SOUTHFIELD, Mich., Aug. 16 /PRNewswire-FirstCall/ -- Arcadia Resources, Inc. (OTC:ACDI) (BULLETIN BOARD: ACDI) , an industry-leading provider of staffing and home health care services and products, announced today its financial results for its quarter ended June 30, 2005, the first quarter of its fiscal year ending March 31, 2006. Revenues for the quarter ended June 30, 2005 increased by 33% to a record $30.7 million as compared to the quarter ended June 30, 2004 of $23.1 million. Revenues increased 7.4% in the first quarter of fiscal 2006 compared to the fourth quarter of fiscal 2005. The increase in revenues was attributed primarily to assimilation and integration of existing operations from the merged company effective May 10, 2004 and the 11 acquisitions completed since June 30, 2004. Revenues from companies acquired in the last year represented 83% of the increase in revenue, indicating a 5.7% quarterly internal growth on existing operations compared to the same quarter of the prior year. The Company has organized into two separate divisions: Services, which represents staffing and home health care related services and Products, which includes home respiratory care and durable medical equipment and services, along with our full service mail-order pharmacy and home health care-oriented mail-order catalog. The Services Division revenues increased 19% to $26.8 million for the quarter ended June 30, 2005 versus $22.4 million for the same period last year. The Products Division revenues increased to $4 million from $710,000 for the same period last year. The growth in the Products Division is consistent with management's focus and strategy in the home respiratory care and durable medical equipment areas through acquisitions and organic growth. Operating income from the Services Division improved 13% to $1.2 million year-over-year, while the Products Division improved from an operating loss of $430,000 to operating income of $352,000 for the same periods. Earnings before interest, taxes, depreciation and amortization (EBITDA) were $243,000 for the quarter ended June 30, 2005, compared to $566,000 for the quarter ended June 30, 2004. The Company had an operating loss of $292,000 for the quarter ended June 30, 2005 compared to operating income of $566,000 for the quarter ended June 30, 2004 prior to undertaking our acquisition and expansion strategy. The Company had non-cash expenses that reduced EBITDA and operating income by $498,000 in the first quarter of fiscal 2005 related to stock compensation and adoption of a new accounting pronouncement without such corresponding items in the first quarter of fiscal 2004. Total non-cash expenses of $1.7 million for the quarter significantly contributed to the resulting loss of $1.25 million for the quarter, compared to total non-cash expenses of $290,000 and net income of $340,000 in the same period of the prior year. For the quarter ended June 30, 2005, the Company showed a net loss per share of $0.02. Comparison of per share data to the same period of the prior year is not meaningful as the three month period was split by the initial merger, which significantly changed the capitalization of the Company, however the earnings were net income of $0.49 per share pre- merger and $0.00 per share post-merger. John E. Elliott II, chairman and CEO of Arcadia Resources, Inc., stated, "During the first quarter, we focused on margin improvement. We acquired a regional home health care company that contributed a gross margin of 36% to Services. Our recent acquisition activities have positioned us with revenue- producing businesses that can generate higher gross margins, while diversifying our operations and payor mix. Our past year of acquisitions of entities providing respiratory and durable medical equipment and mail-order catalog products contributed a combined gross margin of 76% of related revenues this quarter. We expect our growth into these product lines to continue to enhance our overall margins." Elliott concluded, "For the past four consecutive quarters, we have achieved sales gains of more than 30% in year-over-year quarters. Changes in the mix of business led to gross margin to improve to 32% for the quarter ended June 30, 2005 compared to 28%, year-over-year. We are continuing to implement a prudent growth-through-acquisition strategy, focusing on acquiring complementary firms that expand our product offerings, bring established market share and will be accretive to our future earnings. In tandem with a focus on home health care staffing and higher margin respiratory and durable medical equipment products and services, including mail order products and pharmacy, we expect to continue on a positive path of growth in the coming quarters." The Company's periodic report on Form 10-Q for the quarter ended June 30, 2005 is available on the Company's website (http://www.arcadiaresourcesinc.com/ ) and the SEC website (http://www.sec.gov/ ). About Arcadia Resources Arcadia Resources, Inc. operations include home health care services, medical and non-medical staffing, provision of respiratory and durable medical equipment to patients in the home, a full service mail-order pharmacy and a mail-order catalog of home health care-oriented products. The Company's comprehensive solutions help organizations operate more effectively and with greater flexibility, while enabling individuals to manage illness and injury in the comfort of their own homes. Arcadia Resources is the product of the May 2004 merger of Critical Home Care, Inc. and RKDA, the parent company of Arcadia Services, Inc., and Arcadia RX, LLC. The Company, for the purposes of comparability, has combined predecessor and successor results for the quarter ended June 30, 2004. Since June 30, 2004, the Company has acquired 11 successful staffing and home health care businesses in Alabama, Colorado, Florida, Georgia, Illinois, Indiana, Massachusetts, Michigan and North Carolina along with a mail-order catalog business. For more information, visit: http://www.arcadiaresourcesinc.com/ . Contact: Geoffrey Eiten, Investor Relations, National Financial Network, 781-444-6100 x613 or . See also http://www.nfnonline.com/acdi . 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 all safe harbor and other legal protections provided to it by 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," "could," "should," "project," "expect," "plan," "predict," "believe," "estimate," "aim," "anticipate," "intend," "continue," "potential," "opportunity" or similar terms, variations of those terms or the negative of those terms or other variations of those terms or comparable words or expressions. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which could cause actual financial or operating results, performances or achievements expressed or implied by such forward-looking statements not to occur or be realized. Such forward-looking statements generally are based on our estimates of future results, performances or achievements, predicated upon current conditions and the most recent results of the companies involved and their respective industries. Actual results may differ materially from those anticipated or implied in the forward-looking statements. Risks, uncertainties and other factors pertaining to our forward-looking statements include competition factors (such as the size and resources of our competitors), general economic conditions, cyclical factors affecting our Companies' industries, our ability to sell new and existing services and products at profitable yet competitive prices, and the need for our Company to effectively integrate acquired businesses and to successfully deliver its primary services and products. In particular, our forward-looking statements pertaining to our acquisitions of business which generate higher gross margins and our expectation of a continued positive growth trend in this respect are premised on factors including, but not limited to, 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. While our forward-looking statements are premised in part by internal growth through demand from customers served by our industries and our companies, we cannot assure that such demand will continue. Actual results may differ materially from our expectations in the event that our assumptions and the data we rely on (including the historical and expected growth of the home care services, staffing, mail order prescription and medical equipment industries) are inaccurate or if growth does not continue at historical rates or is or becomes affected by economic conditions and climate. The forward-looking statements contained in this news release speak only as of the date hereof. Additional information with respect to these and other factors that could materially affect the Company may be found in the Company's filings with the Securities and Exchange Commission. 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. DATASOURCE: Arcadia Resources, Inc. CONTACT: Geoffrey Eiten, Investor Relations, National Financial Network, +1-781-444-6100 x613 or Web site: http://www.arcadiaresourcesinc.com/ http://www.nfnonline.com/acdi

Copyright