GLENDALE, Calif., March 29, 2006 (PRIMEZONE) -- Emergent Group Inc. (OTCBB:EMGP), a provider of mobile medical lasers and surgical equipment, today announced financial results for the fourth quarter and year ended December 31, 2005. Fourth quarter revenues increased 24% to $3,426,514, compared to revenues of $2,751,447 for the same period in 2004. Net income was $334,372 or $0.07 per basic share ($0.06 per diluted share) for the quarter, compared to a loss of ($48,516) or $(0.01) per share for the same period in 2004. For the year ended December 31, 2005 revenues increased 14% to $12,479,263, compared to revenues of $10,967,369 for 2004. Net income was $966,252 or $0.20 per basic share ($0.19 per diluted share) for 2005, compared to net income of $23,280 or $0.00 per share for 2004.
"Our operating results for the fourth quarter and full year reflect a significant turnaround from prior year results," commented Bruce J. Haber, Chairman and CEO. "We have worked hard to position PRI Medical Technologies, Inc. (our operating subsidiary) for future profitable growth. Our geographic reach has now expanded to six states with the addition of New York and Arizona in 2005."
"I am particularly pleased that in the past several months we have both made a strategic acquisition with the purchase of certain operating assets of Advantage Medical Services, LLC in November, 2005 and paid our first dividend of $0.10 per share in January, 2006. Our balance sheet remains strong and we continue to look for additional opportunities," continued Mr. Haber.
About Emergent Group Inc.
Emergent Group Inc. through its wholly owned subsidiary, PRI Medical Technologies, Inc. ("PRI Medical") provides mobile laser and surgical equipment on a per procedure basis to hospitals, out-patient surgery centers, and physicians' offices. Surgical equipment is provided to customers along with technical support personnel to ensure that such equipment is operating correctly. PRI Medical currently offers its services in California, Nevada, Colorado, Utah, Arizona and New York. For product and other information, visit PRI Medical's website, http://www.primedical.net.
Forward-Looking Statements:
Statements in this news release may contain forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1993 and Section 21E of the Securities Exchange Act of 1934. Such statements may involve various risks and uncertainties, some of which may be discussed in the Company's most recent report on Form 10-KSB and subsequently filed SEC reports. There is no assurance any forward-looking statements will prove accurate, as actual results and future events could differ materially from those presently anticipated.
Emergent Group Inc. and Subsidiaries Consolidated Balance Sheets December 31, ---------------------------- 2005 2004 ------------ ------------ ASSETS Current assets Cash $ 585,377 $ 351,595 Accounts receivable, net of allowance for doubtful accounts of $20,487 and $26,125 1,891,413 1,429,155 Inventory, net of reserves of $80,148 and $141,916 617,596 372,744 Prepaid expenses 157,526 128,968 ------------ ------------ Total current assets 3,251,912 2,282,462 Property and equipment, net of accumulated depreciation and amortization of $3,878,680 and $2,931,943 2,467,923 1,896,309 Goodwill 1,195,035 779,127 Other intangible assets, net of accumulated amortization of $56,901 and $29,487 209,384 76,798 Deposits and other assets 106,177 56,892 ------------ ------------ Total assets $ 7,230,431 $ 5,091,588 ============ ============ LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Current portion of capital lease obligations $ 490,061 $ 347,558 Current portion of notes payable 434,309 389,247 Dividend payable to shareholders 512,861 -- Line of credit -- 650,000 Accounts payable 1,238,296 565,136 Accrued expenses 992,579 684,244 ------------ ------------ Total current liabilities 3,668,106 2,636,185 Capital lease obligations, net of current portion 454,155 269,269 Notes payable, net of current portion 378,139 291,229 ------------ ------------ Total liabilities 4,500,399 3,196,683 Minority interest 339,421 181,928 Shareholders' equity Preferred stock, $0.001 par value, non-voting 10,000,000 shares authorized, no shares issued and outstanding -- -- Common stock, $0.04 par value, 100,000,000 shares authorized 5,451,631 and 4,744,551 shares issued and outstanding 218,065 189,782 Additional paid-in capital 14,815,571 14,488,090 Deferred compensation, net of accumulated amortization of $32,329 (131,521) -- Accumulated deficit (12,511,504) (12,964,895) ------------ ------------ Total shareholders' equity 2,390,611 1,712,977 ------------ ------------ Total liabilities and shareholders' equity $ 7,230,431 $ 5,091,588 ============ ============ EMERGENT GROUP INC. Consolidated Statements of Operations Year Ended Three Months Ended December 31, December 31, ------------------------ ------------------------ 2005 2004 2005 2004 ----------- ----------- ----------- ----------- Revenue $12,479,263 $10,967,369 $ 3,426,514 $ 2,751,447 Cost of goods sold 7,937,656 7,703,124 2,072,596 1,971,673 ----------- ----------- ----------- ----------- Gross profit 4,541,607 3,264,245 1,353,918 779,774 Selling, general, and administrative expenses 3,399,359 3,152,409 929,565 832,760 ----------- ----------- ----------- ----------- Income from operations 1,142,248 111,836 424,353 (52,986) Other income (expense) 9,539 67,953 476 44,916 ----------- ----------- ----------- ----------- Income before provision for income taxes and minority interest 1,151,787 179,789 424,829 (8,070) Provision for income taxes 27,007 -- 27,007 -- ----------- ----------- ----------- ----------- Net income before minority interest 1,124,780 179,789 397,822 (8,070) Minority interest in income of con- solidated limited liability companies (158,528) (156,509) (63,450) (40,446) ----------- ----------- ----------- ----------- Net income $ 966,252 $ 23,280 $ 334,372 $ (48,516) =========== =========== =========== =========== Basic earnings per share 0.20 0.00 0.07 (0.01) Diluted earnings per share 0.19 0.00 0.06 (0.01) Basic weighted- average shares outstanding 4,934,430 4,744,551 5,129,808 4,744,551 Diluted weighted- average shares outstanding 5,189,648 4,744,551 5,385,026 4,744,551