SUN VALLEY, Calif., May 5, 2010 (GLOBE NEWSWIRE) -- Emergent Group Inc. (NYSE AMEX:LZR), a leading provider of mobile medical lasers and surgical equipment, today announced the following higher financial results for the first quarter ended March 31, 2010 versus the prior year period:
- Revenue increased 0.5% to $7,373,170 versus $7,335,043 for the prior year's first quarter ended March 31, 2009.
- EBITDA (earnings before interest, taxes, depreciation and amortization) rose 17% to $2,092,730 versus $1,784,377 in the prior year period.
- Income before provision for income taxes and non-controlling interest was up 14% to $1,574,594 versus $1,385,454 reported in the prior year period.
- Net income increased 21% to $846,690 or $0.12 per diluted share for the first quarter of 2010, versus $699,200, or $0.10 per diluted share, in the prior year period. Diluted weighted-average shares outstanding were also higher in the current quarter at 7,052,893 versus 7,036,959 for the prior year period.
- At the end of the quarter, the company had a cash balance of $5,347,736, amounting to $0.76 per diluted share.
- Early in the first quarter -- on January 13, 2010 -- Emergent Group paid an annual dividend of $0.40 per share to shareholders of record as of December 23, 2009. Since 2005, the Board has declared cumulative cash dividends of $1.30 per share.
"Our growth strategies and financial foundation remain sound and we are pleased that all key financial measures increased during the first quarter versus the prior year period," said Emergent Group Chairman and CEO Bruce J. Haber. "We continue to see opportunities to bring new mobile medical laser and surgical products to the marketplace and believe that we can capitalize on favorable long-term trends, which make our rental of equipment and the sale of accompanying consumable items attractive and cost-effective for customers.
"At the same time", Haber added, "we need to closely monitor forces that may have contributed to our relatively modest revenue growth for the quarter, including the significant number of Americans who have lost their health insurance or are postponing medical procedures due to the recession. These trends could be having an effect on the short-term volume growth of medical procedures requiring our equipment and services. However, most of our procedures deal with solutions to medical problems that may be postponed but cannot be delayed indefinitely. Looking ahead, we are optimistic that, as in the past, new product and other opportunities can help to offset adverse market forces as they may affect our future revenues."
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. Emergent Group, Inc. is a member of the Russell Microcap® Index. For investor and product information, visit Emergent Group's website, www.emergentgroupinc.com.
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-K 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 | ||
| March 31, | December 31, | |
| 2010 | 2009 | |
| ASSETS | (Unaudited) | |
| Current assets | ||
| Cash | $ 5,347,736 | $ 7,427,165 |
|
Accounts receivable, net of allowance for doubtful accounts of $91,929 and $83,704 |
3,843,886 | 4,006,123 |
| Inventory, net | 1,016,819 | 889,526 |
| Prepaid expenses | 346,941 | 380,825 |
| Deferred income taxes | 457,630 | 557,630 |
| Total current assets | 11,013,012 | 13,261,269 |
|
Property and equipment, net of accumulated depreciation and amortization of $9,591,436 and $9,031,136 |
5,471,329 | 5,545,492 |
| Goodwill | 1,120,058 | 1,120,058 |
| Deferred income taxes | 21,126 | 21,126 |
|
Other intangible assets, net of accumulated amortization of $324,434 and $300,672 |
431,503 | 455,265 |
| Deposits and other assets | 80,888 | 80,992 |
| Total assets | $ 18,137,916 | $ 20,484,202 |
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||
| Current liabilities | ||
| Current portion of capital lease obligations | $ 1,939,058 | $ 1,901,272 |
| Dividends payable | -- | 2,710,817 |
| Accounts payable | 1,709,240 | 1,440,122 |
| Accrued expenses and other liabilities | 1,943,167 | 2,456,315 |
| Total current liabilities | 5,591,465 | 8,508,526 |
| Capital lease obligations, net of current portion | 2,495,170 | 2,670,942 |
| Total liabilities | 8,086,635 | 11,179,468 |
| 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 6,823,028 and 6,776,118 shares issued and outstanding |
272,918 | 271,042 |
| Additional paid-in capital | 16,571,051 | 16,507,958 |
| Accumulated deficit | (7,215,634) | (8,062,324) |
| Total Emergent Group equity | 9,628,335 | 8,716,676 |
| Non-Controlling Interest | 422,946 | 588,058 |
| Total shareholders' equity | 10,051,281 | 9,304,734 |
| Total liabilities and shareholders' equity | $ 18,137,916 | $ 20,484,202 |
| Emergent Group Inc. and Subsidiaries | ||
| Consolidated Statements of Income | ||
| Three Months Ended March 31, | ||
| 2010 | 2009 | |
| Revenue | $ 7,373,170 | $ 7,335,043 |
| Cost of goods sold | 4,466,163 | 4,411,458 |
| Gross profit | 2,907,007 | 2,923,585 |
| Selling, general, and administrative expenses | 1,460,006 | 1,455,422 |
| Income from operations | 1,447,001 | 1,468,163 |
| Other income (expense) | ||
| Interest expense, net | (70,800) | (88,486) |
| Gain on disposal of property and equipment | 7,847 | 600 |
| Other income from affiliated entities, net | 190,222 | -- |
| Other income, net | 324 | 5,177 |
| Total other income (expense) | 127,593 | (82,709) |
|
Income before provision for income taxes and non-controlling interest |
1,574,594 | 1,385,454 |
| Provision for income taxes | (590,000) | (478,134) |
| Income before non-controlling interest | 984,594 | 907,320 |
|
Non-controlling interests in income of consolidated limited liability companies |
(137,904) | (208,120) |
| Net income | $ 846,690 | $ 699,200 |
| Basic earnings per share | $ 0.12 | $ 0.11 |
| Diluted earnings per share | $ 0.12 | $ 0.10 |
| Basic weighted average shares outstanding | 6,791,342 | 6,657,849 |
| Diluted weighted-average shares outstanding | 7,052,893 | 7,036,959 |