Pediatric Services OF America (NASDAQ:PSAI)
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PSA HealthCare (Nasdaq: PSAI) announced today financial
results for the third quarter of fiscal year 2006.
Highlights of PSA's results for the third quarter ended June 30,
2006 include:
-- Purchased, closed and began integration of select assets of
Melmedica Children's Healthcare, Inc.
-- Increased nursing hours staffed by nearly four percent, to
837,000 hours in the third quarter, from 806,000 hours in
second quarter; and
-- Continued strong cash collections
For the third quarter of fiscal 2006, net revenue from continuing
operations increased $1,143,000 to $44,645,000 as compared to
$43,502,000 in the second quarter of fiscal year 2006. Net income was
$624,000 in the third quarter of fiscal year 2006 as compared to
$598,000 for the second quarter of fiscal year 2006. Diluted net
income per share was $0.08 in both the second and third quarter of
fiscal year 2006.
"We are on schedule with the integration of the Melmedica
Children's Healthcare operations and are rationalizing costs towards
our internal pro-forma targets," said Daniel J. Kohl, President and
CEO of PSA HealthCare. "In addition, our PDN nurse recruiting programs
continued to have a positive impact on nursing hours staffed, and our
PPEC business continues to perform well."
"Despite the positive revenue trends exhibited in the PDN segment
during the quarter, we must improve our PDN margins. These margins
have declined slightly due to the amount of capital we have invested
to recruit and integrate the nurses that we anticipate will help
ensure long-term growth. This, coupled with the fact that the
potential impact of the data breach on the Company in the fourth
quarter cannot currently be quantified, does not allow us to reaffirm
our previously provided earnings guidance for fiscal year 2006. It is
important to remember that only $120,000 of pre-tax income represents
a $0.01 of pre-tax earnings per share."
Conference Call
A conference call to discuss these results has been scheduled for
Wednesday, August 9, 2006 at 11:00 a.m. ET. The dial-in number for all
Participants is 800-374-1702. Note: To join the Q&A session, please
press the asterisk followed by 1. If you are unable to listen to the
live broadcast, replays of the conference call will be available until
August 23, 2006 by dialing 800-642-1687. To connect with the replay of
the conference call, please refer to the PSA HealthCare Earnings Call,
Passcode: 2878473 #.
PSA provides comprehensive pediatric home health care services
through a network of over 100 branch offices in 20 states, including
satellite offices and branch office start-ups. Through these offices,
PSA provides a combination of services, including pediatric private
duty nursing (PDN), pediatric day treatment centers (PPECs) and
respiratory therapy and equipment services (RTES). Additional
information on PSA may be found on the Company's website at
http://www.psahealthcare.com.
NOTE: This press release contains certain forward-looking
statements (as such term is defined in the Private Securities
Litigation Reform Act of 1995) relating to future financial
performance of PSA Healthcare (the "Company"). When used in this press
release, the words "may," "targets," "goal," "will," "could,"
"should," "would," "believe," "feel," "expects," "confident,"
"anticipate," "estimate," "intend," "plan," "potential" and similar
expressions may be indicative of forward-looking statements. These
statements by their nature involve substantial risks and
uncertainties, certain of which are beyond the Company's control. The
Company cautions that various factors, including the factors described
hereunder and those discussed in the Company's other filings with the
Securities and Exchange Commission, as well as general economic
conditions, industry trends, the Company's anticipated uses of the
proceeds from the sale of its Pharmacy Business, the integration of
the Melmedica acquisition, the Company's ability to collect for
equipment sold or rented, assimilate and manage previously acquired
field operations, collect accounts receivable, including receivables
related to acquired businesses and receivables under appeal, hire and
retain qualified personnel and comply with and respond to billing
requirements issues, including those related to the Company's billing
and collection system, nurse shortages, competitive bidding, HIPAA
regulations, Average Wholesale Price ("AWP") reductions, adverse
litigation, workers' compensation losses, availability and cost of
medical malpractice insurance and reduced state funding levels and
nursing hours authorized by Medicaid programs, and the impact of
changes resulting from the recently enacted Medicare Act, could cause
actual results or outcomes to differ materially from those expressed
in any forward-looking statements of the Company made by or on behalf
of the Company. Any forward-looking statement speaks only as of the
date on which such statement is made, and the Company undertakes no
obligation to update any forward-looking statement or statements to
reflect events or circumstances after the date on which such statement
is made or to reflect the occurrence of an unanticipated event. New
factors emerge from time to time, and it is not possible for
management to predict all of such factors. Further, management cannot
assess the impact of each such factor on the business or the extent to
which any factor, or combination of factors, may cause actual results
to differ materially from those contained in any forward-looking
statements.
