Navigation Links
Arcadia Resources Announces Improved Fiscal 2011 Second Quarter Results
Date:11/9/2010

INDIANAPOLIS, Nov. 9, 2010 /PRNewswire-FirstCall/ -- Arcadia Resources, Inc. (NYSE Amex: KAD), a leading provider of innovative consumer health care services under the Arcadia HealthCare(SM) brand, today announced fiscal 2011 second quarter net revenues of $25.8 million and a net loss of $2.9 million, or $0.02 per share, which compares to net revenue of $25.1 million and a net loss of $4.1 million, or $0.03 per share, for the same period in fiscal 2010.

(Logo: http://photos.prnewswire.com/prnh/20100129/CG46351LOGO)

(Logo: http://www.newscom.com/cgi-bin/prnh/20100129/CG46351LOGO)

"During our second quarter we continued to make substantial progress on a number of fronts," said Marvin R. Richardson, President and Chief Executive Officer of Arcadia.  "Importantly, we executed a new three year agreement with WellPoint's State Sponsored Business which aligns our interests with WellPoint's and ensures that DailyMed will continue to be a cornerstone of WellPoint's programs to improve their members' health and well-being.  Importantly, under our agreement with WellPoint, for the first time in our history, we recognized revenue attributable to our patient care services we provide as part of our DailyMed patient care program.  We believe this validates our core value proposition and looking forward our focus in our Pharmacy segment will be to continue to scale this business model with WellPoint and additional healthcare payors.  Our new agreement with Touchstone Health further validates the growing acceptance among payers regarding the value of our DailyMed program, and we look forward to our market introduction to Touchstone's members beginning in January."  

"From an operational stand point, our Pharmacy gross margins improved by 250 basis points compared to the first quarter, benefiting from our prime vendor agreement with H.D. Smith and our continued focus on reducing our drug cost. We made significant Pharmacy operational improvements that will streamline our enrollment process, increase efficiency and reduce costs.  We increased our active patient count by 6%, but more importantly we exited the second quarter with good momentum in our DailyMed business and entered our fiscal third quarter with a solid pipeline of enrollees.  Our announcement yesterday that we have started the launch our WellPoint program in Kansas continues that momentum."

"In our Services segment, we had another solid quarter with increased sales and continued improvement in the operating contribution.  We also continue to identify opportunities to reduce our SG&A expenses in all areas of our business," Richardson continued.

Fiscal 2011 Second-Quarter ResultsArcadia reported $25.8 million in revenue from continuing operations during the quarter, up slightly from $25.1 million during the same period a year ago.  The Company's gross margin from continuing operations was 27.3% during the second quarter, a decline of 1.3% from the same period a year ago.  The reduction in gross margin was driven by a shift in mix towards Pharmacy revenue, which has lower margins than the Company's Services segment.

Arcadia reduced its net loss from continuing operations to $3.1 million, or $0.02 per share, in the second quarter of fiscal 2011, compared to a net loss from continuing operations of $4.1 million, or $0.03 per share, in the same period in fiscal 2010.  The consolidated net loss, including discontinued operations, was $2.9 million, or $0.02, in the fiscal second quarter in 2011 compared to a net loss of $4.1 million, or $0.03 in the fiscal second quarter in 2010.

Segment highlights:

Pharmacy: Pharmacy segment revenues increased to $4.9 million for the second quarter of fiscal 2011, compared to $3.4 million in revenues for the first quarter of fiscal 2010, an increase of 44.1%.  Pharmacy gross margin increased to 15.6% in the second quarter of fiscal 2011 from 15.1% in the second quarter of fiscal 2010 and 13.1% during the first quarter of fiscal 2011.  Total prescriptions filled during the quarter were 96,800, a 62% increase over the same period last year.  The Company's DailyMed™ Pharmacy had 5,100 active patients at the end of the second quarter, compared to 4,800 active patients at the end of the first quarter of fiscal 2011, an increase of 6%.  Second quarter revenue was impacted by the implementation of a new Pharmacy software system in July, which included a change from 30-day to 28-day fill cycles, a reduction in the average number of prescriptions filled per patient, and an increase in generics dispensed as a percentage of total prescriptions filled.  The Pharmacy segment operating contribution improved by 12.4%, or $0.2 million, to negative $1.5 compared to the first quarter of fiscal 2011.

Services: The Company's Services segment, which includes Arcadia's home care and medical staffing business, reported net revenues of $20.9 million in the second quarter of fiscal 2011 compared to net revenues of $21.7 million for the first quarter a year ago.  Within the Services segment, home care revenues decreased by $464,000, or 2.7%, to $16.7 million from $17.3 million in the same period last year.  Medical staffing and travel staffing declined $314,000 to $4.1 million in the second quarter of fiscal 2011 compared to $4.5 million in the same period last year.  Compared to the first quarter of fiscal 2011, second quarter revenues increased 2.8% from $20.4 million to $20.9 million with increases in both home care and medical staffing.  Gross margin within the Services segment was 30.0% in the second quarter of fiscal 2011 compared to 30.8% in the same period last year.  The Services segment operating contribution improved by 30.0%, or $0.3 million, to $1.4 million compared to the first quarter of fiscal 2011.  Second quarter operating contribution in the Services segment was its highest since the second quarter of fiscal 2010.

