HemaCare Reports Strong, Profitable 2016 Results

LOS ANGELES--()--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.

Contacts

HemaCare
Rochelle Martel
(818) 728-8868
rmartel@hemacare.com

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HemaCare reports strong, profitable 2016 results

HemaCare Corporation