EXHIBIT 99.1
[LOGO]
N E W S R E L E A S E
For Immediate Release
Contact: HemaCare Corporation
JoAnn Mannise, Director of Investor Relations
877-310-0717
www.hemacare.com
RELEASE DATE: August 11, 2003
HEMACARE REPORTS SECOND QUARTER FINANCIAL RESULTS
_____________________________________________________________________
LOS ANGELES - - - - HemaCare Corporation (OTC Bulletin Board:
HEMA.OB) today announced second quarter 2003 revenue of $6,937,000,
virtually unchanged as compared to the same period of 2002. Net loss in the
second quarter of 2003 was $272,000, or $0.04 per share basic and diluted,
compared to a loss of $19,000, or nil per share basic and diluted, in the
second quarter of 2002.
Second quarter results reflect continuing losses in its East Coast and
Mid-West blood management programs and decreases in production volumes and
higher operating costs in its California operations.
Second quarter revenue increases in the Company's California Mobile
Program were offset by the decrease in revenues from the Sherman Oaks
platelet program and blood services. Sales volumes of the Sherman Oaks
operation, which remains profitable following a conversion from a paid to
volunteer program in January 2003, were approximately 70% of sales in the
second quarter of the prior year. Gross margin was negatively impacted by
$272,000 of losses from the Company's blood management programs opened in
2002, the reduction of platelet sales, a change in the mix of blood
services, higher insurance premiums and costs related to hiring and training
new employees.
As a result of these factors, the Company realized a $454,000 loss
before a $182,000 benefit from income taxes. Commenting on the second
quarter results, Judi Irving, President and Chief Executive Officer said,
"We are actively addressing the production issues in our California
operations. In addition, we are evaluating the potential of our programs
outside of California and determining the actions necessary to return the
Company to profitability."
- more -
2
HemaCare will be holding an interactive investor conference call on
Monday, August 11, 2003 at 4:30 pm (Eastern Daylight Time). Judi Irving,
President and CEO, will review the second quarter 2003 financial results. To
participate in the call, please call 800-309-8563 and ask to join HemaCare's
second quarter earnings conference call. A recording will be available
immediately following the call through midnight, August 18, 2003 that can be
replayed by calling 800-642-1687, ID number 1969717. A webcast of the
conference call will also be available via our website (www.hemacare.com) as
well as through Street Events (www.streetevents.com) and going to the
Individual Investor Center.
ABOUT HEMACARE CORPORATION
Founded in 1978, HemaCare is a national provider of blood products and
services and the only publicly traded company engaged in the blood services
industry in the U.S. HemaCare is licensed by the FDA and accredited by the
American Association of Blood Banks. The Company focuses on providing cost
effective, high quality solutions to the blood-related needs of U.S.
hospitals.
This press release contains "forward-looking statements" within the meaning of
the term in 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). Additional written or oral forward-looking
statements may be made by the Company from time to time in filings with the
Securities and Exchange Commission or otherwise. Statements contained herein
that are not historical facts are forward-looking statements pursuant to the
safe harbor provisions referenced above. Forward-looking statements are
inherently subject to risks and uncertainties some of which cannot be
predicted or quantified. Such risks and uncertainties include, without limi-
tation, the risks and uncertainties set forth from time to time in reports
filed by the Company 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 have been 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 publicly release any revision to these
forward-looking statements made to reflect events or circumstances after
the date hereof.
(Financial Table Follows)
HEMACARE CORPORATION
CONDENSED CONSOLIDATED DATA
(Unaudited)
Three Months Ended June 30, Six Months Ended June 30,
2003 2002 2003 2002
------------- ------------ ------------ ------------
STATEMENTS OF OPERATIONS
Revenues $ 6,937,000 $ 6,940,000 $13,868,000 $13,261,000
============ ============ ============ ============
Loss before income taxes $ (454,000) $ (31,000) $ (440,000) $ (250,000)
============ ============ ============ ============
Net loss $ (272,000) $ (19,000) $ (264,000) $ (157,000)
============ ============ ============ ============
Basic and diluted per share amounts $ (0.04) $ (0.00) $ (0.03) $ (0.02)
============ ============ ============ ============
Weighted average shares
outstanding - basic and diluted 7,751,060 7,611,000 7,751,060 7,601,000
============ ============ ============ ============
June 30, 2003 December 31, 2002
-------------- -----------------
BALANCE SHEET
Assets
- ------
Cash and marketable securities $ 714,000 $ 1,048,000
Other current assets 5,669,000 6,424,000
Non-current assets 6,101,000 5,983,000
------------ ------------
Total assets $12,484,000 $13,455,000
============ ============
Liabilities and Shareholders' Equity
- ------------------------------------
Current liabilities $ 4,186,000 $ 3,998,000
Long-term liabilities 475,000 1,370,000
Shareholders' equity 7,823,000 8,087,000
------------ ------------
Total liabilities and shareholders'
equity $12,484,000 $13,455,000
============ ============
###