LOS ANGELES--(BUSINESS WIRE)--HemaCare Corporation (OTCBB:HEMA) announced today that the Company generated fourth quarter revenue of $7.0 million and a net loss of $197,000, or $0.02/share, compared to fourth quarter 2009 revenue of $8.2 million and net income of $195,000, or $0.02/share. The Company generated $30.3 million of revenue in 2010, with a net loss of $796,000 or $0.08/share, compared to $36.4 million in revenue in 2009, with $855,000 in net income or $0.09/share. The 2010 net loss included $321,000 in expenses related to the closure of an unprofitable facility in Maine and the write off of impaired assets, as well as $184,000 in severance expenses paid to the Company’s former Chief Executive Officer and Chief Financial Officer in the first quarter.
Commenting on the results, HemaCare’s Chief Executive Officer, Pete van der Wal, stated, “While we were disappointed in our results for 2010, actions taken by management were able to produce higher gross profits and smaller operating losses in the fourth quarter compared to the third quarter. These actions included expense reductions beyond those achieved earlier in the year, as well as intensified focus on our more profitable activities. These include our blood collection services provided on behalf of biotechnology companies producing novel cell therapy products, such as Dendreon’s Provenge, as well as on behalf of biotechnology companies in support of their human clinical trials. While we see no immediate improvement in the difficult pricing environment for our core blood products business, we expect to see growing impact from our specialized cell collection activities in 2011 and beyond.”
ABOUT HEMACARE CORPORATION
HemaCare Corporation is a leading provider of human biological products and services for use in research studies, medical device qualifications, validations, and the development of cellular therapies. HemaCare's customers include biotechnology companies, research organizations, and academic institutions. Together with its subsidiaries, the company engages in the collection, processing, and distribution of blood products in the United States. HemaCare provides its products and services to healthcare providers, hospitals, and research related organizations. The company was founded in 1978 and is based in Van Nuys, California. It trades on the OTC Bulletin Board under the symbol “HEMA”.
This press release also contains “forward-looking statements” under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 (Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended). Statements herein that are not historical facts are forward-looking statements pursuant to the safe harbor provisions referenced above. You may also identify forward-looking statements by use of the words “anticipates,” “expects,” “intends,” “plans” and similar expressions. The forward-looking statements in this press release include statements that HemaCare expects its cost cutting efforts and increased focus on more profitable lines of business to result in improved bottom line results. Forward-looking statements are inherently subject to risks and uncertainties some of which cannot be predicted or quantified. Such risks and uncertainties include, without limitation, the following: a reduction in operating margins occasioned by costs increasing more rapidly than market prices, the reduced demand for blood products, declining blood donations, the loss of customers or the inability to pass on cost increases due to increased competition, an increase in operating costs due to changes in industry regulations and standards, a decrease in reimbursement rates; our competitive position may decline due to the potential adverse effect from changes in the healthcare industry, including consolidations, which could affect access to customers, our inability to attract, retain and motivate management and other skilled employees, an increased emphasis by our competitors on customer service may diminish the advantages we enjoy from our service-focused operations, and our competitors’ not-for-profit status gives them advantages in acquiring customers; and the other risks and uncertainties discussed from time to time in the documents HemaCare files with the Securities and Exchange Commission. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. Consequently, future events and actual results could differ materially from those set forth in, contemplated by, or underlined in the forward-looking statements contained herein. The Company undertakes no obligation to update any of these forward-looking statements to reflect actual results or events or circumstances after the date hereof.
| HemaCare Corporation | ||||||||||||||||||||
| Condensed Consolidated Data | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
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For the Three Months Ended |
For the Year Ended |
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| December 31, | December 31, | |||||||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||||||
| Statements of Operations: | ||||||||||||||||||||
| Revenue | $ | 7,011,000 | $ | 8,248,000 | $ | 30,252,000 | $ | 36,387,000 | ||||||||||||
| Gross Profit | $ | 943,000 | $ | 1,424,000 | $ | 4,377,000 | $ | 6,452,000 | ||||||||||||
| General and administrative expenses | $ | 1,127,000 | $ | 1,206,000 | $ | 5,183,000 | $ | 5,575,000 | ||||||||||||
| (Loss) income before income taxes and discontinued operations | ($184,000 | ) | $ | 218,000 | ($806,000 | ) | $ | 877,000 | ||||||||||||
| Provision for (benefit from) income taxes | - | $ | 10,000 | ($60,000 | ) | ($28,000 | ) | |||||||||||||
| Net (loss) income before discontinued operations | ($184,000 | ) | $ | 208,000 | ($746,000 | ) | $ | 905,000 | ||||||||||||
| Loss from discontinued operations, net of tax | ($13,000 | ) | ($13,000 | ) | ($50,000 | ) | ($50,000 | ) | ||||||||||||
| Net (loss) income | ($197,000 | ) | $ | 195,000 | ($796,000 | ) | $ | 855,000 | ||||||||||||
| Basic and diluted (loss) earnings per share | ($0.02 | ) | $ | 0.02 | ($0.08 | ) | $ | 0.09 | ||||||||||||
| Weighted average shares outstanding – basic | 9,713,000 | 10,050,000 | 9,968,000 | 10,008,000 | ||||||||||||||||
| Weighted average shares outstanding – diluted | 9,713,000 | 10,257,000 | 9,968,000 | 10,132,000 | ||||||||||||||||
| Balance Sheets: | 12/31/2010 | 12/31/2009 | ||||||
| Assets | ||||||||
| Cash and cash equivalents | $ | 2,298,000 | $ | 1,007,000 | ||||
| Other current assets | 4,297,000 | 5,368,000 | ||||||
| Non-current assets | 3,248,000 | 4,200,000 | ||||||
| Total assets | $ | 9,843,000 | $ | 10,575,000 | ||||
| Liabilities and Shareholders' Equity | ||||||||
| Current liabilities | $ | 4,551,000 | $ | 4,449,000 | ||||
| Long-term liabilities | 610,000 | 600,000 | ||||||
| Shareholders' equity | 4,682,000 | 5,526,000 | ||||||
| Total liabilities and shareholders' equity | $ | 9,843,000 | $ | 10,575,000 | ||||