World Health Alternatives, Inc.'s Earnings Guidance for 2005 Ranges from $0.50 to $0.55 Net Per Share on $200 Million in Revenues PITTSBURGH
Porter, LeVay & Rose, Inc. Michael Porter, President - Investor Relations Linda Decker, VP - Investor Relations Jeff Myhre, VP - Editorial Tom Gibson, VP - Media Relations: 201-476-0322 212-564-4700 Fax: 212-244-3075 www.plrinvest.com or World Health Alternatives, Inc. Richard E. McDonald, President 412-829-7800 (Ext. 223) or Summit Financial Partners, LLC Anthony Altavilla, President 317-218-0204
Company Expects Record Fourth Quarter 2004 Revenues of Approximately $30 Million on Pro Forma Basis; Company Launches New Divisions
World Health Alternatives, Inc. (OTC BB: WHAI), a premier medical staffing company that provides medical, professional, and administrative staffing services to the healthcare industry, announced today that it expects the fourth quarter for the fiscal year ended December 31, 2004, to be its strongest yet. The Company anticipates that its fourth quarter revenues for all businesses on a pro forma basis (meaning the Company is treating the acquisition transactions initiated in the fourth quarter as if they had been completed at the start of the quarter) will be approximately $30 million, and expects to achieve a 12% profit on those revenues at the operating level. Additionally, World Health indicates that it expects to earn $0.50 to $0.55 net per share in 2005. The Company expects to record revenues during 2005 of at least $200 million. There can be no assurances that the projected net per share earnings or revenues in 2005 will be achieved.
Richard McDonald, President of World Health, said, "The strategy all along was to make smart acquisitions that were profitable and had a strong infrastructure, integrate the acquisitions into World Health, and then use the combined new and existing resources to cross-sell and grow our business organically. We have closed multiple acquisitions since December 2003, and each has been accretive to our bottom line. In only one instance, though, have we had the benefit of the additional revenues for the entire 2004 fiscal year. The others have contributed less than a full twelve months of income, but we will have the full effect of these acquisitions starting in 2005."
Mr. McDonald further commented, "As a result of these acquisitions and our organic growth, we are now a national presence and starting to reap the benefits of economies of scale. We have been experiencing a vibrant market for our business over the past six weeks, which has driven demand and pricing. This favorable market has enabled us to enter our second phase of the Company's integration plan, which involves establishing new operating divisions at existing offices to increase incremental revenues while avoiding additional overhead expenses."
Mr. McDonald indicated, "We expect great things for the Company in 2005, and the foundation for our success will always be driven by our principle of doing the right thing for our clients and our consultants. We expect to double the number of consultants in the field by the end of 2005, which should help us to surpass the $200 million in revenue we expect to achieve for our existing business in 2005."
Mr. McDonald also said, "On the $200 million in revenue that we expect to achieve in 2005, we anticipate achieving a 34% gross profit margin on billable services. That gross profit margin would be an increase over the gross profit margin that the Company's combined operating divisions had at the end of the fourth quarter of 2004, which was approximately 32%. We also expect to improve our net margins by 1% or 2% through additional efficiencies and improved utilization of shared resources. The Company plans to use the cash generated from profits to continue its acquisition and organic growth strategy. Overall, we are pleased with the Company's overall financial and operating position at this time and believe that we are well positioned to take full advantage of the profit generating capabilities of our current operations throughout 2005." No assurances can be given that the Company will achieve the estimated revenue for 2005 or that such revenue will generate the expected excess cash or gross profit margin.
Recently, World Health has opened Travel Allied Health Divisions in its offices in California and a Travel Nurse Division in its Orlando, Florida office. The Company has also established a "rapid response" division that supplies nurses to healthcare facilities requiring immediate staffing of a large number of nurses due to a crisis scenario such as a labor strike. Additionally, the Company has increased the size and market share of its per diem, local staffing services in its regional offices.
John Sercu, Chief Operating Officer of World Health, said, "We are now in the second phase of our integration plan for many of the offices we acquired in 2004. Having integrated their existing business operations into World Health in the first phase of the plan, we are now expanding those business operations by establishing new and complementary operating divisions at those offices. Our successful growth is a testament to the strong management and staffing teams we have been building and training over the last 6 months. We are able to achieve higher production and profit with the same number of people, which demonstrates our ability to achieve greater results in this business as we hit critical mass and can capitalize on economies of scale."
World Health currently has 130 internal employees dedicated to its allied and nurse staffing divisions. Although the Company essentially has the same number of people in those divisions that it had following the completion of its fourth acquisition from December 2003 through June 2004, those divisions have been able to increase their combined current revenue run rate by approximately 18%. The Company's Parker Services Division, which operates out of locations in the state of Washington, has 28 internal employees dedicated to staffing support services for clients. J&C Nationwide, Inc. has 120 internal employees dedicated to placing qualified physicians with healthcare facilities across the United States. World Health initiated the J&C acquisition in November 2004. The final transfer of assets pursuant to that acquisition remains subject to the Company's assumption of J&C's operating debt.
