Bought some whai.ob on earnings. Ouch! Earned .08 and guided for .50 to .55 for 2005. Reduced debt 6.1 million? What's wrong?? Down .15 to 3.07. Bobwins
World Health Alternatives, Inc. Reports Record Revenue of $40.5 Million in First Quarter 2005
Thursday May 12, 9:01 am ET
Company Reiterates Guidance for 2005: Revenue of Approximately $200 Million
EPS $0.50-$0.55
PITTSBURGH--(BUSINESS WIRE)--May 12, 2005----World Health Alternatives, Inc. (OTC BB: WHAI - News), a premier medical staffing company that provides medical, professional and administrative staffing services to the healthcare industry, today announced its financial results for the first quarter ended March 31, 2005. Highlights for the quarter included:
First Quarter Revenues Increased 11% Versus Fourth Quarter 2004 Revenues Due to Organic Growth
All Divisions Combined Produced $40.5 Million in First Quarter Revenues
Company Produced $4.6 million in Earnings Before Interest, Depreciation and Amortization
Gross Margins Improved to 28.4% of First Quarter Revenue
Net Margins Hit 8.9% and Sales, Marketing and Administrative Expenses Decreased to 19.3% of Revenue
For the quarter ended March 31, 2005, revenues were $40.5 million, compared to $1.7 million for the first quarter of 2004. The increase was primarily due to the Company's multiple acquisitions and strong organic growth through the consistent delivery of high quality medical professionals to clients. Gross profit in the quarter was $11.5 million, or 28.4% of first quarter revenues, up from $665,000 in the first quarter of 2004. The Company's net income was $3.9 million for the first quarter of 2005, or $0.08 per fully diluted share, versus a loss of $244,000, or $0.01 per fully diluted share, for the first quarter of 2004. The weighted average number of common shares outstanding rose to 45.7 million for the first quarter of 2005 from just 25.2 million on March 31, 2004.
The Company estimates that it generated $4.6 million in earnings before interest, depreciation and amortization in the first quarter of 2005. The majority of that cash flow was used to reduce the Company's current debt and invest in organic growth opportunities through new business units. During the first quarter, the Company also lowered its short-term debt by approximately $6.1 million and established permanent financing, reducing overall interest charges by 6% from the fourth quarter of 2004.
Revenues by segment for the quarter ended March 31, 2005 were (a) Travel Nursing, $14.2 million; (b) Locum Tenens, $16.0 million; and (c) Other Staffing, $10.3 million. Gross margin by segment was Travel Nursing, $3.1 million, or 22.1% of total sales, Locum Tenens, $4.6 million or 28.7% of total sales, and Other Staffing, $3.8 million, or 36.4% of total sales.
Richard McDonald, President of World Health, stated, "In the fourth quarter of 2004, we achieved critical mass through our strategic acquisition initiative, which included closing our most recent acquisition on December 31, 2004. As evidenced by our profits in the first quarter of 2005, we are utilizing our highly motivated sales force and the ability to generate cash and strong organic growth to move forward with the next step in our business plan. We believe the first quarter is only an indication of what we can achieve in the future. In fact, we plan to continue capitalizing on efficiencies within our organization and strengthening the Company's overall operations. Although the medical staffing industry has experienced a challenging environment over the past year, we have shown that the strategic mix of staffing products we offer the medical community and the high level of attention we provide to our skilled medical staff in the field can build a long-term future for World Health and our investors, employees and clients."
Mr. McDonald continued, "The first quarter of 2005 yielded excellent results and put us on schedule to meet our goals for the year. In the second quarter of 2005, we expect to achieve a similar level of strong organic growth of 8% or more and earnings of $0.09 to $0.11 per share. We also expect to continue improving our operating and net margins going forward. The Company has experienced increased demand for its services since the beginning of the year and expects that demand to remain strong in the immediate future. We reiterate our guidance for 2005 of $200 million in revenues and $0.50 to $0.55 in net earnings." No assurances can be given that the Company will maintain or improve the current organic growth rate or achieve the estimated revenue and earnings per share in 2005.
The Company incurred a total of $7.8 million in sales, marketing and administration expenses in the first quarter of 2005, or 19.3% of sales, compared to 21.7% for the fourth quarter of 2004. This decrease in sales, marketing and administration expenses is a result of spreading fixed costs over a larger revenue base. The Company was able to achieve this goal, in part, through reduced headcount and increased production per each member of the Company's sales force.
John Sercu, World Health's Chief Operating Officer, commented, "The Company continues to add depth to its management team and throughout the entire organization. We have also increased our focus on individual productivity, division productivity metrics and the implantation of 'World Tour', which is our national training and leadership certification program. This has enabled us to place and manage approximately 40% more 'full time equivalents' or 'FTE's' in the first quarter of 2005 than in the fourth quarter of 2004, despite having a smaller sales force. Our success so far is a direct result of the strong morale and high motivation of our sales team and the strong leadership provided by our division presidents and lead managers."
Mr. Sercu added, "We continue to benefit from cross-selling among our business units. Because of the continued success of this approach, we intend to further consider the acquisition of complementary companies to broaden and strengthen our market presence, management team and service capabilities throughout the United States on an opportunistic basis."
World Health Alternatives, Inc.'s management will host a conference call today at 11:00 a.m. EDT to discuss the Company's financial results and achievements. Those who wish to participate in the conference call may telephone 888-335-6674. A digital replay of the call will be available by telephone for 30 days and may be accessed by dialing 877-519-4471 (domestic) or 973-341-3080 (international) and entering access code 6050183. The call will also be available for review approximately 2 hours after its completion through World Health's homepage at www.whstaff.com by clicking on either Windows Media or Real Player.
About World Health Alternatives, Inc.
World Health Alternatives, Inc. (OTC BB: WHAI - News) is a premier human resource firm offering specialized healthcare personnel for staffing and consulting needs in the healthcare industry. The Company places its experienced personnel on a project, temporary, permanent, or temporary-to-permanent basis. These options allow clients to control the expenses associated with new staff while also giving them the unique opportunity to evaluate a candidate's performance essentially risk-free. The Company is headquartered in Pittsburgh, PA, and provides services from locations in Birmingham, AL, Mobile, AL, Roseville, CA, Boca Raton, FL, Sanford, FL, Atlanta, GA, Danvers, MA, Morrisville, NC, Nashua, NH, Cincinnati, OH, Cleveland, OH, Portland, OR, Murray, UT, Bellevue, WA, and Seattle, WA. Additional information about World Health can be found at the Company's website at www.whstaff.com.
