SUN VALLEY, Calif., March 26, 2008 (PRIME NEWSWIRE) -- Emergent Group Inc. (OTCBB:EMGP), a leading provider of mobile medical lasers and surgical equipment, today reported financial results for the fiscal year ended December 31, 2007. Net income for the year totaled $1,768,593 or $0.32 per basic share compared with $2,723,967 or $0.50 per basic share for 2006, which included a tax benefit of $905,400 or $0.16 per basic share. Full year revenues were a record $17,661,541 up 11% from the $15,929,243 reported for 2006.
For the Quarter ended December 31, 2007 the Company reported record revenues of $4,480,234 up 14% from the $3,947,282 reported for the comparable period in 2006. Net income was $459,828 or $0.08 per basic share compared to net income of $1,264,400 or $0.23 per basic share for the comparable period in 2006. Results for the 2006 fourth quarter include a tax benefit of $905,400 or $0.16 per basic share.
According to Emergent Chairman Bruce J. Haber, "Last year's financial performance was extremely strong when compared to the prior year's results without the inclusion of the deferred tax benefit. In fact," he added, "for the fourth quarter of 2007, without consideration of the deferred tax benefit, net income actually increased 25% to a record $0.08 per basic share versus $0.07 per basic share the prior year. Even more significantly the quarterly and year-end results were accomplished despite the Company's investments in the transition of its BPH Platform (Benign Prostatic Hyperplasia, representing approximately 21% of sales in 2007) to a new and more profitable technology."
Haber stated further that, "We are confident that the initiative we initiated during 2007 provides a business strategy that will grow our revenues, strengthen our operations and deliver continued solid financial results both quarterly and annually."
He further remarked, "Our confidence in Emergent's financial future and growth is best illustrated by our growing cash generation and revenues and by our commitment to rewarding shareholders by increasing our 2007 dividend to $0.30 per share, a 50% increase versus the prior year."
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
Consolidated Balance Sheets
December 31,
--------------------------
2007 2006
------------ ------------
ASSETS
Current assets
Cash $ 3,043,654 $ 1,318,612
Accounts receivable, net of allowance for
doubtful accounts of $17,460 and $19,478 2,313,084 2,385,234
Inventory 504,792 819,591
Prepaid expenses 164,857 151,897
Deferred income taxes 915,488 905,400
------------ ------------
Total current assets 6,941,875 5,580,734
Property and equipment, net of accumulated
depreciation and amortization of
$5,954,233 and $4,570,113 4,142,230 3,918,767
Goodwill 1,120,058 1,120,058
Other intangible assets, net of
accumulated amortization of $172,355 and
$114,940 93,930 151,345
Deposits and other assets 104,758 159,330
------------ ------------
Total assets $ 12,402,851 $ 10,930,234
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Current portion of capital lease
obligations $ 1,143,198 $ 915,230
Current portion of notes payable 100,888 238,186
Dividends payable 1,686,095 1,094,249
Accounts payable 709,027 750,040
Accrued expenses and other liabilities 1,559,046 1,436,387
------------ ------------
Total current liabilities 5,198,254 4,434,092
Capital lease obligations, net of current
portion 2,341,710 1,855,054
Notes payable, net of current portion -- 100,888
------------ ------------
Total liabilities 7,539,964 6,390,034
Minority interests 592,807 457,317
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 5,619,392 and 5,428,604
shares issued and outstanding 224,772 217,143
Additional paid-in capital 14,836,263 14,739,193
Accumulated deficit (10,790,955) (10,873,453)
------------ ------------
Total shareholders' equity 4,270,080 4,082,883
------------ ------------
Total liabilities and shareholders'
equity $ 12,402,851 $ 10,930,234
============ ============
EMERGENT GROUP INC.
Consolidated Statements of Income
Year Ended Three Months Ended
December 31, December 31,
------------------------ ------------------------
2007 2006 2007 2006
------------------------ ------------------------
Revenue $17,661,541 $15,929,243 $ 4,480,234 $ 3,947,282
Cost of goods sold 10,473,805 9,594,557 2,597,191 2,376,277
------------------------ ------------------------
Gross profit 7,187,736 6,334,686 1,883,043 1,571,005
Selling, general,
and administrative
expenses 4,390,996 4,016,689 1,166,624 1,032,579
------------------------ ------------------------
Income from
operations 2,796,740 2,317,997 716,419 538,426
Other income
(expense) (152,104) (15,798) (31,112) (13,921)
------------------------ ------------------------
Income before
provision for
income taxes,
deferred tax
benefit, and
minority interest 2,644,636 2,302,199 685,307 524,505
Provision for
income taxes (193,922) (39,893) (59,424) 8,635
Reversal of
deferred tax
valuation
allowance 10,088 905,400 10,088 905,400
----------- ----------- ----------- -----------
Net income before
minority interest 2,460,802 3,167,706 635,971 1,438,540
Minority interest
in income of
consolidated
limited liability
companies (692,209) (443,739) (176,143) (174,140)
----------- ----------- ----------- -----------
Net income $ 1,768,593 $ 2,723,967 $ 459,828 $ 1,264,400
=========== =========== =========== ===========
Basic earnings
per share $ 0.32 $ 0.50 $ 0.08 $ 0.23
Diluted earnings
per share $ 0.31 $ 0.47 $ 0.08 $ 0.22
Basic weighted-
average shares
outstanding 5,533,348 5,455,266 5,575,338 5,447,997
Diluted weighted-
average shares
outstanding 5,798,015 5,801,762 5,837,809 5,799,194