PEABODY, Mass., May 10, 2011 /PRNewswire/ -- PHC, Inc., d/b/a
Pioneer Behavioral Health (NYSE Amex: PHC), a leading provider of
inpatient and outpatient behavioral health services, today reported
financial results for the Company's 2011 third fiscal quarter and
nine months ended March 31, 2011.
Third Fiscal Quarter of 2011 Highlights
- Signed an agreement to acquire MeadowWood Behavioral Health,
which is expected to add approximately $15
million in annual revenue, which is an approximate 30%
increase over FY 2010 revenues. The facility is a licensed acute
care psychiatric hospital with 58 beds providing services on its
11-acre campus to adults suffering with mental illness and
substance abuse. MeadowWood has both inpatient and partial
hospitalization services focused on geriatric, co-occurring and
acute mental disorders. The Company also anticipates expanding the
facility capacity by approximately 40%. This acquisition is
on track to close July 1, 2011.
- For the third fiscal quarter ended March
31, 2011, net patient care revenues increased 10.8% to
$14.1 million from $12.7 million for the same period in 2010.
- Income from continuing operations decreased to $530,000 from $781,000 for the same period in 2010. This
decrease was primarily related to a one-time charge of $446,000 for a legal settlement. Excluding this
one-time charge, income from operations would have been
$976,000.
- Excluding start-up costs of approximately $250,000 and the fees associated with the legal
settlement, operating margin in the fiscal third quarter 2011 would
have been 45.5%.
- Net income applicable to common shareholders decreased to
$65,000 compared to net income of
$469,000 for the same period in 2010.
The decrease was primarily related to the previously mentioned
legal settlement and a $185,000
non-operating 401(k) expense. Excluding these one-time charges, net
income would have been $696,000.
Year-to-Date Fiscal 2011 Highlights
- For the nine months ended March 31,
2011, net patient care revenues increased 15.1% to
$42.0 million from $36.5 million for the same period in 2010.
- Net patient care gross margins were 47.3% compared to 46.6% for
the same period in 2010.
- Income from continuing operations increased 51.1% to
$2.5 million compared to income from
continuing operations of $1.7 million
for the same period in 2010. Excluding the legal settlement, income
from operations would have been $2.9
million.
- Net income applicable to common shareholders increased 27% to
$1.2 million from net income of
$981,000 for the same period in 2010.
Excluding the previously mentioned legal settlement and 401(k)
non-operating expense, net income would have been $1.9 million.
"This represented the Company's ninth consecutive profitable
quarter," said Bruce A. Shear,
Pioneer's president and CEO. "We again generated strong operating
results, which were marked by year-over-year revenue growth and
continued profitability due to an improvement in patient mix and
increased census. Patient census was up at Seven Hills Behavioral
Institute, and the Highland Ridge and Harbor Oaks facilities. Seven
Hills was profitable throughout the third quarter and is scheduled
shortly for a five-bed expansion. In addition, a rate increase,
effective March 1, 2011, from a major
customer in Las Vegas, will
generate an additional $2 million of
annualized revenue going forward."
Mr. Shear continued, "Subsequent to the end of the quarter, we
conducted a grand opening of our recently licensed Renaissance
Recovery facility, a 24-bed residential program located in
Detroit. It is designed to provide
behavioral treatment to chemically impaired adolescents, ages
12-17. Our marketing efforts have been well received and due to
this initial success, we expect that Renaissance Recovery will add
an additional $3 million in
annualized revenue."
Fiscal Third Quarter of 2011 Financial Results
Total net revenues from continuing operations for the three
months ended March 31, 2011 increased
14.2% to $15.5 million compared to
$13.5 million for the three months
ended March 31, 2010. Net patient
care revenues increased 10.8% to $14.1
million for the three months ended March 31, 2011 from $12.7
million for the three months ended March 31, 2010. This is primarily due to an
overall increase in census at Seven Hills Hospital, Highland Ridge
and Harbor Oaks facilities. Contract support services revenue
provided by Wellplace increased 66.1% to $1.4 million for the three months ended
March 31, 2011 compared to
$839,000 for the three months ended
March 31, 2010. This increase is due
to expansion of the Wayne County
call center contract in December
2010, which increased services provided and payment under
the contract.
Income from operations was $530,000 for the fiscal third quarter of 2011
compared to $781,000 in the same
period in 2010. This decrease was primarily related to the legal
settlement. Income before taxes was $364,000 for the three-month period ended
March 31, 2011 compared to
$758,000 in the same period in 2010.
Net income applicable to common shareholders was $65,000 for the fiscal third quarter of 2011, or
$0.00 per basic and diluted share,
compared to net income of $469,000 or
$0.02 per basic and diluted share, in
the fiscal third quarter of 2010. The decrease was primarily
related to the legal settlement and 401(k) non-operating
expense.
