Arcadia, CHAD post earnings
SOUTHFIELD, Mich. -- Arcadia Resources posted revenues of $41.4 million for the second quarter ended Sept. 30, 2006, compared to revenues of $32.7 million for the same quarter in 2005, the company announced last week.
Net loss was $736,000 for the quarter, down from $1.5 million last year.
Arcadia attributed its increase in revenues to internal growth of 8.7% and acquisitions representing $5.9 million in revenues.
The company's products division, which includes home respiratory care and durable medical equipment, posted revenues of $9.7 million and gross margins of 60% for the second quarter ended Sept. 30, 2006, compared to revenues of $3.4 million and gross margins of 68% for the same quarter in 2005.
"Our focus during the first two fiscal quarters was to integrate recently completed acquisitions, to develop and begin implementation of our plans for the walk-in, route (non-emergency) medical clinics inside retail sites and to rededicate our workforce to generate internal growth," stated Chairman and CEO John Elliott. "We continue to initiate startup locations and to integrate the products and services of Arcadia into full-line locations, focused primarily on our Florida, Illinois, Michigan and North Carolina operations."
The Chatsworth, Calif.-based CHAD Therapeutics posted revenues of $4.98 million in revenues for the quarter ended Sept. 30, 2006, compared to revenues of $5.4 million for the same quarter in 2005, the company stated last week.
Net loss was $307,000 for the quarter, up from $210,000 last year.
CHAD's sales have suffered in the six months ended Sept. 20, 2006, with sales of its oxygen conserver and therapeutic devices dropping 4% compared to the same period in 2005. The drop reflects a 14% decline in sales to domestic customers and a 44% increase in sales to international customers.
Sales of CHAD's Total O2 home oxygen filling system also suffered, dropping 29% for the six months ended Sept. 20, 2006, compared to the same period last year.
CHAD still has faith, however, partly due to recent revisions to the Deficit Reduction Act.
"By establishing an entirely new payment class for portable oxygen transfilling equipment, CMS is strongly encouraging homecare providers to invest in advanced technology solutions that will improve the quality of life for patients while reducing the cost of delivering oxygen therapy," stated President and CEO Earl Yager.
In its earnings report, CHAD detailed its plans to enter the sleep market: "We are finalizing product designs and plan to initiate the FDA approval process for our initial products for the sleep disorder market," Yager stated. "We hope to launch our first commercial product for this market in the summer of 2007."