Press Release
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Total net revenue from continuing operations increased 5.9% to
Net patient care revenue increased 9.1% to
Contract support services revenue provided by Wellplace declined 22.3%
to
Income from continuing operations was
The net loss from operations, including Pivotal was
The company had approximately
Some of the highlights include:
-
Opened Seven Hills Behavioral Institute andCapstone Academy . SevenHills Behavioral Institute , the company’s facility that provides adult inpatient and partial hospitalization programs for mental health and substance abuse issues inHenderson, Nevada officially opened in May, 2008. PHC is currently awaiting CMS Medicare certification which will allow it to gain government reimbursement for many of the services it provides. This certification, when obtained, will significantly increase census at the facility. The company openedCapstone Academy inDetroit, Michigan in January. Capstone represents the next phase of PHC's efforts to provide expanded residential treatment services to adjudicated youth in theDetroit metropolitan area. -
Improved profitability on contractual services. PHC generated improved
margins as a result of significant rate increases from two major
renegotiated contracts which became effective
January 1, 2009 . -
Completed previously announced divestiture of Pivotal. The Company
completed the sale to
Premier Research Group PLC for total consideration of up to$5.0 million , including a$2.0 million earn-out. The divestiture of this business will allow Pioneer to focus on its core business of delivering behavioral health programs and services. -
Strengthened balance sheet. The company reduced its bank debt to
approximately
$2.1 million from$3.0 in the previous quarter. Days Sales Outstanding declined from 68 at the end of fiscal 2008 to 58 at the end of the 2009 fiscal third quarter.
“This quarter’s improved operating results reflect initial activities at
Capstone and Seven Hills,” said
For the nine months ended
The Company will hold a conference call at
About PHC d/b/a
Statement under the Private Securities Litigation Reform Act of 1995
This press release may include "forward-looking statements" that are subject to risks and uncertainties. Forward-looking statements include information about possible or assumed future results of the operations or the performance of the Company and its future plans and objectives. Various future events or factors may cause the actual results to vary materially from those expressed in any forward-looking statements made in this press release. For a discussion of these factors and risks, see the company's annual report on Form 10-K for the most recently ended fiscal year.
PHC, INC. AND SUBSIDIARIES | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
March 31, | June 30, | |||||||
2009 | 2008 | |||||||
(unaudited) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 3,036,167 | $ | 3,142,226 | ||||
Accounts receivable, net of allowance for doubtful accounts of $2,505,228 at March 31, 2009 and $2,230,371 at June 30, 2008 | 6,673,042 | 6,439,733 | ||||||
Prepaid expenses | 484,938 | 491,503 | ||||||
Prepaid income taxes | 416,827 | 269,074 | ||||||
Other receivables and advances | 580,237 | 623,295 | ||||||
Deferred income tax asset – current | 2,435,157 | 967,999 | ||||||
Assets held for sale – Pivotal | -- | 5,313,993 | ||||||
Total current assets | 13,626,368 | 17,247,823 | ||||||
Restricted Cash | 512,197 | -- | ||||||
Accounts receivable, non-current | 35,000 | 35,000 | ||||||
Other receivables | 59,007 | 71,889 | ||||||
Property and equipment, net | 4,910,290 | 4,382,421 | ||||||
Deferred income tax asset – non-current | 472,000 | 528,840 | ||||||
Deferred financing costs, net of amortization of $399,807 and $286,413 at March 31, 2009 and June 30, 2008 | 372,435 | 470,829 | ||||||
Goodwill | 969,098 | 969,098 | ||||||
Other assets | 2,537,228 | 2,784,965 | ||||||
Total assets | $ | 23,493,623 | $ | 26,490,865 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 1,698,694 | $ | 1,318,421 | ||||
Current maturities of long-term debt | 654,553 | 651,379 | ||||||
Revolving credit note | 993,019 | 977,203 | ||||||
Current portion of obligations under capital leases | 106,973 | 170,285 | ||||||
