ARCADIA RES INC (AMEX:ACDI)
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Arcadia Resources CEO Issues Annual Letter to Shareholders
SOUTHFIELD, Mich., June 30 /PRNewswire-FirstCall/ -- Arcadia Resources, Inc.,
(OTC:ACDI) (BULLETIN BOARD: ACDI) , a leading provider of home care and
staffing services, mail-order pharmacy, respiratory and durable medical
equipment ("DME"), issued today the following shareholder letter from Chairman
and CEO John E. Elliott II:
Dear Fellow Shareholder:
As CEO of your Company, I am pleased to provide you with this annual update.
March 31, 2005 marked the first ten months of operation as an organization that
has achieved tremendous growth. Throughout this ten-month period, we have
closed on six strategic acquisitions and entered into three new sales ventures
in growth markets. Arcadia Resources has expanded from a staffing-only company
into a national provider of respiratory and durable medical equipment, travel
nursing, and prescription mail-order pharmacy. On a consolidated basis, our
newly-formed company "Arcadia Resources, Inc." grew sales by 34% to $105.3
million for the year ended March 31, 2005 as compared to the same period last
year. Our net assets increased substantially to $55.6 million, up 223% as of
March 31, 2005, as compared to March 31, 2004. Our improving fundamentals are
also evidenced by our share price, which over the past year more than tripled
from $0.53 per share to a recent price of $1.95 per share.
Although in a short time we have substantially grown our sales and created the
platform for future growth, our gains were offset by a number of non-cash
expense charges recorded in the fourth quarter totaling $4.9 million, primarily
related to financings and acquisitions, in addition to $1.4 million in other
non-cash expenses totaling $6.3 million for the quarter. While non- cash
expense charges of $7.7 million for the year significantly contributed to the
resulting fiscal year end loss of $7.4 million, we produced a net positive cash
position from all sources for the year of $1.4 million. Moving forward, we
anticipate our expenses to decline, positioning us to become EBITDA positive in
the near term. Further, the Company continues to invest resources in its M&A
strategy and the development of complementary product offerings to be able to
offer our patients a more comprehensive solution to their home health care
needs.
With an aggressive M&A strategy well underway, Arcadia is now positioned to
meet the diverse needs of the in-home care patient. Operating under the
unified brand name "Arcadia Resources," we plan to continue to capitalize on
customer demand for an array of integrated home care services through our
recent and pending acquisitions, double-digit internal growth and new industry
relationships. First, we are focused on additional acquisitions that migrate
us to the higher margin respiratory and durable medical equipment (DME) and
home care services, sectors that represent early growth stage opportunities.
Second, to support our positive internal growth trend, up 13.2% for the year-
ended March 31, 2005, we have appointed a new director of business development
to spearhead our internal sales strategies. Third, we have entered into a
licensing agreement to provide Sears, Roebuck and Co., a wholly owned
subsidiary of Sears Holdings Corporation, with an Arcadia staffed retail kiosk
of in-home products within select stores of this nationally-renowned retailer.
These are just some of the catalysts driving the future growth of the company.
As a fellow shareholder, I believe Arcadia Resources is positioned to meet
increasing consumer demands for affordable and accessible healthcare products
and services in the U.S. We have only just begun to experience the positive
impact of last year's multiple acquisitions. Upon full integration of our
acquisitions, our well-defined business units will offer us significant cross-
selling opportunities to serve new and existing customers throughout the U.S.
In addition, we now have a centralized and experienced management team in place
to promote our unified branding concept both internally and externally.
This is an exciting time for us and I look forward to continuing to update you
with those catalysts that can positively impact shareholder value in the near
future. As always, I thank you for your interest and continued support in
Arcadia. The Company's annual report on Form 10-K for the year ended March 31,
2005 is available on the Company's website (http://www.arcadiaresourcesinc.com/
) and the SEC website (http://www.sec.gov/ ).
Sincerely
JOHN E. ELLIOTT II
Chairman and CEO
About Arcadia Resources, Inc.
Arcadia Resources, Inc., helps organizations operate more effectively and with
greater flexibility, and enables individuals to manage illness and injury in
the comfort of their own homes. Headquartered in Southfield, Michigan, the
company's core businesses are comprehensive home care services, medical and
non-medical staffing, mail-order pharmacy and durable medical equipment. For
more information about Arcadia, please visit the company's Web site at
http://www.arcadiaresourcesinc.com/ . Investors should visit
http://nfnonline.com/acdi /.
For more information, contact: Geoff Eiten, Investor Relations, National
Financial Network, 781-444-6100 x613; .
This communication contains forward-looking statements, which are subject to
risks and uncertainties. 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 the safe harbor protections
furnished by the 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," "project," "expect," "plan," "predict,"
"believe," "estimate," "aim," "anticipate," "intend," "continue," "potential,"
"opportunity" or similar terms. 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.
While we believe that any forward-looking statements in this letter are
reasonable, you should not place undue reliance on any such forward-looking
statements, which speak only as of the date made. Forward-looking statements
are based on estimates and assumptions that are subject to significant
business, economic and competitive uncertainties, many of which are beyond our
control or are subject to change, and actual results could be materially
different. Factors that might cause such a difference are discussed in the
annual and quarterly reports we file with the Securities and Exchange
Commission. Such factors include, but are not necessarily limited to, downward
margin trends on staffing revenues due to a shortage of related health care
workers, increased workers' compensation premiums, increasingly lower-priced
offerings from competitors, the cost of investment in the development of
product offerings, 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.
DATASOURCE: Arcadia Resources, Inc.
CONTACT: Geoff Eiten, Investor Relations of National Financial Network,
+1-781-444-6100 x613, or
Web site: http://www.arcadiaresourcesinc.com/