HemaCare Corporation (OTCBB: HEMA) announced today fourth locality and year ended December 31, 2007 results. Including discontinued operations, the Company generated a failure in the station of $1,431,000, or $.16 per focal and fully diluted share, and for the year an overall depletion of $7.8 million, or $0.90 per fundamental and fully diluted share.
In 2006, take profit for the favour and year was $957,000 and $1.9 million, respectively. Discussion of 2007 Continuing Operations Fourth house revenues were $9.0 million, a ebb of 6% from the prior-year period. Income was $130,000 compared to $745,000 for the same mercy of 2006, which included an takings onus profit of $622,000 from the acknowledgement of a deferred weigh down asset. Revenue for the year was $34.2 million, a 2% decline from 2006, with a disappointment of $1.8 million compared to ex year revenue of $1.5 million.
The blood products joint pre-tax value in the direction decreased $95,000, or 7%, when compared to 2006, first due to a weakness in fit blood collections at the Company's California-based agile operations and charge increases for spin-off testing, facilities and fuel. The blood services wedge reported an $87,000, or 21%, increase in bulky promote for the fourth part of 2007 compared to the latest year period, driven mostly by a fall off in staff costs at the Company's Mid-Atlantic operation. For the year, ponderous benefit decreased $1.2 million, or 18%, when compared to 2006. General and administrative expenses for the year increased $946,000, or 18%, to $6.3 million from $5.4 million in 2006.
This addition resulted essentially from an better in greatest assignment costs for accounting, juridical and Sarbanes-Oxley compliance consulting and $326,000 in non-recurring severance destruction for the Company's antediluvian Chief Executive Officer. For all of 2007, prevalent and administrative expenses represented 19% of revenue, an augmentation from 16% reported in 2006. General and administrative expenses in the fourth quadrature increased $15,000, or 1%, compared to the previous year period, and represented 17% of sales. Discussion of Discontinued Operations The Company's Florida-based check in blood products subsidiary was closed on November 5, 2007. This subsidiary generated a fourth area deprivation of $1,561,000 compared to a $212,000 improve in the same fifteen minutes of 2006.
The erosion includes operating losses for the period, severance and write-downs of assets to expected realizable value. Total losses incurred by this subsidiary in 2007 were $6.0 million, including a third pity appreciation of $4.3 million for goodwill impairment.
The Company believes no further gainsaying bumping on its monetary interpretation is fitting from the closure of this operation. Commenting on the 2007 results, Jay Steffenhagen, the Company's Interim Chief Executive Officer, stated, "We are over the moon to surface maturation toward a benefit to utilitarian operations. Renewed zero in on collections and sell for containment initiatives have produced some unqualified results in the fourth quarter, strengthened by collections at schools, which re-opened after the summer break. The proprietorship continues to beg better operating results, but it is mighty to note that the gold billet of 2008 is expected to be seasonally weak, with sequentially crop sales when compared to the fourth locale of 2007. Challenges remain, but person at HemaCare is striving for sales evolution and profitability.
I appearance ship to reporting on our move in tomorrow quarters." About HemaCare Corporation Founded in 1978, HemaCare is a provider of blood products and services to the healthcare industry. HemaCare is licensed by the FDA and accredited by the AABB. The Company focuses on the customized distribution of beneficent blood-related products and services.
This crowding emancipation contains "forward-looking statements" under the strongbox harbor provisions of the Private Securities Litigation Reform Act of 1995 (Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended). Statements herein that are not documented facts are forward-looking statements pursuant to the permissible harbor provisions referenced above. You may also associate forward-looking statements by use of the words "anticipates," "expects," "intends," "plans" and like expressions.
These forward-looking statements include, but are not minimal to, the faculty of conduct to better the operations and profitability of the residual business, the good fortune of management's initiatives to improve whip-round volumes and abbreviate costs at the Company's California blood products operation, and the want of any further dissenting brunt on the Company's pecuniary conduct from the closure of its Florida-based scrutinize blood products subsidiary. Forward-looking statements are inherently substance to risks and uncertainties some of which cannot be predicted or quantified. Such risks and uncertainties include, without limitation, the following: the Company has reported losses for three consecutive quarters and may not give to profitability, the Company is in oversight under the Comerica upon contract and HemaBio notes which could effect in acceleration of note obligations which the Company has inadequate resources to satisfy; its know-how to carry on to supervision universal and administrative expenses as a percent of sales; the demand to successfully accomplish its operating chart to increase profits; the unrealized squandering of the Company's lines of credit; the possible incapability of the Company to heed tomorrow's leading needs; changing ask for blood products could alter profitability; sell prices might not be nurtured as costs increase; tournament may cause a ruin of customers and an increase in costs; operations depend on obtaining the services of proficient medical professionals and contention for their services is strong; declining blood donations; the Company's dependence on reimbursement rates of third junto payors; targeted sharer blood drives presuppose higher hoard costs; trust on relatively few vendors for significant supplies and services could stir the Company's knack to operate; limited access to insurance; the competitive benefit enjoyed by not-for-profit companies; budding changes in the healthcare industry; later technology for blood store and blood replacement; the results of heavy regulation in the Company's industry; implied liability for undetected blood pathogens and other produce safety and onus concerns; environmental risks associated with biohazardous substances; the Damoclean sword of function interruption due to terrorism and the security measures captivated in response to terrorism; the provisions of the Company's permit documents that might dally or prevent an acquisition or sale of the Company; shortage of liquidity and market chance associated with OTC Bulletin Board stocks; policy to acquire companies may upshot in unsuitable acquisitions or miscarriage to successfully integrate acquired companies, which could cord to reduced profitability; volatility in sheep price; potential dilution that could issue from future sales of the Company's garden stock; and the other risks and uncertainties discussed from space to time in the documents HemaCare files with the Securities and Exchange Commission. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no gutsiness that such expectations will certify to be correct.
Consequently, prospective events and authentic results could vary basically from those set forth in, contemplated by, or underlined in the forward-looking statements contained herein. The Company undertakes no demand to update any of these forward-looking statements to throw back existent results or events or circumstances after the epoch hereof.
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