The Company sold its former Catalog segment during the quarter and this segment is being reported as a discontinued operation for the fiscal year second quarter.

Capital Resources and LiquidityCash flow from operations during the second fiscal quarter improved by $1.5 million to negative $3.4 million compared to negative $4.9 million in the first fiscal quarter of 2011, inclusive of changes in operating assets and liabilities in each quarter of negative $1.1 million and negative $2.4 million, respectively.  

At September 30, 2010, the Company had total cash plus line-of-credit available of $2.5 million.  On November 2, 2010, the Company finalized a $5.0 million equity financing transaction whereby it sold 15,624,000 shares of common stock at $0.32 per share.  The Company expects to receive net proceeds after fees of approximately $4.5 million.  The additional cash will be used to fund and grow the DailyMed operations.  

The Company previously announced that it had entered into a new credit facility with Comerica Bank covering its Services segment.  The new agreement extends the maturity of the facility to 2012.

"With our existing cash availability, the additional cash raised through our equity financing, the extension of our Comerica facility, on-going operating contribution improvements, particularly in our Pharmacy segment, and additional cash proceeds from prior asset sales, we believe we have adequate cash resources to support the business until we achieve our plan to become cash flow positive," said Matt Middendorf, Chief Financial Officer.

Conference Call InformationArcadia will conduct a conference call and simultaneous Internet webcast to review these financial results on Tuesday, November 9, at 11:00 a.m. Eastern Time.  

To access the webcast, visit the Company's website at www.arcadiahealthcare.com, 5-10 minutes prior to the start time and click on the webcast link.  The Company's press release, which contains financial information to be discussed in the presentation, will also be available on Arcadia's website.

To participate in the live conference call, please dial 1-877-407-8031 (for U.S.-based callers) or 1-201-689-8031 (for international callers).  The call can also be accessed (listen-only mode) via the Company's web site at www.arcadiahealthcare.com through the "Investors" page.

A replay of the webcast will be available approximately one hour after the completion of the call and will be accessible at www.arcadiahealthcare.com until August 27, 2010.  A telephone replay will be available by dialing 1-877-660-6853 (for US-based callers) or 1-201-612-7415 (for international callers).  For telephone replay, callers must use Account number 286 and Conference ID number 359345.

Use of Non-GAAP Financial InformationIn addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, Arcadia reports non-GAAP financial results. Arcadia's management believes these non-GAAP measures are useful to investors because they provide supplemental information that facilitates comparisons to prior periods. Management uses these non-GAAP measures to evaluate its financial results, develop budgets and manage expenditures. The method Arcadia uses to produce non-GAAP results is likely to differ from the methods used by other companies and should not be regarded as a replacement for corresponding GAAP measures. Investors are encouraged to review the reconciliation of these non-GAAP financial measures to the comparable GAAP results, which are attached to this release.

About Arcadia HealthCareArcadia HealthCare is a service mark of Arcadia Resources, Inc. (NYSE Amex: KAD), and is a leading provider of home care, medical staffing and pharmacy services under its proprietary DailyMed program.  The Company, headquartered in Indianapolis, Indiana, has 65 locations in 18 states.  Arcadia HealthCare's comprehensive solutions and business strategies support the Company's vision of "Keeping People at Home and Healthier Longer."

DailyMed™ Pharmacy dispenses a monthly cycle of a patient's prescriptions, over-the-counter medications and vitamins, and organizes them into pre-sorted packets clearly marked with the date and time the medications should be taken.  In the dispensing process, a DailyMed pharmacist reviews each patient's medication profile and utilizes state-of-the-art medication therapy management tools in order to improve the safety and efficacy of the medications being dispensed.  A DailyMed pharmacist provides routine communication with the patient, the primary care physician, caregivers and payers in order to maximize the pharmaceutical care administered.  The DailyMed program improves patient care and drug utilization while reducing drug and hospitalization costs for private and government payers.

