Arcadia Resources Reports Record Third Quarter Revenues
15 February 2005 - 1:18AM
PR Newswire (US)
Arcadia Resources Reports Record Third Quarter Revenues -Total
Gross Margin Up 18%; New Home Care Business Achieves 63% Gross
Margin- SOUTHFIELD, Mich., Feb. 14 /PRNewswire-FirstCall/ --
Arcadia Resources, Inc. (OTC:ACDI) (BULLETIN BOARD: ACDI) , an
industry-leading provider of health care staff and durable medical
equipment, announced today its financial results for its quarter
and three quarters ended December 31, 2004. Sales for the third
fiscal quarter ended December 31, 2004 increased by 41% to a record
$28,091,000 as compared to $19,870,000 for the quarter ended
December 31, 2003. The increase in sales was attributed primarily
to existing operations of its merged companies effective May 10,
2004; its two staffing acquisitions from January 2004 through June
2004; and four acquisitions completed during the quarter ended
September 30, 2004. The Company also produced internal growth of
13% from the quarter ended December 31, 2004 compared to the
quarter ended December 2003, when it was only in the staffing
business. Sequentially, sales increased 10% to $28,091,000 for the
third quarter of fiscal 2005 from $25,512,000 compared to the
second quarter of fiscal 2005. Gross profit margin for the quarter
ended December 31, 2004 was 18% of sales, representing an increase
of 18%, as compared to 15% of sales for the quarter ended December
31, 2003. Staffing revenues for the quarter ended December 31, 2004
were $25,181,000 and yielded a gross margin of 13%, while home care
revenues were $2,910,000 with a gross margin of 63%. The Company
reported earnings before income taxes, depreciation and
amortization of $335,000 for the quarter ended December 31, 2004,
compared to $960,000 in the three-month period ended December 31,
2003. During the third quarter, the Company had non-recurring
expenses of approximately $200,000 related to post- transaction
registration expenses. Arcadia incurred third quarter expenses of
approximately $270,000 toward building a home care infrastructure
and bolstering its existing staffing infrastructure to accommodate
growth along with recent and expected acquisitions. For the three
quarters ended December 31, 2004, the Company reported its sales
increased by 34% to $77,183,000 as compared to $57,634,000 for the
three quarters ended December 31, 2003. Gross profit margin for the
three quarters ended December 31, 2004 grew to 16.2% compared with
the three quarters ended December 31, 2003 at 15%. The Company
reported earnings before income taxes, depreciation and
amortization of $1,186,000 for the three quarters ended December
31, 2004, compared to $2,756,000 for the three quarters ended
December 31, 2003. For the three quarters in fiscal 2005, the
Company had non-recurring expenses of approximately $450,000
related to post-transaction registration expenses. Arcadia incurred
expenses in the three quarters of fiscal 2005 of approximately
$433,000 related to the infrastructure as described above to
accommodate its expansion plans. John E. Elliott II, chairman and
CEO of Arcadia Resources, Inc., stated, "The third quarter marked
several new milestones for our company. First, we implemented a
corporate name change to Arcadia Resources to reflect our overall
brand and operation under a unified enterprise. Second, we made
significant investments in our infrastructure, which are beginning
to pay off. Our recent merger and acquisition activities have
positioned us with immediate revenue-producing businesses that can
generate significantly higher gross margins, while diversifying our
operations. Our acquisitions into durable medical equipment and
home health care services, in particular, have resulted in
contributing gross margins of more than 60% this quarter. We expect
this upward growth trend to continue. Third, we assembled a
leadership team with the determination and experience to implement
our ongoing M&A strategies and ensure the future profitability
of the company." Elliott concluded, "For the past two consecutive
quarters, we have achieved sequential sales gains of 10% with a 41%
increase year-over-year in the third quarter, 13% of which was
internally produced. Our current revenue run-rate is $112,000,000.
We are continuing to implement a prudent growth-
through-acquisition strategy, focusing on acquiring complementary
firms that expand our product offerings, bring established revenue
sources and will be accretive to our future earnings. In tandem
with a focus on medical and non- medical staffing and higher margin
durable medical equipment services, we expect to continue on a
positive path of growth in the coming quarters." About Arcadia
Resources Arcadia Resources, Inc., operates in four complementary
health care services sectors, including: home care services,
medical and non-medical staffing, mail order pharmacy and home
medical equipment. 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. In the past six months, Arcadia has acquired successful
staffing and home health care businesses in Alabama, Colorado,
Florida, Georgia, Illinois, Massachusetts and North Carolina. For
more information, visit: http://www.arcadiaresourcesinc.com/ .
Contact: Geoffrey Eiten, Investor Relations, 781-444-6100 x613 or .
See also http://www.otcfn.com/acdi . Safe Harbor under the Private
Securities Litigation Reform Act of 1995: The statements which are
not historical facts contained in this press release are
forward-looking statements that involve certain risks and
uncertainties including but not limited to risks associated with
the uncertainty of future financial results, regulatory approval
processes, the impact of competitive products or pricing,
technological changes, the effect of economic conditions and other
uncertainties as may be detailed in the Company's filings with the
Securities and Exchange Commission. DATASOURCE: Arcadia Resources,
Inc. CONTACT: Geoffrey Eiten of Arcadia Resources, Inc. Investor
Relations, +1-781-444-6100, x613, or Web site:
http://www.arcadiaresourcesinc.com/ http://www.otcfn.com/acdi
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