STUART, Fla., Dec. 7, 2011 (GLOBE NEWSWIRE) -- Liberator Medical Holdings, Inc. (OTCBB:LBMH) today announced that it would restate its financial statements for the interim periods ended December 31, 2010, March 31, 2011, and June 30, 2011.
During the reconciliation of the Company's annual physical inventory count at fiscal year end, the Company determined that journal entries recording the cost of goods sold each month contained errors as a result of unit of measure conversion issues for certain products. As a result, management determined that the Company's inventory balance was overstated and cost of sales were understated by $300,000 as of and for the nine months ended June 30, 2011.
In a Report on Form 8-K filed with the Securities and Exchange Commission on December 7, 2011, the Company reported that the overstatement of inventory balances is an estimate and subject to change based upon the Company's final analysis of the adjustments, completion of its year end audit, and other procedures related to the restatements by the Company's independent registered accounting firm. The Company stated that it would conduct quarterly physical inventory evaluations for each future interim period until it implements a continuous inventory control system.
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About Liberator Medical Holdings, Inc.
Liberator Medical Holdings, Inc.'s subsidiary, Liberator Medical Supply, Inc., established the Liberator brand as a leading national direct-to-consumer provider of quality medical supplies to Medicare-eligible seniors. An Exemplary Provider(TM) accredited by The Compliance Team, its unique combination of marketing, industry expertise and customer service has demonstrated success over a broad spectrum of chronic conditions. Liberator is recognized for offering a simple, reliable way to purchase medical supplies needed on a regular, ongoing, repeat-order basis, with the convenience of direct billing to Medicare and private insurance. Liberator's revenue primarily comes from supplying products to meet the rapidly growing requirements of general medical supplies, personal mobility aids, diabetes supplies, catheters, ostomy supplies and mastectomy fashions . Liberator communicates with patients and their doctors on a regular basis regarding prescriptions and supplies. Customers may purchase by phone, mail or internet, with repeat orders confirmed with the customer and shipped when needed.
Safe Harbor Statement
Certain statements in this press release that are not historical, but are forward-looking, are subject to known and unknown risks and uncertainties which may cause the Company's actual results in future periods to be materially different from any future performance that may be suggested in this press release. Such risks and uncertainties may include, but are not limited to, regulatory limitations on the medical industry in general, working capital constraints, fluctuations in customer demand and commitments, fluctuation in quarterly results, introduction of new services and products, commercial acceptance and viability of new services and products, pricing and competition, reliance upon subcontractors and vendors, the timing of new technology and product introductions, the risk of early obsolescence of our products and the other factors listed under "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended September 30, 2010, and our other filings with the Securities and Exchange Commission. We assume no obligation to update the information contained in this news release.
As of and for the three months ended December 31, 2010 (dollars in thousands, except per share amounts):
| Balance Sheet Data ($000's): |
As Previously Reported |
Current Period Impacts |
Restated Amounts |
| Accounts Receivable, net | $ 6,408 | $ 16 | $ 6,424 |
| Inventory, net | 2,471 | (103) | 2,368 |
| Current Assets | 18,207 | (87) | 18,120 |
| Total Assets | 32,221 | (87) | 32,134 |
| Current Liabilities | 6,611 | — | 6,611 |
| Deferred Tax Liability | 1,963 | (33) | 1,930 |
| Total Liabilities | 8,683 | (33) | 8,650 |
| Accumulated Deficit | (10,664) | (54) | (10,718) |
| Total Equity | $ 23,538 | $ (54) | $ 23,484 |
| Total Liabilities and Equity | $ 32,221 | $ (87) | $ 32,134 |
| For the three months ended December 31, 2010 | |||
| Statement of Operations Data ($000's): |
As Previously Reported |
Current Period Impacts |
Restated Amounts |
