GLENDALE, Calif., Nov. 14, 2006 (PRIMEZONE) -- Emergent Group Inc. (OTCBB:EMGP), a leading provider of mobile medical lasers and surgical equipment, today announced financial results for its third quarter ended September 30, 2006. Third quarter revenues increased 26% to $3,997,933, compared to revenues of $3,181,811 for the same period in 2005. Net income increased 11% to $445,765 or $0.08 per basic and diluted share for the quarter, compared to net income of $401,327 or $0.08 per basic and diluted share for the same period in 2005. For the nine months ended September 30, 2006 revenues increased 32% to $11,981,961, compared to $9,052,744 for the same period in 2005. Net income increased a dramatic 131% to $1,459,567 or $0.27 per basic share ($0.25 per diluted share) for the nine months, compared to net income of $631,884 or $0.13 per basic and diluted share for the same period in 2005.
"This quarter marks the fourth consecutive quarter of year over year profit growth," said Bruce J. Haber, Emergent Chairman and CEO. Mr. Haber added that "We are extremely pleased with the quarter and nine month financial results and are optimistic that we can continue to grow Emergent at a very healthy rate for the foreseeable future. We continue to evaluate acquisition and partnership opportunities in an effort to further accelerate growth."
Mr. Haber further remarked that "The Company competes in a vital and very fast growing marketplace as it provides modern technology to hospitals and physicians who might not otherwise have access to such equipment. We have excellent opportunities for growth as we add new product lines and expand our geographic penetration."
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)
September 30,
2006
------------
ASSETS
Current assets
Cash $ 1,029,979
Accounts receivable, net of allowance for
doubtful accounts of $22,225 2,263,544
Inventory, net of reserves of $77,207 728,799
Prepaid expenses 162,820
------------
Total current assets 4,185,142
Property and equipment, net of accumulated
depreciation and amortization of $4,259,004 3,893,452
Deposits and other assets 134,774
Goodwill 1,192,027
Other intangible assets, net of accumulated
amortization of $100,430 165,855
------------
Total assets $ 9,571,250
============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Current portion of capital lease obligations $ 937,528
Current portion of notes payable 338,620
Accounts payable 733,297
Accrued expenses 1,488,665
------------
Total current liabilities 3,498,110
Capital lease obligations, net of current portion 1,554,450
Notes payable, net of current portion 156,250
------------
Total liabilities 5,208,810
Minority interest 453,741
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 $90,850 (135,204)
Accumulated deficit (11,051,937)
------------
Total shareholders' equity 3,908,699
------------
Total liabilities and shareholders' equity $ 9,571,250
============
EMERGENT GROUP INC.
Consolidated Statements of Income
Three Months Ended Nine Months Ended
September 30, September 30,
------------------------ ------------------------
2006 2005 2006 2005
----------- ----------- ----------- -----------
(unaudited) (unaudited)
Revenue $ 3,997,933 $ 3,181,811 $11,981,961 $ 9,052,744
Cost of goods
sold 2,416,331 1,965,207 7,218,280 5,865,060
----------- ----------- ----------- -----------
Gross profit 1,581,602 1,216,604 4,763,681 3,187,684
Selling,
general, and
administrative
expenses 1,021,690 797,598 2,984,110 2,469,660
----------- ----------- ----------- -----------
Income from
operations 559,912 419,006 1,779,571 718,024
Other income
(expense) 8,437 (1,232) (1,877) 8,937
----------- ----------- ----------- -----------
Income before
provision for
income taxes
and minority
interest 568,349 417,774 1,777,694 726,961
Provision for
income taxes (14,692) -- (48,528) --
----------- ----------- ----------- -----------
Net income
before minority
interest 553,657 417,774 1,729,166 726,961
Minority
interest in
income of
consolidated
limited
liability
companies (107,892) (16,447) (269,599) (95,077)
----------- ----------- ----------- -----------
Net income $ 445,765 $ 401,327 $ 1,459,567 $ 631,884
=========== =========== =========== ===========
Basic earnings
per share $ 0.08 $ 0.08 $ 0.27 $ 0.13
Diluted earnings
per share $ 0.08 $ 0.08 $ 0.25 $ 0.13
Basic weighted-
average shares
outstanding 5,460,789 5,004,551 5,457,704 4,856,271
Diluted weighted
-average shares
outstanding 5,822,186 5,071,024 5,809,343 4,921,764