Exhibit 99.1
PHC, INC. ANNOUNCES RECORD FISCAL 2005
FOURTH QUARTER AND YEAR-END FINANCIAL RESULTS
Strongest Quarter and Year in Company History
FOR IMMEDIATE RELEASE
Company Contact: Investor Relations Contact:
___________________ ___________________________
PHC, Inc. Hayden Communications, Inc.
Bruce A. Shear Matthew Hayden
978-536-2777 843-272-4653
>> RECORD FOURTH QUARTER REVENUE OF $9.3 MILLION FOR THE QUARTER ENDED JUNE
30, 2005 VS. $7.6 MILLION FOR THE QUARTER ENDED JUNE 30, 2004
>> RECORD FOURTH QUARTER 2005 EARNINGS OF $1.1 MILLION OR $0.06 PER SHARE, VS.
EARNINGS OF $532,000 OR $0.03 PER SHARE FOR THE SAME PERIOD LAST YEAR
>> FISCAL YEAR 2005 REVENUES INCREASE 27.8% VS. YEAR-AGO PERIOD; FULL-YEAR
BASIC EPS OF $0.18 VS. $(0.02) LAST YEAR
>> SHAREHOLDERS' EQUITY INCREASED 69.6% TO $9.1 MILLION FROM JUNE 30, 2004
>> ANNUAL PHARMACEUTICAL STUDY REVENUES UP MORE THAN 260% OVER FISCAL YEAR
2004
>> COMPANY IN FINAL PERMITTING STAGES FOR NEXT 20 BEDS AT DETROIT BEHAVIORAL
INSTITUTE; ANNOUNCES PLANS FOR NEW FACILITY NEAR LAS VEGAS
Peabody, Mass., September 20, 2005 -- PHC, Inc., d.b.a. Pioneer Behavioral
Health (OTC Bulletin Board: PIHC), a leading provider of inpatient and
outpatient behavioral health services and pharmaceutical research, today
announced record financial results for its fiscal 2005 fourth quarter and
full-year period ended June 30, 2005. The record results were due to increases
in all three operating segments, as well as significant increases in patient
days and improved collections.
Key Financial Indicators
(all numbers in thousands, except per-share
amounts)
Q4 2005 Q4 2004 Increase % Change
Consolidated revenues $9,273 $7,585 $1,688 22.3%
Patient care revenues $7,191 $6,095 $1,096 18.0%
Pharmaceutical study revenues $1,125 $ 746 $ 379 50.8%
Contract support service revenues $ 957 $ 744 $ 213 28.6%
Income from operations $1,040 $ 561 $ 479 85.4%
Net Income $1,091 $ 532 $ 559 105.1%
Earnings per share - Basic $ 0.06 $ 0.03 $ 0.03
Earnings per share - Diluted $ 0.06 $ 0.03 $ 0.03
(all numbers in thousands, except per-share
amounts)
FY 2005 FY 2004 Increase % Change
(decrease)
Consolidated revenues $34,063 $26,649 $7,414 27.8%
Patient care revenues $26,087 $22,418 $3,669 16.4%
Pharmaceutical study revenues $ 4,509 $ 1,246 $3,263 261.9%
Contract support service revenues $ 3,467 $ 2,984 $ 483 16.2%
Income from operations $ 3,587 $ 146 $3,441 2356.8%
Net Income (loss) $ 3,156 $ (257) $3,413 1328.0%
Earnings (loss) per share - Basic $ 0.18 $ (0.02) $ 0.20
Earnings (loss) per share - Diluted $ 0.17 $ (0.02) $ 0.19
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Other Fourth Quarter Operational Highlights:
o 18th consecutive profitable quarter, excluding previously reported
litigation settlement and related legal costs.
o Patient days increased more than 6,500 days for the 2005 fiscal year
compared to year ago period
o The Company announced plans to open 60-bed psychiatric and chemical
dependency hospital near Las Vegas in late calendar 2006
o The Company is in the process of acquiring the final permits to open an
additional 20-bed unit at Detroit Medical Center (DMC) - expected to occur
by the end of October
o Pivotal is currently engaged in 43 enrolling studies and providing care in
a total of 96 studies.
