Knobias Clip Report (09-26-2008) PHC
Submitted By Knobias ClipReport
PHC: CEO Comments on FY08 Results and Sale of Pivotal Research Centers
By Fain Hughes, fhughes@knobias.com
Shares of PHC, Inc. (PHC) opened higher in Friday’s session after the Company announced financial results for the Company’s fourth quarter and fiscal year ended June 30, 2008. The Company also announced on Thursday has signed a letter of intent from a major clinical research organization for the purchase of PHC’s Pivotal Research Centers for $4.5 million.
For the fourth quarter, total net revenue from operations totaled $12.8 million, which was virtually unchanged from the fourth quarter of fiscal 2007. Net income for the quarter was $206,000 or $0.01 per fully diluted share (based on 20.5 million fully diluted shares), which declined 75% from net income of $822,000 or $0.04 per fully diluted share (based on 20.5 million shares) for the fourth quarter of fiscal 2007.
For the full fiscal year 2008, total net revenue from operations increased 12% over the previous year to a record $50.3 million. Net income (prior to the impairment loss of Pivotal) for the 2008 fiscal year was $1.6 million, or $0.08 per fully diluted share (based on 20.5 million fully diluted shares), a decrease of 11% compared to net income of $1.7 million, or $0.09 per fully diluted share (based on 19.7 million shares) in fiscal 2007.
Bruce A. Shear, president and CEO of PHC, commented in a conference call yesterday, “This was another record breaking year for revenues and the first time that we have exceeded the $50 million revenue mark.”
Mr. Shear also commented on the sale of its Pivotal Research Centers. He said, “For some of our investors, I know this has been a long time coming. I think your patience has been rewarded by us finding an ideal buyer. While this sale provides us with significant working capital to strengthen our core operations, the divestiture of this non-core business eliminates the inconsistent results traditionally generated by research. We can now enjoy better clarity and insight into our future revenue growth and profitability.”
He added, “We expect the growth of our Patent Care segment revenue to continue to accelerate and exceed greater than 20% in fiscal 2009, compared to 13% growth in 2008. We also see an achievable growth goal of net income before taxes of 8-10% of net revenues as we approach fiscal 2010, and a higher percentage as we approach 2011.”
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