It’s not every day traders see a company with nearly $100 million in sales in a year trading around one cent per share and a $14-million market valuation, but that’s the case with Hasco Medical, Inc. (OTCQB:HASC). Of course, per share value is calculated on the number of outstanding shares, for which Hasco has more than one billion, a large figure by nearly any metric, regardless of what exchange a company trades on.
On Tuesday, Hasco, an Addison, Texas-based provider of wheelchair accessible vehicles, parts, and service, announced preliminary results for the fourth quarter ended December 31, 2014. The company operates 20 locations in nine states on the Eastern Seaboard. The company's mobility brands include Ride-Away, Mobility Freedom and wheelchair van rental company Wheelchair Vans of America.
According to the release, 2014 ended strong, with Hasco estimating fourth-quarter revenue of $22.7 million, bringing the total for the full year to approximately $91.2 million. That’s a 25 percent improvement from the $73.1 million in sales reported in 2013.
Looking back at previous years, Hasco reported revenue of $63 million in 2012. Net income in 2012 was only $82,300, which increased nearly 10-fold to $801,554 in 2013. Although there have been some fluctuations, the cost of a share is essentially
where it was (and even a little lower) than at the start of 2012.
It looks like the company will again be profitable in the latest year, barring some incredible setback in Q4, which the company gave no signals of happening. In fact, the Company said in today’s release that it "expects to report continued growth in profitability." In Q1, profits were 194,347 on sales of $20.69 million. In Q2, net income was $260,253 on revenue of $23.99 million. For Q3, net income totaled $801,929 on $23.82 million in revenue. So, through the first nine months of 2014, net income was $1.08 million on revenue of $68.50 million. No guidance on profits were provided, but hypothesizing $220,000 in net income, 2014 profits would total $1.3 million, representing a 62% year-over-year increase.
Hasco attributed the rising sales and profitability in part to a 36% climb (to $3.1 million) in fourth quarter service sales as the company sold more high-end Electronic Mobility Controls driving equipment, performed more repairs and lift installations. The company also formed a new commercial sales department with specialists focused on growth in the assisted living, rehabilitation center and
commercial fleet industries.
"For 2015 I expect continued growth from this group with the introduction of the Dodge Promaster and Ford Transit wheelchair accessible vehicles," said Hal Compton, Hasco Medical CEO, in today’s statement. "These vehicles offer improved fuel economy and myriad configuration options for our customers and we are bullish on their growth prospects. As a consolidator, we are poised in 2015 to make acquisitions and find new locations that support our growth plan," he added.
Relative to others in the home health-care industry, Hasco’s price-to-earnings ratio around 10-to-1 is arguably quite low, but Wall Street isn’t exactly paying attention to the company at this point. Shares are trading lower by 6% at 1.36 cents each following Tuesday’s press release.
