Arcadia Resources Announces Sale of Non-Strategic Businesses

* Reuters is not responsible for the content in this press release.

Tue May 19, 2009 9:15am EDT

-- Home Health Equipment business sold in two separate transactions

-- Industrial staffing business sold

-- Results in debt reduction, additional working capital to fund DailyMed(TM)
growth

INDIANAPOLIS, May 19 /PRNewswire-FirstCall/ -- Arcadia Resources, Inc. (NYSE
Amex: KAD), a leading provider of home care, medical staffing, and pharmacy
services under the Arcadia HealthCare(SM) brand, today announced the sale of
two non-strategic businesses.  Arcadia sold its Home Health Equipment (HHE)
business and industrial staffing business in three separate transactions, and
is now focused on two divisions: Arcadia Home Care/Medical Staffing and
DailyMed pharmacy services.  The HHE transactions have been closed, and a
definitive agreement has been signed for the sale of the industrial staffing
business, which will close on May 29, 2009.

Arcadia said total cash proceeds from the HHE and industrial staffing sales
are expected to be approximately $11.2 million, including approximately $2.0
million in retained accounts receivable.  Of this total, $1.5 million will be
paid to the Company over the next 12 months.  The Company can receive an
additional $1.6 million based upon the future performance of the industrial
staffing business.

The Company said it expects to generate $8.8 million in cash net of certain
obligations and will use $5.9 million to reduce its debt by approximately 15
percent.  Arcadia said it will use the remaining $3.3 million from the sales,
along with $3 million in new debt raised in March 2009, to support its rapidly
growing DailyMed business.  
 
"We set this strategic plan in motion last year to exit these non-core
segments, and we now have a more streamlined business model and additional
resources to invest in our high-growth DailyMed product and our core Arcadia
Home Care/Medical Staffing division," said Arcadia's CEO Marvin Richardson. 
"The recent government reimbursement changes in Home Health Equipment,
combined with the underperformance of industrial staffing due to deteriorating
conditions of U.S. manufacturers, created further operational challenges for
us within these non-core segments.  By divesting these assets and focusing our
attention on our higher growth and higher profit-potential areas, we expect to
build value more quickly for our company and our shareholders."

Arcadia also announced it expects to report the results of the sold HHE and
industrial staffing businesses as discontinued operations in its fourth
quarter and year-end results.

"In March 2009, we extended the majority of our debt to 2012 and raised an
additional $3 million," said Richardson.  "It's a significant accomplishment
to be able to restructure and reduce debt, raise additional working capital
and divest of non-core assets - all during difficult industry and
macro-economic conditions - and reflects the strength of our team and our
enthusiasm for the potential of our continuing operations.  We remain
committed to our vision of 'Keeping People at Home and Healthier Longer,' and
believe we're well positioned for growth."

About Arcadia HealthCare

Arcadia HealthCare is a service mark of Arcadia Resources, Inc. (NYSE Amex:
KAD), and is a leading provider of home care, medical staffing and pharmacy
services under its proprietary DailyMed program.

DailyMed(TM) Pharmacy dispenses a patient's prescriptions, over-the-counter
medications and vitamins, and organizes them into pre-sorted packets clearly
marked with the date and time the medications should be taken over a 30-day
supply.  In the dispensing process, a DailyMed pharmacist reviews each
patient's medication profile and utilizes state-of-the-art medication therapy
management tools in order to improve the safety and efficacy of the
medications being dispensed.  A DailyMed pharmacist provides routine
communication with the patient, the primary care physician, caregivers and
payors in order to maximize the pharmaceutical care administered.  The
DailyMed program improves patient care and drug utilization while reducing
drug and hospitalization costs for private and government payors.

The Company, headquartered in Indianapolis, Indiana, has 72 locations in 21
states and currently services over 50,000 homes annually through its 5,000
full and part-time associates. Arcadia HealthCare's comprehensive solutions
and business strategies support the Company's overall vision of "Keeping
People at Home and Healthier Longer."

Forward Looking Statements

Any statements contained in this release that are not historical facts are
forward-looking statements within the meaning of Section 27A of the Securities
Act of 1933, as amended, and Section 21A of the Securities Exchange Act of
1934, as amended and otherwise within the meaning of court opinions construing
such forward-looking statements. The Company claims all safe harbor and other
legal protections provided to it by law for all of its forward-looking
statements. Forward-looking statements are not guarantees of future
performance and involve known and unknown risks, estimates, uncertainties and
other factors, which could cause actual financial or operating results,
performances or achievements expressed or implied by such forward-looking
statements not to occur or be realized, including our estimates of consumer
demand for our services and products, required capital investment,
competition, and other factors. Actual events and results may differ
materially from those expressed, implied or forecasted in forward-looking
statements due to a number of factors. Important factors that could cause
actual results, developments and business decisions to differ materially from
forward-looking statements are described in the Company's filings with the
Securities and Exchange Commission from time to time, including the section
entitled "Risk Factors" and elsewhere in the Company's most recent Annual
Report on Form 10-K and subsequent periodic reports. Among the factors that
could cause future results to differ materially from those provided in our
press release are: (i) we cannot be certain or our ability to generate
sufficient cash flow to meet our obligations on a timely basis; (ii) we may be
required to make significant business investments that do not produce
offsetting increases in revenue; (iii) we may be unable to execute and
implement our growth strategy; (iv) we may be unable to achieve our targeted
performance goals for our business segments; and (v) other unforeseen events
may impact our business. The forward-looking statements speak only as of the
date hereof. The Company disclaims any obligation to update or alter its
forward-looking statements, except as may be required by law.


SOURCE  Arcadia Resources, Inc.

Matthew Middendorf, Chief Financial Officer, mmiddendorf@arcadia.com,
+1-317-569-8234 x106
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