SOUTHFIELD, Mich., Feb. 14 /PRNewswire-FirstCall/ -- Arcadia Resources, Inc. (BULLETIN BOARD: ACDI) , a leading national provider of home care and staffing services, including travel nursing; mail-order pharmacy; health and wellness mail order catalog and Internet; Sears retail stores; and durable medical equipment (DME), announced today its financial results for its third fiscal quarter and three quarters ended December 31, 2005.
Revenues for the quarter ended December 31, 2005 increased by 19% to a record $33.3 million compared to revenues of $28.1 million for the quarter ended December 31, 2004. Revenues for the three quarters ended December 31, 2005 increased by 26% to $96.7 million compared to revenues of $76.7 million for the three quarters ended December 31, 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 16 acquisitions completed since June 30, 2004 coupled with internal growth of 12% for the quarter and 15% for the three quarters ended December 31, 2005. Two additional acquisitions have been completed since December 31, 2005.
The Company is organized into two separate divisions: Services, which represents home health care and staffing related services, and Products, which includes home respiratory care and durable medical equipment and related services, retail sites within six Sears stores, a full service mail-order pharmacy and a home health care-oriented mail-order catalog. The Services Division revenues increased 11% to $27.9 million for the quarter ended December 31, 2005 versus $25.2 million for the same period last year. The Products Division revenues increased 86% to $5.4 million from $2.9 million for the same period last year. The Services Division revenues increased 15% to $82.5 million for the three quarters ended December 31, 2005 versus $71.9 million for the same period last year. The Products Division revenues increased 196% to $14.2 million from $4.8 million for the same period last year. The significant 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 December 31, 2005 grew to 34.0% from 30.9% reported in the quarter ended December 31, 2004. Earnings before interest, taxes, depreciation and amortization (EBITDA) were $173,000 for the quarter ended December 31, 2005, compared to $335,000 for the quarter ended December 31, 2004. The Company had an operating loss of $628,000 for the quarter ended December 31, 2005 compared to operating income of $201,000 for the quarter ended December 31, 2004, which was the first period to reflect activity from our acquisition and expansion strategy. The Company had non- cash expenses of $1.0 million for the quarter which contributed to the resulting net loss of $813,000 for the quarter, compared to total non-cash expenses of $864,000 and net loss of $718,000 in the same period of the prior year.
Gross margin for the three quarters ended December 31, 2005 grew to 33.0% from 29.3% for the three quarters ended December 31, 2004. EBITDA was $897,000 for the three quarters ended December 31, 2005, compared to $1.2 million for the three quarters ended December 31, 2004. The Company had an operating loss of $1.3 million for the three quarters ended December 31, 2005 compared to operating income of $965,000 for the three quarters ended December 31, 2004. The Company had non-cash expenses of $4.6 million for the three quarters which contributed to the resulting net loss of $3.5 million for the three quarters ended December 31, 2005, compared to total non-cash expenses of $1.4 million and a net loss of $995,000 in the same three quarters of the prior year.
The non-cash expenses included $933,000 related to the amortization of debt discount features, all of which were completely amortized and related debts repaid with proceeds from the Company's recapitalization as of September 30, 2005. The Company's stockholders' equity increased 126% from March 31, 2005 to $57.6 million at December 31, 2005 while its total liabilities declined 27% for the same period to $21.9 million, resulting in a debt to equity ratio of 0.38 to 1 at December 31, 2005.
For the quarters ended December 31, 2005 and 2004, the Company reported net losses per share of $0.01. For the three quarters ended December 31, 2005, the Company reported a net loss per share of $0.04 compared to a net loss per share of $0.01 for the post-merger period from May 10, 2004 to December 31, 2004.
John E. Elliott II, chairman and CEO of Arcadia Resources, Inc., stated, "Our primary focus during the third fiscal quarter was to complete pending acquisitions, to develop our plans for the roll out of our Sears retail store concept including opening the first six stores, and to reorganize our emphasis on internal growth. In the third 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 retail products business. Our 'Sears Home Health Care' concept sells more than 1,000 home health care products from our defined footprint within Sears' stores. We are developing locations in four Sears' stores in a second market, with more locations in the planning stage. We also intend to build out additional stores in key markets over the next several months."
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 payors. As we leverage cost and operational efficiencies under a single source concept, we anticipate continued improvements to sales, gross margins and EBITDA in future quarters."
The Company's periodic report on Form 10-Q for the quarter ended December 31, 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,
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, the implementation of our retail store products business 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.
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