Liberator Medical Reports Revenue of $18.6 Million for Its Fiscal First Quarter Ended December 31, 2013

The Company Reports Net Income of $2.1 Million, or $0.04 per Share, for the Quarter

Marketwired

STUART, FL--(Marketwired - February 12, 2014) - Liberator Medical Holdings, Inc. (NYSE MKT: LBMH) today announced the financial results for its fiscal first quarter ended December 31, 2013. Financial highlights are summarized below:

           
Dollars in thousands Q1 FY2014  Q1 FY2013  Change
         
Net sales $ 18,637  $ 17,551  6.2%
             
Gross profit   11,755    10,978  7.1%
             
Operating income   3,500    2,258  55.0%
             
Net income $ 2,120  $ 1,352  56.8%
               

Net sales for the three months ended December 31, 2013, increased by $1,086,000, or 6.2%, to $18,637,000, compared with net sales of $17,551,000 for the three months ended December 31, 2012. The increase in net sales was due to our continued emphasis on our direct response advertising campaign to acquire new customers and on customer service to maximize the reorder rates for our recurring customer base.

Gross profit for the three months ended December 31, 2013, increased by $777,000, or 7.1%, to $11,755,000, compared with gross profit of $10,978,000 for the three months ended December 31, 2012. The increase is attributed to increased sales volumes and a reduction in product costs for the three months ended December 31, 2013, compared with the three months ended December 31, 2012.

Income from operations for the three months ended December 31, 2013, increased by $1,242,000, or 55.0%, to $3,500,000, compared with the three months ended December 31, 2012. The increase in operating income is attributed to increased gross profit driven by our increased sales volumes at reduced levels of operating expenses.

Net income for the first quarter of fiscal year 2014 was $2,120,000, or $0.04 per diluted share, compared with net income of $1,352,000, or $0.03 per diluted share, for the first quarter of fiscal year 2013.

The Company had cash of $12,195,000 at December 31, 2013, compared with cash of $12,453,000 at September 30, 2013, a decrease of $258,000. The decrease in cash for the three months ended December 31, 2013, was due to $1,518,000 of cash used in financing activities, primarily cash dividends paid to shareholders, and $47,000 of net cash used in investing activities, partially offset by $1,307,000 of cash provided by operating activities.

Other Significant Events for the First Quarter of Fiscal Year 2014

  • On November 20, 2013, the Company's common stock was listed and began trading on the NYSE MKT exchange, increasing visibility and shareholder liquidity.
  • During the first quarter of fiscal year 2014, the Company declared a quarterly cash dividend of $0.03 per common share.

Mark Libratore, the Company's President and CEO, commented, "Our financial results for the first quarter of fiscal year 2014 demonstrate our continued emphasis on growing our customer base, increasing our earnings, and improving our operating margins. The cash generated from our operations provides a quarterly cash dividend to our shareholders and the flexibility for the Company to grow through a combination of our direct response advertising efforts and strategic acquisitions that allow us to acquire new customers at competitive rates.

We will continue to manage the levels of our direct response advertising spend, implement process improvements, and explore potential acquisition targets to grow our business and increase operating margins during fiscal year 2014."

Stay up-to-date with current events by visiting Liberator Medical's website at www.liberatormedical.com or by joining the Company's E-Mail Alert List. Join by clicking the following link www.LBMH-IR.com

About Liberator Medical Holdings, Inc.

Liberator Medical Holdings, Inc.'s subsidiary, Liberator Medical Supply, Inc., established the Liberator brand as a leading national direct-to-consumer provider of quality medical supplies to Medicare-eligible seniors. Accredited by The Joint Commission, our Company's unique combination of marketing, industry expertise and customer service has demonstrated success over a broad spectrum of chronic conditions. Liberator is recognized for offering a simple, reliable way to purchase medical supplies needed on a regular, ongoing, repeat-order basis, with the convenience of direct billing to Medicare and private insurance. Liberator's revenue primarily comes from supplying products to meet the rapidly growing requirements of general medical supplies, diabetes supplies, catheters, ostomy supplies and mastectomy fashions. Liberator communicates with patients and their doctors on a regular basis regarding prescriptions and supplies. Customers may purchase by phone, mail or internet, with repeat orders confirmed with the customer and shipped when needed.

Safe Harbor Statement

In this press release and in related comments by our management, our use of the words "expect," "anticipate," "possible," "potential," "target," "believe," "commit," "intend," "continue," "may," "would," "could," "should," "project," "projected," "positioned" or similar expressions is intended to identify forward-looking statements that represent our current judgment about possible future events. We believe these judgments are reasonable, but these statements are not guarantees of any events or financial results, and our actual results may differ materially due to a variety of important factors. Such risks and uncertainties may include, but are not limited to, regulatory limitations on the medical industry in general, working capital constraints, fluctuations in customer demand and commitments, fluctuation in quarterly results, introduction of new services and products, commercial acceptance and viability of new services and products, pricing and competition, reliance upon subcontractors and vendors, the timing of new technology and product introductions, and the risk of early obsolescence of our products. Liberator's most recent annual report on Form 10-K and quarterly reports on Form 10-Q provide information about these and other factors, which we may revise or supplement in future reports filed with the Securities and Exchange Commission.

