HASCO Medical Reports Record First Quarter 2014 Results

ADDISON, TX--(Marketwired - Aug 20, 2014) - HASCO Medical, Inc. (OTCQB: HASC), a leading provider of handicap-accessible vans, parts and service, reported results for the first quarter ended March 31, 2014.

Q1 2014 Financial and Operational Highlights

• Revenues up 38% to a record $20.7 million, marking five consecutive quarters of record revenue
  
  
• Gross margin up 176 basis points to 25.4%
  
  
• Net income of $194,000 vs. a net loss of $199,000 in same year-ago quarter
  
  
• Delivered a record number of taxi orders totaling more than 100, which were sold primarily through the company's Ride-Away^® Commercial Taxi location in NYC
  
  

Q1 2014 Financial Summary
Net revenues for the first quarter of 2014 totaled a record $20.7 million, up 38% from $15.0 million in the same year-ago quarter. The improvement was primarily due to the increase in private-pay business for van sales, as well as the contribution of Auto Mobility Sales that the company acquired last September. Service and other revenue totaled $3.9 million, up 36% from the same year-ago quarter.

Gross profit was a record $5.3 million or 25.4% of total net revenues, compared to $3.5 million or 23.7% of total net revenues in the same year-ago quarter. The increase is primarily due to the greater buying power and better utilization of capacity in service.

Net income totaled $194,000, as compared to net loss of $199,000 in the same year-ago quarter.

Management Commentary
"Our record first quarter results reflects strong sales of handicap accessible vehicles across all our East Coast dealerships," said Hal Compton, CEO of HASCO Medical. "We expect this sales momentum to be maintained with the help of two new dealerships we're planning to open in the Fall with the support of major brands like BraunAbility and VMI. As we look to the remainder of 2014, we expect our excellent customer service, high-quality products and custom solutions, and the strong tailwinds of a growing market to drive another record year."

2014 Outlook
HASCO Medical expects 2014 total net revenues to range between $75 million and $85 million, which represents an increase of 3% to 17%. The company also expects gross margin to range between 21% to 23%. The company also expects positive net income in 2014.

About HASCO Medical, Inc.
HASCO Medical is a leading provider of handicap accessible vans, parts, and service that dramatically improve the quality of living of its customers. The company operates 19 locations from Maine to Florida. The company's mobility brands include Ride-Away (www.Ride-Away.com), Auto Mobility Sales (www.automobilitysales.com), Mobility Freedom (www.MobilityFreedom.com) and Wheelchair Vans of America (www.wcvans.com). To learn more, go to www.hascomed.com.

Cautionary Note Regarding Forward-Looking Statements
This press release may contain forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. In some cases you can identify those so-called "forward looking statements" by words such as "may," "will," "should," "expects," "plans," "targets," "believes," "anticipates," "estimates," "predicts," "potential," or "continue" or the negative of those words and other comparable words. These forward looking statements are subject to risks and uncertainties, product tests, commercialization risks, availability of financing and results of financing efforts that could cause actual results to differ materially from historical results or those anticipated. Further information regarding these and other risks is described from time to time in the Company's filings with the SEC, which are available on its website at: http://www.sec.gov. We assume no obligation to update or alter our forward-looking statements made in this release or in any periodic report filed by us under the Securities Exchange Act of 1934 or any other document, whether as a result of new information, future events or otherwise, except as otherwise required by applicable federal securities laws.

Hasco Medical, Inc. & Subsidiaries
Consolidated Balance Sheets
		March 31,				December 31,
		2014				2013
		(unaudited)
Assets
Current assets
	Cash	$	909,004			$	150,313
	Accounts receivable, net of allowance for doubtful accounts of $675,509 and $686,345, respectively		5,817,869				6,182,680
	Inventory, net		10,981,334				11,572,060
	Deferred tax asset, short term		413,193				413,193
	Prepaid expenses and other current assets		654,411				504,819
Total current assets			18,775,811				18,823,065
Property & equipment, net of accumulated depreciation of $1,387,930 and $1,164,634, respectively			2,164,217				2,141,212
Intangible assets, net of accumulated depreciation of $21,223 and $10,192, respectively			6,203,003				6,214,034
Deferred tax asset, long term			149,204				149,204
Other non-current assets			586,930				604,965
Total Assets		$	27,879,165			$	27,932,480
Liabilities and Stockholders' Equity
Current liabilities
	Accounts payable and accrued expenses	$	2,361,956			$	1,849,702
	Cash overdraft		--				175,572
	Customer deposits and deferred revenue		389,305				388,433
	Line of credit		928,810				2,303,143
	Note payable - floor plan		12,655,167				12,174,639
	Obligation under capital leases		321,712				366,658
	Current portion of notes payable		382,966				376,685
	Current portion note payable, related party		335,312				353,008
	Other current liabilities		875,085				493,923
Total current liabilities			18,250,313				18,481,763
Obligation under capital leases, net of current portion			960,816				817,828
Notes payable, net of current portion			3,947,856				4,075,802
Notes payable to related party, net of current portion			1,838,927				1,947,214
Total liabilities			24,997,912				25,322,607
Stockholders' Equity
	Preferred stock, $0.001 par value, 3,000,000 shares authorized, none issued and outstanding		--				--
	Common stock, $0.001 par value, 2,000,000,000 shares authorized; and 996,938,389 and 993,134,076 shares issued and outstanding, respectively		996,938				993,134
	Additional paid-in capital		6,742,285				6,669,056
	Accumulated deficit		(4,857,970	)			(5,052,317	)
Total stockholders' equity			2,881,253				2,609,873
Total Liabilities and Stockholders' Equity		$	27,879,165			$	27,932,480

Hasco Medical, Inc. & Subsidiaries
Consolidated Statements of Operations
(unaudited)
			For the Three Months Ended March 31,
			2014				2013
Product sales			$	16,588,280			$	11,855,547
Rental revenue				245,005				273,395
Service and other				3,852,318				2,826,546
	Total net revenues			20,685,603				14,955,488
Cost of sales				15,425,817				11,415,351
Gross profit				5,259,786				3,540,137
Operating expenses:
	Selling and marketing			953,798				917,500
	General and administrative			3,415,207				2,486,904
	Amortization and depreciation			234,327				319,974
		Total operating expenses		4,603,332				3,724,378
Income (loss) from operations				656,454				(184,241	)
Other income (expense)
	Other income			20,989				49,192
	Interest expense			(302,838	)			(193,577	)
		Total other income (expense)		(281,849	)			(144,385	)
Income (loss) from continuing operations before income taxes				374,605				(328,626	)
Provision for (benefit from) income taxes				170,218				(261,000	)
Income (loss) from continuing operations				204,387				(67,626	)
(Loss) from discontinued operations, net of income tax				(10,040	)			(131,086	)
Net income (loss)			$	194,347			$	(198,712	)
Earnings per share:
	Basic and dilutive-Continuing Operations		$	0.00				0.00
	Basic and dilutive-Discontinued Operations		$	0.00			$	0.00
Weighted average shares outstanding:
	Basic and dilutive			994,619,535				988,069,704

Company Contact:
HASCO Medical, Inc.
214-302-0930
Email Contact

Investor Relations Contacts:
Liolios Group, Inc.
Ron Both, Senior Managing Director
949-574-3860
Email Contact