SUN VALLEY, Calif., Nov. 12, 2008 (GLOBE NEWSWIRE) -- Emergent Group Inc. (NYSE Alternext US:LZR), a leading provider of mobile medical lasers and surgical equipment, today announced sharp increases in third quarter sales and net income as the Company continued to pursue strategic benefits from its recently integrated acquisition of PhotoMedex Surgical Services ("PSS").
Emergent Group reported the following results for the third quarter ended September 30, 2008:
* Revenue set a record, increasing 43% to $6.4 million versus $4.5 million in the third quarter ended September 30, 2007. * Net income rose 72% to a record $741,810 versus $430,448 in the same period of 2007. * Net income per diluted share was $0.11 versus $0.07 in the prior-year period. Diluted weighted-average shares outstanding were 6.6 million versus 5.9 million in the third quarter of 2007. * Results for the quarter included approximately $188,000 in non-recurring expenses for the acquisition and related financing.
"Emergent Group achieved record third quarter sales as we simultaneously closed and began integrating the PSS acquisition into our PRI Medical Technologies subsidiary, a strategic move highly important to our future growth and expansion," said Chairman and CEO Bruce J. Haber. "Our strong quarterly performance in a challenging economic environment and the achievements of our sales force give us the financial foundation we need to maximize this acquisition and enhance our competitive position in the growing medical technology field. We're especially pleased with our ability to generate cash flow that supports future growth and has allowed us to reward shareholders with a significant annual cash dividend."
Haber noted Emergent's renewed ability to pursue the following growth strategies:
* Expand per-procedure rentals of existing medical equipment and sales of accompanying disposable items in markets that now cover 16 states following the acquisition. * Capitalize on a growing number of medical procedures and increasing limits on physician ownership of equipment. * Identify and offer new, cost-effective medical technologies to hospitals and physician groups with the aid of company-trained technicians. * Pursue acquisitions that expand Emergent's sales and geographic footprint.
"In the near term," Haber added, "we also expect a growing number of hospitals to shift their focus to equipment rental opportunities as they limit capital expenditures in this difficult economic environment."
Emergent Group reported the following results for the nine months ended September 30, 2008:
* Revenue increased 20% to $15.8 million versus $13.2 million for the nine months ended September 30, 2007. * Net income rose 44% to $1.9 million versus $1.3 million for the same period of 2007. * Net income per diluted share was $0.30 versus $0.22 in the prior-year period. Diluted weighted-average shares outstanding were 6.3 million versus 5.8 million for the first nine months of 2007. * Results included the third quarter 2008 acquisition and related financing expenses mentioned above.
About Emergent Group Inc.
Emergent Group Inc., through its wholly owned subsidiary, PRI Medical Technologies, Inc. ("PRI Medical"), provides mobile medical laser and surgical equipment in 16 states on a per-procedure basis to hospitals, outpatient 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 five states in the western United States and 11 states along the eastern seaboard. 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 10KSB 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 Sheets
Sept 30, Dec 31,
2008 2007
----------- -----------
ASSETS (Unaudited)
Current assets
Cash $ 2,577,791 $ 3,043,654
Accounts receivable, net of allowance for
doubtful accounts of $49,984 and $17,460 4,281,351 2,313,084
Inventory, net of reserves of $57,339
and $54,999 903,055 504,792
Prepaid expenses 246,335 164,857
Deferred tax assets 915,488 915,488
----------- -----------
Total current assets 8,924,020 6,941,875
Property and equipment, net of accumulated
depreciation and amortization of $6,764,137
and $5,954,233 6,197,024 4,142,230
Goodwill 1,120,058 1,120,058
Other intangible assets, net of accumulated
amortization of $205,526 and $172,355 419,623 93,930
Deposits and other assets 79,384 104,758
----------- -----------
Total assets $16,740,109 $12,402,851
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Current portion of capital lease
obligations $ 1,855,551 $ 1,143,198
Current portion of notes payable 25,222 100,888
Accounts payable 1,133,311 709,027
Dividends payable -- 1,686,095
Accrued expenses and other liabilities 1,933,059 1,559,046
----------- -----------
Total current liabilities 4,947,143 5,198,254
Capital lease obligations,
net of current portion 3,600,316 2,341,710
----------- -----------
Total liabilities 8,547,459 7,539,964
Minority interest 702,900 592,807
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 6,420,516
and 5,619,392 shares issued
and outstanding 256,817 224,772
Additional paid-in capital 16,138,810 14,836,263
Accumulated deficit (8,905,877) (10,790,955)
----------- -----------
Total shareholders' equity 7,489,750 4,270,080
----------- -----------
Total liabilities and shareholders' equity $16,740,109 $12,402,851
=========== ===========
Emergent Group Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------------ ------------------------
2008 2007 2008 2007
----------- ----------- ----------- -----------
Revenue $ 6,394,974 $ 4,467,011 $15,800,812 $13,181,307
Cost of goods sold 3,751,747 2,685,863 9,067,764 7,876,615
----------- ----------- ----------- -----------
Gross profit 2,643,227 1,781,148 6,733,048 5,304,692
Selling, general,
and administrative
expenses 1,498,459 1,036,272 3,753,553 3,224,372
----------- ----------- ----------- -----------
Income from
operations 1,144,768 744,876 2,979,495 2,080,320
Other income
(expense)
Interest expense (79,800) (54,208) (205,936) (165,810)
Gain on disposal
of property and
equipment -- -- 28,937 8,214
Other income, net 9,298 512 33,422 36,604
----------- ----------- ----------- -----------
Total other
income (expense) (70,502) (53,696) (143,577) (120,992)
----------- ----------- ----------- -----------
Income before
provision for
income taxes and
minority interest 1,074,266 691,180 2,835,918 1,959,328
Provision for
income taxes (77,972) (39,086) (213,472) (134,498)
----------- ----------- ----------- -----------
Income before
minority interest 996,294 652,094 2,622,446 1,824,830
Minority interest
in income of
consolidated
limited liability
companies (254,484) (221,646) (737,368) (516,066)
----------- ----------- ----------- -----------
Net income $ 741,810 $ 430,448 $ 1,885,078 $ 1,308,764
=========== =========== =========== ===========
Basic earnings
per share $ 0.12 $ 0.08 $ 0.32 $ 0.24
=========== =========== =========== ===========
Diluted earnings
per share $ 0.11 $ 0.07 $ 0.30 $ 0.22
=========== =========== =========== ===========
Basic weighted
average shares
outstanding 6,183,074 5,566,448 5,856,867 5,518,920
=========== =========== =========== ===========
Diluted
weighted-average
shares outstanding 6,606,416 5,873,137 6,284,005 5,825,085
=========== =========== =========== ===========