Richard McDonald concluded, "Overall, the Company has sustained consistent organic growth of approximately 7% through the third and fourth quarters of 2004 and the first two weeks of January 2005. We have added approximately 15 to 20 full-time field consultants each week for the past few weeks. We now have approximately 2,000 full-time consultants in the field and the average bill rate for those consultants has increased by approximately 3% in the last 60 days. We recently added several benefits to attract new field consultants, including fully paid healthcare and upgraded living accommodations while traveling on assignment."
World Health Alternatives, Inc. (OTC BB: WHAI) is a premier human resource firm offering specialized healthcare personnel for staffing and consulting needs in the healthcare industry. The Company places its experienced personnel on a project, temporary, permanent, or temporary-to-permanent basis. These options allow clients to control the expenses associated with new staff while also giving them the unique opportunity to evaluate a candidate's performance essentially risk-free. The Company is headquartered in Pittsburgh, PA, and provides services from locations in Birmingham, AL, Mobile, AL, Citrus Heights, CA, Boca Raton, FL, Sanford, FL, Atlanta, GA, Danvers, MA, Morrisville, NC, Portsmouth, NH, Nashua, NH, Cincinnati, OH, Cleveland, OH, Portland, OR, Murray, UT, Bellevue, WA, and Seattle, WA. Additional information about World Health can be found at the Company's website at www.whstaff.com.
This press release contains forward-looking statements. The words or phrases "would be," "would allow," "intends to," "will likely result," "are expected to," "will continue," "anticipate," "expect," "estimate," "project," "indicate," "could," "can," "potentially," "should," "believe," "considers," or similar expressions are intended to identify "forward-looking statements." Actual results could differ materially from those projected in the forward-looking statements as a result of a number of risks and uncertainties. These risks and uncertainties include: (a) whether the Company will successfully acquire existing staffing companies to grow its staffing business; (b) whether the Company will have adequate financing to expand the business; (c) whether the Company will effectively manage its expanding operations, which will place significant demands on its managerial, financial and informational systems; (d) competition among medical staffing companies for clients and qualified nurses and other healthcare professionals and personnel; (e) the Company's ability to locate and fill staffing orders; (f) whether general economic conditions and the regulatory environment will be favorable to the growth of the Company's business; (g) the Company's ability to grow organically; (h) whether the fourth quarter for the fiscal year ended December 31, 2004 will be the Company's strongest yet; (i) whether the Company's fourth quarter revenues for all businesses on a pro forma basis will be approximately $30 million; (j) whether the Company will achieve a 12% profit on the anticipated $30 million in revenues at the operating level; (k) whether the Company will earn $0.50 to $0.55 net per share in 2005; (l) whether the Company will record revenues during 2005 of at least $200 million; (m) whether the Company will have the full effect and/or benefit of its acquisitions' income starting in 2005; (n) whether, as a result of its acquisitions and organic growth, the Company is now a national presence and starting to reap the benefits of economies of scale; (o) whether a vibrant market for the Company's services exists and whether it has driven demand and pricing; (p) whether the Company's two part integration plan will be successful and achieve its indicated goals; (q) whether the Company will double the number of consultants in the field by the end of 2005 and whether that will help it to surpass the $200 million in revenue it expects to achieve for its existing business in 2005; (r) whether the Company can achieve a 34% gross profit margin on billable services; (s) whether the Company can improve its net margins by 1% or 2% through additional efficiencies and improved utilization of shared resources; (t) whether the Company will use the cash generated from profits to continue its acquisition and organic growth strategy; (u) whether the Company is well positioned to take full advantage of the profit generating capabilities of its current operations throughout 2005; (v) whether the Company will be able to achieve higher production and profit with the same number of people and capitalize on economies of scale; (w) whether the Company will assume J&C Nationwide, Inc.'s operating debt and meet any other contingencies applicable to the Company receiving the final transfer of J&C's assets pursuant to that acquisition transaction; (x) whether the Company will continue to be able to attract and retain field consultants; and (y) other factors set forth in the Company's periodic reports and Form SB-2 Registration Statement filed with the Securities and Exchange Commission which may be reviewed by accessing the SEC's EDGAR system at www.sec.gov. Statements made herein are as of the date of this press release and should not be relied upon as of any subsequent date. The Company's past performance is not necessarily indicative of its future performance. The Company does not undertake, and the Company specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences, developments, events or circumstances after the date of such statement.
Posts: 44 | From: San Diego, CA | Registered: Oct 2004
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