GLENDALE, Calif., March 29, 2006 (PRIMEZONE) -- Emergent Group Inc. (OTCBB:EMGP), a provider of mobile medical lasers and surgical equipment, today announced financial results for the fourth quarter and year ended December 31, 2005. Fourth quarter revenues increased 24% to $3,426,514, compared to revenues of $2,751,447 for the same period in 2004. Net income was $334,372 or $0.07 per basic share ($0.06 per diluted share) for the quarter, compared to a loss of ($48,516) or $(0.01) per share for the same period in 2004. For the year ended December 31, 2005 revenues increased 14% to $12,479,263, compared to revenues of $10,967,369 for 2004. Net income was $966,252 or $0.20 per basic share ($0.19 per diluted share) for 2005, compared to net income of $23,280 or $0.00 per share for 2004.
"Our operating results for the fourth quarter and full year reflect a significant turnaround from prior year results," commented Bruce J. Haber, Chairman and CEO. "We have worked hard to position PRI Medical Technologies, Inc. (our operating subsidiary) for future profitable growth. Our geographic reach has now expanded to six states with the addition of New York and Arizona in 2005."
"I am particularly pleased that in the past several months we have both made a strategic acquisition with the purchase of certain operating assets of Advantage Medical Services, LLC in November, 2005 and paid our first dividend of $0.10 per share in January, 2006. Our balance sheet remains strong and we continue to look for additional opportunities," continued Mr. Haber.
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,
----------------------------
2005 2004
------------ ------------
ASSETS
Current assets
Cash $ 585,377 $ 351,595
Accounts receivable, net of allowance
for doubtful accounts of $20,487
and $26,125 1,891,413 1,429,155
Inventory, net of reserves of
$80,148 and $141,916 617,596 372,744
Prepaid expenses 157,526 128,968
------------ ------------
Total current assets 3,251,912 2,282,462
Property and equipment, net of
accumulated depreciation and
amortization of $3,878,680 and
$2,931,943 2,467,923 1,896,309
Goodwill 1,195,035 779,127
Other intangible assets, net of
accumulated amortization of
$56,901 and $29,487 209,384 76,798
Deposits and other assets 106,177 56,892
------------ ------------
Total assets $ 7,230,431 $ 5,091,588
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Current portion of capital
lease obligations $ 490,061 $ 347,558
Current portion of notes payable 434,309 389,247
Dividend payable to shareholders 512,861 --
Line of credit -- 650,000
Accounts payable 1,238,296 565,136
Accrued expenses 992,579 684,244
------------ ------------
Total current liabilities 3,668,106 2,636,185
Capital lease obligations, net of
current portion 454,155 269,269
Notes payable, net of
current portion 378,139 291,229
------------ ------------
Total liabilities 4,500,399 3,196,683
Minority interest 339,421 181,928
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
5,451,631 and 4,744,551 shares issued
and outstanding 218,065 189,782
Additional paid-in capital 14,815,571 14,488,090
Deferred compensation, net of
accumulated amortization of
$32,329 (131,521) --
Accumulated deficit (12,511,504) (12,964,895)
------------ ------------
Total shareholders' equity 2,390,611 1,712,977
------------ ------------
Total liabilities and
shareholders' equity $ 7,230,431 $ 5,091,588
============ ============
EMERGENT GROUP INC.
Consolidated Statements of Operations
Year Ended Three Months Ended
December 31, December 31,
------------------------ ------------------------
2005 2004 2005 2004
----------- ----------- ----------- -----------
Revenue $12,479,263 $10,967,369 $ 3,426,514 $ 2,751,447
Cost of goods sold 7,937,656 7,703,124 2,072,596 1,971,673
----------- ----------- ----------- -----------
Gross profit 4,541,607 3,264,245 1,353,918 779,774
Selling, general,
and administrative
expenses 3,399,359 3,152,409 929,565 832,760
----------- ----------- ----------- -----------
Income from
operations 1,142,248 111,836 424,353 (52,986)
Other income
(expense) 9,539 67,953 476 44,916
----------- ----------- ----------- -----------
Income before
provision for
income taxes and
minority interest 1,151,787 179,789 424,829 (8,070)
Provision for
income taxes 27,007 -- 27,007 --
----------- ----------- ----------- -----------
Net income before
minority interest 1,124,780 179,789 397,822 (8,070)
Minority interest
in income of con-
solidated limited
liability
companies (158,528) (156,509) (63,450) (40,446)
----------- ----------- ----------- -----------
Net income $ 966,252 $ 23,280 $ 334,372 $ (48,516)
=========== =========== =========== ===========
Basic earnings
per share 0.20 0.00 0.07 (0.01)
Diluted earnings
per share 0.19 0.00 0.06 (0.01)
Basic weighted-
average shares
outstanding 4,934,430 4,744,551 5,129,808 4,744,551
Diluted weighted-
average shares
outstanding 5,189,648 4,744,551 5,385,026 4,744,551