SUN VALLEY, Calif., March 27, 2007 (PRIME NEWSWIRE) -- Emergent Group Inc. (OTCBB:EMGP), a leading provider of mobile medical lasers and surgical equipment, today reported record results for the fiscal year ended December 31, 2006. Net income for the year totaled $2,723,967 or $0.50 per common share compared with $966,252 or $0.20 per common share for 2005. Full year revenues were $15,929,243 up 28% from the $12,479,263 reported for 2005.
For the Quarter ended December 31, 2006 the Company reported revenues of $3,947,282 up 15% from the $3,426,514 reported for the comparable period in 2005. Net income was $1,264,400 or $0.23 per common share compared to net income of $334,372 or $0.07 per common share for the comparable period in 2005. Results for the year and quarter include a non-cash deferred tax benefit of $905,400 or $0.16 per share for the quarter ended December 31, 2006, resulting from an adjustment to our reserve on net operating loss carryforwards.
"We are extremely pleased with the financial results and performance of Emergent Group during 2006. We achieved dramatic and record gains in both net income and revenues," said Emergent Group Chairman Bruce J. Haber.
Mr. Haber added, "Our strategic priorities continue to deliver growth that is well in excess of the industry and will provide a unique platform to continue a very healthy growth rate for the future. Emergent Group's profit for 2006 was extremely strong, with and without the deferred tax benefit, and reflects both the addition of new products and increased geographic penetration. We look forward to another outstanding performance for Emergent Group in 2007."
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, 2006 2005 -------------- -------------- ASSETS Current assets Cash $ 1,318,612 $ 585,377 Accounts receivable, net of allowance for doubtful accounts of $19,478 and $20,487 2,385,234 1,891,413 Inventory, net of reserves of $63,408 and $80,148 819,591 617,596 Prepaid expenses 151,897 157,526 Deferred tax assets 905,400 -- -------------- -------------- Total current assets 5,580,734 3,251,912 Property and equipment, net of accumulated depreciation and amortization of $4,570,113 and $3,878,680 3,918,767 2,467,923 Goodwill 1,120,058 1,195,035 Other intangible assets, net of accumulated amortization of $114,940 and $56,901 151,345 209,384 Deposits and other assets 159,330 106,177 -------------- -------------- Total assets $ 10,930,234 $ 7,230,431 ============== ============== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Current portion of capital lease obligations $ 915,230 $ 490,061 Current portion of notes payable 238,186 434,309 Dividend payable to shareholders 1,094,249 512,861 Accounts payable 750,040 1,238,296 Accrued expenses 1,436,385 992,579 -------------- -------------- Total current liabilities 4,434,090 3,668,106 Capital lease obligations, net of current portion 1,855,054 454,155 Notes payable, net of current portion 100,888 378,139 -------------- -------------- Total liabilities 6,390,032 4,500,399 Minority interest 457,317 339,421 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, 5,428,604 and 5,451,631 shares issued and outstanding 217,143 218,065 Additional paid-in capital 14,739,193 14,684,050 Accumulated deficit (10,873,451) (12,511,504) -------------- -------------- Total shareholders' equity 4,082,885 2,390,611 -------------- -------------- Total liabilities and shareholders' equity $ 10,930,234 $ 7,230,431 ============== ============== Emergent Group Inc. Consolidated Statements of Operations Year Ended Three Months Ended December 31, December 31, ------------------------- ------------------------- 2006 2005 2006 2005 ------------ ------------ ------------ ------------ Revenue $ 15,929,243 $ 12,479,263 $ 3,947,282 $ 3,426,514 Cost of goods sold 9,594,557 7,937,656 2,376,277 2,072,596 ------------ ------------ ------------ ------------ Gross profit 6,334,686 4,541,607 1,571,005 1,353,918 Selling, general, and administrative expenses 4,016,689 3,399,359 1,032,579 929,565 ------------ ------------ ------------ ------------ Income from operations 2,317,997 1,142,248 538,426 424,353 Other income (expense) (15,798) 9,539 (13,921) 476 ------------ ------------ ------------ ------------ Income before provision for income taxes, deferred tax benefit, and minority interest 2,302,199 1,151,787 524,505 424,829 Provision for income taxes (39,893) (27,007) 8,635 (27,007) Reversal of deferred tax valuation allowance 905,400 -- 905,400 -- ------------ ------------ ------------ ------------ Net income before minority interest 3,167,706 1,124,780 1,438,540 397,822 Minority interest in income of consolidated limited liability companies (443,739) (158,528) (174,140) (63,450) ------------ ------------ ------------ ------------ Net income $ 2,723,967 $ 966,252 $ 1,264,400 $ 334,372 ============ ============ ============ ============ Basic earnings per share $ 0.50 $ 0.20 $ 0.23 $ 0.07 Diluted earnings per share $ 0.47 $ 0.19 $ 0.22 $ 0.06 Basic weighted- average shares outstanding 5,455,266 4,934,430 5,447,997 5,129,808 Diluted weighted- average shares outstanding 5,801,762 5,189,648 5,799,194 5,385,026