ARCADIA RES INC (AMEX:ACDI)
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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