Reorganization points Arcadia in better direction

Arcadia Resources Inc. narrowed its losses in its fiscal fourth quarter, the Indianapolis-based home health care company reported today.

Arcadia also grew its net revenue by nearly 8 percent to more than $37 million.

The company recorded a net loss of $3.1 million in the quarter ended March 31. In the same period a year earlier, the company lost $39.2 million.

In 2007, Arcadia sold, exited or closed several unprofitable businesses. Excluding those discontinued operations, Arcadia generated $157,000 in EBITDA, also known as earnings before interest, taxes, depreciation and amortization. In the same quarter a year ago, Arcadia had EBITDA of $7.9 million.

For its fiscal year, Arcadia lost $23.4 million, down from a loss of $43.8 million the prior year. Excluding discontinued operations, the company lost $13.1 million in its most recent fiscal year, compared with a loss of $33.6 million the prior year.

“All said, with the end of our fiscal year 2008, we have completed our major cost restructuring initiatives,” CEO Marvin Richardson said in a statement. “As we look forward to fiscal year 2009, Arcadia has the foundation and determination to deliver significant sales growth.”

Also, Arcadia’s accountant, BDO Seidman LLP, lifted this year its warning that there was a “material” uncertainty about Arcadia’s ability to stay in business. BDO Seidman issued that so-called “going concern” warning on Arcadia’s annual report last year.