HearUSA Reports Third Quarter 2009 Results Net Revenues of $21.8 Million Generates Net Income of $713,000 or $0.02 per Diluted Share

2009-11-10 22:18:09 -

WEST PALM BEACH, FL -- (Marketwire) -- 11/10/09 -- HearUSA, Inc. (AMEX: EAR), the recognized leader in hearing care for the nation's top managed care organizations through 178 company-owned hearing care centers and a network of 1,900 affiliated providers, reported financial results for the third quarter ended September 26, 2009.

Third Quarter 2009 Financial Results

Net revenues from continuing operations decreased 4% to $21.8 million from $22.7 million in the previous quarter and decreased 11% from $24.5 million in the same year-ago period. Revenues from continuing operations exclude revenues from the company's Canadian unit, which was sold on April 27, 2009. The year-over-year decrease was due to a 14% decline in organic revenue, partially offset by a 2% increase attributable to centers acquired over the last 12 months and approximately $290,000 in contracted transition services provided to the acquirer of the Canadian unit.

Net income attributable to common stockholders was $713,000 or $0.02 per diluted share in the third quarter of 2009, as compared to net income of $1.1 million or $0.03 per diluted share in the previous quarter and a net loss of $75,000 or $(0.00) per diluted share in the same period a year ago.
Net income attributable to common shareholders included income from discontinued operations of $427,000 or $0.01 per diluted share in the third quarter of 2009, $336,000 or $0.01 per diluted share in the second quarter of 2009 and $720,000 or $0.02 per diluted share in the third quarter of 2008.

Income from continuing operations totaled $502,000 in the third quarter of 2009, compared to $963,000 in the previous quarter and a loss of $278,000 in the same year-ago period. Income from continuing operations excludes the operating results of the company's Canadian operations for all periods and includes AARP program related costs of $189,000 in the third quarter of 2009, $142,000 in the second quarter of 2009, and $428,000 in the third quarter of 2008.

Management Commentary

"Our ability to exercise strong cost controls along with effective resource management allowed us to achieve another profitable quarter in this challenging economic climate," said Stephen J. Hansbrough, HearUSA's chairman and CEO. "We have made the tough calls and avoided the unprofitable strategies that benefit sales at the expense of profits. We believe this approach has enabled us to establish a cost structure that can maximize the potential of a rising top line in 2010."

Gino Chouinard, HearUSA's president and COO, added, "In 2009, our main focus has been to realign our expense structure and return the company to profitability. Thanks to our margin improvement initiatives and $8 million in annual expense reductions, we have now achieved two consecutive quarters of positive net income. In 2010, we will focus on generating revenue growth by maximizing new and existing third party relationships, implementing new marketing strategies, expanding internal training and motivational programs, and making accretive acquisitions."

Conference Call

HearUSA will hold a conference call later today to discuss its third quarter 2009 financial results. The company's senior management will host the presentation, which will be followed by a question and answer period.

   Date: Tuesday, November 10, 2009
   Time: 4:30 p.m. Eastern time (1:30 p.m. Pacific time)
   Domestic callers: 1-800-894-5910
   International callers: 1-785-424-1052
   Conference ID#: 7HEARUSA

If you have any difficulty connecting with the conference call or webcast, please contact the Liolios Group at 1-949-574-3860.

A replay of the call will be available later that evening and will be accessible until November 24, 2009:

   Toll-free replay number: 1-800-388-9074
   International replay number: 1-402-220-1117
   (No passcode required)

About HearUSA, Inc.

HearUSA is the recognized leader in hearing care for the nation's top managed care organizations through its network of more than 2,000 hearing care providers, including 178 company-owned locations. HearUSA is the nation's only hearing care network accredited by URAC, an independent, nonprofit health care accrediting organization dedicated to promoting health care quality through accreditation, certification and commendation.
HearUSA is also the administrator of the AARP Hearing Care program, designed to help millions of Americans aged 50+ who have untreated hearing loss. For more information about HearUSA visit www.hearusa.com :

, or go to www.hearingshop.com :

for a wide selection of hearing related products available for purchase online.

###PRECONTENT2###

Company Contact:
Stephen J. Hansbrough
Chairman & CEO
HearUSA, Inc.
561-478-8770

Investor Relations:
Scott Liolios or Ron Both
Liolios Group, Inc.
Email Contact :

949-574-3860