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Liberator Medical Reports Revenue of $74.5 Million for Its Fiscal Year Ended September 30, 2014


December 15, 2014 - Stuart, FL

STUART, FL--(Marketwired - December 15, 2014) - Liberator Medical Holdings, Inc. (NYSE MKT: LBMH) today announced the financial results for its fiscal year ended September 30, 2014. Financial highlights are summarized below:



In thousands, except per share data FY 2014 FY 2013 Change
--------- --------- --------

Net Sales $ 74,569 $ 69,111 7.9%

Operating income 12,709 11,759 8.1%

Net income 7,802 7,078 10.2%

Earnings per diluted share 0.15 0.14 7.1%

Dividends declared per share $ 0.12 $ 0.08 50%

Net sales for fiscal year 2014 increased by $5,458,000, or 7.9%, to $74,569,000, compared with sales of $69,111,000 for fiscal year 2013. The increase in sales was primarily due to our continued emphasis on our direct response advertising campaign to acquire new customers and our emphasis on customer service to maximize the reorder rates for our recurring customer base.

Income from operations for fiscal year 2014 increased by $950,000, or 8.1%, to $12,709,000, compared with fiscal year 2013. The increase in operating income was primarily attributed to increased gross profits driven by our increased sales volumes, as well as reductions in payroll costs as a percentage of net sales.

Net income for fiscal year 2014 was $7,802,000, or $0.15 per diluted share, compared with net income of $7,078,000, or $0.14 per diluted share, for fiscal year 2013.

The Company had cash of $12,261,000 at September 30, 2014, compared with $12,453,000 at September 30, 2013, a decrease of $192,000. The decrease in cash during fiscal year 2014 was due to $5,528,000 of cash provided by operating activities, offset by $360,000 of cash used in investing activities and $5,360,000 of cash used in financing activities.

Other Significant Events for Fiscal Year 2014

  • Our shares were selected to join the Russell Global, Russell 3000 and Russell Microcap Indexes
  • The average annual order value for recurring customers increased to $1,982 per customer
  • Liberator Medical Supply, Inc. named as the 21st largest Medicare provider in 2013 from 26th largest in 2012 by HME News
  • During fiscal year 2014, the Company declared four quarterly cash dividends totaling $0.1225 per common share for its shareholders. The dividend for shareholders of record September 26, 2014 was increased 8.3% to $0.0325 per common share

Mark Libratore, the Company's President and CEO, commented, "I am pleased to report that we were able to grow sales and profits in fiscal 2014. During the year we made investments in critical business systems, staff skills and financial controls while returning over $6.3 million to our shareholders. In fiscal 2014 we expanded the scope and reach of our sales and marketing activities. We increased our participation in commercial insurance plans and launched a sales initiative to healthcare professionals. In fiscal 2015 we will work to grow our customer base by leveraging our direct response advertising. We will continue to evaluate potential acquisitions that are accretive to earnings and assess new products and services that fit our model."

Stay up-to-date with current events by visiting Liberator Medical's website at www.liberatormedical.com or by joining the Company's E-Mail Alert List. Join by clicking the following link www.LBMH-IR.com

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. Accredited by The Joint Commission, our Company's 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, personal mobility aids, diabetes supplies, catheters, ostomy supplies and mastectomy fashions. 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

In this press release and in related comments by our management, our use of the words "expect," "anticipate," "possible," "potential," "target," "believe," "commit," "intend," "continue," "may," "would," "could," "should," "project," "projected," "positioned" or similar expressions is intended to identify forward-looking statements that represent our current judgment about possible future events. We believe these judgments are reasonable, but these statements are not guarantees of any events or financial results, and our actual results may differ materially due to a variety of important factors. 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, and the risk of early obsolescence of our products. Liberator's most recent annual report on Form 10-K and quarterly reports on Form 10-Q provide information about these and other factors, which we may revise or supplement in future reports filed with the Securities and Exchange Commission.

