Arcadia Resources CEO Issues Annual Letter to Shareholders
June 30 2005 - 6:19PM
PR Newswire (US)
Arcadia Resources CEO Issues Annual Letter to Shareholders
SOUTHFIELD, Mich., June 30 /PRNewswire-FirstCall/ -- Arcadia
Resources, Inc., (OTC:ACDI) (BULLETIN BOARD: ACDI) , a leading
provider of home care and staffing services, mail-order pharmacy,
respiratory and durable medical equipment ("DME"), issued today the
following shareholder letter from Chairman and CEO John E. Elliott
II: Dear Fellow Shareholder: As CEO of your Company, I am pleased
to provide you with this annual update. March 31, 2005 marked the
first ten months of operation as an organization that has achieved
tremendous growth. Throughout this ten-month period, we have closed
on six strategic acquisitions and entered into three new sales
ventures in growth markets. Arcadia Resources has expanded from a
staffing-only company into a national provider of respiratory and
durable medical equipment, travel nursing, and prescription
mail-order pharmacy. On a consolidated basis, our newly-formed
company "Arcadia Resources, Inc." grew sales by 34% to $105.3
million for the year ended March 31, 2005 as compared to the same
period last year. Our net assets increased substantially to $55.6
million, up 223% as of March 31, 2005, as compared to March 31,
2004. Our improving fundamentals are also evidenced by our share
price, which over the past year more than tripled from $0.53 per
share to a recent price of $1.95 per share. Although in a short
time we have substantially grown our sales and created the platform
for future growth, our gains were offset by a number of non-cash
expense charges recorded in the fourth quarter totaling $4.9
million, primarily related to financings and acquisitions, in
addition to $1.4 million in other non-cash expenses totaling $6.3
million for the quarter. While non- cash expense charges of $7.7
million for the year significantly contributed to the resulting
fiscal year end loss of $7.4 million, we produced a net positive
cash position from all sources for the year of $1.4 million. Moving
forward, we anticipate our expenses to decline, positioning us to
become EBITDA positive in the near term. Further, the Company
continues to invest resources in its M&A strategy and the
development of complementary product offerings to be able to offer
our patients a more comprehensive solution to their home health
care needs. With an aggressive M&A strategy well underway,
Arcadia is now positioned to meet the diverse needs of the in-home
care patient. Operating under the unified brand name "Arcadia
Resources," we plan to continue to capitalize on customer demand
for an array of integrated home care services through our recent
and pending acquisitions, double-digit internal growth and new
industry relationships. First, we are focused on additional
acquisitions that migrate us to the higher margin respiratory and
durable medical equipment (DME) and home care services, sectors
that represent early growth stage opportunities. Second, to support
our positive internal growth trend, up 13.2% for the year- ended
March 31, 2005, we have appointed a new director of business
development to spearhead our internal sales strategies. Third, we
have entered into a licensing agreement to provide Sears, Roebuck
and Co., a wholly owned subsidiary of Sears Holdings Corporation,
with an Arcadia staffed retail kiosk of in-home products within
select stores of this nationally-renowned retailer. These are just
some of the catalysts driving the future growth of the company. As
a fellow shareholder, I believe Arcadia Resources is positioned to
meet increasing consumer demands for affordable and accessible
healthcare products and services in the U.S. We have only just
begun to experience the positive impact of last year's multiple
acquisitions. Upon full integration of our acquisitions, our
well-defined business units will offer us significant cross-
selling opportunities to serve new and existing customers
throughout the U.S. In addition, we now have a centralized and
experienced management team in place to promote our unified
branding concept both internally and externally. This is an
exciting time for us and I look forward to continuing to update you
with those catalysts that can positively impact shareholder value
in the near future. As always, I thank you for your interest and
continued support in Arcadia. The Company's annual report on Form
10-K for the year ended March 31, 2005 is available on the
Company's website (http://www.arcadiaresourcesinc.com/ ) and the
SEC website (http://www.sec.gov/ ). Sincerely JOHN E. ELLIOTT II
Chairman and CEO About Arcadia Resources, Inc. Arcadia Resources,
Inc., helps organizations operate more effectively and with greater
flexibility, and enables individuals to manage illness and injury
in the comfort of their own homes. Headquartered in Southfield,
Michigan, the company's core businesses are comprehensive home care
services, medical and non-medical staffing, mail-order pharmacy and
durable medical equipment. For more information about Arcadia,
please visit the company's Web site at
http://www.arcadiaresourcesinc.com/ . Investors should visit
http://nfnonline.com/acdi /. For more information, contact: Geoff
Eiten, Investor Relations, National Financial Network, 781-444-6100
x613; . This communication contains forward-looking statements,
which are subject to risks and uncertainties. Any statements
contained in this release that are not historical facts are
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21A of the
Securities Exchange Act of 1934, as amended, to the extent
applicable to the Company, and otherwise within the meaning of
court opinions construing such forward-looking statements. The
Company claims the safe harbor protections furnished by the law for
all of its forward-looking statements. Forward- looking statements
may be identified by the use of forward-looking terminology such as
"may," "can," "will," "project," "expect," "plan," "predict,"
"believe," "estimate," "aim," "anticipate," "intend," "continue,"
"potential," "opportunity" or similar terms. The Company does not
undertake, and expressly disclaims, any obligation to update or
alter its forward-looking statements, except as may be required by
law. While we believe that any forward-looking statements in this
letter are reasonable, you should not place undue reliance on any
such forward-looking statements, which speak only as of the date
made. Forward-looking statements are based on estimates and
assumptions that are subject to significant business, economic and
competitive uncertainties, many of which are beyond our control or
are subject to change, and actual results could be materially
different. Factors that might cause such a difference are discussed
in the annual and quarterly reports we file with the Securities and
Exchange Commission. Such factors include, but are not necessarily
limited to, downward margin trends on staffing revenues due to a
shortage of related health care workers, increased workers'
compensation premiums, increasingly lower-priced offerings from
competitors, the cost of investment in the development of product
offerings, our ability to successfully reduce operating costs by
effectively integrating these businesses, without adversely
affecting the quality and volume of such services and/or products
available for purchase, as well as our ability to procure our
products and providers of services at competitive prices.
DATASOURCE: Arcadia Resources, Inc. CONTACT: Geoff Eiten, Investor
Relations of National Financial Network, +1-781-444-6100 x613, or
Web site: http://www.arcadiaresourcesinc.com/
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