SOUTHFIELD, Mich., Nov. 14 /PRNewswire-FirstCall/ -- Arcadia
Resources, Inc. (OTC:ACDI) (BULLETIN BOARD: ACDI) , a leading
national provider of home care and staffing services, including
travel nursing; mail-order pharmacy; and durable medical equipment
(DME), announced today its financial results for its second fiscal
quarter and two quarters ended September 30, 2005. Revenues for the
quarter ended September 30, 2005 increased by 28% to a record $32.7
million compared to revenues of $25.5 million for the quarter ended
September 30, 2004. Revenues in the second quarter of fiscal 2006
grew by 7% compared to revenues of $30.7 million reported in the
first quarter of fiscal 2006. Revenues for the two quarters ended
September 30, 2005 increased by 30% to $63.4 million compared to
revenues of $48.6 million for the two quarters ended September 30,
2004. The increase in revenues was attributed primarily to
assimilation and integration of existing operations from the merged
company effective May 10, 2004 and the 14 acquisitions completed
since June 30, 2004. Three additional acquisitions have been
completed since September 30, 2005. The Company is 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 a full service mail-order pharmacy and a home health
care-oriented mail-order catalog. The Services Division revenues
increased 15% to $27.9 million for the quarter ended September 30,
2005 versus $24.3 million for the same period last year. The
Products Division revenues increased to $4.8 million from $1.2
million for the same period last year. The Services Division
revenues increased 17% to $54.6 million for the two quarters ended
September 30, 2005 versus $46.7 million for the same period last
year. The Products Division revenues increased to $8.8 million from
$1.9 million for the same period last year. The growth in the
Products Division resulted from management's focus and strategy in
the home respiratory care and durable medical equipment areas
through acquisitions and organic growth, initiated in June 2004.
Gross margin for the quarter ended September 30, 2005 grew to 32.8%
from 28.7% reported in the quarter ended September 30, 2004.
Earnings before interest, taxes, depreciation and amortization
(EBITDA) was $482,000 for the quarter ended September 30, 2005,
compared to $235,000 for the quarter ended September 30, 2004. The
Company had an operating loss of $374,000 for the quarter ended
September 30, 2005 compared to operating income of $181,000 for the
quarter ended September 30, 2004 prior to undertaking our
acquisition and expansion strategy. The Company had non-cash
expenses of $1.5 million for the quarter which significantly
contributed to the resulting net loss of $1.5 million for the
quarter, compared to total non-cash expenses of $264,000 and net
loss of $161,000 in the same period of the prior year. Gross margin
for the two quarters ended September 30, 2005 grew to 32.5% from
28.4% for the two quarters ended September 30, 2004. EBITDA was
$724,000 for the two quarters ended September 30, 2005, compared to
$835,000 for the two quarters ended September 30, 2004. The Company
had an operating loss of $667,000 for the two quarters ended
September 30, 2005 compared to operating income of $748,000 for the
two quarters ended September 30, 2004. The Company had non-cash
expenses of $3.5 million for the two quarters which heavily
contributed to the resulting net loss of $2.7 million for the two
quarters ended September 30, 2005, compared to total non-cash
expenses of $597,000 and net income of $186,000 in the same two
quarters of the prior year. The non-cash expenses included amounts
related to the amortization of debt discount features, all of which
have been completely amortized and related debts repaid as of
September 30, 2005 with proceeds from the Company's
recapitalization described below. The Company's significant
repayment of interest-bearing debt will reduce interest expense in
the future quarters from those levels experienced in the past few
fiscal quarters. The Company's stockholders' equity increased 129%
from March 31, 2005 to September 30, 2005 while its total
liabilities declined 43% for the same period to result in a debt to
equity ratio of 0.29 to 1 at September 30, 2005. For the quarter
ended September 30, 2005, the Company reported a net loss per share
of $0.02 compared to net income per share of $0.00 for the quarter
ended September 30, 2004. For the two quarters ended September 30,
2005, the Company reported a net loss per share of $0.03 compared
to net income per share of $0.00 for the period from May 10, 2004
to September 30, 2004, post- merger. John E. Elliott II, chairman
and CEO of Arcadia Resources, Inc., stated, "Our primary focus
during the second fiscal quarter was on raising money to
recapitalize and strengthen our balance sheet. As a result, we
closed on a significant financing in our second fiscal quarter of
2006, which enabled us to reduce our interest-bearing debt by $23
million, or 75%. In the second quarter, we also continued
integrating our recently acquired companies, which have expanded
our points of presence and sales capabilities in the United States.
Our acquisitions have contributed a strong market reputation,
expert staffing, complementary products and services, and an
established customer base to Arcadia." Elliott continued, "As a
licensed business partner of Sears, we have also made a significant
investment in our durable equipment business by developing the
'Sears Home Health Care' concept to sell more than 1,000 of our
in-home care products from our defined footprint within Sears'
stores. We now operate centers in six Detroit-area Sears' stores
and are planning to add another market in the next quarter. Elliott
concluded, "In order for us to be effective and financially robust
in the marketplace, we need to continue to grow, both organically
and externally through acquisitions. We are focused on creating a
strong national presence that enables us to offer a diverse product
mix that is patient- focused and can utilize a wide range of
insurance payers. As we leverage cost and operational efficiencies
under a single source concept, we anticipate continued improvements
to sales, gross margins and EBITDA in the remaining quarters of
fiscal 2006." The Company's periodic report on Form 10-Q for the
quarter ended September 30, 2005 is available on the Company's
website (http://www.arcadiaresourcesinc.com/) and the SEC website
(http://www.sec.gov/). About Arcadia Resources, Inc. Arcadia
Resources, Inc. operations include home health care services; non-
medical and medical staffing, including travel nursing; 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. For more information,
visit: http://www.arcadiaresourcesinc.com/. Contact: Geoffrey
Eiten, Investor Relations, National Financial Network, 781-444-6100
x613, . 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, if 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 strategy of growth through
acquisitions of businesses and our expectation of continued
positive trends relative to sales, gross margins and EBITDA 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, our
ability to procure our products and providers of services at
competitive prices, and our ability to successfully leverage
operational efficiencies across the Arcadia family of businesses.
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 of National Financial Network, +1-781-444-6100
ext. 613, Web site: http://www.arcadiaresourcesinc.com/
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