PEABODY, Mass., Feb. 14, 2011 /PRNewswire/ -- PHC, Inc., d/b/a
Pioneer Behavioral Health (NYSE Amex: PHC), a leading provider of
inpatient and outpatient behavioral health services, today reported
financial results for the Company's 2011 second fiscal quarter and
six months ended December 31,
2010.
Second Fiscal Quarter of 2011 Highlights:
- For the second fiscal quarter ended December 31, 2010, net patient care revenues
increased 14.0% to $13.7 million from
$12.0 million for the same period in
2009.
- Net patient care gross margins were 45.7% compared to 46.3% for
the same period in 2009.
- Income from continuing operations increased 41.8% to
$729,000 from $514,000 for the same period in 2009.
- Net income applicable to common shareholders increased 74.5% to
$503,000 from net income of
$288,000 for the same period in
2009.
Year-to-Date Fiscal 2011 Highlights:
- For the six months ended December 31,
2010, net patient care revenues increased 17.5% to
$27.9 million from $23.8 million for the same period in 2009.
- Net patient care gross margins were 48.2% compared to 45.8% for
the same period in 2009.
- Income from continuing operations was $2.0 million compared to income from continuing
operations of $870,000 for the same
period in 2009.
- Net income applicable to common shareholders increased 130.9%
to $1.2 million from net income of
$512,000 for the same period in
2009.
Subsequent to the Quarter End:
- Added its first adolescent recovery facility to inpatient
service offerings; Renaissance Recovery, a 24-bed residential
program located in Detroit, offers
unique program services to the 12-17 year old population.
- Awarded expanded service contract, which increases revenue from
the current contract by 50%, to provide enhanced access services to
the Detroit-Wayne County Community Mental Health Agency; expanded
contract to cover 60,000 consumers in Wayne County, Mich.
Second Fiscal Quarter of 2011 Financial Results
Total net revenues from continuing operations for the three
months ended December 31, 2010
increased 13.7% to $14.6 million
compared to $12.9 million for the
three months ended December 31, 2009.
Net patient care revenues increased 14.0% to $13.7 million for the three months ended
December 31, 2010 from $12.0 million for the three months ended
December 31, 2009. This increase in
revenues is due primarily to a 59% increase in census at Seven
Hills Hospital in Las Vegas and a
65% increase in census at the Chemical Dependency unit at Harbor
Oaks Hospital, partially offset by a decrease in census at Capstone
Academy and a seasonal decline in census at the Company's other
inpatient facilities. Contract support services revenue provided by
Wellplace increased 9.6% to $956,000
for the three months ended December 31,
2010 compared to $872,000 for
the same period last year. This increase is due to expansion of the
Wayne County call center contract,
which increased services provided and payment under the
contract.
Income from operations improved 41.8% to $729,000 for the 2011 second fiscal quarter
compared to $514,000, for the same
period in 2009. Income before taxes was $754,000 for the three-month period ended
December 31, 2010 compared to
$537,000 for the same period in 2009.
Net income applicable to common shareholders was $503,000 for the 2011 second fiscal quarter, or
$0.03 per basic and diluted share,
compared to net income of $288,000 or
$0.01 per basic and diluted share, in
the 2010 second fiscal quarter.
Fiscal Year-to-Date 2011 Financial Results
For the six months ended December 31,
2010, total net revenues increased 16.4% to $29.7 million compared to $25.5 million for the same period in 2009. Net
patient care revenues increased 17.5% to $27.9 million for the six months ended
December 31, 2010 compared to
$23.8 million for the same period in
2009. Income from operations increased 126.0% to $2.0 million compared to income from operations
of $870,000 for the six months ended
December 31, 2009. Net income
applicable to common stockholders was up 130.9% to $1.2 million for the six months ended
December 31, 2010, or $0.06 per basic and diluted share compared to net
income of $512,000, or $0.03, per basic and diluted share, for the six
months ended December 31, 2009.
As of December 31, 2010, the
Company had cash and cash equivalents of $2.8 million compared to $4.5 million as of June
30, 2010. This reduction in cash is partially due to
investment of $1 million in the
purchase of the mortgage on the property leased by the Company's
Capstone Academy. Stockholders' equity improved to
$18.3 million as of December 31, 2010 from $17.3 million as of June
30, 2010.
