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: May 13, 2004
HEMACARE REPORTS FIRST QUARTER FINANCIAL RESULTS
______________________________________________________________________
LOS ANGELES - - - - HemaCare Corporation (OTC Bulletin Board: HEMA.OB)
today announced first quarter 2004 results of operations that resulted in a
profit of $246,000, or $0.03 per share basic and diluted, on revenue of
$6,736,000. This represents the second consecutive profitable quarter since
the implementation of management's restructuring plan in the third quarter
of 2003. The restructuring plan closed several non-performing donor
centers, principally located in the eastern United States. All of the donor
centers that were not part of the restructuring plan experienced increased
sales volumes and revenue in the first quarter of 2004, compared with the
same period in 2003.
Revenue in the first quarter of 2004 was 2.8% less than the $6,931,000
reported in the same period of 2003. Blood products revenue decreased
$101,000 to $4,845,000, or 2.0%, as a result of the elimination of revenue
generated by operations closed as part of the restructuring plan. Blood
products revenue from ongoing donor centers increased $678,000, or 16.5%,
from $4,102,000 reported in the first quarter of 2003. Blood services
revenue in the quarter decreased $94,000, or 4.7%, to $1,891,000 as a result
of a decrease in the number of therapeutic apheresis procedures performed,
primarily in the New York market, and as a result of the closure of the
Company's operations in Illinois, North Carolina, Pennsylvania and Tennessee
in 2003.
The first quarter results produced a gross profit of $1,431,000
compared with a gross profit of $1,000,000 for the same period in 2003. The
gross profit percentage in the quarter increased to 21.2% from 14.4% for the
same period in 2003. This improvement in gross profit is the result of
increases in product prices and increased operational efficiencies realized
from higher volumes. The Company has taken steps to improve prices on blood
products as part of the renewal of the Company's hospital blood supply
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contracts. Operational efficiencies resulting from higher volumes at the
ongoing donor centers is one of the benefits from the current strategy to
grow sales volume at existing facilities rather than from opening new donor
centers.
Commenting on the first quarter results, Judi Irving, President and
Chief Executive Officer, stated, "We are very pleased to report our second
consecutive profitable quarter. We are especially pleased that our efforts
to focus the organization on growing sales volumes at our ongoing donor
centers has produced higher revenues from all of our centers when compared
with last year. We believe the successful implementation of our
restructuring plan has helped to eliminate many of the distractions that has
hindered management's ability to concentrate on the key drivers in our
business. We plan to solidify our improvement in revenue and take further
steps to improve operational efficiency. We can now dedicate our full
attention to strategies that generate revenue and improved profit margins
for our remaining business activities."
HemaCare further announced the execution of an amendment to the
existing credit agreement with Comerica Bank that extended the term of the
line of credit to June 30, 2005, and revised the financial covenants to
levels more favorable to the Company. As of March 31, 2004, the Company was
in full compliance with the revised covenants.
Finally, HemaCare also announced the termination of the donor center
management contract with Presbyterian Intercommunity Hospital, located in
Whittier, California, in the second quarter of 2004. The Company recorded
revenues of $555,000 as a result of this contract in 2003, and $165,000 in
the first quarter of 2004.
HemaCare will be holding an interactive investor conference call on
Thursday, May 13, 2004 at 1:00 pm (Eastern Daylight Time). Judi Irving,
President and CEO, and Robert Chilton, Executive Vice President and CFO,
will review the first quarter 2004 financial results. To participate in the
call, please call 800-309-8563 and ask to join HemaCare's first quarter
earnings conference call. A recording will be available two hours following
the call through midnight, May 18, 2004 that can be replayed by calling 800-
642-1687, ID number 7271110.
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" 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
limitation, 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.
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HemaCare Corporation
Condensed Consolidated Data
(Unaudited)
Three Months Ended
March 31,
2004 2003
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Statements of Operations:
Revenues $6,736,000 $6,931,000
Gross profit $1,431,000 $1,000,000
Income before income taxes $ 246,000 $ 14,000
Provision (benefit) for income
taxes $ 0 $ 6,000
___________ ___________
Net income $ 264,000 $ 8,000
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Basic and diluted per
share amounts $ 0.03 $ 0.00
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Weighted average shares
outstanding - basic 7,756,000 7,751,000
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Weighted average shares
outstanding - diluted 7,947,000 7,834,000
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March 31,
2004
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Balance Sheets
Assets
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Cash and marketable securities $ 911,000
Other current assets 4,323,000
Non-current assets 3,180,000
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Total assets $8,414,000
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Liabilities and Shareholders'
Equity
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Current liabilities $3,471,000
Long-term liabilities 1,286,000
Shareholders' equity 3,657,000
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Total liabilities and
shareholders' equity $8,414,000
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