For Immediate Release
---------------------
Emergent Group Inc. Reports Record Second Quarter EPS of $0.10 on Record Sales
Increase of 35 Percent
GLENDALE, Calif.--(PRIMEZONE)--August 15, 2006--Emergent Group Inc. (OTCBB:EMGP-
News), a leading provider of mobile medical lasers and surgical equipment, today
announced financial results for its second quarter ended June 30, 2006. Second
quarter revenues increased 35% to a record $3,993,211, compared to revenues of
$2,948,415 for the same period in 2005. Net income increased dramatically to a
record $549,807 or $0.10 per basic share ($0.09 per diluted share) for the
quarter, compared to net income of $125,275 or $0.03 per basic and diluted share
for the same period in 2005. For the six months ended June 30, 2006 revenues
increased 36% to $7,984,028, compared to $5,870,935 for the same period in 2005.
Net income increased to $1,013,802 or $0.19 per basic share ($0.17 per diluted
share) for the six months, compared to net income of $230,560 or $0.05 per basic
and diluted share for the same period in 2005.
"Our strong momentum and favorable industry conditions continued during the
second quarter and we recorded a record year over year profit increase for the
third consecutive quarter," said Bruce J. Haber, Emergent's Chairman and CEO.
"The strong increases in sales and net income demonstrate continuing strength in
our operational leverage." Mr. Haber added that, "we are extremely optimistic
about the future and are continuing to evaluate acquisition and partnership
opportunities in an effort to further accelerate growth."
About Emergent Group Inc.
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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:
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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
that any forward-looking statements will prove accurate, as actual results and
future events could differ materially from those presently anticipated.
Investor Contact: Bruce J. Haber (914) 235-5550, x12
e-mail: bhaber@primedical.net
Emergent Group Inc. and Subsidiaries
Consolidated Balance Sheet
(unaudited)
June 30,
2006
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ASSETS
Current assets
Cash $ 772,578
Accounts receivable, net of allowance for doubtful
accounts of $20,832 2,005,749
Inventory, net of reserves of $77,207 712,369
Prepaid expenses 228,196
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Total current assets 3,718,892
Property and equipment, net of accumulated depreciation and
amortization of $4,291,084 3,198,033
Deposits and other assets 135,354
Goodwill 1,192,027
Other intangible assets, net of accumulated amortization of $85,921 180,365
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Total assets $ 8,424,671
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Current portion of capital lease obligations $ 668,475
Current portion of notes payable 414,077
Accounts payable 860,706
Accrued liabilities and expenses 1,518,158
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Total current liabilities 3,461,416
Capital lease obligations, net of current portion 982,936
Notes payable, net of current portion 187,500
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Total liabilities 4,631,852
Minority interest 349,521
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
5,460,789 shares issued and outstanding 218,392
Additional paid-in capital 14,877,448
Deferred compensation, net of accumulated amortization of $51,403 (154,840)
Accumulated deficit (11,497,702)
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Total shareholders' equity 3,443,298
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Total liabilities and shareholders' equity $ 8,424,671
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EMERGENT GROUP INC.
Consolidated Statements of Income
Three Months Ended Six Months Ended
June 30, June 30,
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2006 2005 2006 2005
-------------- -------------- -------------- -------------
(unaudited) (unaudited)
Revenue $ 3,993,211 $ 2,948,415 $ 7,984,028 $ 5,870,935
Cost of goods sold 2,362,269 1,930,905 4,801,949 3,899,853
-------------- -------------- -------------- -------------
Gross profit 1,630,942 1,017,510 3,182,079 1,971,082
Selling, general, and administrative expenses 986,092 873,062 1,962,420 1,672,059
-------------- -------------- -------------- -------------
Income from operations 644,850 144,448 1,219,659 299,023
Other income (expense) 4,550 29,296 (10,314) 10,167
-------------- -------------- -------------- -------------
Income before provision for income 649,400 173,744 1,209,345 309,190
taxes and minority interest
Provision for income taxes (9,972) - (33,836) -
-------------- -------------- -------------- -------------
Net income before minority interest 639,428 173,744 1,175,509 309,190
Minority interest in income of consolidated
limited liability companies (89,621) (48,469) (161,707) (78,630)
-------------- -------------- -------------- -------------
Net income $ 549,807 $ 125,275 $ 1,013,802 $ 230,560
============== ============== ============== =============
Basic earnings per share $ 0.10 $ 0.03 $ 0.19 $ 0.05
Diluted earnings per share $ 0.09 $ 0.03 $ 0.17 $ 0.05
Basic weighted-average shares outstanding 5,459,200 4,817,752 5,456,127 4,781,641
Diluted weighted-average shares outstanding 5,805,504 4,926,810 5,802,431 4,890,699