EXHIBIT 99.1
Emergent Group Inc. Reports Record First Quarter EPS of $0.09
on Sales Increase of 37 Percent
GLENDALE, Calif., May 3, 2006 (PRIMEZONE) -- Emergent Group Inc. (OTCBB:EMGP), a
leading provider of mobile medical lasers and surgical equipment, today
announced financial results for its first quarter ended March 31, 2006. First
quarter revenues increased 37% to a record $3,990,817, compared to revenues of
$2,922,523 for the same period in 2005. Net income increased to a record
$463,995 or $0.09 per basic share ($0.08 per diluted share) for the quarter,
compared to net income of $105,278 or $0.02 per basic and diluted share for the
same period in 2005.
Bruce J. Haber, Chairman and CEO, said, "We are extremely gratified that the
strategic repositioning of the Company initiated in 2004 continues to show
dramatic results. With record first quarter sales versus the same period in
2005, and a 16% increase in sequential growth from the fourth quarter of 2005,
we have every expectation for a very good year." He added that "the growth in
revenues was primarily the result of stronger sales of new modalities, as well
as the successful integration of our recent purchase of certain operating assets
of Advantage Medical Services, LLC."
Mr. Haber also stated that "we are particularly pleased with the record $463,995
in earnings achieved in the first quarter, marking the third consecutive quarter
of improved year over year profits. Emergent also continues to evaluate
acquisition opportunities in an effort to accelerate its performance."
About Emergent Group Inc.
Emergent Group Inc., through its wholly owned subsidiary, PRI Medical
Technologies, Inc. ("PRI Medical"), provides mobile laser and surgical equipment
on a per procedure basis to hospitals, out-patient surgery centers, and
physicians' offices. Surgical equipment is provided to customers along with
technical support personnel to ensure that such equipment is operating
correctly. PRI Medical currently offers its services in California, Nevada,
Colorado, Utah, Arizona and New York. For product and other information, visit
PRI Medical's website, http://www.primedical.net.
Forward-Looking Statements:
Statements in this news release may contain forward-looking statements within
the meaning of Section 27A of the U.S. Securities Act of 1993 and Section 21E of
the Securities Exchange Act of 1934. Such statements may involve various risks
and uncertainties, some of which may be discussed in the Company's most recent
report on Form 10-KSB and subsequently filed SEC reports. There is no assurance
any forward-looking statements will prove accurate, as actual results and future
events could differ materially from those presently anticipated.
Emergent Group Inc. and Subsidiaries
Consolidated Balance Sheet
(Unaudited)
March 31,
------------
2006
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ASSETS
Current assets
Cash $ 588,828
Accounts receivable, net of allowance
for doubtful accounts of $20,487 2,045,935
Inventory, net of reserves of $77,402 666,766
Prepaid expenses 140,258
------------
Total current assets 3,441,787
Property and equipment, net
of accumulated depreciation and
amortization of $4,063,538 2,370,251
Goodwill 1,193,915
Other intangible assets, net of accumulated
amortization of $71,411 194,875
Deposits and other assets 161,713
------------
Total assets $ 7,362,541
============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Current portion of capital lease obligations $ 615,725
Current portion of notes payable 437,129
Line of credit --
Accounts payable 899,630
Accrued expenses 1,060,842
------------
Total current liabilities 3,013,326
Capital lease obligations, net of current portion 866,841
Notes payable, net of current portion 270,303
------------
Total liabilities 4,150,470
Minority interest 338,392
Shareholders' equity
Preferred stock, $0.001 par value, non-voting
10,000,000 shares authorized, no shares
issued and outstanding --
Common stock, $0.04 par value,
100,000,000 shares authorized 5,451,631 and
4,744,551 shares issued and outstanding 218,065
Additional paid-in capital 14,866,025
Deferred compensation, net of accumulated
amortization of $51,403 (162,902)
Accumulated deficit (12,047,509)
------------
Total shareholders' equity 2,873,679
------------
Total liabilities and shareholders' equity $ 7,362,541
============
EMERGENT GROUP INC.
Consolidated Statements of Income
Three Months Ended
March 31,
-----------------------------
2006 2005
(Unaudited)
------------- -------------
Revenue $ 3,990,817 $ 2,922,523
Cost of goods sold 2,439,680 1,968,948
------------- -------------
Gross profit 1,551,137 953,575
Selling, general, and administrative
expenses 976,328 799,134
------------- -------------
Income from operations 574,809 154,441
Other income (expense) (14,864 ) (19,001)
------------- -------------
Income before provision for income
taxes and minority interest 559,945 135,440
Provision for income taxes 23,864 --
------------- -------------
Net income before minority interest 536,081 135,440
Minority interest in income of
consolidated limited liability
companies 72,086 30,162
------------- -------------
Net income $ 463,995 $ 105,278
============= =============
Basic earnings per share $ 0.09 $ 0.02
Diluted earnings per share $ 0.08 $ 0.02
Basic weighted-average shares outstanding 5,451,631 4,744,551
Diluted weighted-average shares outstanding 5,816,939 4,744,551
CONTACT: Emergent Group Inc.
Investors:
Bruce J. Haber
(914) 235-5550, x12
bhaber@primedical.net