Accrued payroll, payroll taxes and benefits | 1,615,910 | 1,528,640 | ||||||
Accrued expenses and other liabilities | 1,470,414 | 1,434,983 | ||||||
Liabilities held for sale – Pivotal | -- | 1,128,470 | ||||||
Total current liabilities | 6,539,563 | 7,209,381 | ||||||
Long-term debt, net of current maturities | 500,255 | 393,705 | ||||||
Obligations under capital leases | 159,203 | 229,274 | ||||||
Total liabilities | 7,199,021 | 7,832,360 | ||||||
Stockholders’ equity: | ||||||||
Preferred Stock, 1,000,000 shares authorized, none issued or outstanding | -- | -- | ||||||
Class A common stock, $.01 par value, 30,000,000 shares authorized, 19,836,793 and 19,806,147 shares issued at March 31, 2009 and June 30, 2008, respectively | 198,368 | 198,061 | ||||||
Class B common stock, $.01 par value, 2,000,000 shares authorized, 775,080 and 775,672 issued and outstanding at March 31, 2009 and June 30, 2008, respectively, each convertible into one share of Class A common stock | 7,751 | 7,757 | ||||||
Additional paid-in capital | 27,580,964 | 27,388,821 | ||||||
Treasury stock, 550,989 and 387,698 shares of Class A common stock at March 31, 2009 and June 30, 2008, respectively, at cost | (1,041,844 | ) | (685,916 | ) | ||||
Accumulated deficit | (10,450,637 | ) | (8,250,218 | ) | ||||
Total stockholders’ equity | 16,294,602 | 18,658,505 | ||||||
Total liabilities and stockholders’ equity | $ | 23,493,623 | $ | 26,490,865 | ||||
PHC, INC. AND SUBSIDIARIES | ||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
March 31, | March 31, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Revenues: | ||||||||||||||||
Patient care, net | $ | 11,106,894 | $ | 10,181,394 | $ | 31,772,332 | $ | 30,483,943 | ||||||||
Contract support services | 899,275 | 1,157,994 | 2,946,058 | 3,411,223 | ||||||||||||
Total revenues | 12,006,169 | 11,339,388 | 34,718,390 | 33,895,166 | ||||||||||||
Operating expenses: | ||||||||||||||||
Patient care expenses | 6,167,572 | 5,675,813 | 18,232,036 | 16,444,479 | ||||||||||||
Cost of contract support services | 718,979 | 894,866 | 2,318,263 | 2,521,085 | ||||||||||||
Provision for doubtful accounts | 413,077 | 204,203 | 1,167,220 | 968,771 | ||||||||||||
Administrative expenses | 4,609,001 | 3,847,632 | 14,181,365 | 11,257,465 | ||||||||||||
Total operating expenses | 11,908,629 | 10,622,514 | 35,898,884 | 31,191,800 | ||||||||||||
Income (loss) from operations | 97,540 | 716,874 | (1,180,494 | ) | 2,703,366 | |||||||||||
Other income (expense): | ||||||||||||||||
Interest income | 39,553 | 62,589 | 135,028 | 147,628 | ||||||||||||
Other income | 43,680 | 8,631 | 99,422 | 41,202 | ||||||||||||
Interest expense | (168,705 | ) | (91,153 | ) | (346,653 | ) | (307,906 | ) | ||||||||
Total other income (expense), net | (85,472 | ) | (19,933 | ) | (112,203 | ) | (119,076 | ) | ||||||||
Income (loss) before taxes | 12,068 | 696,941 | (1,292,697 | ) | 2,584,290 | |||||||||||
Income tax (benefit) provision | 4,680 | 90,117 | (501,373 | ) | 829,181 | |||||||||||
Income (loss) from continuing operations | 7,388 | 606,824 | (791,324 | ) | 1,755,109 | |||||||||||
Discontinued operations – net of tax – Pivotal | (159,031 | ) | (450,789 | ) | (1,409,095 | ) | (317,231 | ) | ||||||||
Net income (loss) applicable to common shareholders |
$ |
(151,643 | ) | $ | 156,035 |
$ |
(2,200,419 | ) | $ | 1,437,878 | ||||||
Basic net income (loss) per common share | ||||||||||||||||
Continuing operations | $ | 0.00 | $ |
0.03 |
$ | (0.04 | ) | $ |
0.09 |
|||||||
Discontinued operations | (0.01 | ) | (0.02 | ) | (0.07 | ) | (0.02 | ) | ||||||||
$ | (0.01 | ) | $ | 0.01 | $ | (0.11 | ) | $ | 0.07 | |||||||
Basic weighted average number of shares outstanding | 20,017,703 | 20,188,228 | 20,109,622 | 20,160,501 | ||||||||||||
Diluted net income (loss) per common share | ||||||||||||||||
Continuing operations | $ | 0.00 | $ | 0.03 | $ | (0.04 | ) | $ | 0.09 | |||||||
Discontinued operations | (0.01 | ) | (0.02 | ) | (0.07 | ) | (0.02 | ) | ||||||||
$ | (0.01 | ) | $ | 0.01 | $ | (0.11 | ) | $ | 0.07 | |||||||
Diluted weighted average number of shares outstanding | 20,017,703 | 20,477,709 | 20,109,622 | 20,479,500 |
Source:
PHC, Inc.
Bruce A. Shear, 978-536-2777
President & CEO
or
CEOcast,
Inc.
Dan Schustack, 212-732-4300