STUART, Fla., May 13, 2011 (GLOBE NEWSWIRE) -- Liberator Medical Holdings, Inc. (OTCBB:LBMH) today announced the financial results for its fiscal second quarter ended March 31, 2011. Sales for the three months ended March 31, 2011, increased by $2,993,000, or 31.0%, to $12,643,000, compared with sales of $9,650,000 for the three months ended March 31, 2010. The increase in sales was primarily due to the Company's continued emphasis on its direct response advertising campaign to obtain new customers and its dedication to customer service to retain its recurring customer base.
Gross profit for the three months ended March 31, 2011, increased by $1,707,000, or 27.3%, to $7,971,000, compared with gross profit of $6,264,000 for the three months ended March 31, 2010. The increase was attributed to an increased sales volume for the three months ended March 31, 2011, compared to the three months ended March 31, 2010.
General and administrative expenses increased by $154,000, or 14.4%, to $1,224,000 for the three months ended March 31, 2011, compared to the three months ended March 31, 2010. Advertising expenses increased by $905,000, or 81.2%, to $2,019,000 for the three months ended March 31, 2011, compared to the three months ended March 31, 2010. The majority of its advertising expenses were associated with the amortization of previously capitalized direct response advertising costs.
Income from operations for the three months ended March 31, 2011, increased by $390,000, or 108.3%, to $750,000, compared to the three months ended March 31, 2010. The increase in operating income is primarily attributed to increased sales volumes with a reduction as a percentage of sales in payroll costs, bad debt expenses, and administrative costs; partially offset by increases in its advertising costs.
Net income for the three months ended March 31, 2011, was $351,000 ($0.01 per share), compared to a net loss of $92,000 (-$0.00 per share) for the three months ended March 31, 2010.
The Company had cash of $4,594,000 at March 31, 2011, compared to cash of $7,428,000 at September 30, 2010, a decrease of $2,834,000. The decrease in cash for the six months ended March 31, 2011, is primarily due to $2,069,000 of cash used in operating activities and payments of $598,000 on debt obligations.
Mark Libratore, the Company's President and CEO, commented, " The second quarter of our fiscal year is typically a challenging quarter for us each year due to the annual renewal of our customers' insurance coverage, primarily Medicare Part B coverage, and calendar year deductibles that must be met by the majority of our customers at the beginning of each calendar year. In spite of these challenges, we were able to increase our sales for the twelfth consecutive quarter. The outlook for demand for our products and services is favorable, as there should be an increase in newly-diagnosed patients requiring the medical supplies that we provide. We expect solid revenues growth over the next two quarters of fiscal year 2011 due to our aggressive advertising and marketing programs."
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About Liberator Medical Holdings, Inc.
Liberator Medical Holdings, Inc.'s subsidiary, Liberator Medical Supply, Inc., established the Liberator brand as a leading national direct-to-consumer provider of quality medical supplies to Medicare-eligible seniors. An Exemplary Provider(TM) accredited by The Compliance Team, its unique combination of marketing, industry expertise and customer service has demonstrated success over a broad spectrum of chronic conditions. Liberator is recognized for offering a simple, reliable way to purchase medical supplies needed on a regular, ongoing, repeat-order basis, with the convenience of direct billing to Medicare and private insurance. Liberator's revenue primarily comes from supplying products to meet the rapidly growing requirements of general medical supplies, diabetes, urological, ostomy and mastectomy patients. Liberator communicates with patients and their doctors on a regular basis regarding prescriptions and supplies. Customers may purchase by phone, mail or internet, with repeat orders confirmed with the customer and shipped when needed.
Safe Harbor Statement
Certain statements in this press release that are not historical, but are forward-looking, are subject to known and unknown risks and uncertainties which may cause the Company's actual results in future periods to be materially different from any future performance that may be suggested in this press release. Such risks and uncertainties may include, but are not limited to, regulatory limitations on the medical industry in general, working capital constraints, fluctuations in customer demand and commitments, fluctuation in quarterly results, introduction of new services and products, commercial acceptance and viability of new services and products, pricing and competition, reliance upon subcontractors and vendors, the timing of new technology and product introductions, the risk of early obsolescence of our products and the other factors listed under "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended September 30, 2010, and our other filings with the Securities and Exchange Commission. We assume no obligation to update the information contained in this news release.
CONTACT: Individual Investor Relations Contact Gerald Kieft Wall Street Resources, Inc. 772-219-7525 LiberatorIR@wallstreetresources.net http://www.wallstreetresources.net Institutional Investor Contact Lyn Davis Littlebanc Advisors, LLC 561-948-3005 ld@littlebanc.com www.littlebanc.com