"For our 2011 second fiscal quarter and six months, we again
generated strong operating results, which was marked by
year-over-year revenue growth and continued profitability;
representing our eighth consecutive profitable quarter," said
Bruce A. Shear, Pioneer's president
and CEO. "Patient census at the Seven Hills Behavioral Institute
facility increased 59% from the year-ago period. Seven Hills was
profitable throughout the second quarter and its profitability
continues to expand. Our ability to grow our business organically
is demonstrated by the expanded service contract with the
Detroit-Wayne County Community Mental Health Agency. We will now
provide enhanced access services to 60,000 consumers and will
increase revenue from the current contract by 50%. Our acquisition
of the Renaissance Recovery facility in Detroit presents an opportunity to expand our
services and provide unique behavioral treatment programs to
chemically impaired adolescents, ages 12-17. This facility is
expected to come on line within the next thirty days and is
expected to add an additional $3-$5
million in annualized revenue. Detroit continues to represent a key growth
market for us."
The Company will hold a conference call at 4:30 p.m. ET today, to discuss the results.
Interested parties should dial (877) 941-2322 (domestically) or
(480) 629-9715 (internationally). A replay of the call will be
available and can be accessed by dialing (877) 870-5176
(domestically) or (858) 384-5517 (internationally), using passcode
4409187.
The call will also be available live by webcast at Pioneer
Behavioral Health's website at:
http://ir.phc-inc.com/phoenix.zhtml?c=71354&p=irol-calendar and
will also be available over the Internet and accessible at
http://viavid.net/dce.aspx?sid=00008158.
About PHC d/b/a Pioneer Behavioral Health
PHC, Inc., d/b/a Pioneer Behavioral Health, is a national
healthcare company providing behavioral health services in five
states, including substance abuse treatment facilities in
Utah and Virginia, and inpatient and outpatient
psychiatric facilities in Michigan, Pennsylvania, and Nevada. The Company also offers internet and
telephonic-based referral services that includes employee
assistance programs and critical incident services. Contracted
services with government agencies, national insurance companies,
and major transportation and gaming companies cover more than one
million individuals. Pioneer helps people gain and maintain
physical, spiritual and emotional health through delivering the
highest quality, most culturally responsive and compassionate
behavioral health care programs and services. For more information,
visit www.phc-inc.com.
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.
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Contact:
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PHC, Inc.
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Bruce A. Shear,
978-536-2777
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President & CEO
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or
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Hayden IR
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Brett Maas,
646-536-7331
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Managing Partner
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E-mail:
brett@haydenir.com
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- tables follow -
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PHC, INC.
AND SUBSIDIARIES
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CONDENSED
CONSOLIDATED BALANCE SHEETS
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(unaudited)
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December
31,
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June
30,
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2010
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2010
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ASSETS
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Current assets:
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Cash and cash
equivalents
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$
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2,759,472
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$
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4,540,278
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Accounts receivable, net
of allowance for doubtful accounts of $4,229,690 at
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December 31, 2010 and
$3,002,323 at June 30, 2010
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9,517,508
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8,333,766
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Prepaid
expenses
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550,445
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490,662
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Other receivables and
advances
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2,389,733
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743,454
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Deferred income tax asset
– current
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1,145,742
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1,145,742
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Total current
assets
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16,362,900
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15,253,902
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Restricted cash
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512,197
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512,197
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Accounts receivable,
non-current
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50,434
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17,548
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Other
receivables
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55,822
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58,169
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Property and equipment,
net
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4,824,068
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4,527,376
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Deferred income tax asset
– non-current
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1,495,144
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1,495,144
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Deferred financing costs,
net of amortization of $656,237 and $582,972 at
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December 31, 2010 and June
30, 2010
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116,004
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189,270
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Goodwill
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969,098
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969,098
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Other assets
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2,082,182
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2,184,749
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Total assets
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$
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26,467,849
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$
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25,207,453
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LIABILITIES
AND STOCKHOLDERS' EQUITY
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Current liabilities:
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Accounts
payable
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$
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1,690,677
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$
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1,594,286
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Current maturities of
long-term debt
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720,864
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796,244
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Revolving credit
note
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1,470,945
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1,336,025
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Current portion of
obligations under capital leases
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76,573
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112,909
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Accrued payroll, payroll
taxes and benefits
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1,864,231
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2,152,724
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Accrued expenses and other
liabilities
|
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1,099,402
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1,040,487
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Income taxes
payable
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424,549
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23,991
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Total current
liabilities
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7,347,241
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7,056,666
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Long-term debt, net of
current maturities
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82,558
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292,282
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Obligations under capital
leases, net of current portion
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--