Fiscal Year-to-Date 2011 Financial Results
For the nine months ended March 31,
2011, total net revenues increased 15.7% to $45.2 million compared to $39.0 million in the same period in 2010. Net
patient care revenues increased 15.1% to $42.0 million for the nine months ended
March 31, 2011 compared to
$36.5 million in the same period in
2010. Contract support services increased 23% in the nine months
ended March 31, 2011 to $3.2 million from $2.6
million in the nine months ended March 31, 2010. Income from operations
increased 51.1% to $2.5 million
compared to income from operations of $1.7
million in the same period in fiscal 2010. Net income
applicable to common shareholders was up 27% to $1.2 million for the nine months ended
March 31, 2011, or $0.06 per basic and diluted share compared to net
income of $981,000, or $0.05, per share, for the same period in
2010.
As of March 31, 2011, the Company
had cash and cash equivalents of $2.8
million compared to $4.5
million as of June 30, 2010.
Stockholders' equity improved to $18.5
million as of March 31, 2011
from $17.3 million as of June 30, 2010.
Mr. Shear continued, "We incurred several one-time charges in
the quarter that reduced our operating and net income. These
included the above-mentioned legal settlement, start up expenses at
our recently opened Renaissance Recovery facility and a one-time
charge related to our 401(k) plan. Absent these charges,
adjusted net income before taxes would have been $1.2 million, which is 58% ahead of last year's
same quarter and is coupled with continued solid top line growth.
EBITDA for the nine months was $3.4
million."
The Company will hold a conference call at 4:30 p.m. ET today, to discuss the results.
Interested parties should dial (877) 941-2322 (domestically) or
(480) 629-9715 (internationally). A replay of the call will be
available and can be accessed by dialing (877) 870-5176
(domestically) or (858) 384-5517 (internationally), using passcode
4438422.
The call will also be available live by webcast at Pioneer
Behavioral Health's website at:
http://ir.phc-inc.com/phoenix.zhtml?c=71354&p=irol-calendar and
will also be available over the Internet and accessible at
http://viavid.net/dce.aspx?sid=000085C3.
About PHC d/b/a Pioneer Behavioral Health
PHC, Inc., d/b/a Pioneer Behavioral Health, is a national
healthcare company providing behavioral health services in five
states, including substance abuse treatment facilities in
Utah and Virginia, and inpatient and outpatient
psychiatric facilities in Michigan, Pennsylvania, and Nevada. The Company also offers internet and
telephonic-based referral services that includes employee
assistance programs and critical incident services. Contracted
services with government agencies, national insurance companies,
and major transportation and gaming companies cover more than one
million individuals. Pioneer helps people gain and maintain
physical, spiritual and emotional health through delivering the
highest quality, most culturally responsive and compassionate
behavioral health care programs and services. For more information,
visit www.phc-inc.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.
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Contact:
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PHC, Inc.
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Bruce A. Shear,
978-536-2777
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President & CEO
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Or
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Hayden IR
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Brett Maas,
646-536-7331
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Managing Partner
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E-mail: brett@haydenir.com
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- tables
follow -
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PHC, INC.
AND SUBSIDIARIES
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CONDENSED
CONSOLIDATED BALANCE SHEETS
|
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(unaudited)
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March
31,
|
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June
30,
|
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|
|
2011
|
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2010
|
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ASSETS
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|
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Current assets:
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Cash and cash
equivalents
|
$
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2,803,852
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$
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4,540,278
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Accounts receivable, net
of allowance for doubtful accounts of $4,667,466 at
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March 31, 2011 and
$3,002,323 at June 30, 2010
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9,498,219
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8,333,766
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Prepaid
expenses
|
|
739,899
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490,662
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Other receivables and
advances
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|
2,326,863
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743,454
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Deferred income tax assets
– current
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1,145,742
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1,145,742
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Total current
assets
|
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16,514,575
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15,253,902
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Restricted cash
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--
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512,197
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Accounts receivable,
non-current
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61,061
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17,548
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Other
receivables
|
|
48,970
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58,169
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Property and equipment,
net
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4,748,712
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4,527,376
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Deferred income tax assets
– non-current
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1,495,144
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1,495,144
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Deferred financing costs,
net of amortization of $692,869 and $582,972 at
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March 31, 2011 and June
30, 2010
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79,372
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189,270
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Goodwill
|
|
969,098
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969,098
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Other assets
|
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2,257,323
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2,184,749
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Total assets
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$
|
26,174,255
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$
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25,207,453
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LIABILITIES
AND STOCKHOLDERS' EQUITY
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Current liabilities:
|
|
|
|
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Accounts
payable
|
$
|
1,529,546
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$
|
1,594,286
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Current maturities of
long-term debt
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534,461
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796,244
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Revolving credit
note
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1,473,557
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1,336,025
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Current portion of
obligations under capital leases
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48,174
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|
112,909
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Accrued payroll, payroll
taxes and benefits
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|
1,969,598
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2,152,724
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Accrued expenses and other
