SUN VALLEY, Calif., Aug. 14, 2007 (PRIME NEWSWIRE) -- Emergent Group Inc. (OTCBB:EMGP), a leading provider of mobile medical lasers and surgical equipment, announced results for the second quarter ended June 30, 2007. Revenues for the quarter increased 8% to a record $4,331,488 as compared to revenues of $3,993,211 for the same period in 2006. Net income decreased to $361,204 or $0.07 per basic share for the second quarter as compared to net income of $549,807 or $0.10 per basic share for the same period in 2006.
Bruce J. Haber, Emergent Group Chairman and CEO, said, "The Company continued to perform extremely well in the second quarter as we transitioned our BPH platform (Benign Prostatic Hyperplasia, approximately 24% of sales) to a new and more profitable technology. Although we again recorded record revenues," Mr. Haber added, "the decline in profit is attributable to our decision to sacrifice short term profit to position Emergent for longer-term growth in BPH and other technologies. The newer BPH laser and other technologies provide a significantly larger margin of profitability to the Company."
"We are confident," Mr. Haber continued, "that the added expenses related to this transition are behind us and we look forward to resuming our long-term trend of both increased revenues and profits."
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 and Arizona. 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
Condensed Consolidated Balance Sheet
June 30,
2007
-----------
ASSETS (Unaudited)
Current assets
Cash $ 1,076,253
Accounts receivable, net of
allowance for doubtful
accounts of $19,478 2,312,442
Inventory 460,499
Prepaid expenses 212,013
Deferred tax assets 905,400
-----------
Total current assets 4,966,607
Property and equipment, net of
accumulated depreciation and
amortization of $5,216,079 4,139,020
Goodwill 1,120,058
Other intangible assets, net of
accumulated amortization of
$143,960 122,326
Deposits and other assets 112,662
-----------
Total assets $10,460,673
===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Current portion of capital lease obligations $ 991,180
Current portion of notes payable 106,227
Accounts payable 531,904
Accrued expenses and other liabilities 1,104,913
-----------
Total current liabilities 2,734,224
Capital lease obligations, net of current portion 2,209,323
Notes payable, net of current portion 50,445
-----------
Total liabilities 4,993,992
Minority interest 452,038
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
5,555,881 shares issued and outstanding 222,232
Additional paid-in capital 14,787,551
Accumulated deficit (9,995,140)
-----------
Total shareholders' equity 5,014,643
-----------
Total liabilities and shareholders' equity $ 10,460,673
============
Emergent Group Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
------------------------- -------------------------
2007 2006 2007 2006
----------- ----------- ----------- -----------
Revenue $ 4,331,488 $ 3,993,211 $ 8,714,296 $ 7,984,028
Cost of goods
sold 2,623,649 2,362,269 5,190,753 4,801,949
----------- ----------- ----------- -----------
Gross profit 1,707,839 1,630,942 3,523,543 3,182,079
Selling,
general, and
administrative
expenses 1,099,876 986,092 2,188,100 1,962,420
----------- ----------- ----------- -----------
Income from
operations 607,963 644,850 1,335,443 1,219,659
Other income
(expense)
Interest
expense (59,798) (42,503) (111,602) (89,244)
Gain on
disposal of
property and
equipment 112 1,390 8,214 2,690
Other income,
net 21,872 45,663 36,092 76,240
----------- ----------- ----------- -----------
Total other
income
(expense) (37,814) 4,550 (67,296) (10,314)
----------- ----------- ----------- -----------
Income before
provision for
income taxes
and minority
interest 570,149 649,400 1,268,147 1,209,345
Provision for
income taxes (39,510) (9,972) (95,412) (33,836)
----------- ----------- ----------- -----------
Income before
minority
interest 530,639 639,428 1,172,735 1,175,509
Minority
interest in
income of
consolidated
limited
liability
companies (169,435) (89,621) (294,420) (161,707)
----------- ----------- ----------- -----------
Net income $ 361,204 $ 549,807 $ 878,315 $ 1,013,802
=========== =========== =========== ===========
Basic earnings
per share $ 0.07 $ 0.10 $ 0.16 $ 0.19
=========== =========== =========== ===========
Diluted
earnings
per share $ 0.06 $ 0.09 $ 0.15 $ 0.17
=========== =========== =========== ===========
Basic weighted
average shares
outstanding 5,551,558 5,459,200 5,480,253 5,456,127
=========== =========== =========== ===========
Diluted
weighted-
average shares
outstanding 5,874,849 5,805,504 5,802,259 5,802,431
=========== =========== =========== ===========