Exhibit 99
PHC, INC. ANNOUNCES FINANCIAL RESULTS FOR
SECOND QUARTER OF FISCAL 2004
- 2nd quarter revenues increase 14% vs. year ago period -
FOR IMMEDIATE RELEASE
Company Contact: Investor Relations Contact:
__________________ _________________________________
PHC, Inc. Hayden Communications, Inc.
Bruce A. Shear Matthew Hayden
978-536-2777 843-272-4653
>> 12th consecutive quarter of profitability
>> Acquisition of Pivotal Research Centers, LLC expected to close in 3rd
quarter
>> Signed a cooperative lease agreement with the Detroit Medical Center (DMC),
which could double the number of beds PIHC operates to 244
Peabody, MA, February 12, 2004 -- PHC, Inc., d.b.a. Pioneer Behavioral Health
(OTC Bulletin Board: PIHC), a leading provider of inpatient and outpatient
behavioral health services, today announced financial results for the second
quarter and six-month period ended December 31, 2003.
Revenues for the second quarter increased 14 percent to $6.5 million from the
$5.7 million reported in the fiscal second quarter of 2003. Revenue from the
Company's Wellplace division increased 193 percent from $252,312 to $740,014 for
the second quarter of last year. Net income applicable to common shareholders
for the three months was $2,659, or $0.00 per diluted share, compared to
$113,375, or $0.01 per diluted share for the second quarter of fiscal 2003. This
was the Company's 12th consecutive quarter of profitability.
During the second quarter the company spent $139,000 on expensed legal fees as
it worked to find an amicable resolution to the medical malpractice lawsuit
brought against North Point Mental Health and a clinician for conduct engaged in
by the clinician prior to PHC's acquisition of North Point. Exclusive of the
legal fees, net income for the quarter would have been approximately $142,000,
representing a 25 percent increase from the year ago period.
Revenues for the six-month period ended December 31, 2003 increased 8 percent to
$12.6 million from $11.6 million for the comparable six-month period in fiscal
2003. Net income applicable to common shareholders for the six months was
$55,808, or $0.00 per diluted share, compared to $667,145 or $0.05 per diluted
share in the comparable period last year.
Bruce A. Shear, chairman and chief executive officer, commented, "The second
quarter was productive for PHC and helped lay the groundwork for solid results
for the balance of the year and fiscal 2005. We announced the acquisition of
Pivotal Research Centers, a Clinical Research Company, which is expected to
close by March. We look forward to exploiting the synergies between Pivotal and
the rest of our organization, which will further enhance the breadth of
Pharmaceutical Research Services PIHC offers to its customer base. Pivotal
reported $4 million in revenues last year with net profit margins in excess of
20 percent and this acquisition is expected to contribute to PHC's profitability
during the 4th Quarter."
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Mr. Shear continued, "In January we also announced a cooperative lease agreement
with the Detroit Medical Center (DMC). This significant opportunity could enable
us to nearly double the number of beds we operate in the markets we currently
serve from 130 to roughly 244, with capital expenditures of less than $500,000.
The initial 30-bed unit is targeted to be opened in the 4th Quarter and the
second 30-bed unit is targeted for the end of the 4th Quarter with the final 54
beds scheduled for late in calendar 2004 pending regulatory approval. When all
units are fully operational, the annualized incremental revenue contribution is
expected to approach $14,000,000."
Mr. Shear continued, "I'm also particularly pleased with the continued growth of
our Wellplace division, formerly known as Pioneer Development and Support
Services. Wellplace revenues increased 193% to nearly $750,000 in the second
quarter of 2003. The Kansas smoking cessation project and the Wayne County call
center contract, which began in March 2003, continue to contribute to the
divisions' growth."
Mr. Shear concluded, "Revenues for the second quarter reached record levels, and
without the higher than normal legal fees we would have reported a notable
increase in net income. We reduced our long-term debt by approximately $380,000,
further improving our balance sheet and setting the stage for profitable growth.
I am pleased with the operating performance for the quarter and look forward to
continued improvements throughout the remainder of fiscal 2004."
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, 2002 and 2003, 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
2003.
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PHC, INC.
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
Three Months Ended Six Months Ended
December 31, December 31,
2003 2002 2003 2002
_________ _________ __________ __________
Total revenues 6,488,828 5,676,170 12,591,995 11,647,557
_________ _________ __________ __________
Income from operations 77,821 239,100 257,367 909,076
_________ _________ __________ __________
Net income 2,659 113,375 55,808 667,145
Income applicable to
common shareholders $2,659 $113,375 $55,808 $667,145
========== =========== =========== ===========
Basic income per common
share $0.00 $0.01 $0.00 $0.05
Fully diluted income
per common share $0.00 $0.01 $0.00 $0.05
Basic shares outstanding 14,043,665 14,064,801 14,038,877 13,896,229
Diluted shares outstanding 14,921,550 14,667,728 14,804,158 14,517,434
BALANCE SHEET HIGHLIGHTS
December 31 June 30
2003 2003
__________ ___________
Cash $ 130,560 $ 494,991
Total current assets 6,262,644 6,145,489
Property and equipment, net 1,311,159 1,295,113
Total assets $9,459,832 $9,411,723
____________ ____________
Total current liabilities 5,681,284 5,409,312
____________ ____________
Total Long-term debt 1,608,610 2,030,285
Total liabilities 7,317,066 7,476,466
____________ ____________
Total stockholders' equity 2,142,766 1,935,257
____________ ____________
Total liabilities and stockholders' equity $9,459,832 $9,411,723
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