SUN VALLEY, Calif., March 27, 2007 (PRIME NEWSWIRE) -- Emergent Group Inc. (OTCBB:EMGP), a leading provider of mobile medical lasers and surgical equipment, today reported record results for the fiscal year ended December 31, 2006. Net income for the year totaled $2,723,967 or $0.50 per common share compared with $966,252 or $0.20 per common share for 2005. Full year revenues were $15,929,243 up 28% from the $12,479,263 reported for 2005.
For the Quarter ended December 31, 2006 the Company reported revenues of $3,947,282 up 15% from the $3,426,514 reported for the comparable period in 2005. Net income was $1,264,400 or $0.23 per common share compared to net income of $334,372 or $0.07 per common share for the comparable period in 2005. Results for the year and quarter include a non-cash deferred tax benefit of $905,400 or $0.16 per share for the quarter ended December 31, 2006, resulting from an adjustment to our reserve on net operating loss carryforwards.
"We are extremely pleased with the financial results and performance of Emergent Group during 2006. We achieved dramatic and record gains in both net income and revenues," said Emergent Group Chairman Bruce J. Haber.
Mr. Haber added, "Our strategic priorities continue to deliver growth that is well in excess of the industry and will provide a unique platform to continue a very healthy growth rate for the future. Emergent Group's profit for 2006 was extremely strong, with and without the deferred tax benefit, and reflects both the addition of new products and increased geographic penetration. We look forward to another outstanding performance for Emergent Group in 2007."
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 Sheets
December 31,
2006 2005
-------------- --------------
ASSETS
Current assets
Cash $ 1,318,612 $ 585,377
Accounts receivable, net of allowance
for doubtful accounts of $19,478
and $20,487 2,385,234 1,891,413
Inventory, net of reserves of $63,408
and $80,148 819,591 617,596
Prepaid expenses 151,897 157,526
Deferred tax assets 905,400 --
-------------- --------------
Total current assets 5,580,734 3,251,912
Property and equipment, net of accumulated
depreciation and amortization of
$4,570,113 and $3,878,680 3,918,767 2,467,923
Goodwill 1,120,058 1,195,035
Other intangible assets, net of accumulated
amortization of $114,940 and $56,901 151,345 209,384
Deposits and other assets 159,330 106,177
-------------- --------------
Total assets $ 10,930,234 $ 7,230,431
============== ==============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Current portion of capital lease
obligations $ 915,230 $ 490,061
Current portion of notes payable 238,186 434,309
Dividend payable to shareholders 1,094,249 512,861
Accounts payable 750,040 1,238,296
Accrued expenses 1,436,385 992,579
-------------- --------------
Total current liabilities 4,434,090 3,668,106
Capital lease obligations, net of
current portion 1,855,054 454,155
Notes payable, net of current portion 100,888 378,139
-------------- --------------
Total liabilities 6,390,032 4,500,399
Minority interest 457,317 339,421
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,
5,428,604 and 5,451,631 shares
issued and outstanding 217,143 218,065
Additional paid-in capital 14,739,193 14,684,050
Accumulated deficit (10,873,451) (12,511,504)
-------------- --------------
Total shareholders' equity 4,082,885 2,390,611
-------------- --------------
Total liabilities and shareholders'
equity $ 10,930,234 $ 7,230,431
============== ==============
Emergent Group Inc.
Consolidated Statements of Operations
Year Ended Three Months Ended
December 31, December 31,
------------------------- -------------------------
2006 2005 2006 2005
------------ ------------ ------------ ------------
Revenue $ 15,929,243 $ 12,479,263 $ 3,947,282 $ 3,426,514
Cost of goods sold 9,594,557 7,937,656 2,376,277 2,072,596
------------ ------------ ------------ ------------
Gross profit 6,334,686 4,541,607 1,571,005 1,353,918
Selling, general,
and administrative
expenses 4,016,689 3,399,359 1,032,579 929,565
------------ ------------ ------------ ------------
Income from
operations 2,317,997 1,142,248 538,426 424,353
Other income
(expense) (15,798) 9,539 (13,921) 476
------------ ------------ ------------ ------------
Income before
provision for
income taxes,
deferred tax
benefit, and
minority
interest 2,302,199 1,151,787 524,505 424,829
Provision for
income taxes (39,893) (27,007) 8,635 (27,007)
Reversal of
deferred tax
valuation allowance 905,400 -- 905,400 --
------------ ------------ ------------ ------------
Net income before
minority interest 3,167,706 1,124,780 1,438,540 397,822
Minority interest
in income of
consolidated
limited liability
companies (443,739) (158,528) (174,140) (63,450)
------------ ------------ ------------ ------------
Net income $ 2,723,967 $ 966,252 $ 1,264,400 $ 334,372
============ ============ ============ ============
Basic earnings
per share $ 0.50 $ 0.20 $ 0.23 $ 0.07
Diluted earnings
per share $ 0.47 $ 0.19 $ 0.22 $ 0.06
Basic weighted-
average shares
outstanding 5,455,266 4,934,430 5,447,997 5,129,808
Diluted weighted-
average shares
outstanding 5,801,762 5,189,648 5,799,194 5,385,026