"By combining double-digit growth in all three of our business segments for the
year with careful management of our operating expenses, including a modest
reduction in administrative expenses as a percentage of sales for the fourth
quarter, we increased net income to over $3 million, more than three times our
previous record for profitability in a fiscal year," commented Bruce A. Shear,
Pioneer's President and Chief Executive Officer. "Our financial performance in
fiscal 2005 demonstrates the leverage we believe we have created in our business
model, and we expect to build on this platform to drive additional profitability
as we continue to expand our business. Our Pivotal Research segment has
substantially improved our presence in the pharmaceutical research arena,
resulting in a 261.9 percent increase in revenues from this business, while the
30 beds recently added at the Detroit Behavioral Institute contributed to a
substantial increase in patient days. Both of these factors contributed to our
increased revenue and improved profitability for both the quarter and the year.
In addition to the expansion of our Detroit facility, our recently announced
proposed hospital in Las Vegas, Nevada would provide 60 additional beds and
would be a meaningful contributor to our revenues and profitability beginning in
late 2006 and through 2007. This new hospital would serve a large and growing
market in the region and would increase our overall exposure to the currently
underserved chemical dependency market. With a focus on continuing to increase
efficiencies of our organization by leveraging economies of scale and improving
collections in combination with our strong bed growth we believe we are well
positioned to drive significant continued profitability.
Financial Results
Total revenues for the fourth quarter increased 22.3 percent to a record
$9.3 million from the $7.6 million in the fourth quarter of fiscal 2004 and up
5.8 percent sequentially from the $8.8 million reported in the third quarter of
fiscal 2005, due to growth in revenue from all three operating segments. Net
patient care revenue increased 18.0 percent to $7.2 million for the quarter from
$6.1 million last year due to an 18 percent increase in patient days. Revenue
from pharmaceutical studies increased 50.8 percent to $1.1 million from $746,000
for the fourth quarter of last year, due to the increased study activity related
to Pivotal Research Centers, LLC. Contract support services revenue provided by
the Company's Wellplace division increased 28.6 percent to $957,000 for the
fourth quarter from $744,000 for the fourth quarter one year ago due to the
October 2004 increase in the Michigan call center contract, which increased the
monthly revenue on this contract from $156,000 to $240,000 per month due to a
service expansion.
Total operating expenses increased 17.2 percent to $8.2 million for the
fourth quarter from $7.0 million reported in the same quarter last year but
below our revenue growth of 22.3 percent posted for the fourth quarter 2005,
indicating improved leverage in our operations. Income from operations for the
quarter was $1.0 million for the fourth quarter, compared to income from
operations of $561,000 last year. Net income applicable to common shareholders
for the three months was a record $1.1 million, or $0.06 per basic and fully
diluted share, compared to net income of $532,000, or $0.03 per basic and
diluted share for the fourth quarter last year. Net income increased
sequentially 24.0 percent compared to the $880,000 reported in the Company's
third quarter of fiscal 2005. Net income during the fourth fiscal quarter of
2005 benefited from a $210,000 federal tax benefit or .01 per share gain.
For fiscal 2005, revenues were a record $34.1 million, a 27.8 percent
increase compared to the $26.6 million reported for fiscal 2004. Net patient
care revenue increased 16.4 percent to $26.1 million from $22.4 million for
fiscal 2004, due to an 18.2 percent increase in patient days for the year.
Revenue from pharmaceutical studies increased 261.9 percent or $4.5 million for
the year from $1.2 million last year. Contract support services revenue provided
by Wellplace increased 16.2 percent to $3.5 million for the year from $3.0
million last year.
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Total operating expenses were $30.5 million, a 15.0 percent increase
compared to the $26.6 million reported last year. Income from operations for the
year was $3.6 million compared to income from operations inclusive of the legal
and acquisition expenses of $146,000 last year. Net income applicable to common
shareholders for the year was a record $3.2 million, or $0.18 per basic and
$0.17 per fully diluted share, compared to a net loss of $257,000, or $(0.02)
per basic and fully diluted share for last year. Included in fiscal 2004 results
were $1.0 million in one time litigation and settlement expenses.