-0-
*T
PSA HEALTHCARE
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Data)
Three Months Ended
June 30, March 31,
2006 2006
------- -------
Net revenue $44,645 $43,502
Costs and expenses:
Costs of goods and services
(exclusive of depreciation
shown separately below) 23,233 22,300
Other operating costs
and expenses
Administrative and
marketing salaries,
wages and benefits 9,340 9,031
Business insurance 1,718 1,966
Overhead 3,685 3,784
------- -------
Other operating
costs and
expenses 14,743 14,781
Corporate, general and
administrative
Salaries, wages and
benefits 3,516 3,329
Business insurance 68 59
Professional
services 784 1,044
Overhead 746 675
------- -------
Corporate,
general and
administrative 5,114 5,107
Provision for doubtful
accounts 274 19
Depreciation and
amortization 1,069 1,013
------- -------
Total costs and
expenses 44,433 43,220
------- -------
Operating income 212 282
Other income 46 5
Interest income 656 626
Interest expense - (4)
------- -------
Income from continuing
operations before income tax
expense 914 909
Income tax expense 358 334
------- -------
Income from continuing
operations 556 575
Discontinued operations:
Income from discontinued
operations before income
tax (benefit) expense - -
Income tax benefit (2) -
---- --------
Income from discontinued
operations 2 -
------- -------
Gain on disposal of
discontinued operations
before income tax (benefit)
expense 38
Income tax (benefit)
expense (66) 15
---- --------
Gain on disposal of
discontinued operations 66 23
------- -------
Net income $ 624 $ 598
======= =======
Income per share data:
Basic net income per share
data:
Income from continuing
operations $ 0.07 $ 0.08
Income from discontinued
operations 0.00 -
Gain on disposal of
discontinued operations 0.01 0.00
------- -------
Net income $ 0.08 $ 0.08
======= =======
Diluted net income per share
data:
Income from continuing
operations $ 0.07 $ 0.08
Income from discontinued
operations 0.00 -
Gain on disposal of
discontinued operations 0.01 0.00
------- -------
Net income $ 0.08 $ 0.08
======= =======
Weighted average shares
outstanding:
Basic 7,492 7,372
======= =======
Diluted 7,492 7,372
======= =======
CONDENSED CONSOLIDATED BALANCE SHEET INFORMATION
June 30, March 31,
2006 2006
--------- --------
Cash and cash equivalents $ 53,116 $ 57,458
Accounts receivable, less
allowance for doubtful
accounts 26,115 26,102
Total stockholders' equity 102,264 100,918
*T
-0-
*T
Respiratory
Therapy,
Equipment
and Consolidated
Nursing PPEC Services Total
---------------------------------------
Three Months Ended June 30, 2006
Net revenue $27,582 $ 2,746 $14,317 $44,645
Costs of goods and services
(exclusive of depreciation
shown separately below)
Nursing and therapist
salaries, wages, benefits
and supplies 18,228 145 265 18,638
Pharmacy product and
supplies - - 1,845 1,845
Disposables/Supplies 12 10 2,728 2,750
------- ------- ------- -------
Total cost of
goods and
services 18,240 155 4,838 23,233
Other operating costs and
expenses
Administrative and
marketing salaries, wages
and benefits 3,631 1,528 4,181 9,340
Business Insurance 1,112 105 501 1,718
Overhead 1,444 437 1,804 3,685
------- ------- ------- -------
Total
operating
costs and
expenses 6,187 2,070 6,486 14,743
Provision for doubtful
accounts 59 (62) 277 274
Depreciation 45 46 811 902
------- ------- ------- -------
Branch office contribution
margin $ 3,051 $ 537 $ 1,905 $ 5,493
======= ======= ======= =======
Three Months Ended March 31, 2006
Net revenue $26,404 $ 2,799 $14,299 $43,502
Costs of goods and services
(exclusive of depreciation
shown separately below)
Nursing and therapist
salaries, wages, benefits
and supplies 17,341 126 322 17,789
Pharmacy product and
supplies - - 1,763 1,763
Disposables/Supplies 12 15 2,721 2,748
------- ------- ------- -------
Total cost of
goods and
services 17,353 141 4,806 22,300
Other operating costs and
expenses
Administrative and
marketing salaries, wages
and benefits 3,408 1,502 4,121 9,031
Business Insurance 1,302 106 558 1,966
Overhead 1,400 441 1,943 3,784
------- ------- ------- -------
Total
operating
costs and
expenses 6,110 2,049 6,622 14,781
Provision for doubtful
accounts 106 (46) (41) 19
Depreciation 38 46 767 851
------- ------- ------- -------
Branch office contribution
margin $ 2,797 $ 609 $ 2,145 $ 5,551
======= ======= ======= =======
Three Months Three Months
Ended Ended
June 30, March 31,
2006 2006
------------ ------------
Total profit for reportable
segments $ 5,493 $ 5,551
Corporate, general and
administrative (5,114) (5,107)
Corporate depreciation and
amortization (167) (162)
Other income 46 5
Interest income 656 626
Interest expense - (4)
------------ ------------
Income from continuing
operations, before income tax
expense $ 914 $ 909
======= =======
*T