 Liberator Medical Holdings, Inc. and Subsidiaries Consolidated Balance Sheets As of September 30, 2014 and 2013 (In thousands, except dollar per share amounts) 2014 2013 ----------- ----------- Assets Current Assets: Cash $ 12,261 $ 12,453 Accounts receivable, net of allowances of $4,569 and $4,502, respectively 8,866 7,836 Inventory, net of allowance for obsolete inventory of $181 and $308, respectively 1,954 2,187 Deferred tax assets 2,005 2,067 Prepaid and other current assets 449 219 ----------- ----------- Total Current Assets 25,535 24,762 Property and equipment, net of accumulated depreciation of $4,016 and $3,492, respectively 1,260 1,044 Deferred advertising, net 26,936 22,705 Intangible assets, net of accumulated amortization of $281 and $169, respectively 420 414 Other assets 178 174 ----------- ----------- Total Assets $ 54,329 $ 49,099 =========== =========== Liabilities and Stockholders' Equity Current Liabilities: Accounts payable $ 6,085 $ 4,915 Accrued liabilities 1,758 1,354 Dividends payable 1,728 1,569 Income tax payable 178 1,195 Other current liabilities 161 111 ----------- ----------- Total Current Liabilities 9,910 9,144 Deferred tax liabilities 10,031 8,561 Credit line facility 1,500 1,500 Other long-term liabilities 453 63 ----------- ----------- Total Liabilities 21,894 19,268 ----------- ----------- Commitments and contingencies (see Note 9) Stockholders' Equity: Common stock, $.001 par value, 200,000 shares authorized, 53,520 and 52,637 shares issued, respectively; 53,166 and 52,283 shares outstanding at September 30, 2014 and 2013, respectively 54 53 Additional paid-in capital 36,385 35,111 Accumulated deficit (3,524) (4,853) Treasury stock, at cost; 354 shares at September 30, 2014 and 2013 (480) (480) ----------- ----------- Total Stockholders' Equity 32,435 29,831 ----------- ----------- Total Liabilities and Stockholders' Equity $ 54,329 $ 49,099 =========== =========== 
 Liberator Medical Holdings, Inc. and Subsidiaries Consolidated Statements of Operations For the fiscal years ended September 30, 2014 and 2013 (In thousands, except dollar per share amounts) 2014 2013 ----------- ----------- Net Sales $ 74,569 $ 69,111 Cost of Sales 27,808 25,689 ----------- ----------- Gross Profit 46,761 43,422 Operating Expenses: Payroll, taxes and benefits 14,788 14,311 Advertising 9,902 8,908 Bad debts 3,279 3,069 Depreciation and amortization 663 683 General and administrative 5,420 4,692 ----------- ----------- Total Operating Expenses 34,052 31,663 ----------- ----------- Income from Operations 12,709 11,759 ----------- ----------- Other Expense Interest expense (50) (83) Total Other Expense (50) (83) Income before Income Taxes 12,659 11,676 Provision for Income Taxes 4,857 4,598 Net Income $ 7,802 $ 7,078 Basic earnings per share: Weighted average shares outstanding 52,704 50,115 Earnings per share $ 0.15 $ 0.14 Diluted earnings per share: Weighted average shares outstanding 53,679 52,375 Earnings per share $ 0.15 $ 0.14 Dividends declared per common share * $ 0.12 $ 0.08 * Four and three quarterly dividends were declared during fiscal years 2014 and 2013, respectively 
 Liberator Medical Holdings, Inc. and Subsidiaries Consolidated Statements of Cash Flows For the fiscal years ended September 30, 2014 and 2013 (In thousands) 2014 2013 ----------- ----------- Cash flow from operating activities: Net income $ 7,802 $ 7,078 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 10,473 9,404 Stock-based compensation 201 76 Provision for doubtful accounts and contractual adjustments 3,506 3,407 Deferred income taxes 1,532 3,321 Reserve for inventory obsolescence 14 126 Changes in operating assets and liabilities, net of acquisition: Accounts receivable (4,535) (787) Deferred advertising (14,043) (9,000) Inventory 255 368 Other assets (205) 40 Income taxes prepaid and payable (1,024) 1,104 Accounts payable 1,171 (1,724) Accrued liabilities 405 235 Other liabilities (24) (15) ----------- ----------- Net Cash Flows Provided by Operating Activities 5,528 13,633 ----------- ----------- Cash flows from investing activities Purchase of property and equipment and other (194) (367) Proceeds from sale of property and equipment 4 - Acquisition of business, net of cash acquired (170) (319) ----------- ----------- Net Cash Flows Used in Investing Activities (360) (686) ----------- ----------- Cash flows from financing activities Repayments to credit line facility - (1,000) Costs associated with credit line facility (21) (21) Proceeds from employee stock purchase plan - 48 Proceeds from exercise of options and warrants 896 270 Income tax benefit related to exercise of stock options 178 - Cash dividends paid (6,314) (2,616) Purchase of treasury stock - (430) Payments of capital lease obligations (99) (71) ----------- ----------- Net Cash Flows Used in Financing Activities (5,360) (3,820) ----------- ----------- Net (decrease) increase in cash (192) 9,127 Cash at beginning of period 12,453 3,326 ----------- ----------- Cash at end of period $ 12,261 $ 12,453 =========== =========== Supplemental disclosure of cash flow information: Cash paid for interest $ 51 $ 84 Cash paid for income taxes $ 4,170 171 Supplemental schedule of non-cash investing and financing activities: Capital expenditures funded by capital lease borrowings or term notes $ 562 $ 23 Cash dividends declared, but not yet paid $ 1,728 $ 1,569 

Contacts:

 Individual Investor Relations Contact
 WSR Communications
 772-219-7525
 IR@WSRcommunications.com
 http://wsrcommunications.ir.stockpr.com/liberatormedical

 Institutional Investor Contact
 Robert Davis
 Liberator Medical Holdings, Inc.
 772-463-3737
 bdavis@liberatormedical.com
 www.liberatormedical.com

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