The Company's balance sheet continued to strengthen with a current ratio of
1.58:1 on June 30, 2005. Shareholders' equity increased 69.6 percent to $9.1
million on June 30, 2005 from $5.4 million on June 30, 2004.
Mr. Shear continued, "The fourth quarter concluded what was an exciting
fiscal year for the Company, as we had substantial growth across our three
business segments, improving profitability, strengthening our balance sheet and
enhancing shareholder value. We are building on this momentum, announcing
expansion plans for our patient care segment in the Las Vegas Metro area to
support our existing growth in Detroit. We anticipate that the remaining 54 beds
as part of our phase III expansion in Detroit will come on line in late calendar
2006, giving us the necessary time to ensure adequate utilization of the new
facility. We remain focused on expanding our revenue base and are currently on
working on several initiatives which we expect to have positive implications on
our future financial results while enhancing shareholder value."
Teleconference Information
Mr. Shear will host a conference call to discuss the fiscal 2005 fourth
quarter and year end results on Tuesday, September 20, 2005, at 4:30 p.m.
Eastern Time. Interested parties within the United States can access the call by
dialing 866-831-6224, and international callers may dial 617-213-8853. Please
use passcode 91690600. A replay of the call also will be available until
September 27, 2005 at 888-286-8010 for callers within the United States, and
617-801-6888 for international callers. Please use passcode 72912047 for the
replay. This call is being webcast by CCBN, and can be accessed at PHC, Inc.'s
web site at www.phc-inc.com.
About Pioneer Behavioral Health
Pioneer Behavioral Health operates companies that provide inpatient and
outpatient behavioral health care services, clinical research and Internet- and
telephonic-based referral services. The companies contract with national
insurance companies, government payors, and major transportation and gaming
companies, among others, to provide such services. For more information, please
visit www.phc-inc.com or www.haydenir.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.
- tables follow -
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PHC, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended Fiscal Year Ended
June 30, June 30,
2005 2004 2005 2004
_______________________________________________
Total revenues $ 9,272,860 $ 7,584,662 $ 34,063,258 $ 26,648,845
Total operating expenses 8,233,050 7,023,398 30,475,846 26,503,309
__________ __________ ___________ ___________
Income from operations 1,039,810 561,264 3,587,412 145,536
__________ __________ ___________ ___________
Income (loss) before provision
for taxes 919,120 532,627 3,082,477 (245,709)
Income tax expense (benefit) (171,892) -- (73,423) 11,294
__________ __________ ___________ ___________
Net income (loss) applicable to
common shareholders $1,091,012 $ 532,454 $3,155,900 $ (257,003)
========== ========== ========== =============
Basic net income per common share $ 0.06 $ 0.03 $ 0.18 $ (0.02)
========== ========== ========== =============
Basic weighted average number of
shares outstanding
17,877,350 16,551,383 17,574,678 14,731,395
========== ========== ========== =============
Diluted net income (loss) per
common share
$ 0.06 $ 0.03 $ 0.17 $ (0.02)
========== ========== ========== =============
Diluted weighted average number
of shares outstanding 18,934,642 17,337,923 18,364,076 14,731,395
========== ========== ========== =============
BALANCE SHEET HIGHLIGHTS
As of 6/30/05 As of 6/30/04
Cash and cash equivalents $ 917,630 $ 594,823
Total Current Assets 10,529,793 7,631,516
Net Property and Equipment 1,516,114 1,353,975
___________ ___________
Total Assets $17,666,648 $13,311,569
=========== ===========
Total Current Liabilities $ 6,652,477 $ 7,390,661
Total Long-Term Debt, less current maturities 1,900,022 529,378
___________ ___________
Total Liabilities 8,564,709 7,944,532
Shareholders' Equity 9,101,939 5,367,037
___________ ___________
Total Liabilities and Equity $17,666,648 $13,311,569
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