   
   
Liberator Medical Holdings, Inc. and Subsidiaries  
Condensed Consolidated Balance Sheets  
As of December 31, 2013 (unaudited) and September 30, 2013  
(In thousands, except dollar per share amounts)  
   
  December 31,   September 30,  
  2013   2013  
Assets          
Current Assets:          
  Cash $12,195   $12,453  
  Accounts receivable, net of allowances of $4,745 and $4,502, respectively  9,589    7,836  
  Inventory, net of allowance for obsolete inventory of $321 and $308, respectively  2,482    2,187  
  Deferred tax assets  2,112    2,067  
  Prepaid and other current assets  626    219  
  Total Current Assets  27,004    24,762  
Property and equipment, net of accumulated depreciation of $3,637 and $3,492, respectively  944    1,044  
Deferred advertising, net  23,311    22,705  
Intangible assets, net of accumulated amortization of $194 and $169, respectively  388    414  
Other assets  170    174  
Total Assets $51,817   $49,099  
           
Liabilities and Stockholders' Equity          
Current Liabilities:          
  Accounts payable $6,381   $4,915  
  Accrued liabilities  1,569    1,354  
  Dividends payable  1,572    1,569  
  Income tax payable  1,681    1,195  
  Other current liabilities  93    111  
   Total Current Liabilities  11,296    9,144  
Deferred tax liabilities  8,487    8,561  
Credit line facility  1,500    1,500  
Other long-term liabilities  51    63  
Total Liabilities  21,334    19,268  
           
Stockholders' Equity:          
Common stock, $.001 par value, 200,000 shares authorized, 52,757 and 52,637 shares issued, respectively; 52,403 and 52,283 shares outstanding at December 31, 2013, and September 30, 2013, respectively  53    53  
Additional paid-in capital  35,215    35,111  
Accumulated deficit  (4,305 )  (4,853 )
Treasury stock, at cost; 354 shares at December 31, 2013, and September 30, 2013  (480 )  (480 )
Total Stockholders' Equity  30,483    29,831  
Total Liabilities and Stockholders' Equity $51,817   $49,099  
           
               

See accompanying notes to unaudited condensed consolidated financial statements.

   
   
Liberator Medical Holdings, Inc. and Subsidiaries  
Condensed Consolidated Statements of Operations  
For the three months ended December 31, 2013 and 2012  
(Unaudited)  
(in thousands, except per share amounts)  
   
  Three Months Ended December 31,  
  2013   2012  
           
Net Sales $18,637   $17,551  
           
Cost of Sales  6,882    6,573  
           
Gross Profit  11,755    10,978  
           
Operating Expenses:          
  Payroll, taxes and benefits  3,657    3,843  
  Advertising  2,326    2,203  
  Bad debts  824    1,278  
  Depreciation and amortization  171    164  
  General and administrative  1,277    1,232  
Total Operating Expenses  8,255    8,720  
           
Income from Operations  3,500    2,258  
           
Other Expenses  (13 )  (21 )
           
Income before Income Taxes  3,487    2,237  
           
Provision for Income Taxes  1,367    885  
           
Net Income $2,120   $1,352  
           
Basic earnings per share:          
Weighted average shares outstanding  52,358    48,147  
Earnings per share $0.04   $0.03  
           
Diluted earnings per share:          
Weighted average shares outstanding  53,228    52,143  
Earnings per share $0.04   $0.03  
           
Dividends declared per common share $0.03   $-  
               

See accompanying notes to unaudited condensed consolidated financial statements.

   
   
Liberator Medical Holdings, Inc. and Subsidiaries  
Condensed Consolidated Statements of Cash Flows  
For the three months ended December 31, 2013 and 2012  
(Unaudited)  
(in thousands)  
  Three Months Ended  
  December 31,  
  2013   2012  
Cash flow from operating activities:          
  Net Income $2,120   $1,352  
  Adjustments to reconcile net income to net cash provided by operating activities:          
   Depreciation and amortization  2,482    2,310  
   Equity based compensation  32    10  
   Provision for doubtful accounts and contractual adjustments  1,027    1,335  
   Deferred income taxes  (120 )  805  
   Reserve for inventory obsolescence  13    53  
  Changes in operating assets and liabilities:          
   Accounts receivable  (2,779 )  (169 )
   Deferred advertising  (2,918 )  (2,753 )
   Inventory  (307 )  148  
   Other assets  (402 )  (57 )
   Accounts payable  1,952    (2,013 )
   Accrued liabilities  215    393  
   Other liabilities  (8 )  3  
Net Cash Flow Provided by Operating Activities  1,307    1,417  
           
Cash flow from investing activities:          
  Purchase of property and equipment  (51 )  (308 )
  Proceeds from sale of property and equipment  4    -  
Net Cash Flow Used in Investing Activities  (47 )  (308 )
           
Cash flow from financing activities:          
  Proceeds from employee stock purchase plan  -    13  
  Proceeds from exercise of employee stock options  72    -  
  Cash dividends paid  (1,569 )  -  
  Payments of capital lease obligations  (22 )  (17 )
Net Cash Flow Used in Financing Activities  (1,518 )  (4 )
           
Net increase (decrease) in cash  (258 )  1,105  
           
Cash at beginning of period  12,453    3,326  
Cash at end of period $12,195   $4,431  
           
Supplemental disclosure of cash flow information:          
Cash paid for interest $15   $21  
Cash paid for income taxes $1,000   $5  
           
Supplemental schedule of non-cash financing activities:          
Cash dividends declared, but not yet paid $1,572   $-  
               

See accompanying notes to unaudited condensed consolidated financial statements.

Contact:


Individual Investor Relations Contact
WSR Communications
772-219-7525
IR@WSRcommunications.com
http://wsrcommunications.ir.stockpr.com/liberatormedical

Institutional Investor Contact
Lyn Davis
Littlebanc Advisors, LLC
561-948-3005
ld@littlebanc.com
www.littlebanc.com
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