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Cash-strapped Arcadia seeks DailyMed buyer

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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.

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  • 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

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  1. liek the rest of America

  2. These quaint,obsessed musings by the stalkers are certainly entertaining, but I'm trying to figure out what, if anything, all the yelping below has to do with Zak Brown.

  3. It's evident that Moffett was pushing the right buttons and corporate America is now trying to squash him. He just wanted to withdraw the free pilot services provided to the company by the pilots to try and put some pressure on a company that has not been interested in negotiating a contract in over 5 years. The company does not provide a contract because not having one has saved them a bundle of money. Shame on any Republic pilots not standing behind their union leader just because things are getting tough, can you not see such strategic moves by the company as putting the last union president in a corporate position and into THEIR pocket. Do you really believe the last union president is so appalled at the attempts by Moffett, do you not remember his oppositions to the company? We stood behind him. It has been proven over and over again for thousands of years without fail, a man cannot serve two masters. Anyone that believes people vote contrary to their paycheck and livelihood deserve to be taken advantage of, the recent statements by the former union president are laughable as he denounces the current union president from his new corporate position. Have you ever seen a drafted sports player score points for his previous team, it cannot be done, he is not on the pilots side anymore, he gets his money a different way now than you and I do, and he should not be allowed to remain on the seniority list. A drafted player brings strength, credibility, tactical knowledge, and a strategic advantage to his NEW team, he would not be drafted or paid were it otherwise. We are all forced to choose only one side to play for and support, not doing so has many references in life such as insider trading and shaving points, all illegal for good reason. This basic fact is why corporate moguls, scientist, and engineers all sign non-discloser agreements and non-compete clauses, as protection in case they are lured into switching sides as our former union president has done. No NFL coach ever drafted a player so that both teams could benefit and better understand each other, they are recruited to win the game against that former team, period. Likewise the company does not recruit the former union president by accident or mutual understanding, its strategy. Don't confuse playing the game with good sportsman-like conduct in support of common business and prosperity goals, with the requirement to only play for one side. Good men we all love and favor fall subject to this manipulation, often without their knowledge, and it is not a betrayal of their friendship to oppose them when they switch sides. If we did not love and trust them, they would not have been chosen and lured to the other side in the first place. The deception by the drafted player is not made at a conscious level, it's just human nature and it's all about money and power which corrupts our ability to be objective and loyal to two masters. This is why our court system created the defense attorney, and why our military created counter intelligence. Its strategy and its propaganda, and it works, and that's why the "powers to be" manipulate the chess pieces by sometimes changing their colors. Some players know they are being manipulated when their color is changed, but it brings them more money and power so they do not care. The rest have good intentions but do not even realize they are being manipulated. This tactic is also known by another name, Divide and Conquer. In battle sending an imperfect message with an imperfect team is obviously not ideal, but it's still being sent by YOUR team, your union leader, a leader that has common goals and common rewards with you, they are the best, because we have elected them to do a job for us. If you are not backing Moffett but believing the spin by those that have recently switched sides, you are taking food out of your own mouth. Showing unity and backing an imperfect situation still results in taking just as much ground, it's about unity and bargaining power. It's not necessary to wait around for that perfect attack because it will never come, the company will spin and attempt to destroy anyone that gets in their way. Ultimately it's not about any specific attack anyway, ASAP or whatever it makes no difference, it is and always has been only about power. If this company cared about safety it would not build pairings with 8 hour overnights, come on, are you that naive? Besides, do you really think Hoffa cares, no, he got a call from corporate America and was squeezed into denouncing Moffett. If he didn't they would spin the safety card against him and the Teamsters National with implication for truckers, future contracts, insurance rates etc...saying something like the Teamsters use safety as a bargaining chip, blah blah blah... Do you really think any pilot is going to do something unsafe for the contract, absolutely not, the only ones threatening safety here is the company with reduced rest, fatigue, and poverty. Do you not find it odd that Hoffa and the Teamsters are opposing a Teamster president publicly? Would the Teamsters National not normally support and work with one of their own? Why did they not sit down and help him strategize, correct any mistakes, and charge ahead? Would the Teamsters National not normally support and leverage a contract for all those pilots that have been paying Teamster dues, isn't that why we have all been paying Teamster dues in the first place? I sure haven't been paying dues so that the Teamsters National could come along and write this kind of an article undercutting our union leader and our unity. Whose side is the Teamsters National really on, it's obviously not the Republic pilots side.

  4. No matter what Moffatt does the company is going to spin it like he is the terrorist and brainwash people like you into believing it, wake up, back your players that are trying to change things for you and your livelihood. Where has Hoffa been for the last 6 years, except collecting our dues. Seriously, do you really think an FO going for upgrade, signed off by a checkairman ready for the upgrade, who then fails, is not even capable of returning as a First Officer.

  5. whoa!

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