Exhibit 99
(Logo)
PHC, INC. ANNOUNCES FISCAL FIRST QUARTER
FINANCIAL RESULTS FOR 2004
"12th Successive 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 740-487-1137
Peabody, MA, November 12, 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 first quarter financial results
for fiscal 2004, which ended on September 30, 2003.
Revenues for the quarter ended September 30, 2003 increased to $6,103,167 from
$5,971,387 for the comparable prior year period. This increase in revenue is due
to new contracts signed by Wellplace during the third quarter of last year for
the Michigan call center and the Kansas smoking cessation contract that began
this quarter. There were a number of one-time expenses that negatively impacted
the quarter, including $80,000 in stock compensation charges, as well as
increases in operating expenses for pharmaceuticals, lab fees and other medical
expenses in addition to increases in insurance costs and legal fees associated
with the litigation referred to in our 10-KSB. Income applicable to common
shareholders for the three months was $53,149, or $.00 per diluted share,
compared to $553,770 or $.04 per diluted share for the first quarter of fiscal
2003. Earnings for the quarter are on a pre-taxed basis and are based on
14,789,056 diluted shares outstanding versus 14,352,963 diluted shares
outstanding for the comparable prior year period.
The balance sheet continued to improve. Shareholder's equity increased by 8% to
$2,097,249 on September 30, 2003 from $1,935,257 on June 30th. Additionally, the
Company paid down roughly $247,000 in long-term debt during the quarter.
During the quarter the State of Kansas Health Department awarded PHC's Wellplace
division a $145,000 per year contract to provide a Smoking Cessation Quitline
for the citizens of Kansas who currently use tobacco. The Wellplace Quitline,
first launched in the state of Nebraska, provides 24-hour assessment, motivation
and counseling for tobacco users wishing to quit. In addition, Wellplace will
provide assessments, and develop individualized "quit plans" for those utilizing
the service. Tobacco users will also receive ongoing phone-based counseling, as
well as a customized "Quit Kit" that provides the resources to help them "kick
the habit."
Bruce A. Shear, Chairman and Chief Executive Officer commented, "While we
continue to see a positive trend in revenue as expected, our bottom line results
were less favorable. We incurred expenses associated with evaluating potential
acquisition opportunities which, should they be consummated, could benefit the
Company's future performance. In addition, lower collections resulted in higher
bad debt expenses, which we should recover with stronger collections this
quarter. It is important to note that the environment in which we operate today
is making collection of receivables, particularly older receivables, more
difficult than in previous years. Accordingly, we have increased staff,
standardized some procedures for collecting receivables and instituted a more
aggressive collection policy, which should result in improved cash collections."
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Shear continued, "We remain very encouraged about the year moving forward.
Revenues continue to rise and October was our most successful month of this
fiscal year as all sectors of business showed improvement in revenue and
occupancy. Specifically, during the month of October, the Company's research arm
recorded more than half of the total revenues that it recorded in the previous
quarter. Our research company now has over $1 million in approved studies to be
implemented over the next six months. We are also gaining momentum in our
smoking cessation programs as we signed one contract with the state of Kansas
this quarter and have proposals for additional programs with several states.
Additionally, the new beds we added to our Utah facility are now online and the
hospital is running a high occupancy. We are presently in negotiations to lease
a facility in the greater Detroit area to open up to 60 psychiatric residential
beds, which we expect to open in the third quarter. In addition, we have sought
regulatory approval for 54 new acute psychiatric beds, which, if approved, will
almost double the Company's inpatient psychiatric bed capacity. We are exploring
the possibility of acquiring a pharmaceutical research company and are engaged
in due diligence examination but no definitive agreements have been signed. We
have also moved to strengthen our management team by replacing three divisional
CEO's with seasoned professionals who each have more than 15 years of industry
experience. We believe these factors combined will significantly benefit both
our revenues and earnings for the balance of this year.
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
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, 2000 and 2001, 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
2001
- tables follow -.
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PHC, INC.
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
Three Months Ended
September 30,
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2003 2002
_____________ _____________
Net Revenues $ 6,103,167 $ 5,971,387
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Operating Income 179,546 669,976
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Pretax Income 63,149 553,770
Federal Income Tax Expense 10,000 --
_____________ _____________
Net Income $ 53,149 $ 553,770
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Basic Earnings Per Share $ 0.00 $ 0.04
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Diluted Earnings Per Share $ 0.00 $ 0.04
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Basic Weighted Average Shares 14,069,204 13,727,657
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Diluted Weighted Average Shares 14,789,056 14,352,963
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BALANCE SHEET HIGHLIGHTS
September 30th June 30th
2003 2003
_____________ _____________
Cash $ 138,066 $ 494,991
Total Current Assets 6,462,410 6,145,489
Net Property and Equipment 1,272,877 1,295,113
Total Assets $ 9,647,257 $ 9,411,723
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Total Current Liabilities $ 5,785,027 $ 5,409,312
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Total Long Term Debt 1,734,374 2,030,285
Total Liabilities 7,550,008 7,476,466
_____________ _____________
Shareholder's Equity $ 2,097,249 $ 1,935,257
_____________ _____________
Total Liabilities and Equity $ 9,647,257 $ 9,411,723
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