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 13, 2004
HEMACARE REPORTS SECOND QUARTER FINANCIAL RESULTS
________________________________________________________________
LOS ANGELES - - - - HemaCare Corporation (OTC Bulletin Board:
HEMA.OB) today announced second quarter 2004 results of operations
that resulted in a profit of $488,000, or $0.06 per share basic and
diluted, on revenue of $6,921,000. This represents the third
consecutive profitable quarter since the implementation of
management's restructuring plan in the third quarter of 2003, and the
most profitable quarter since the fourth quarter of 2000 when the
Company recognized a $2.95 million benefit from income taxes. The
restructuring plan resulted in the closure of several under-performing
donor centers, principally located in the eastern United States, and a
reduction in overhead expenses.
Revenue in the second quarter of 2004 was essentially flat
compared to the $6,937,000 reported in the same period of 2003. Blood
products revenue decreased $57,000 to $5,036,000, or 1.1%, 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 $810,000, or 20.8%, to $4,713,000 from $3,903,000
reported in the second quarter of 2003. Blood services revenue in the
quarter increased $41,000, or 2.2%, to $1,885,000 as a result of an
increase in the number of therapeutic apheresis procedures performed
in California that have a higher average per procedure price than the
other markets serviced by the Company, a change in procedure mix to
higher average price procedures and an increase in the average
surcharge associated with each procedure performed.
The second quarter results produced a gross profit of $1,503,000
compared with a gross profit of $452,000 for the same period in 2003.
The gross profit percentage in the quarter increased to 21.7% from
6.5% for the same period in 2003. This improvement in gross profit is
the result of increases in product prices, increased operational
efficiencies realized from higher volumes, a change in therapeutic
procedure mix to higher
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margin procedures and the closure in the third and fourth quarters of
2003 of several under-performing donor centers. The Company has taken
steps to improve pricing as part of the renewal of the Company's
hospital blood supply 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 opening new donor centers.
For the six months ended June 30, 2004, the Company generated
$734,000 of net income, or $0.09 per share both basic and diluted, on
revenue of $13,657,000, compared with a net loss of $264,000, or $0.03
loss per share, on revenue of $13,868,000, during the same period of
2003.
Commenting on the second quarter results, Judi Irving,
President and Chief Executive Officer, stated, "We are very pleased
and proud of our accomplishments over the past year. We successfully
completed the implementation of our restructuring plan to eliminate
several under-performing donor centers, and the renewed focus on our
core businesses has substantially improved operations and overall
profitability. The Company has had three profitable quarters
following the implementation of the restructuring plan. In addition,
on a pre-tax basis, the second quarter of 2004 represents the most
profitable quarter for HemaCare in over fifteen years. We intend to
continue to improve the Company's revenue potential and operational
efficiency. Our strategy is to generate additional revenue from our
existing operations, which we feel have the potential to increase
profitability in the future, and to invest in important deferred
infrastructure projects. In addition, we are exploring new business
opportunities to leverage our existing competencies and increase the
utilization of our facilities."
HemaCare will be holding an interactive investor conference call
on Friday, August 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 second quarter 2004 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 two hours following the call
through midnight, August 20, 2004 that can be replayed by calling 800-
642-1687, ID number 9269616.
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 June 30, Six Months Ended June 30,
2004 2003 2004 2003
------------ ------------ ------------ ------------
STATEMENT OF OPERATIONS
Revenues....................... $ 6,921,000 $ 6,937,000 $13,657,000 $13,868,000
Gross Profit................... $ 1,503,000 $ 6,485,000 $10,723,000 $12,416,000
------------ ------------ ------------ ------------
General and administrative
expenses...................... $ 1,015,000 $ 906,000 $ 2,200,000 $ 1,892,000
Income (loss) before income
taxes......................... $ 488,000 $ (454,000) $ 734,000 $ (440,000)
============ ============ ============ ============
Net income (loss).............. $ 488,000 $ (272,000) $ 734,000 $ (264,000)
============ ============ ============ ============
Basic and diluted earnings
(loss) per share.............. $ 0.06 $ (0.04) $ 0.09 $ (0.03)
============ ============ ============ ============
Weighted average shares
oustanding - basic............ 7,756,060 7,751,060 7,756,060 7,751,060
============ ============ ============ ============
Weighted average shares
outstanding - diluted......... 8,089,078 7,751,060 7,999,449 7,751,060
============ ============ ============ ============
June 30, 2004 December 31, 2003
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BALANCE SHEETS
Assets
- ------
Cash and cash equivalents........... $ 1,399,000 $ 935,000
Other current assets................ 4,197,000 4,030,000
Non-current assets.................. 3,059,000 3,321,000
------------ ------------
Total assets........................ $ 8,655,000 $ 8,286,000
============ ============
Liabilities and Shareholders' Equity
- ------------------------------------
Current liabilities................. $ 3,654,000 $ 3,786,000
Long-term liabilities............... 856,000 1,089,000
Shareholders' equity................ 4,145,000 3,411,000
------------ ------------
Total liabilities and shareholders'
equity............................. $ 8,655,000 $ 8,286,000
============ ============
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