GLENDALE, Calif., Aug. 15, 2006 (PRIMEZONE) -- Emergent Group, Inc. (OTCBB:EMGP), a leading provider of mobile medical lasers and surgical equipment, today announced financial results for its second quarter ended June 30, 2006. Second quarter revenues increased 35% to a record $3,993,211, compared to revenues of $2,948,415 for the same period in 2005. Net income increased dramatically to a record $549,807 or $0.10 per basic share ($0.09 per diluted share) for the quarter, compared to net income of $125,275 or $0.03 per basic and diluted share for the same period in 2005. For the six months ended June 30, 2006 revenues increased 36% to $7,984,028, compared to $5,870,935 for the same period in 2005. Net income increased to $1,013,802 or $0.19 per basic share ($0.17 per diluted share) for the six months, compared to net income of $230,560 or $0.05 per basic and diluted share for the same period in 2005.
"Our strong momentum and favorable industry conditions continued during the second quarter and we recorded a record year over year profit increase for the third consecutive quarter," said Bruce J. Haber, Emergent's Chairman and CEO. "The strong increases in sales and net income demonstrate continuing strength in our operational leverage." Mr. Haber added that, "We are extremely optimistic about the future and are continuing to evaluate acquisition and partnership opportunities in an effort to further accelerate growth."
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 Sheet
(unaudited)
June 30,
2006
------------
ASSETS
Current assets
Cash $ 772,578
Accounts receivable, net of allowance
for doubtful accounts of $20,832 2,005,749
Inventory, net of reserves of $77,207 712,369
Prepaid expenses 228,196
------------
Total current assets 3,718,892
Property and equipment, net of
accumulated depreciation and
amortization of $4,291,084 3,198,033
Deposits and other assets 135,354
Goodwill 1,192,027
Other intangible assets, net of
accumulated amortization of $85,921 180,365
------------
Total assets $ 8,424,671
============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Current portion of capital lease obligations $ 668,475
Current portion of notes payable 414,077
Accounts payable 860,706
Accrued liabilities and expenses 1,518,158
------------
Total current liabilities 3,461,416
Capital lease obligations, net of
current portion 982,936
Notes payable, net of current portion 187,500
------------
Total liabilities 4,631,852
Minority interest 349,521
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
5,460,789 shares issued and outstanding 218,392
Additional paid-in capital 14,877,448
Deferred compensation, net of
accumulated amortization of $71,215 (154,840)
Accumulated deficit (11,497,702)
------------
Total shareholders' equity 3,443,298
------------
Total liabilities and shareholders' equity $ 8,424,671
============
EMERGENT GROUP INC.
Consolidated Statements of Income
Three Months Ended Six Months Ended
June 30, June 30,
---------------------- ----------------------
2006 2005 2006 2005
---------- ---------- ---------- ----------
(unaudited) (unaudited)
Revenue $3,993,211 $2,948,415 $7,984,028 $5,870,935
Cost of goods sold 2,362,269 1,930,905 4,801,949 3,899,853
---------- ---------- ---------- ----------
Gross profit 1,630,942 1,017,510 3,182,079 1,971,082
Selling, general, and
administrative
expenses 986,092 873,062 1,962,420 1,672,059
---------- ---------- ---------- ----------
Income from operations 644,850 144,448 1,219,659 299,023
Other income (expense) 4,550 29,296 (10,314) 10,167
---------- ---------- ---------- ----------
Income before provision
for income taxes and
minority interest 649,400 173,744 1,209,345 309,190
Provision for income
taxes (9,972) -- (33,836) --
---------- ---------- ---------- ----------
Net income before
minority interest 639,428 173,744 1,175,509 309,190
Minority interest in
income of consolidated
limited liability
companies (89,621) (48,469) (161,707) (78,630)
---------- ---------- ---------- ----------
Net income $ 549,807 $ 125,275 $1,013,802 $ 230,560
========== ========== ========== ==========
Basic earnings
per share $ 0.10 $ 0.03 $ 0.19 $ 0.05
Diluted earnings
per share $ 0.09 $ 0.03 $ 0.17 $ 0.05
Basic weighted-
average shares
outstanding 5,459,200 4,817,752 5,456,127 4,781,641
Diluted weighted-
average shares
outstanding 5,805,504 4,926,810 5,802,431 4,890,699