SUN VALLEY, Calif., May 15, 2007 (PRIME NEWSWIRE) -- Emergent Group Inc. (OTCBB:EMGP), a leading provider of mobile medical lasers and surgical equipment, announced results for the first quarter ended March 31, 2007. First quarter revenues increased $391,991 to a record $4,382,808, compared to revenues of $3,990,817 for the same period in 2006. Net income increased 11% to a record $517,110 or $0.10 per basic share for the first quarter, as compared to net income of $463,995 or $0.09 per basic share for the same period in 2006. The Company's cash position as of March 31, 2007 was $682,989 after payment of a $0.20 per share dividend ($1,094,249) in January 2007.
"The strong financial performance achieved by the Company last year continued into the first quarter of 2007 as we recorded our sixth consecutive quarter of year over year growth in sales," said Bruce J. Haber, Emergent Group Chairman and CEO. Mr. Haber added, "Our momentum continues to build and we have every expectation of delivering another year of favorable financial results."
Mr. Haber said, "One of our strategic priorities is the accelerated delivery of profitable sales across the Company with growth that well exceeds our industry's average." He added, "We are well positioned to capitalize on acquisition and partnership opportunities in our effort to achieve our financial goals and Emergent Group continues to gain traction both with new customers and new markets."
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
Condensed Consolidated Balance Sheet
March 31,
2007
------------
ASSETS (Unaudited)
Current assets
Cash $ 682,989
Accounts receivable, net of allowance for doubtful
accounts of $19,478 2,625,918
Inventory, net of reserves of $63,408 658,867
Prepaid expenses 153,992
Deferred tax assets 905,400
------------
Total current assets 5,027,166
Property and equipment, net of accumulated depreciation
and amortization of $4,875,973 4,072,038
Goodwill 1,120,058
Other intangible assets, net of accumulated amortization
of $129,450 136,835
Deposits and other assets 106,857
------------
Total assets $ 10,462,954
============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Current portion of capital lease obligations $ 843,847
Current portion of notes payable 160,978
Accounts payable 1,155,280
Accrued expenses and other liabilities 1,426,620
------------
Total current liabilities 3,586,725
Capital lease obligations, net of current portion 1,767,217
Notes payable, net of current portion 75,666
------------
Total liabilities 5,429,608
Minority interest 411,871
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 5,534,104 shares issued and
outstanding 221,361
Additional paid-in capital 14,756,465
Accumulated deficit (10,356,351)
------------
Total shareholders' equity 4,621,475
------------
Total liabilities and shareholders' equity $ 10,462,954
============
Emergent Group Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(Unaudited)
Three Months Ended
March 31,
------------------------
2007 2006
----------- -----------
Revenue $ 4,382,808 $ 3,990,817
Cost of goods sold 2,567,105 2,439,680
----------- -----------
Gross profit 1,815,703 1,551,137
Selling, general, and administrative
expenses 1,088,224 976,328
----------- -----------
Income from operations 727,479 574,809
Other income (expense)
Interest expense (51,804) (46,741)
Gain on disposal of property and equipment 8,102 1,300
Other income, net 14,220 30,577
----------- -----------
Total other income (expense) (29,482) (14,864)
----------- -----------
Income before provision for income taxes
and minority interest 697,997 559,945
Provision for income taxes (55,902) (23,864)
----------- -----------
Income before minority interest 642,095 536,081
Minority interest in income of consolidated
limited liability companies (124,985) (72,086)
----------- -----------
Net income $ 517,110 $ 463,995
=========== ===========
Basic earnings per share $ 0.10 $ 0.09
=========== ===========
Diluted earnings per share $ 0.09 $ 0.08
=========== ===========
Basic weighted average shares outstanding 5,442,961 5,451,631
=========== ===========
Diluted weighted-average shares outstanding 5,783,891 5,816,939
=========== ===========