Providential Holdings Announces Significant Quarterly Operating Results
FOUNTAIN VALLEY, Calif.--(BUSINESS WIRE)--Feb. 20, 2004--Providential Holdings, Inc.(NASDAQ-OTCBB:PRVH) (OTCBB:PRVH)(Berlin Stock Exchange and Frankfurt Stock Exchanges:PR7, WKN 935160) (www.phiglobal.com) today announced the Company`s operating results for the quarter ended December 31, 2003.
Total revenues were $2,389,049 and $30,843 for the quarter ended December 31, 2003, and 2002, respectively, an increase of 7,645%. The increase is due primarily to the completion of a merger agreement the Company facilitated and the acquisition of several new subsidiaries. Of this amount, $2,347,867 in sales and tuition was generated by the subsidiaries.
Net loss from operations for the quarter was $904,928 as compared to that of $545,577 for the same quarter in 2002. Net loss for the quarter was $3,961,534, compared to $654,295 for the same period in 2002, which is equivalent to ($0.04) per share versus ($0.02) per share, respectively, based on the weighted average number of basic and diluted shares outstanding for the pertinent quarters. The difference is primarily attributed to the acquisition of several subsidiaries in the current quarter and a one-time non-cash write-off of $3,150,965 due to impairment of goodwill.
Total revenues were $6,829,049 and $73,352 for the six months ended December 31, 2003, and 2002, respectively, an increase of 9,200%. Revenues for the current period consist of $4,440,000 in consulting fees and $2,389,049 in sales and tuition compared to $11,552 consulting fees and $61,800 in sales for the comparable period in the prior fiscal year. The increase is due primarily to the completion of a merger agreement the Company facilitated and the acquisition of several new subsidiaries. Of this amount, $2,347,867 in sales and tuition was generated by the subsidiaries.
Net income from operations for the six months ended December 31, 2003 was $2,363,897, as compared to net loss from operations of $801,255 for same period ended December 31, 2002. Net loss for the six months ended December 31, 2003 was $782,473, compared to $1,034,054 for the same period in 2002, which is equivalent to ($0.01) per share versus ($0.03) per share, respectively, based on the weighted average number of basic and diluted shares outstanding for the pertinent quarters. Without the one-time accounting write-off of $3,150,965 due to impairment of goodwill, net income would have been $2,368,490 for the six months ended December 31, 2003.
The Company`s management has taken important steps to further increase revenues and generate profits for its subsidiaries, including ATC Technology, ClearPass Systems, PHI Digital Corp., Provimex, Providential Capital, Irvine College of Medical Sciences, and Touchlink Communications. In addition, the Company actively assists Lexor Holdings, Inc.(NASDAQ-OTCBB:LXRH) and Nettel Holdings, Inc.(NASDAQ-OTCBB:NTTL) in their growth plan in order to create additional value for its holdings in these companies.
In the near term, the Company also seeks to acquire several entities germane to its core business spaces, which are expected to significantly add to the Company`s net worth. These efforts are part of our strategy to build the value of our asset base, and solidify the Company`s balance sheet as we enter our high growth stage.
About Providential Holdings
Providential Holdings, Inc.(NASDAQ-OTCBB:PRVH) (PHI) is a diversified holding company committed to creating shareholder value through growth. The company focuses on selective technologies, capital and financial services, international markets and special situations.
Products and services include mobile entertainment systems, information technology, identification technology, infrastructure development, telecommunications, trade commerce, and mergers and acquisitions, especially in the U.S. and emerging overseas markets with high potential for growth.
URL: www.phiglobal.com
Safe Harbor
Except for historical information contained herein, the statements in this news release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause a company`s actual results in the future to differ materially from forecasted results. These risks and uncertainties include, among other things, the company`s ability to attract qualified management, raise sufficient capital, and effectively compete against similar companies.
These and other risks are identified in the company`s SEC filings and should be considered in evaluating the forward-looking statements made herein.
CONTACT: Providential Holdings, Inc.(NASDAQ-OTCBB:PRVH)
Henry D. Fahman, 714-849-1577
www.phiglobal.com
SOURCE: Providential Holdings, Inc.(NASDAQ-OTCBB:PRVH)
