Providential Holdings Announces Quarterly Operating Results and Provides Earnings Guidance
HUNTINGTON BEACH, CA - MARKET WIRE - 12/15/04
Providential Holdings, Inc. (OTC BB: PRVHE); (Berlin: PR7, WKN 935160), www.phiglobal.com, today announces the operating results for the first quarter ended September 30, 2004, and expects to return to profitability for the quarter ending December 2004.
Total revenues were $267,851 and $4,440,000 for the three months ended September 30, 2004, and 2003, respectively. Revenues for the current period consist of $204,250 in advisory and consulting fees, $20,478 in sales and $43,123 intuition compared to $4,440,000 consulting fees for the comparable period in the prior fiscal year. The Company did not consummate any new merger transactions during the September quarter, which resulted in the decrease in the advisory fees. The increase in sales and tuition are due to the acquisition of several new subsidiaries.
Total general and administrative expenses were $180,277 and $94,227 for the three months ended September 30, 2004, and 2003, respectively. The increase is primarily due to the increased activity of the Company and the acquisition of the subsidiaries. Professional services were $263,296 and $995,212 for the comparable periods.
Interest expense was $173,430 and $168,272 for the three months ended September 30, 2004, and 2003, respectively. During the three months ended September 30, 2004, and 2003 the Company recorded a gain of conversion of notes of $20,392 and $77,472. In addition, one of the subsidiaries recognized a gain of $29,181 from the recovery of bad debts during the three months ended September 30, 2004.
Net loss for the three months ended September 30, 2004 was $515,274, compared to a net income of $3,179,062 for the same period in 2003, which is equivalent to ($0.00) per share versus $0.05 per share, respectively, based on the weighted average number of basic and diluted shares outstanding. The difference is primarily attributed to the activity in several subsidiaries acquired previously and the merger facilitated in the prior year.
In spite of the net loss for the last quarter, the outlook for the Company remains positive, both in the near term and the long term. The Company expects to return to profitability for the quarter ending December 2004. The Company continues to focus on managing for enduring long-term shareholder value and is currently taking measures to grow aggressively in areas with high returns on equity and competitive advantage.
Following the filing of the quarterly report with the SEC, the Company's trading symbol will revert to "PRVH" in the next few days.
About Providential:
Providential Holdings (www.phiglobal.com) and its subsidiaries engage in a number of diverse business activities, the most important of which are M&A advisory services, cutting tools, and international markets. The Company acquires and consolidates special opportunities in selective high-growth industries to create additional value, acts as an incubator for emerging companies and technologies, and provides financial consultancy and M&A advisory services to U.S. and foreign companies.
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.
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