SOURCE: Providential Holdings, Inc.

December 09, 2005 09:00 ET

Providential Holdings Reports Further Improvements for Quarter Ended September 30, 2005

LOS ANGELES, CA -- (MARKET WIRE) -- December 9, 2005 -- Providential Holdings, Inc. (OTC BB: PRVHE) (Berlin Stock Exchange and Frankfurt Stock Exchange:PR7 - WKN 935160) (www.phiglobal.com), a provider of international advisory services specializing in mergers and acquisitions and investing in selective businesses with potential for high growth, today commented on financial results for the quarter ended September 30, 2005.

Total revenues were $40,805 and $212,451 for the three months ended September 30, 2005, and 2004, respectively. Revenues for the current period consist of $32,853 in advisory and consulting fees, and $7,952 in sales. The Company had not completed the transactions contemplated in the consulting agreements signed during the latest quarter and earlier but will report the revenues related to these projects in the near future when they are finished.

Total general and administrative expenses were $62,852 and $124,892 for the three months ended September 30, 2005, and 2004, respectively. The decrease is primarily due to the decreased activity and cost saving measures of the Company. Professional services were $111,376 and $228,261 for the comparable periods.

Interest expense was $90,151 and $160,271 for the three months ended September 30, 2005, and 2004, respectively. During the three months ended September 30, 2005, the Company recorded a gain on the sale of marketable securities of $27,692; as compared to the three months ended September 30, 2004 when the Company recorded a gain of conversion of notes of $20,393 and a gain on legal settlement of $17,148. During the three month period ended September 30, 2005, the Company recorded bad debt expense of $105,346 to write off uncollectible receivables. The Company had no bad debt expense in the three month period ended September 30, 2004.

Net loss for the three months ended September 30, 2005 was $394,624, compared to a net loss of $521,724 for the same period in 2004, which is equivalent to ($0.00) per share in each period, based on the weighted average number of basic and diluted shares outstanding. The difference is primarily attributed to the refocused operations and cost saving measures of the Company during the quarter ended September 30, 2005 and a $72,222 loss from discontinued operations in the three months ended September 30, 2004, which is not present in the same three months in 2005.

On a comprehensive basis, the Company had a comprehensive income of $2,069,168, or $0.013 per weighted average basic and diluted share, for the quarter ended September 30, 2005 as compared to a comprehensive loss of $1,562,284 or ($0.012) per weighted average basic and diluted share, for the quarter ended September 30, 2004.

The Company's balance sheet also showed further improvements as of the close of the latest quarter. Total assets were $6,314,446 as of September 30, 2005 as compared to $958,861 as of September 30, 2004, an increase of $5,355,585. Total liabilities as of September 30, 2005 were $3,554,076 as compared to $5,424,044 as of September 30, 2004, a decrease of $1,869,968. Total stockholders' equity was $2,760,370 as of the close of the quarter ended September 30, 2005 as compared to total stockholders' deficit of $4,465,183 as of September 30, 2004, an increase of $7,225,553.

Henry Fahman, Chairman and CEO of Providential Holdings, commented: "Since we choose to recognize revenues as earned for our advisory services only when the transactions are one hundred percent completed, our total revenues for the latest quarter were relatively small. However, we made a lot of progress on a number of projects that had been signed during the last quarter and earlier, which will result in substantial revenues for the Company when finished. We are also very pleased with the strengthening of our balance sheet. We had had a stockholders' deficit for the last several years but since June 30, 2005 our stockholder's equity position has improved steadily." Fahman added: "As we have refocused our attention on M&A advisory activities in the US, China, and Vietnam, and at the same time prudently investigated new opportunities with potential for high growth, we believe the refocus will help deliver significant operating results in the coming quarters."

About Providential Holdings, Inc.

Providential Holdings specializes in mergers and acquisitions and invests in selective businesses with potential for high growth. The Company acquires and consolidates special opportunities in selective 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. For more information on Providential Holdings and its subsidiaries, visit http://www.phiglobal.com.

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

  • Providential Holdings, Inc.
    Timothy Pham
    714-843-5456
    Email Contact