Forward Looking StatementsAny 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 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 are not guarantees of future performance and involve known and unknown risks, estimates, 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, including our estimates of consumer demand for our services and products, required capital investment, competition, and other factors. Actual events and results may differ materially from those expressed, implied or forecasted in forward-looking statements due to a number of factors. Important factors that could cause actual results, developments and business decisions to differ materially from forward-looking statements are described in the Company's filings with the Securities and Exchange Commission from time to time, including the section entitled "Risk Factors" and elsewhere in the Company's most recent Annual Report on Form 10-K and subsequent periodic reports. Among the factors that could cause future results to differ materially from those provided in our press release are: (i) we cannot be certain or our ability to generate sufficient cash flow to meet our obligations on a timely basis; (ii) we may be required to make significant business investments that do not produce offsetting increases in revenue; (iii) we may be unable to execute and implement our growth strategy; (iv) we may be unable to achieve our targeted performance goals for our business segments; and (v) other unforeseen events may impact our business. The forward-looking statements speak only as of the date hereof. The Company disclaims any obligation to update or alter its forward-looking statements, except as may be required by law.Contact:Matthew MiddendorfChief Financial Officer mmiddendorf@arcadiahealthcare.com317.569.8234Bill Bunting In-Site Communications, Inc.(212) 759-3929 / (415) 517-7013bbunting@insitecony.comFINANCIAL TABLES FOLLOWARCADIA RESOURCES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)September 30,March 31,20102010ASSETS

(unaudited)Current assets:Cash and cash equivalents

$
,704

$
5,444Accounts receivable, net of allowance of $2,309 and $2,623, respectively

12,184

12,290Inventories, net

1,357

917Prepaid expenses and other current assets

1,995

1,551Current assets of discontinued operations

155

174Total current assets

17,395

20,376Property and equipment, net

1,801

1,738Goodwill

2,500

2,500Acquired intangible assets, net

7,384

7,670Other assets

426

412Restricted cash

500

500Total assets

$
30,006

$
33,196LIABILITIES AND STOCKHOLDERS’ DEFICITCurrent liabilities:Accounts payable

$
,836

$
2,859Accrued expenses:Compensation and related taxes

2,629

3,184Interest

38

82Health insurance

507

463Other

1,539

1,507Fair value of warrant liability

1,635

1,499Payable to affiliated agencies

502

1,076Long-term obligations, current portion

189

939Capital lease obligations, current portion

43

69Current liabilities of discontinued operations

117

308Total current liabilities

9,035

11,986Lines of credit

12,186

7,774Long-term obligations, less current portion

26,471

25,192Capital lease obligations, less current portion

12

19Total liabilities

47,704

44,971Commitments and contingenciesSTOCKHOLDERS’ DEFICITPreferred stock, $.001 par value, 5,000,000 shares authorized, none outstanding

-

-Common stock, $.001 par value, 300,000,000 shares authorized; 177,428,044 shares and 177,918,044 shares issued, respectively

177

178Additional paid-in capital

146,396

145,381Accumulated deficit

(164,271)

(157,334)Total stockholders’ deficit

(17,698)

(11,775)Total liabilities and stockholders’ deficit

$
30,006

$
33,196ARCADIA RESOURCES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)Three Month Period Ended September 30, Six Month Period Ended September 30, (Unaudited)(Unaudited)2010200920102009Services

$
20,931

$
21,709$
41,295

$
44,389Pharmacy

4,911

3,4089,965

6,625Revenues, net

25,842

25,11751,260

51,014Cost of revenues

18,797

17,92337,453

36,549Gross profit

7,045

7,19413,807

14,465Selling, general and administrative

9,581

9,87819,315

19,329Depreciation and amortization

326

531634

942Total operating expenses

9,907

10,40919,949

20,271Operating loss

(2,862)

(3,215)(6,142)

(5,806)Other expenses:Interest expense, net

980

8461,823

1,684Change in fair value of warrant liability

(779)

-(137)

-Other

-

(6)-

30Total other expenses

201

8401,686

1,714Loss from continuing operations before income taxes

(3,063)

(4,055)(7,828)

(7,520)Income tax expense

40

773

100Loss from continuing operations

(3,103)

(4,062)(7,901)

(7,620)Discontinued operations:Loss from discontinued operations

(52)

(248)(82)

(1,477)Net gain on disposal

259

1631,046

379207

(85)964

(1,098)NET LOSS

$
(2,896)

$
(4,147)$
(6,937)

$
(8,718)Weighted average number of common shares outstanding

177,295

161,201177,267

160,709Basic and diluted net loss per share:Loss from continuing operations

$
(0.02)

$
(0.03)$
(0.04)

$
(0.05)Income (loss) from discontinued operations

-

--

-Net loss per share

$
(0.02)

$
(0.03)$
(0.04)

$
(0.05)ARCADIA RESOURCES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(IN THOUSANDS)Six-Month Period EndedSeptember 30,(Unaudited)20102009Operating activitiesNet loss for the period

$
(6,937)

$
(8,718)Adjustments to reconcile net loss to net cash used in operating activities:Provision for doubtful accounts

351

1,155Depreciation of property and equipment

348

912Amortization of intangible assets

286

405Gain on business disposals

(1,046)