liabilities
|
|
1,248,817
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1,040,487
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Income taxes
payable
|
|
--
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|
23,991
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Total current
liabilities
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|
6,804,153
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7,056,666
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Long-term debt, net of
current maturities
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|
69,774
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|
292,282
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Obligations under capital
leases, net of current portion
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--
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19,558
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Long-term accrued
liabilities
|
|
810,756
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|
582,953
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Total
liabilities
|
|
7,684,683
|
|
7,951,459
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|
|
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Commitments and contingent
liabilities
|
|
|
|
|
|
|
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Stockholders' equity:
|
|
|
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Preferred Stock, 1,000,000
shares authorized, none issued or outstanding
|
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--
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|
--
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Class A common stock, $.01 par
value, 30,000,000 shares authorized,
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|
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19,950,211 and 19,867,826 shares
issued at March 31, 2011 and June 30,
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|
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2010, respectively
|
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199,502
|
|
198,679
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Class B common stock, $.01 par
value, 2,000,000 shares authorized, 773,717 and 775,021 issued and
outstanding at March 31, 2011 and June 30, 2010,
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each convertible into one
share of Class A common stock
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7,737
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|
7,750
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Additional paid-in
capital
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28,129,506
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27,927,536
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Treasury stock, 1,214,093 and
1,040,598 shares of Class A common stock at
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|
|
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March 31, 2011 and June 30,
2010, respectively, at cost
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(1,808,734)
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(1,593,407)
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Accumulated
deficit
|
|
(8,038,439)
|
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(9,284,564)
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Total stockholders'
equity
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18,489,572
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17,255,994
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Total liabilities and
stockholders' equity
|
$
|
26,174,255
|
$
|
25,207,453
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|
|
|
|
|
|
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PHC, INC.
AND SUBSIDIARIES
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CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
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(Unaudited)
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Three Months
Ended
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Nine Months
Ended
|
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|
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March
31,
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March
31,
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2011
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2010
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2011
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2010
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Revenues:
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Patient care,
net
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$
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14,061,773
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$
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12,692,869
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$
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41,971,221
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$
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36,452,909
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Contract support
services
|
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1,393,862
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839,305
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3,187,772
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2,591,256
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Total revenues
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15,455,635
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13,532,174
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45,158,993
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39,044,165
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Operating expenses:
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|
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|
|
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Patient care
expenses
|
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7,653,245
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6,576,086
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22,098,067
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19,454,431
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Cost of contract support
services
|
|
1,019,957
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|
733,603
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2,543,115
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|
2,202,584
|
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Provision for doubtful
accounts
|
|
684,904
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|
547,810
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|
2,348,205
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|
1,476,128
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Administrative
expenses
|
|
5,121,327
|
|
4,893,235
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|
15,228,490
|
|
14,259,979
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|
Legal
settlement
|
|
446,320
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|
--
|
|
446,320
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|
--
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Total operating
expenses
|
|
14,925,753
|
|
12,750,734
|
|
42,664,197
|
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37,393,122
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|
|
|
|
|
|
|
|
|
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Income from
operations
|
|
529,882
|
|
781,440
|
|
2,494,796
|
|
1,651,043
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
86,215
|
|
39,023
|
|
185,626
|
|
101,130
|
|
Other income
(expense)
|
|
(179,335)
|
|
18,260
|
|
(91,821)
|
|
141,921
|
|
Interest
expense
|
|
(72,971)
|
|
(80,520)
|
|
(234,912)
|
|
(241,998)
|
|
|
|
|
|
|
|
|
|
|
|
Total other income
(expense)
|
|
(166,091)
|
|
(23,237)
|
|
(141,107)
|
|
1,053
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|
|
|
|
|
|
|
|
|
|
|
Income before provision for
income taxes
|
|
363,791
|
|
758,203
|
|
2,353,689
|
|
1,652,096
|
|
Provision for income
tax
|
|
299,266
|
|
289,031
|
|
1,107,563
|
|
671,081
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
|
64,525
|
$
|
469,172
|
$
|
1,246,126
|
$
|
981,015
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income per common
share
|
$
|
--
|
$
|
0.02
|
$
|
0.06
|
$
|
0.05
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average number of
shares outstanding
|
|
19,500,873
|
|
19,762,241
|
|
19,498,579
|
|
19,854,099
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income per
common share
|
$
|
--
|
$
|
0.02
|
$
|
0.06
|
$
|
0.05
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average number
of shares outstanding
|
|
19,872,067
|
|
19,861,449
|
|
19,692,400
|
|
19,963,141
|
|
|
|
|
|
|
|
|
|
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SOURCE PHC, Inc., d/b/a Pioneer Behavioral Health