SUN VALLEY, Calif., Nov. 14, 2007 (PRIME NEWSWIRE) -- Emergent Group Inc. (OTCBB:EMGP), a leading provider of mobile medical lasers and surgical equipment, announced results for the third quarter ended September 30, 2007. Revenues for the quarter increased 12% to a record $4,467,011 as compared to revenues of $3,997,933 for the same period in 2006. Net income was $430,448 or $0.08 per basic share for the third quarter as compared to net income of $445,765 or $0.08 per basic share for the same period in 2006.
"We continue our ability to deliver consistent growth in a challenging economy as we recorded our eighth consecutive quarter of year over year growth in sales," said Bruce J. Haber, Emergent Group Chairman and CEO. He added, "Most importantly, net income rebounded strongly from the last quarter as we near completion of our transition to a newer and more profitable laser technology. This technology provides the company with a significantly larger margin of profitability and positions us to resume our long term trend of income growth and financial results well in excess of the industry. The Emergent Group is also in an excellent position to capitalize on new acquisition and partnership opportunities in our goal to accelerate financial performance."
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 and Arizona. 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
September 30,
2007
------------
ASSETS (Unaudited)
Current assets
Cash $ 1,942,322
Accounts receivable, net 2,282,471
Inventory 475,490
Prepaid expenses 223,807
Deferred tax assets 905,400
------------
Total current assets 5,829,490
Property and equipment, net of accumulated
depreciation and amortization of $5,577,501 4,392,797
Goodwill 1,120,058
Other intangible assets, net of accumulated
amortization of $158,470 107,816
Deposits and other assets 109,066
------------
Total assets $ 11,559,227
============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Current portion of capital lease obligations $ 1,009,878
Current portion of notes payable 101,859
Accounts payable 1,033,971
Accrued expenses and other liabilities 1,235,640
------------
Total current liabilities 3,381,348
Capital lease obligations, net of
current portion 2,121,644
Notes payable, net of current portion 25,222
------------
Total liabilities 5,528,214
Minority interest 558,580
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 5,569,569 shares issued
and outstanding 222,799
Additional paid-in capital 14,814,322
Accumulated deficit (9,564,688)
------------
Total shareholders' equity 5,472,433
------------
Total liabilities and shareholders' equity $ 11,559,227
============
Emergent Group Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------------ ------------------------
2007 2006 2007 2006
----------- ----------- ----------- -----------
Revenue $ 4,467,011 $ 3,997,933 $13,181,307 $11,981,961
Cost of goods
sold 2,685,863 2,416,331 7,876,615 7,218,280
----------- ----------- ----------- -----------
Gross profit 1,781,148 1,581,602 5,304,692 4,763,681
Selling,
general, and
administrative
expenses 1,036,272 1,021,690 3,224,372 2,984,110
----------- ----------- ----------- -----------
Income from
operations 744,876 559,912 2,080,320 1,779,571
Other income
(expense)
Interest
expense (54,208) (39,466) (165,810) (128,710)
Gain on
disposal of
property and
equipment -- 15,502 8,214 18,192
Other income,
net 512 32,401 36,604 108,641
----------- ----------- ----------- -----------
Total
other income
(expense) (53,696) 8,437 (120,992) (1,877)
----------- ----------- ----------- -----------
Income before
provision for
income taxes
and minority
interest 691,180 568,349 1,959,328 1,777,694
Provision for
income taxes (39,086) (14,692) (134,498) (48,528)
----------- ----------- ----------- -----------
Income before
minority
interest 652,094 553,657 1,824,830 1,729,166
Minority
interest in
income of
consolidated
limited
liability
companies (221,646) (107,892) (516,066) (269,599)
----------- ----------- ----------- -----------
Net income $ 430,448 $ 445,765 $ 1,308,764 $ 1,459,567
=========== =========== =========== ===========
Basic earnings
per share $ 0.08 $ 0.08 $ 0.24 $ 0.27
=========== =========== =========== ===========
Diluted earnings
per share $ 0.07 $ 0.08 $ 0.22 $ 0.25
=========== =========== =========== ===========
Basic weighted
average shares
outstanding 5,566,448 5,460,789 5,518,920 5,457,704
=========== =========== =========== ===========
Diluted
weighted-average
shares
outstanding 5,873,137 5,822,186 5,825,085 5,809,343
=========== =========== =========== ===========