SUN VALLEY, Calif., Aug. 12, 2008 (PRIME NEWSWIRE) -- Emergent Group Inc. (OTCBB:EMGP), a leading provider of mobile medical lasers and surgical equipment, announced results for the second quarter ended June 30, 2008. Revenues for the quarter increased 13% to a record $4,901,549 compared to revenues of $4,331,488 for the same period in 2007. Net income increased 97% to $711,368 or $0.12 per basic share for the second quarter as compared to net income of $361,204 or $0.07 per basic share for the same period in 2007.
"Our strong financial performance in the second quarter of 2008 represents our eleventh consecutive quarter of year over year sales growth," said Bruce J. Haber, Emergent Group Chairman and CEO. "Particularly satisfying is the nearly doubling of our quarterly profit on the eve of expanding our business model into eleven new states following the recently announced purchase of the assets of PhotoMedex Surgical Services ('PSS'), a division of PhotoMedex, Inc.," added Mr. Haber.
"On August 8, 2008, we closed the PSS asset purchase. The PSS division recorded sales of $7,667,000 for the year ended December 31, 2007, equal to 43% of Emergent's sales of $17,662,000 for the same period," added Mr. Haber. "We expect the division to be accretive to Emergent Group's earnings for 2008 and represent a large future growth opportunity."
He further remarked, "Our confidence in our business and prospects is reinforced by our continued strong cash generation and demonstrated by the payment of a $0.30 per share cash dividend in January, 2008, an increase of 50% over the prior year."
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 five states in the western United States and eleven states along the eastern seaboard. 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 Sheets
June 30, December 31,
2008 2007
------------ ------------
ASSETS (Unaudited)
Current assets
Cash $ 2,032,441 $ 3,043,654
Accounts receivable, net of allowance
for doubtful accounts of $20,460
and $17,460 2,458,576 2,313,084
Inventory, net of reserves of $57,339
and $54,999 601,831 504,792
Prepaid expenses 205,746 164,857
Deferred tax assets 915,488 915,488
------------ ------------
Total current assets 6,214,082 6,941,875
Property and equipment, net of
accumulated depreciation and
amortization of $6,525,567 and
$ 5,954,233 4,477,595 4,142,230
Goodwill 1,120,058 1,120,058
Other intangible assets, net of
accumulated amortization of
$195,035 and $172,355 71,250 93,930
Deposits and other assets 75,204 104,758
------------ ------------
Total assets $ 11,958,189 $ 12,402,851
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Current portion of capital lease
obligations $ 1,245,392 $ 1,143,198
Current portion of notes payable 50,445 100,888
Accounts payable 853,073 709,027
Dividends payable -- 1,686,095
Accrued expenses and other liabilities 1,598,953 1,559,046
------------ ------------
Total current liabilities 3,747,863 5,198,254
Capital lease obligations, net of
current portion 2,019,792 2,341,710
------------ ------------
Total liabilities 5,767,655 7,539,964
Minority interest 706,223 592,807
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
5,724,878 and 5,619,392 shares issued
and outstanding 228,992 224,772
Additional paid-in capital 14,903,002 14,836,263
Accumulated deficit (9,647,683) (10,790,955)
------------ ------------
Total shareholders' equity 5,484,311 4,270,080
------------ ------------
Total liabilities and shareholders'
equity $ 11,958,189 $ 12,402,851
============ ============
Emergent Group Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
------------------------ ------------------------
2008 2007 2008 2007
----------- ----------- ----------- -----------
Revenue $ 4,901,549 $ 4,331,488 $ 9,405,838 $ 8,714,296
Cost of goods sold 2,690,183 2,623,649 5,316,017 5,190,753
----------- ----------- ----------- -----------
Gross profit 2,211,366 1,707,839 4,089,821 3,523,543
Selling, general,
and administrative
expenses 1,131,241 1,099,876 2,255,094 2,188,100
----------- ----------- ----------- -----------
Income from
operations 1,080,125 607,963 1,834,727 1,335,443
Other income
(expense)
Interest expense (63,704) (59,798) (126,136) (111,602)
Gain on disposal
of property and
equipment 28,937 112 28,937 8,214
Other income, net 11,472 21,872 24,124 36,092
----------- ----------- ----------- -----------
Total other
income (expense) (23,295) (37,814) (73,075) (67,296)
----------- ----------- ----------- -----------
Income before
provision for
income taxes and
minority interest 1,056,830 570,149 1,761,652 1,268,147
Provision for
income taxes (75,000) (39,510) (135,500) (95,412)
----------- ----------- ----------- -----------
Income before
minority interest 981,830 530,639 1,626,152 1,172,735
Minority interest
in income of
consolidated
limited liability
companies (270,462) (169,435) (482,884) (294,420)
----------- ----------- ----------- -----------
Net income $ 711,368 $ 361,204 $ 1,143,268 $ 878,315
=========== =========== =========== ===========
Basic earnings
per share $ 0.12 $ 0.07 $ 0.20 $ 0.16
=========== =========== =========== ===========
Diluted earnings
per share $ 0.12 $ 0.06 $ 0.19 $ 0.15
=========== =========== =========== ===========
Basic weighted
average shares
outstanding 5,725,802 5,551,558 5,688,150 5,480,253
=========== =========== =========== ===========
Diluted weighted-
average shares
outstanding 5,981,569 5,874,849 5,947,420 5,802,259
=========== =========== =========== ===========