It’s getting deep in the earnings season and during this one, just like all the rest, investors are absolutely hammered by headlines of reports being filed. Many individuals are sitting on the edge of their seat waiting for the news to be released on how their favorite company did during the last few months and how that is equating to overall performance for the year.
Most are not easy reads as trying to decipher exactly what the company did -- or didn’t do -- over the prior months can be like trying to figure out the mystery of the Sphinx, but nonetheless it keeps things interesting for several weeks out of each year.
The small-cap world can be especially intriguing as developing companies continue to expand quickly (or at least try to) as visions of riches run through the minds of their diligent investors that pin those aspirations on solid earnings coupled with cuts in spending.
Liberator Medical Holdings, Inc. (OTCBB:LBMH) may not be getting a pop in share price with today’s release of its financials for the third fiscal quarter that ended June 30, 2011, but the numbers posted were that which should keep investors content as growth is ongoing in tough economic times.
The Company’s subsidiary, Liberator Medical Supply, Inc., has established the Liberator brand as a leading national direct-to-consumer provider of quality medical supplies to Medicare-eligible seniors.
The firm is accredited by The Compliance Team as an Exemplary Provider™ and provides a unique combination of marketing, industry expertise and customer service which has demonstrated success over a broad spectrum of chronic conditions. Liberator generates its revenues by offering medical supplies needed on a regular, ongoing, repeat-order basis, with the simplicity of direct billing to Medicare and private insurance. Their pipeline of products includes general medical supplies, personal mobility aids, diabetes supplies, catheters, ostomy supplies and mastectomy fashions.
With the ever-growing aging population, even in today’s tough economic climate, Liberator is experiencing expansion as shown through record-level sales. Per the latest report, sales for the three months ended June 30, 2011, increased by $2,690,000, or 25.3%, to $13,309,000, compared with sales of $10,619,000 for the three months ended June 30, 2010.
Sales for the nine months ended June 30, 2011, increased by a staggering $8,728,000, or 29.7%, to $38,156,000, compared with sales of $29,428,000 for the nine months ended June 30, 2010. The increase in sales is attributed to a continued emphasis on a direct response advertising campaign to obtain new customers and its dedication to customer service to retain its recurring customer base.
Gross profit also climbed significantly as for the three months ended June 30, 2011, GP increased by $1,225,000, or 17.6%, to $8,167,000, compared with gross profit of $6,942,000 for the three months ended June 30, 2010. For the nine months ended June 30, 2011, gross profit increased by $4,890,000, or 25.6%, to $24,006,000, compared with gross profit of $19,116,000 for the nine months ended June 30, 2010.
Interest expense decreased by $286,000 to $3,000 and $1,070,000 to $35,000, respectively, for the three and nine months ended June 30, 2011, compared to the three and nine months ended June 30, 2010. The decrease in interest expense was due to reduced levels of debt during the nine months ended June 30, 2011, as a result of the conversion of $6,452,000 of notes into shares of common stock and $1,315,000 of principal payments of shareholder loans since December 31, 2009.
Moreover -- and somewhat a rarity in the OTC world -- Liberator has cash on hand, albeit not as much as last year. Cash on hand slid from $7.4 million to $2.4 million from September 30, 2010 to June 30, 2011 with the reduction primarily attributed to increased operating activities, paying down debt and an acquisition of SGV Medical Supplies. In addition to the cash in the bank, Liberator still has $6.4 million at is discretion through its credit line facility.
All in all, not too shabby of a report for the tightly-held company with only 15 million shares in its float. The value of a share of LBMH is down about 3% today from yesterday’s close, but if data such as this latest report continues to be produced, Liberator just may start grabbing more attention from the investment community. Proper due diligence is always encouraged.
