SOUTHFIELD, Mich., Feb. 14 /PRNewswire-FirstCall/ -- Arcadia
Resources, Inc. (OTC:ACDI) (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, . See also http://www.nfnonline.com/acdi . 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. First Call Analyst: FCMN Contact:
DATASOURCE: Arcadia Resources, Inc. CONTACT: Geoffrey Eiten,
Investor Relations, National Financial Network, +1-781-444-6100,
ext. 613, Web site: http://www.arcadiaresourcesinc.com/
http://www.nfnonline.com/acdi
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