(379)Non-cash interest expense

1,392

1,224Amortization of deferred financing costs and debt discounts

190

121Stock-based compensation expense

753

551Change in fair value of warrant liability

(137)

-Changes in operating assets and liabilities, net of acquisitions:Accounts receivable

(260)

2,440Inventories

(437)

904Other assets

(413)

821Accounts payable

(1,274)

(1,449)Accrued expenses

(536)

(957)Due to affiliated agencies

(564)

(277)Net cash used in operating activities

(8,284)

(3,247)Investing activitiesBusiness acquisitions, net of cash acquired

(106)

(196)Proceeds from business disposal

1,046

9,320Increase in restricted cash

-

(500)Purchases of property and equipment

(411)

(96)Net cash provided by investing activities

529

8,528Financing activitiesLines of credit, net activity

4,798

(4,610)Proceeds from note payable, net of fees

-

2,141Payments on notes payable and capital lease obligations

(784)

(4,334)Proceeds from exercise of stock options

1

-Net cash provided by (used in) financing activities

4,015

(6,803)Net change in cash and cash equivalents

(3,740)

(1,522)Cash and cash equivalents, beginning of period

5,444

1,522Cash and cash equivalents, end of period

$
,704

$
-
'/>"/>

SOURCE Arcadia Resources, Inc.
Copyright©2010 PR Newswire.
All rights reserved


Related medicine technology :

1. Arcadian Healths Chief Information Officer to Address Role of CIOs from a Healthcare Perspective at the CIO Executive Leadership Roundtable in Santa Monica
2. Marcadia and Lilly Sign Development, License Agreement for Novel Glucagon Program in Severe Hypoglycemia
3. Arcadia Resources Names Stephen Goldsmith to Board of Directors
4. Arcadia Resources to Present at Lazard Healthcare Conference in New York
5. Arcadia Resources Announces Webcast of Its Fiscal 2010 Second Quarter Conference Call
6. Decision Resources Forecast of Global Tanezumab Sales Slashed Following FDA Halt of Phase III Studies
7. Health Strategies Group Introduces New One-Stop Suite of Intelligence Services for Optimizing Marketing and Sales Resources in the Institutional Channel
8. Decision Resources Launches Analogue Tool To Help Pharmaceutical Companies Quickly Assess Market Opportunity
9. Wolters Kluwer Health and the Joanna Briggs Institute Enter Exclusive Relationship to Deliver Evidence-Based Clinical Resources
10. Decision Resources Competitive Landscape Seminar Series: Biologics and Biosimilars on September 14, 2010 Will Help Pharmaceutical Companies Understand Market Opportunities for Biologics and Biosimilars
11. Novo Nordisk Announces Resources to Help Support Kids with Diabetes Attending Summer Camp
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:5/26/2016)... , May 26, 2016 ... has matured into an essential life science tool for ... development applications. BCC Research reveals in its new report ... second growth phase, one powered by a range of ...      (Logo: http://photos.prnewswire.com/prnh/20140723/694805 ) , ...
(Date:5/25/2016)... Germany and GERMANTOWN, Maryland ... N.V. (NASDAQ: QGEN ; Frankfurt Prime Standard: QIA) ... and co-development agreement with Therawis Diagnostics GmbH to develop and ... to develop and market PITX2 as a marker to predict ... breast cancer patients. "We are pleased to partner ...
(Date:5/25/2016)... As illustrated by the Spring ... the numbers and momentum of cannabis in the US ... billions, more research and development push the sector forward. ... Legal Marijuana Markets Report  from from ArcView Market Research ... the increase in sector is attributed to adult use ...
Breaking Medicine Technology:
(Date:5/26/2016)... (PRWEB) , ... May 26, 2016 , ... On May ... Aqua® Research Water Life Science® and international water advocate, was honored by Ashram, Inc. ... women in ancient Egypt who knelt on the banks of the Nile to fill ...
(Date:5/26/2016)... (PRWEB) , ... May 26, 2016 , ... ... leader Mike Morrow-Fox . With over 20 years of experience in leading technology ... well as several years of university teaching, Morrow-Fox will be featured on ...
(Date:5/26/2016)... ... May 26, 2016 , ... ... the launch of its brand equity product, Brandvantage. This breakthrough tool leaves ... landscape of modern consumer decision-making. The proprietary framework incorporates attitudes, behavior and ...
(Date:5/26/2016)... ... May 26, 2016 , ... In Madeira Beach Florida, a small ... single drawbridge, citizens formed an organization, Madeira Beach United, to oppose two development projects ... small town center to a high rise urban environment. , According to the ...
(Date:5/26/2016)... ... May 26, 2016 , ... Women’s ... to host their second pop-up shop for three consecutive weekends. The pop-up shop ... the Santa Barbara community, a community full of women who appreciate the most ...
Breaking Medicine News(10 mins):