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: March 25, 2004
HEMACARE REPORTS 2003 FINANCIAL RESULTS
___________________________________________________
LOS ANGELES - - - - HemaCare Corporation (OTC Bulletin Board:
HEMA.OB) announced today results of operations for the 4th quarter and
the year ended December 31, 2003. For the quarter, the Company
reported net income of $264,000 on revenue of $6.6 million. The
reported fourth quarter net income represents a $236,000 improvement
over the previous year's quarter with revenues declining by 10%. The
net income improvement is due to the successful completion of
management's plan to close non-performing donor centers and one time
positive events of approximately $85,000.
The Company reported a net loss for 2003 of $4,679,000 or $0.60
per share basic and diluted, compared to a net loss for 2002 of
$591,000, or $0.08 per share basic and diluted. The increased net
loss was due to the costs incurred in 2003 associated with closing
several donor centers ($598,000), operating losses of the closed
centers ($778,000), a decline in the gross profits of the ongoing
centers ($793,000), a decline in the gross profits of blood services
operations ($358,000) and the write-down of the Company's deferred tax
assets ($2,984,000), offset in part by an improvement in general and
administrative expenses ($128,000).
The decline in gross profits of both the closed centers and the
ongoing centers was offset in part by an increase in the gross profit
of the California mobile operations driven by higher prices, offset in
part by a 6.3% decrease in collection volume. The decline in gross
profits of the ongoing centers was due to a decrease of certain
testing revenue, the decrease in platelet production, asset write-offs
and increases in workers' compensation and professional liability
insurance costs. Revenues of the ongoing centers were stable due
primarily to a 21% decline in single donor platelet volume, offset
largely by a 19.5% increase in sales of whole blood products.
- more -
The decline in the gross profits of the blood services operations
was due to a 13.0% decline in the number of therapeutic apheresis
procedures and increases in workers' compensation and professional
liability insurance costs.
The majority of the expenses associated with closing donor
centers was recognized in the third quarter of 2003, and were part of
management's plan to improve the profitability of the Company by
ceasing operations at several non-performing donor centers. The costs
associated with closing these centers included the write-down of
assets, severance to terminated employees, the recognition of
unexpired lease obligations and other associated costs.
The Company recorded a valuation allowance of $2,984,000 against
its deferred tax assets. This non-cash charge reduced the net value
of the deferred tax assets on the balance sheet to zero. The
Company's federal net operating loss carryforwards are not affected
and remain available for up to 10 years.
Commenting on the 2003 results, Judi Irving, President and
Chief Executive Officer, stated, "We are pleased that the fourth
quarter was profitable, demonstrating the effectiveness of our plan to
close non-performing centers. Although execution of the plan required
that we incur a substantial charge during 2003, the elimination of
these centers has substantially reduced the drain on the Company's
profitability. Although we are pleased to report positive fourth
quarter results, we must now focus on improving the profitability of
the on-going operations and further developing our long-term strategic
plans."
HemaCare will be holding an interactive investor conference call
on Thursday, March 25, 2004 at 1:00 pm (Eastern Standard Time). Judi
Irving, President and CEO, and Robert Chilton, Chief Financial
Officer, will review the 2003 financial results. To participate in the
call, please call 800-309-8563 and ask to join HemaCare's 2003 annual
earnings conference call. A recording will be available two hours
following the call through midnight, March 30, 2004 that can be
replayed by calling 800-642-1687, ID number 6238571.
About HemaCare Corporation
Founded in 1978, HemaCare is a national provider of blood
products and services, and is believed to be the only publicly traded
company engaged in the blood industry in the United States. 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 and
others.
This press release 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 variations and
similar expressions. 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 Company's need to successfully complete its operating
plan to improve profits; the potential loss of the Company's lines of
credit; the potential inability of the Company to meet future capital
needs; increasing costs that the Company may not be able to pass on to
customers because the market price for blood does not necessarily
reflect the costs of collecting and processing it; declining blood
donations; the Company's dependence on reimbursement rates of third
party providers; its increasing reliance on outside laboratories;
limited access to insurance; the competitive advantage enjoyed by not-
for-profit companies; potential changes in the healthcare industry;
future technology for blood collection and blood replacement; the need
to obtain services of qualified medical professionals; the impact of
heavy regulation in the Company's industry; potential liability for
undetected blood pathogens and other product safety and liability
concerns; environmental risks associated with biohazardous substances;
the threat of business interruption due to terrorism and the security
measures taken in response to terrorism; the provisions of the
Company's charter documents that might delay or prevent an acquisition
or sale of the Company; lack of liquidity and market risk associated
with OTC Bulletin Board stocks; volatility in our stock price;
potential dilution that could result from future sales of the
Company's common stock; 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 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 update any of these forward-
looking statements to reflect actual results or events or
circumstances after the date hereof.
(Financial Table Follows)
HemaCare Corporation
Condensed Consolidated Data
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
2003 2002 2003 2002
------------ ----------- ------------ -------------
Statements of Operations:
Revenues $6,640,000 $7,375,000 $27,488,000 $27,817,000
Gross profit $1,107,000 $ 826,000 $ 2,251,000 $ 3,745,000
Income (loss) before income
taxes $ 264,000 $ 35,000 $(1,695,000) $ (742,000)
Provision (benefit) for income
taxes $ 0 $ 7,000 $ 2,984,000 $ (151,000)
Net income (loss) $ 264,000 $ 28,000 $(4,679,000) $ (591,000)
=========== =========== ============ ============
Basic per share amounts $ 0.04 $ 0.00 $ (0.60) $ (0.08)
=========== =========== ============ ============
Diluted per share amounts $ 0.03 $ 0.00 $ (0.60) $ (0.08)
=========== =========== ============ ============
Weighted average shares
outstanding - basic 7,753,000 7,673,000 7,753,000 7,673,000
=========== =========== ============ ============
Weighted average shares
outstanding - diluted 8,034,000 7,673,000 7,753,000 7,673,000
=========== =========== ============ ============
December 31, December 31,
2003 2002
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Balance Sheets
Assets
- ------
Cash $ 935,000 $ 1,048,000
Current assets 4,030,000 6,424,000
Non-current assets 3,321,000 5,983,000
----------- ------------
Total assets $8,286,000 $13,455,000
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Liabilities and Shareholders'
Equity
- -----------------------------
Current liabilities $3,786,000 $ 3,998,000
Long-term liabilities 1,089,000 1,370,000
Shareholders' equity 3,411,000 8,087,000
----------- ------------
Total liabilities and
shareholders' equity $8,286,000 $13,455,000
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