IBJNews

Arcadia Resources to delist stock amid cash crunch

Back to TopCommentsE-mailPrintBookmark and Share

Arcadia Resources Inc. plans to let its stock be delisted from the NYSE Amex Equities Exchange as the company focuses instead on selling one of its business units to raise cash.

The struggling Indianapolis-based company’s stock price had dwindled to just 5 cents a share as of late Tuesday morning. After the markets closed Monday, Arcadia announced its first-quarter earnings and its decision to delist its stock. Arcadia’s shares will now trade over the counter, which makes them harder to buy and sell.

Arcadia, which had been planning a huge expansion in Indianapolis, is running low on cash, in part because the ramp-up of its DailyMed pharmacy service has been slower than expected. DailyMed is a service that packages patients’ medications into packets marked by the time of day or the meal at which they are to be taken. The service has major contracts with Indiana Medicaid and Indianapolis-based WellPoint Inc.

In May 2010, Arcadia announced that it expected to add 930 jobs in Indiana by 2013. But, according to the company’s annual report released in June, its administrative staff has actually fallen slightly in the last year, to 229. Its field staff, most of whom are not in Indiana, has remained steady from a year ago.

DailyMed sales drove up Arcadia’s pharmacy division revenue by 7 percent, to $4.3 million, in the three months ended June 30. Arcadia’s home health care services unit posted $20.4 million in revenue, flat from the same quarter a year ago.

Overall, Arcadia lost $3 million in the quarter, or 2 cents per share, compared with a loss of $4.7 million, or 3 cents per share, a year ago.

Revenue rose 1.6 percent, to $24.8 million.

Arcadia had negative cash flow in the quarter of $1.6 million, but the company said it still has $2.2 million in cash and a line of credit to work with.

“The company’s focus during the quarter has been on implementing our previously announced restructuring actions. We continue to be in discussions to sell the Services segment, but we do not yet have a definitive agreement to sell that business,” said Marvin Richardson, CEO of Arcadia, in a prepared statement.

“Our immediate focus is on managing the near-term liquidity needs of the company. Management is aggressively managing our cash availability while the company considers broader strategic alternatives to address our near-term and longer-term liquidity needs.”

Arcadia has intended to shift its focus exclusively to DailyMed since it launched the service in January 2008. It sold its home health equipment and industrial staffing businesses in 2009 to help fund DailyMed’s expansion. Now it is trying to do the same with its services segment, but has yet to complete a sale.

In the meantime, Arcadia is trying to conserve cash and boost profit margins in the DailyMed business.

“While we have seen improvements in our operating results, the rate of our progress is slower than we planned,” Richardson said. “In our Pharmacy segment, we continue to work with potential new payors. We have made improvements in our Pharmacy operating results without significant increases in volume as we gradually improve gross margins and carefully manage our expenses.”

In June, Arcadia announced that its auditor issued a going-concern warning about the company, because it faces a pile of debt that comes due in April 2012. Arcadia needs to sell its services business to help pay off those debts, but will also likely need to raise additional financing to completely wriggle out of its financial pinch.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. Good Day I am Mr (Victoria Wright) from United state of America, i stayed in NEW YORK, and i have a broke up business, until i found this company email who help me to gain a loan for business,, and now i want to used this short medium to congratulate the below company for the fast and safe money they loan to me without any form of collateral, i loan 500,000USD from the company to save my business and lots more, i saw their mail on the internet, everyone always give testimony for what they did, so i quickly contacted them and they all did everything for me without stress and my money was sent to my account just 3 days later, i was surprise and i feel so glad, now i have a standard business control agent who help me, now i will advice those who need urgent loan to contact him at the bellow email:zenithfirm12@gmail.com

  2. NOTICE:This is to inform the general public that Vampires are real. My name is James Franklyn.,am an agent of vampire,am here to introduce our new world trend to you,a world of vampire where life get easier,we have made so many persons vampires and have turned them rich,you will be assured long life and prosperity,you shall be made to be very sensitive to mental alertness,stronger and also very fast,you will not be restricted to walking at night only even at the very middle of broad day light you will be made to walk.In case you are wildly oppressed by some unscrupulous persons we can still help you fight them.Your protection is assured immediately you join.Just contact the bellow email if you are interested we are here to attend to you anytime you want us. Contact the bellow email for more details. Email:vampirescreed@hotmail.com Sincerely: James Franklyn.

  3. Bravo! Someone else that is willing to speak the truth! Bravo!_____NBCSN is available in almost 2 MILLION more homes than just a few years ago, but Indycar STILL gets less total viewers than it did just a few years ago when NBC took over Versus. Attendance and ratings cratered with the end of season races (just when the title battle got "interesting" HAH!__________And now...new race in Basilia, where Miles celebrated the "rich history" of Indycar racing there. Rich history? What, 7 events in the 100 years of AOW? Yep, some history. Well, at least its an oval. It's not??? Are you kidding me??? Gosh darn road racin furriners.

  4. PURITY RAY LOAN OFFER........ Have you been denied by your banks,or are you in need of of an urgent loan to pay of your bills we are capable of giving loans @ cheaper rate to interested individuals, student, companies and members of the public in need of finance to settle bills, we do offer considerable loans which you can count on. For more information on our various types of loan,then you will have to contact PURITY RAY LOAN FIRM, to help you achieve your desire LOAN APPLICATION FORM TO BE FILLED BORROWERS INFORMATION * Full name:………………………. * SEX * ……………………………. * Country………………………….. * State:……………………………. * Land:…………………………….. * Occupation:…………………….. * phone number:…………………. * Telephone: ………………………….. * Age:………………………………. * Amount needed as loan:……… * Loan Duration:………………….. * Propose of Loan:……………….. * Annual revenue:………………… * Monthly Income:……………….. * Guarantee:………………………. * Payment: monthly or annually Email.....purityrayloanfirm@gmail.com Thank you and God bless Mr Purity Ray PURITY RAY LOAN FIRM we tend to serve you better

  5. Problem: most of the people responding to this article don't know about this service AT ALL! Why? Lack of awareness. This isn't IndyGo. This is CIRTA: might as well be the mattress company because they are asleep at the wheel - something like 3 directors over the last year? Playing with federal grant money is great! This "region" wants commuter rail service, has spent MILLIONS on Transportation studies yet can't even support a commuter bus line? This is largely for suburban riders to get to downtown - not for "service people to work in our hotels and restaurants" ! Get your head out of your backside!! These are professionals, students etc. that don't want to fight traffic, save some money on parking, gas, stress.... if CIRTA would put their federal money into widely promoting the sevive to Greenwood, Fishers & Carmel instead of finding directors and studies - this would be a successful service. Our family uses(d) it daily for the last several years - but the recent uncertainty & now unreliability due to cuts from Carmel has been a problem. Now, costs us an additional $350/month for gas & parking ( $4200/year) plus vehicle wear, service, environmental impact ... YES - this REGION needs this this type of service in order to keep growing and getting the people it needs to fill skilled positions in downtown Indianapolis. Think outside of your own car !!!

ADVERTISEMENT