 19th Cloud Expo, Bill Schmarzo, CTO for the Big Data Practice at EMC, will introduce a methodology for capturing, enriching and sharing data (and analytics) across the organizati...
Enterprises have forever faced challenges surrounding the sharing of their intellectual property. Emerging cloud adoption has made it more compelling for enterprises to digitize their content, making them available over a wide variety of devices across the Internet. In his session at 19th Cloud Expo, Santosh Ahuja, Director of Architecture at Impiger Technologies, will introduce various mechanisms provided by cloud service providers today to manage and share digital content in a secure manner....
SYS-CON Events announced today that Isomorphic Software will exhibit at DevOps Summit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Isomorphic Software provides the SmartClient HTML5/AJAX platform, the most advanced technology for building rich, cutting-edge enterprise web applications for desktop and mobile. SmartClient combines the productivity and performance of traditional desktop software with the simp...
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.
With so much going on in this space you could be forgiven for thinking you were always working with yesterday’s technologies. So much change, so quickly. What do you do if you have to build a solution from the ground up that is expected to live in the field for at least 5-10 years? This is the challenge we faced when we looked to refresh our existing 10-year-old custom hardware stack to measure the fullness of trash cans and compactors.
The emerging Internet of Everything creates tremendous new opportunities for customer engagement and business model innovation. However, enterprises must overcome a number of critical challenges to bring these new solutions to market. In his session at @ThingsExpo, Michael Martin, CTO/CIO at nfrastructure, outlined these key challenges and recommended approaches for overcoming them to achieve speed and agility in the design, development and implementation of Internet of Everything solutions wi...
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
With over 720 million Internet users and 40–50% CAGR, the Chinese Cloud Computing market has been booming. When talking about cloud computing, what are the Chinese users of cloud thinking about? What is the most powerful force that can push them to make the buying decision? How to tap into them? In his session at 18th Cloud Expo, Yu Hao, CEO and co-founder of SpeedyCloud, answered these questions and discussed the results of SpeedyCloud’s survey.
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
Qosmos has announced new milestones in the detection of encrypted traffic and in protocol signature coverage. Qosmos latest software can accurately classify traffic encrypted with SSL/TLS (e.g., Google, Facebook, WhatsApp), P2P traffic (e.g., BitTorrent, MuTorrent, Vuze), and Skype, while preserving the privacy of communication content. These new classification techniques mean that traffic optimization, policy enforcement, and user experience are largely unaffected by encryption. In respect wit...
SYS-CON Events announced today that StarNet Communications will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. StarNet Communications’ FastX is the industry first cloud-based remote X Windows emulator. Using standard Web browsers (FireFox, Chrome, Safari, etc.) users from around the world gain highly secure access to applications and data hosted on Linux-based servers in a central data center. ...
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...