Providential Holdings Reports Operating Results for Q2 FY '09
LOS ANGELES, CA--(Marketwire - February 17, 2009) - Providential Holdings, Inc. (OTCBB: PRVH)
(FRANKFURT: PR7) (WKN 935160), a company engaged in mergers and
acquisitions, real estate development, mining and investing in special
situations, today announced financial results for the second quarter of
fiscal year 2009, ended December 31, 2008.
Total revenues were $6,000 and $645,838 for the three months ended December
31, 2008, and 2007, respectively, from management services and consulting
services. Total operating expenses were $390,689 and $329,761 for the three
months ended December 31, 2008, and 2007, respectively. Total other expense
was $2,061,905 for the three months ended December 31, 2008 compared to
$88,126 for the three months ended December 31, 2007. A one-time loss of
$2,074,647 was recognized for the adjustment of DDC Industries, Inc.'s
stock when this entity was restructured to become PHI Mining Group, Inc.
(PINKSHEETS: PHIG), now a majority owned subsidiary of the Company focused
on acquiring and developing industrial mineral properties.
Net loss for the three months ended December 31, 2008 was $2,442,175 as
compared to a net income of $227,950 for the same period in 2007, which is
equivalent to $(0.01) and $0.00 per share, respectively, based on the
weighted average number of basic and diluted shares outstanding.
The decrease in net income is primarily due to a decrease in revenue of
$639,838 and a loss of $1,927,880 due to the adjustment of DDC Industries'
marketable securities following its restructuring for the three months
ended December 31, 2008.
Total revenues were $1,994,220 and $674,338 for the six months ended
December 31, 2008, and 2007, respectively. We generated $1,982,220
revenues from consulting services and $12,000 for management fees for the
six months ended December 31, 2008 compared to $639,838 for consulting fees
and $34,500 for management fees in the six months ended December 31, 2007.
Net loss for the six months ended December 31, 2008 was $768,196, compared
to $109,460 for the same period in 2007, which is equivalent to ($0.00) per
share for both periods, based on the weighted average number of basic and
diluted shares outstanding. The difference is primarily due to $1,319,882
increase in revenue, offset by an increase in administrative and general
expenses of $34,428, increase in salaries and wages of $54,430 and increase
in professional service cost of $67,748. Increase in net loss was also
contributed by an increase of $1,815,963 in loss recognized due to the
restructuring of PHI Mining Group, offset by an increase of $133,757 in
gain on debt settlement which were not present during the corresponding
period in 2007.
Providential CEO Henry Fahman said, "Although we did not realize
significant revenue from our advisory and M&A activities for the last
quarter, we did secure a consulting contract during the period, which is
expected to generate substantial revenue for us when completed. In
addition, we were successful in restructuring our mining business and
currently own about 18 million shares of common stock of PHI Mining Group.
During the last quarter we also applied for permission to trade our Philand
Corporation's common shares on the Open Market Segment of the Frankfurt
Stock Exchange and expect to receive the approval soon."
About Providential Holdings
Providential Holdings and its subsidiaries engage in a number of diverse
business activities, the most important of which are M&A and consulting
services, real estate development, mining and investing in special
situations. The Company assists companies to go public and raise capital,
develops "Pointe 91," a luxury resort and premium residential community in
Chu Lai, central Vietnam, through Philand Corporation
(www.philandranch.com), and engages in mining through PHI Mining Group
(www.phimining.com). The Company's main web site address is
Safe Harbor: This news release contains forward-looking statements that are
subject to certain risks and uncertainties that may cause actual results to
differ materially from those projected on the basis of such forward-looking
statements. Such forward-looking statements are made based upon
management's beliefs, as well as assumptions made by, and information
currently available to, management pursuant to the "safe-harbor" provisions
of the Private Securities Litigation Reform Act of 1995.
Contact Information: Contact:
Phone: (714) 843-5455