Arcadia Resources Inc. (OTCBB: KADR.PK) is still considering the sale of its staffing business, but the company reported this week it could opt to keep the staffing business. The company does plan to sell its pharmacy operations.

Arcadia provides healthcare staffing and home healthcare services as well as pharmacy operations. The pharmacy operations incurred significant operating losses and had defaulted under a credit agreement, according to a 10-Q filing with the U.S. Securities and Exchange Commission. A forbearance agreement with the lender requires Arcadia to either sell or wind down the pharmacy operations.

“Because the company is committed to a plan to sell or wind down the pharmacy operations, and is considering several options regarding the services segment, the future status of the company as a going concern is uncertain and will depend in part on whether the services segment is sold or whether the company retains ownership of the segment for the foreseeable future,” Arcadia wrote in its 10-Q.

Arcadia also announced this week that third-quarter staffing revenue fell 19.5 percent to $3.3 million.

Per diem staffing revenue at the Indianapolis-based firm rose about 11.1 percent to $3.0 million in the second quarter from year-ago revenue of $2.7 million. However, travel nurse staffing plunged about 78.6 percent to $300,000 from $1.4 million in the year-ago period.

The company said it lost a travel nurse contract with the North Carolina Department of Corrections because of lower prices from competing vendors, according to its 10-Q. The contract accounted for approximately $4.1 million in revenue during fiscal 2011.

Total revenue from continuing operations, which includes the staffing as well as home care services, edged down 2.4 percent to $20.4 million.

Gross margin slipped to 29.6 percent from 30.0 percent a year ago. The company’s net loss grew to $3.2 million from a net loss of $2.9 million last year.

The company voluntarily delisted from the American Stock Exchange Sept. 6.

Arcadia Resources Inc. (OTCBB: KADR.PK)
For the fiscal second quarter ended Sept. 30, compared with the same period in the previous year.
Revenue: $20.4 million, -2.4 percent
Net loss: $3.2 million vs. net loss of $2.9 million