Arcadia Resources Reports Record First Quarter Fiscal 2006 Revenues
August 16 2005 - 11:22AM
PR Newswire (US)
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
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