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19,558
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Long-term accrued
liabilities
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689,721
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582,953
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Total
liabilities
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8,119,520
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7,951,459
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Stockholders' equity:
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Preferred Stock, 1,000,000
shares authorized, none issued or outstanding
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--
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--
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Class A common stock, $.01 par
value, 30,000,000 shares authorized,
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19,887,505 and 19,867,826 shares
issued at December 31, 2010 and June 30,
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2010, respectively
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198,875
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198,679
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Class B common stock, $.01 par
value, 2,000,000 shares authorized, 775,021
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issued and outstanding at
December 31, 2010 and June 30,
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2010, each convertible into one
share of Class A common stock
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7,750
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7,750
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Additional paid-in
capital
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28,053,402
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27,927,536
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Treasury stock, 1,214,093 and
1,040,598 shares of Class A common stock at
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December 31, 2010 and June 30,
2010, respectively, at cost
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(1,808,734)
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(1,593,407)
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Accumulated
deficit
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(8,102,964)
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(9,284,564)
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Total stockholders'
equity
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18,348,329
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17,255,994
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Total liabilities and
stockholders' equity
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$
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26,467,849
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$
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25,207,453
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PHC, INC.
AND SUBSIDIARIES
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CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
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(Unaudited)
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Three Months
Ended
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Six Months
Ended
|
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December
31,
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December
31,
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2010
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2009
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2010
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2009
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Revenues:
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Patient care,
net
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$
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13,675,626
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$
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11,992,372
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$
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27,909,448
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$
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23,760,040
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Contract support
services
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956,312
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872,191
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1,793,910
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1,751,951
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Total revenues
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14,631,938
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12,864,563
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29,703,358
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25,511,991
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Operating expenses:
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Patient care
expenses
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7,421,100
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6,439,782
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14,444,822
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12,878,345
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Cost of contract support
services
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815,383
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741,504
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1,523,158
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1,468,981
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Provision for doubtful
accounts
|
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659,839
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455,345
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1,663,301
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928,318
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Administrative
expenses
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5,007,094
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4,714,227
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10,107,163
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9,366,744
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Total operating
expenses
|
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13,903,416
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12,350,858
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27,738,444
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24,642,388
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Income from
operations
|
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728,522
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513,705
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1,964,914
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869,603
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Other income
(expense):
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|
|
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Interest income
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|
58,817
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|
29,733
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|
99,411
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62,107
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Other income
|
|
48,526
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|
74,305
|
|
87,514
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|
123,661
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Interest
expense
|
|
(81,609)
|
|
(80,885)
|
|
(161,941)
|
|
(161,478)
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Total other
income
|
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25,734
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|
23,153
|
|
24,984
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|
24,290
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|
|
|
|
|
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Income before provision for
income taxes
|
|
754,256
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|
536,858
|
|
1,989,898
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893,893
|
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Provision for income
tax
|
|
251,270
|
|
248,619
|
|
808,297
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|
382,050
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Net income
|
$
|
502,986
|
$
|
288,239
|
$
|
1,181,601
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$
|
511,843
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|
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|
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Basic net income per common
share
|
$
|
0.03
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$
|
0.01
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$
|
0.06
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$
|
0.03
|
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|
|
|
|
|
|
|
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Basic weighted average number of
shares outstanding
|
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19,462,818
|
|
19,800,509
|
|
19,497,457
|
|
19,899,029
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income per
common share
|
$
|
0.03
|
$
|
0.01
|
$
|
0.06
|
$
|
0.03
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average number
of shares outstanding
|
|
19,593,689
|
|
19,855,419
|
|
19,587,845
|
|
20,012,602
|
|
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SOURCE PHC, Inc., d/b/a Pioneer Behavioral Health