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Press ReleaseSource: PHC, Inc.
PHC, INC. Announces Record Fiscal Second Quarter Financial Results for 2003
Tuesday February 11, 8:31 am ET
PEABODY, Mass.--(BUSINESS WIRE)--Feb. 11, 2003--PHC, Inc.:
-- Quarterly Revenues Increased to $5,676,170 From $5,379,791
-- Quarterly Net Income Before Dividends of $113,375 Versus $7,861 in
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December 2001
-- 8th Consecutive Quarter of Positive Net Income
-- 1St 6 Months Revenue Increased to $11,647,557 From $10,994,029
-- 1St 6 Months Net Income Increased 66% to $667,145, or $.05/Share
From $401,491, or $.03 Per Share for the Same Year Ago Period
-- Shareholders' Equity Increased 168% to $1,651,608 From $615,985
PHC, Inc., d.b.a. Pioneer Behavioral Health (OTC Bulletin Board: PIHC - News), a leading provider of inpatient and outpatient behavioral health services, today announced record second quarter financial results for fiscal 2003, which ended on December 31, 2002.
Revenues for the quarter ended December 31, 2002 increased 6% to $5,676,170 versus $5,379,791 for the comparable prior year period. Income from operations increased 54% to $239,100 from $155,695 in the year ago period. Net income applicable to common shareholders for the three months increased substantially to $113,375 or $.01 per diluted share, from ($21,102), which included a dividend expense of $28,963 or $.00 per diluted share for the second quarter of fiscal 2002. Earnings for the current quarter are net of a $10,000 provision for taxes and are based on 14,667,728 diluted shares outstanding versus 9,684,687 diluted shares outstanding with no tax provision for the comparable prior year period.
Revenues for the six months ended December 31, 2002 also increased 6% to $11,647,557 versus $10,994,029 for the comparable prior year period. Income from operations increased 13% to $909,076 from $803,837 reported in the comparable year ago period. Income applicable to common shareholders for the six months increased 66% to $667,145, or $.05 per diluted share, from $401,491 or $.03 per diluted share in 2002. Earnings for the six months are net of a $10,000 provision for taxes and are based on 14,517,434 diluted shares outstanding versus 14,510,271 diluted shares outstanding with no tax provision for the comparable prior year period.
The balance sheet has continued to strengthen as the Company's current ratio reached 1.02 on December 31, 2002. Shareholder's equity increased 168%, or by over one million dollars to $1,651,608, up from $615,985 on June 30th. Further, liabilities decreased by nearly $500,000 to $7,986,498 from $8,857,630. Long-term debt was reduced by approximately 16% and stood at $2.03 million on December 31st.
The second fiscal quarter of 2003 was highlighted by two major changes in the Company's operations. The first occurred in November when PHC launched its Wellplace marketing initiative where the Company renamed its Pioneer Development and Support Services (PDS2) to Wellplace in order to build national brand identify for its full suite of services now being offered by the subsidiary. In December, PHC followed the Wellplace launch with the announcement that Lawrence B. Florin had been appointed Chief Executive Officer of its Pioneer Pharmaceutical Research Division. The company noted that Mr. Florin has 18 years of experience in the clinical research industry, and spent the last decade in senior level sales and operations positions with SCIREX and ACURIAN, where he helped to substantially increase sales at both companies by winning numerous Phase II, III and IV clinical trial development contracts with major pharmaceutical companies. Additionally, Mr. Florin has established extensive relationships throughout the industry, especially within the segments of the industry in which Pioneer Behavioral Health focuses.
Bruce A. Shear, Chairman and Chief Executive Officer commented, "We are extremely pleased to announce our 8th consecutive quarter of profitability. Our second fiscal quarter is typically our weakest seasonally and we are already off to a strong start in occupancy for the third quarter. We are encouraged by the positive feedback received from the marketplace for our new Wellplace marketing initiative, and believe this will have a long-term impact on our opportunities for new clients, which have operations across the country.
In addition, we are extremely pleased to have Mr. Florin join our senior management team. We believe that his direction and industry contacts will allow us to make considerable progress in growing the revenues in our clinical research division. The Company continues to explore new opportunities for both our core business and the smoking cessation businesses, where we have submitted proposals to several additional states. While the sales cycle appears to be longer than six months, our experience and performance with the Nebraska contract provides additional credibility. We believe that the increases in revenue, net income, and our overall balance sheet improvement are strong indicators of the Company's ability to grow and increase shareholder equity in a harsh economic environment."
