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Arcadia Resources Announces First Quarter Results
Date:8/13/2009

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  • Services: The Company's Services segment, which includes its home health care and medical staffing business, reported net revenues of $22.7 million for the quarter compared to net revenues of $25.0 million for the same period a year ago. Within the Services segment, home health care revenues increased by $0.8 million, or 4.7%, to $17.7 million, compared to net revenue of $16.9 million the same period last year. This increase was offset by the decline in medical staffing revenue to $5.0 million in the current quarter, compared with $8.1 million during the first quarter of fiscal 2009. Per diem staffing revenue and travel nurse staffing revenue declined 35% and 45%, respectively, compared to the same period a year ago. Gross margins remained constant at 30.5% compared with 30.4% for the same period last year.

Management's Outlook

"Our management team is focused on improving our operational performance in four key areas," said Steven Zeller, Arcadia's Chief Operating Officer. "These are growth in our Services revenue despite difficult medical staffing market conditions; enrolling and servicing our increasing population of DailyMed customers; improving our Pharmacy segment gross margins; and aligning our selling, general and administrative (SG&A) expenses with our current business focus and lower revenue base. While our first quarter results were mixed in these areas, we are making measurable progress and are confident we have the right plans in place to achieve our objectives during the course of the year."

In its Services segment, Arcadia is projecting that its fiscal 2010 revenue will range from $90 to $100 million, depending significantly on market conditions for medical staffing.

"We continue to see growth in our home care business despite overall economic conditions," Zeller said. "
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SOURCE Arcadia Resources, Inc.
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