IBJNews

Cash-strapped Arcadia seeks DailyMed buyer

Back to TopCommentsE-mailPrintBookmark and Share

Arcadia Resources Inc. is searching for a buyer for its once-promising DailyMed pharmacy service as the struggling Indianapolis-based health care company's financial condition continues to worsen.

Arcadia said late Monday that it lost $2.7 million, or 2 cents per share, from continuing operations in the quarter ended Sept. 30, compared with a loss of $1.5 million, or 1 cent per share, in the year-ago period.

Revenue dipped 2.4 percent in the quarter, to $20.4 million.

Rising debt and slower-than-expected growth have put the company in a precarious position.

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 far slower than expected. DailyMed is a service that places 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.

The company said it has $30 million of unsecured debt that comes due in April that likely won’t be satisfied by the sale of either or both of its business units. In June, Arcadia announced that its auditor issued a going-concern warning about the company because of the debt. The company delisted its stock from the NYSE Amex Equities Exchange in August and now sells it over the counter.

Acadia had 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.

Earlier this year, Arcadia said it also would try to sell its services segment, but it has yet to find a buyer. It now says it may retain the segment, which brought in revenue of $20.4 million in the latest quarter, down from $20.9 million a year ago.

The DailyMed pharmacy unit is growing, but not fast enough to satisfy growing debt. The unit saw revenue rise 17.6 percent in the latest quarter, to $4.6 million. Arcadia did not include DailyMed's results in its overall quarterly results because it said it considered the unit a "discontinued operation" due to the planned sale.

In May 2010, Arcadia announced that it expected to add 930 jobs in Indiana by 2013 because of the DailyMed unit. But, according to the company’s annual report released in June, administrative staff at the company's headquarters numbered 229.

Arcadia said it doubts the proceeds from a DailyMed sale will be sufficient to satisfy the $5 million debt owed to the Springfield, Ill.-based H.D. Smith Wholesale Drug Co. But H.D. Smith has agreed to accept a sale amount of no less than $2 million.

If DailyMed is not sold, Arcadia said it will wind down the business.

Arcadia had negative cash flow of $3 million for the six months ended Sept. 30, but the company said it still has $1.4 million in cash and a line of credit to work with. That’s down from $2.5 million in the year-ago period.

ADVERTISEMENT

  • Meaning?
    Hi Ali-
    What do you mean who all is using? We should go after the business?
    Thanks-Robo
  • Important Info to Know
    We need to find out who all is using so we can go afetr this business, I just don't know of anyone off the top of my head. Ali

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. I still don't understand how the FBI had any right whatsoever to investigate this elderly collector. Before the Antiquities Act it was completely legal to buy, trade or collect Native American artifacts. I used to see arrow heads, axes, bowls, corn grinders at antique shops and flea markets for sale and I bought them myself. But that was in the late 60's and early 70's. And I now know that people used to steal items from sites and sell them. I understand that is illegal. But we used to find arrow heads and even a corn grinder in our back yard when I was a child. And I still have those items today in my small collection.

  2. I lived in California and they had many of the things noted in the proposed suggestions from the "Blue Ribbon Panel". California is near financial collapse now. Let's not turn the great state of Indiana into a third world dump like California.

  3. The temporary closure of BR Avenue will get a lot of attention. But, one thing reported by the IndyStar really stands out to me, and is extraordinarily depressing: “Police also have agreed to crack down on noise violations, traffic violations and public intoxication.” In other words, the police have generously agreed to do their jobs (temporarily, at least), instead of just standing around waiting for someone to call 911. When is someone in this department going to get off their fat arse (looking at you, Chief), get their minds out of 1975-era policing and into 2014, and have his department engage in pro-active work instead of sitting around waiting for someone to be shot? Why in the hell does it take 7 people getting shot in one night in one of the city’s biggest tourist destinations, to convince the police (reluctantly, it would appear) that they actually need to do their f’n jobs? When is the Chief going to realize that there’s a huge, direct, proven correlation between enforcing the law (yes, all laws, especially those affecting quality of life) and preventing larger crimes from occurring? Is it racial BS? Is that what this extraordinary reluctance is all about? Is the department and the city terrified that if they do their jobs, they might offend someone? Whom, exactly? Will the victims of violence, murder, assault, rape, robbery, and theft be offended? Will the citizens who have to tolerate their deteriorating quality of life be offended? Will the businesses who see their customers flee be offended? Or, is it simple ignorance (maybe the Chief hasn’t heard about NYC’s success in fighting crime - it’s only the biggest g*&#am city in the country, after all)? Either way, Chief, if you don’t want to do your job, then step down. Let someone who actually wants the job take it.

  4. I thought Indiana had all the funding it needed for everything. That's why the state lottery and casino gambling were allowed, as the new tax revenue would take care of everything the state wanted to do.The recommendations sound like they came from California. Better think about that. What is the financial condition of that state?

  5. I was a fan of WIBC in the morning, Steve was the only WIBC host that I listened too, he gave the news with so much flare that I enjoyed listening to him on my way to work. Katz is no Steve. Sadly, I will not be listening to WIBC anymore.

ADVERTISEMENT