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“Arcadia is a strong player in America's most consistently growing industries: temporary staffing and home health care.” |
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Critical Home Care, Inc Announces 2Q Results
Southfield, Michigan - November 15, 2004 - Critical Home Care, Inc., (AMEX: CCLH), a national provider of staffing and home care services, mail order pharmacy and durable medical equipment, announced results for its second quarter ended September 30, 2004.
Sales for the three months ended September 30, 2004, increased by $5,955,841, or 30%, to $25,512,001 as compared to $19,556,160 for the three months ended September 30, 2003. The increase in the amount of $1,016,182 is attributable to the operations of the entities that merged into the Company effective May 10, 2004, $919,921 is attributable to the four acquisitions that were done during this quarter, $3,146,562 is attributable to the three acquisitions done to the affiliate network prior to this quarter and the remaining increase in the amount of $873,176 is from the existing affiliate network.
Net income from the company's core business - staffing and health care services - was $1,132,164 for the second quarter of fiscal 2005, compared with $959,042 for the second quarter of last year, an increase of $173,122, or 18%. On a consolidated basis the net loss for the second quarter of fiscal 2005 was $160,666, compared with a net income $959,042, for the second quarter of fiscal 2004, a decrease of $1,119,708. The decrease was due largely to losses sustained by the company's durable medical equipment (DME) and mail order pharmacy business in addition to the interest expense and amortization of debt discount.
Gross profit for the three months ended September 30, 2004, remained consistent with the quarter ended September 30, 2003 at 15.1%
General and administrative expenses for the three months ended September 30, 2004 was $3,629,197 compared to $1,975,273 for the three months ended September 30, 2003. The net increase of $1,653,924, or 84%, consists of primarily the general and administrative expenses of the entities that merged on May 10, 2004 and the expenses of the entities that were acquired during this quarter. In addition the legal and accounting expenses for the quarter ended September 30, 2004 is approximately $360,000 compared to $13,000 for the quarter ended September 30, 2003. General and administrative expenses from the company's core business - staffing and health care services - was $1,922,041 for the second quarter of fiscal 2005, compared with $1,975,273 for the second quarter of last year, an decrease of $53,232, or 3%.
Commenting on the company's fiscal second quarter financial performance, John E. Elliott, the Company's chairman and CEO, said: "Critical Home Care is looking toward the changing needs of our demographic market, including the aging of the American population which already is causing increased demand for home care, medications and home medical equipment. We are anticipating ways in which to meet those needs in the marketplace by providing services that help businesses operate more effectively and with greater flexibility, and enabling individuals to manage illness and injury in the comfort of their own homes.
"The acquisition by Critical Home Care earlier this year of Arcadia Services, Inc. ("Arcadia Services") and Arcadia Rx, LLC ("Arcadia Rx") brought together several well-run businesses that are strong competitors in their respective market sectors, yet work together to provide exemplary service in the marketplace by combining home and institutional medical staffing, non-medical staffing, mail order prescription drugs and durable medical equipment. Through this strong presence we have an entity that we expect will produce strong shareholder value and continued growth in the marketplace in the coming years," Elliott said.
Outlook:
Critical Home Care, Inc., is a "patient direct" platform that will continue to offer our patients products and excellence in patient care that will enable them to live comfortably. It is our goal to continue to keep the patient healthy enough to stay home at an affordable cost. In the following quarters operational results will be determined by the success we have at integrating the three acquisitions, and the cross-selling opportunities to leverage our existing resources.
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