Exhibit 99
(Logo)
PHC, INC. ANNOUNCES FISCAL THIRD QUARTER
FINANCIAL RESULTS FOR 2003
"9th Consecutive Profitable Quarter"
FOR IMMEDIATE RELEASE
Company Contact: Investor Relations Contact:
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PHC, Inc. Hayden Communications, Inc.
Bruce A. Shear Matthew Hayden
978-536-2777 843-272-4653
>> SIGNED $1.8 MILLION CONTRACT WITH WAYNE COUNTY, MICHIGAN
>> 3rd Q REVENUE OF $5,871,834 WITH NET INCOME OF $130,811, OR $.01/SHARE
>> 1ST 9 MONTHS REVENUE INCREASED TO $17.5 MILLION
>> 1ST 9 MONTHS NET INCOME WAS $797,956, OR $.05/SHARE
Peabody, MA, May 07, 2003 -- PHC, Inc., d.b.a. Pioneer Behavioral Health (OTC
Bulletin Board: PIHC), a leading provider of inpatient and outpatient behavioral
health services, today announced its third quarter financial results for fiscal
2003, which ended on March 31, 2003.
Revenues for the quarter ended March 31, 2003 were comparable at $5,871,834
versus $5,889,929 for the comparable prior year period. Net income applicable to
common shareholders for the three months was $130,811 or $.01 per diluted share,
from $416,431, or $.03 per diluted share for the third quarter of fiscal 2002.
Earnings for the quarter are on an untaxed federal basis, but include $26,074 in
state tax provision and are based on 14,814,570 diluted shares outstanding
versus 14,195,971 diluted shares outstanding for the comparable prior year
period.
Revenues for the nine months ended March 31, 2003 increased 4% to $17,519,391
versus $16,883,958 for the comparable prior year period. Specifically, revenue
from non-patient operations increased 64% to $1,655,470 from $1,009,195 reported
in the comparable year ago period. Net income applicable to common shareholders
for the nine months was $797,956, or $.05 per diluted share, compared to
$817,922 or $.06 per diluted share in 2002. Earnings for the nine months are on
an untaxed federal basis, but include $36,074 in state tax provision and are
based on 14,577,540 diluted shares outstanding versus 14,111,929 diluted shares
outstanding for the comparable prior year period. Operating cash flow during the
first nine months increased to $1,040,651 from $794,518 in the year ago period.
The balance sheet remained strong with a current ratio 1.05:1 on March 31, 2003.
Shareholder's equity increased 191%, to $1,793,678, up from $615,985 as of June
30, 2002. Further, the Company continues to pay down long-term debt from
operating cash flow, which was reduced during the quarter by approximately 7%
and stood at $2.62 million on March 31st.
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The third fiscal quarter of 2003 was highlighted by the Company's announcement
that its Wellplace Division had been contracted by the Detroit-Wayne County
Community Mental Health Agency to provide 24-hour mental health information and
referral services through both the telephone and Internet 365 days per year. The
contract, valued at approximately $1.8 million annually, is the largest
implemented to date by Wellplace and provides critical services to the 2.2
million residents of Wayne County, Michigan.
Bruce A. Shear, Chairman and Chief Executive Officer commented, "While we are
pleased to announce our 9th consecutive quarter of profitability, we were not
satisfied with the level of net income achieved during the third quarter. There
were several events which occurred at roughly the same time that contributed to
the decrease in net margins, including an unusually low Census, timing issues
related to clinical trial testing at our Pioneer Pharmaceutical Research
Division (PPR), along with initial set up and marketing costs for our Wayne
County, Michigan contract."
"At this point it looks like we are off to a great start for the June quarter
and we expect the fourth fiscal quarter to be considerably better both on a
sequential and comparable basis. We believe that airport and travel delays
caused by this winter's storms, coupled with the beginning of the war, resulted
in a short-term decline in patient census. Our facilities are close to full
capacity and we plan to open the new expansion at our Salt Lake Facility next
month. The Company's PPR division recently announced the signing of four new
contracts with Major Pharmaceutical customers and is now conducting nine
research studies, with three more expected to start in the next several weeks.
Current new study backlog for this division is approximately $553,000 and as
that number continues to grow, it will provide more revenue predictability on an
ongoing basis. Services to Wayne County have rolled out smoothly and the
contract is now profitable for PIHC. In addition, we continue to pursue smoking
cessation contracts in several states and anticipate final decisions from at
least three during the next few months," Mr. Shear went on to say.
Pioneer will hold its earnings conference call at 4:15 P. M. Eastern Time, on
Wednesday, May 7, 2003. To join management please call 877/692-2086 (if calling
within the US) or 973/582-2749 if calling internationally. There will be a
playback available until May 14, 2003. To listen to the playback, please call
877/519-4471 if calling within the United States or 973/341-3080 if calling
internationally. Please use pass code 3913277 for the replay. This call is being
web cast by ViaVid Broadcasting and can be accessed at PHC, Inc.'s website at
www.phc-inc.com.
About Pioneer Behavioral Health
Pioneer Behavioral Health's core business provides inpatient and outpatient
behavioral healthcare services. The company contracts with national insurance
companies, major transportation and gaming companies to provide behavioral
health services. Pioneer also owns and operates Wellplace.com, a leading
Internet-based provider of behavioral health services to consumers and
professionals. For more information, please visit our web site at
www.phc-inc.com or www.haydenir.com.
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
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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 (or during this conference
call). These factors and risks are discussed in the company's annual report on
Form 10-KSB for the years ended June 30, 2001 and 2002, copies of which were
filed with the Securities and Exchange Commission, and in our quarterly reports
on Form 10-Q filed with the Securities and Exchange Commission since October
2002.
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PHC, INC.
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
Three Months Ended Nine Months Ended
March 31, March 31,
2003 2002 2003 2002
______________________________________________
Net Revenues $5,871,834 $5,889,929 $17,519,391 $16,883,958
__________ __________ ___________ __________
Operating Income 258,260 603,138 1,167,336 1,406,975
__________ __________ ___________ __________
Income before provision for
income taxes 156,885 444,186 834,030 905,028
Provision for income taxes 26,074 -- 36,074 --
__________ __________ ___________ __________
Net Income $ 130,811 $ 444,186 $ 797,956 $ 905,028
Net Income Applicable to Common
Shareholders $ 130,811 $ 416,431 $ 797,956 $ 817,922
========= ========= =========== ==========
Basic Earnings Per Share $ 0.01 $ 0.04 $ 0.06 $ 0.08
========= ========= =========== ==========
Diluted Earnings Per Share $ 0.01 $ 0.03 $ 0.05 $ 0.06
========= ========= =========== ==========
Basic Weighted Average Shares 14,099,929 9,851,124 13,963,138 9,643,486
========= ========= =========== ==========
Diluted Weighted Average Shares 14,814,570 14,195,971 14,577,540 14,111,929
========= ========= =========== ==========
BALANCE SHEET HIGHLIGHTS
March 31 June 30
2003 2002
____________________________
Cash $ 281,848 $ 204,564
Total Current Assets $ 6,014,356 $ 6,253,460
___________ ___________
Total Assets $ 9,373,838 $ 9,473,615
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Current Maturities of Long Term Debt $ 804,139 $ 765,415
Total Current Liabilities $ 5,722,920 $ 6,407,545
___________ ___________
Total Long Term Debt $ 1,819,026 $ 2,428,945
Total Liabilities $ 7,580,160 $ 8,857,630
___________ ___________
shareholder's Equity $ 1,793,678 $ 615,985
Total Liabilities and Equity $ 9,373,838 $ 9,473,615
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