HemaCare Corporation (OTCBB: HEMA) today reported financial results for 2016, showing robust gains in revenue, gross profit, and net income from continuing operations compared to the prior year. For the full year, revenue from continuing operations grew 43% to $13.8 million, while gross profit of $7.1 million (51% of sales) increased by 62% over the prior year (45% of sales). Net income from continuing operations totaled $781,000, versus a prior year loss. For complete audited December 31, 2016 Financial Statements, please click here.
Pete van der Wal, HemaCare’s President and Chief Executive, stated, “2016 was another pivotal year for us as we achieved operational profitability and continued to expand our global customer base, realizing a 240% increase in international revenues. Our rapid revenue growth gives management a high level of confidence that our customers value the quality of HemaCare’s bioresearch products and services. This was further validated by the January 2017 purchase of $2.5 million of HemaCare’s common stock at $3.44 per share, and a discretionary option to purchase up to a total of $5 million of shares at the same price over the next two years, by a subsidiary of OneBlood, an industry-leading blood center. In 2017, we will continue to build our sales and marketing team, increase our operational capabilities, enlarge our portfolio of healthy and disease-state products, and continue to expand into additional strategic markets. Furthermore, we will continue to strengthen our leadership position as a critical supplier to customers performing cell therapy research, process development, and commercialization. This includes expanding our highly functional cryopreserved isolated cell product line, as well as our superior leukapheresis collections for autologous and allogeneic cell therapies.”
HEMACARE CORPORATION | ||||||||
| BALANCE SHEETS | ||||||||
| DECEMBER 31, 2016 AND 2015 | ||||||||
ASSETS | ||||||||
| 2016 | 2015 | |||||||
| CURRENT ASSETS | ||||||||
| Cash and cash equivalents | $ | 2,271,000 | $ | 2,515,000 | ||||
| Accounts receivable, net | 2,269,000 | 1,851,000 | ||||||
| Product inventories and supplies, net | 1,935,000 | 2,066,000 | ||||||
| Prepaid expenses and other current assets | 158,000 | 192,000 | ||||||
| Current portion of restricted cash | 119,000 | 107,000 | ||||||
| TOTAL CURRENT ASSETS | 6,752,000 | 6,731,000 | ||||||
| OTHER ASSETS | ||||||||
| Property and equipment, net | 1,038,000 | 1,043,000 | ||||||
| Restricted cash, net of current portion | 309,000 | 428,000 | ||||||
| Other assets | 64,000 | 64,000 | ||||||
| TOTAL NONCURRENT ASSETS | 1,411,000 | 1,535,000 | ||||||
| TOTAL ASSETS | $ | 8,163,000 | $ | 8,266,000 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| CURRENT LIABILITIES | ||||||||
| Accounts payable | $ | 437,000 | $ | 615,000 | ||||
| Accounts payable - service agreement | - | 1,101,000 | ||||||
| Accrued payroll and payroll taxes | 1,252,000 | 974,000 | ||||||
| Other accrued expenses | 103,000 | 74,000 | ||||||
| Current portion of deferred rent | 77,000 | 120,000 | ||||||
| Current portion of capital lease obligations | 47,000 | - | ||||||
| TOTAL CURRENT LIABILITIES | 1,916,000 | 2,884,000 | ||||||
| LONG-TERM LIABILITIES | ||||||||
| Deferred rent, net of current portion | 7,000 | 84,000 | ||||||
| Long-term portion of capital lease obligations | 66,000 | - | ||||||
| TOTAL LONG-TERM LIABILITIES | 73,000 | 84,000 | ||||||
| TOTAL LIABILITIES | 1,989,000 | 2,968,000 | ||||||
| SHAREHOLDERS' EQUITY | ||||||||
| Common stock, no par, 40,000,000 shares authorized, | ||||||||
| 10,698,312 and 10,747,828 shares issued and outstanding, respectively | 17,058,000 | 16,963,000 | ||||||
| Accumulated deficit | (10,884,000 | ) | (11,665,000 | ) | ||||
| TOTAL SHAREHOLDERS' EQUITY | 6,174,000 | 5,298,000 | ||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 8,163,000 | $ | 8,266,000 | ||||
| HEMACARE CORPORATION | ||||||||
| STATEMENTS OF INCOME | ||||||||
| FOR THE YEARS ENDED DECEMBER 31, 2016 AND 2015 | ||||||||
| 2016 | 2015 | |||||||
| REVENUE | ||||||||
| Bioresearch products and services | $ | 13,876,000 | $ | 9,702,000 | ||||
| COST OF REVENUE | ||||||||
| Bioresearch products and services | 6,751,000 | 5,292,000 | ||||||
| GROSS PROFIT | 7,125,000 | 4,410,000 | ||||||
| GENERAL AND ADMINISTRATIVE EXPENSES | 6,326,000 | 5,790,000 | ||||||
| INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAX EXPENSE | 799,000 | (1,380,000 | ) | |||||
| Provision for income taxes | (18,000 | ) | (22,000 | ) | ||||
| INCOME (LOSS) FROM CONTINUING OPERATIONS, NET OF TAXES | 781,000 | (1,402,000 | ) | |||||
| DISCONTINUED OPERATIONS, NET OF TAX: | ||||||||
| Therapeutic apheresis division | - | 4,638,000 | ||||||
| NET INCOME | $ | 781,000 | $ | 3,236,000 | ||||
About HemaCare
HemaCare specializes in the customization of human-derived biological products and services for customer’s research and cell therapy protocols. HemaCare’s network of FDA-registered, GMP/GTP-compliant collection centers ensures donor material is available for fresh shipment to customers, as well as for internal use within HemaCare’s isolation laboratory. In this laboratory, human biological material such as peripheral blood, bone marrow, and cord blood from donor and patient subjects is isolated into various primary cell types for distribution to customers in fresh and frozen formats. HemaCare's extensive registry of well-characterized repeat donors provides consistent primary human cells and biological products for advanced biomedical research and cellular therapy process development.
For 39 years, HemaCare has provided human-derived primary blood cells and tissues for biomedical research, supported cell therapy clinical trials and commercialization with apheresis collections, and provided a wide range of consulting services. HemaCare directly supports benchtop immunology and oncology research, compound screening for drug discovery, and assay development and qualification, as well as enables customers to advance both autologous and allogeneic cellular therapies. For more information, please visit www.hemacare.com.
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Contacts:
Rochelle Martel
(818)
728-8868
rmartel@hemacare.com