| Net Sales | $ 12,204 | $ 16 | $ 12,220 |
| Cost of Sales | 4,336 | 103 | 4,439 |
| Gross Profit | 7,868 | (87) | 7,781 |
| % of Net Sales | 64.5% | 63.7% | |
| Total Operating Expenses | 6,725 | — | 6,725 |
| Income from Operations | 1,143 | (87) | 1,056 |
| % of Net Sales | 9.4% | 8.6% | |
| Total Other Income (Expense) | (929) | — | (929) |
| Income before Income Taxes | 214 | (87) | 127 |
| Provision for Income Taxes | 372 | (33) | 339 |
| Net Income (Loss) | $ (158) | $ (54) | $ (212) |
| Basic Earnings (Loss) per Share | $ (0.00) | $ (0.00) | $ (0.00) |
| Diluted Earnings (Loss) per Share | $ (0.00) | $ (0.00) | $ (0.00) |
As of and for the three and six months ended March 31, 2011 (dollars in thousands, except per share data):
| Balance Sheet Data ($000's): |
As Previously Reported |
Current Period Impacts |
Restated Amounts |
| Accounts Receivable, net | $ 7,402 | $ 37 | $ 7,439 |
| Inventory, net | 2,621 | (205) | 2,416 |
| Current Assets | 16,678 | (168) | 16,510 |
| Total Assets | 33,708 | (168) | 33,540 |
| Current Liabilities | 7,165 | — | 7,165 |
| Deferred Tax Liability | 2,459 | (65) | 2,394 |
| Total Liabilities | 9,711 | (65) | 9,646 |
| Accumulated Deficit | (10,313) | (103) | (10,210) |
| Total Equity | $ 23,997 | $ (103) | $ 23,894 |
| Total Liabilities and Equity | $ 33,708 | $ (168) | $ 33,540 |
|
For the three months ended March 31, 2011 |
For the six months ended March 31, 2011 |
|||||
| Statement of Operations Data ($000's): |
As Previously Reported |
Current Period Impacts |
Restated Amounts |
As Previously Reported |
Current Period Impacts |
Restated Amounts |
| Net Sales | $ 12,643 | $ 21 | $ 12,664 | $ 24,847 | $ 37 | $ 24,884 |
| Cost of Sales | 4,672 | 102 | 4,774 | 9,008 | 205 | 9,213 |
| Gross Profit | 7,971 | (81) | 7,890 | 15,839 | (168) | 15,671 |
| % of Net Sales | 63.0% | 62.3% | 63.7% | 63.0% | ||
| Total Operating Expenses | 7,221 | — | 7,221 | 13,946 | — | 13,946 |
| Income from Operations | 750 | (81) | 669 | 1,893 | (168) | 1,725 |
| % of Net Sales | 5.9% | 5.3% | 7.6% | 6.9% | ||
| Total Other Income (Expense) | 1 | — | 1 | (928) | — | (928) |
| Income before Income Taxes | 751 | (81) | 670 | 965 | (168) | 797 |
| Provision for Income Taxes | 400 | (31) | 369 | 772 | (65) | 707 |
| Net Income (Loss) | $ 351 | $ (50) | $ 301 | $ 193 | $ (103) | $ 90 |
| Basic Earnings (Loss) per Share | $ 0.01 | $ (0.00) | $ 0.01 | $ 0.00 | $ (0.00) | $ 0.00 |
| Diluted Earnings (Loss) per Share | $ 0.01 | $ (0.00) | $ 0.01 | $ 0.00 | $ (0.00) | $ 0.00 |
As of and for the three and nine months ended June 30, 2011 (dollars in thousands, except per share data):
| Balance Sheet Data ($000's): |
As Previously Reported |
Current Period Impacts |
Restated Amounts |
| Accounts Receivable, net | $ 7,965 | $ 47 | $ 8,012 |
| Inventory, net | 2,912 | (300) | 2,612 |
| Current Assets | 15,470 | (253) | 15,217 |
| Total Assets | 34,704 | (253) | 34,451 |
| Current Liabilities | 7,369 | — | 7,369 |
| Deferred Tax Liability | 3,006 | (97) | 2,909 |
| Total Liabilities | 10,434 | (97) | 10,337 |
| Accumulated Deficit | (10,175) | (156) | (10,331) |
| Total Equity | 24,270 | (156) | 24,114 |
| Total Liabilities and Equity | $ 34,704 | $ (253) | $ 34,451 |
| For the three months ended | For the nine months ended | |||||
| June 30, 2011 | June 30, 2011 | |||||
| Statement of Operations Data ($000's): |
As Previously Reported |
Current Period Impacts |
Restated Amounts |
As Previously Reported |
Current Period Impacts |
Restated Amounts |
| Net Sales | $ 13,309 | $ 10 | $ 13,319 | $ 38,156 | $ 47 | $ 38,203 |
| Cost of Sales | 5,142 | 95 | 5,237 | 14,150 | 300 | 14,450 |
| Gross Profit | 8,167 | (85) | 8,082 | 24,006 | (253) | 23,753 |
| % of Net Sales | 61.4% | 60.7% | 62.9% | 62.2% | ||
| Total Operating Expenses | 7,698 | — | 7,698 | 21,644 | — | 21,644 |
| Income from Operations | 469 | (85) | 384 | 2,362 | (253) | 2,109 |
| % of Net Sales | 3.5% | 2.9% | 6.2% | 5.5% | ||
| Total Other Income (Expense) | (2) | — | (2) | (930) | — | (930) |
| Income before Income Taxes | 467 | (85) | 382 | 1,432 | (253) | 1,179 |
| Provision for Income Taxes | 329 | (33) | 296 | 1,101 | (97) | 1,004 |
| Net Income (Loss) | $ 138 | $ (52) | $86 | $ 331 | $ (156) | $ 175 |
| Basic Earnings (Loss) per Share | $ 0.00 | $ (0.00) | $ 0.00 | $ 0.01 | $ (0.00) | $ 0.00 |
| Diluted Earnings (Loss) per Share | $ 0.00 | $ (0.00) | $ 0.00 | $ 0.01 | $ (0.00) | $ 0.00 |