Well, for one thing, they have already transitioned from Manor Care being 34%. Now it is 24% (you say 23%, that's fine).
These facilities have acute care treatment for people who just had a hospital procedure, and it is much less costly than in other types of facilities.
The other kind of tenant is typically paid for by Medicare/Medicaid, so no, it isn't a "rip-off."
Can you imagine the size of the insurance policy they need and the legal expenses they incur everytime some kook sues them because their relative ended up dying?
Apparently Rockwood made $115 million for the year and their own TiO2 operations is the part that is losing more money than Rockwood is making. check the transcript of the cc.
Good find, very interesting.
I wonder what the terms are on the Grupo Finmart debt?
If Grupo Finmart were to stop extending new loans completely, it would incur alot of expenses, but cash flow would soar because the existing loans would still be getting paid down. That should allow them to pay off the Grupo Finmart debt relatively easily.
Of course, finding a buyer for Grupo Finmart would be greatly preferable.
I tend to agree with your analysis.
The decline in "legacy" revenue in the MDS division was 25% YoY in the quarter.
This points to very substantial problems in that division. The meaning of "legacy" is stuff that was not acquired the prior year (i.e. during FY15). I guess we now know why there has been no insider buying all the way down.
Then there was the discussion of the issues with the Hunter acquisition, which was the one very large deal. Apparently there are some problems there, as well. So, all is not well.
I think Taylor really put them in a tough spot by calling out the Board's own inaction in defending the stock price. Probably they missed their opportunity to recite the "classic conference call lines" such as:
1) We are focused on running the business and we cannot control the ST movement of the stock price which we think is very undervalued.
2) We discuss all of the appropriate options relative to capital allocation with the board including acquisitions, divestitures, and share buybacks.
Not sure if using either one of those would have saved them.
My current "beef" is that the Board really needs to engage shareholders in a discussion of the Board's intention relative to the company going forward,and they have not done that.
Also, after what the Board did, it is going to be VERY difficult to hire a new CEO that is good.
Personally, I think that either HON or HRS should simply buy the entire company and sell of the MDS division and just own the sonobuouy business which has good long-term prospects and is a strong cash flow generator.
Considering what took place on the conference call and what took place AFTER the conference call, I find the Board's lack of subsequent communication with investors to be a lapse in judgement.
To give no reason for the departures and to make no statements other than that the company will commence a search for new executives is, in my view, treating the shareholders in a shabby manner.
The shareholders deserve to be told what difference of opinion between the management and the board led to this, if any.
In my opinion, the company now is "in play" for anyone that wants to buy it, especially given the extremely low share price.
It is archived on the company's Investor Relations page.
Go to the main company web page then add the following to it: investor-relations/financial-reporting
You should see the link to the audio of the conference call.
If they spin the TiO2 business the shareholders still own it, right?
They said the TiO2 business is worth $2.0-$2.5 billion.
That compares to a current market cap for the whole company of $2 billion.
hence, spinning it off will unlock alot of value.
Am I missing something?
Well, yes, the Rockwood Euro operations would be making money because the Euro has collapsed in value.
The $US operation is losing money because the US$ has soared in value.
The question I have is: How labor intensive is the production of TiO2?
Steel is very very labor intensive, hence the big competitive advantage of China.
The worst thing I can see is that the SSS for the franchised units looks very poor.
Midpoint of guidance is above the consensus estimate.
Just raised the divided recently.
Hedge fund raised its position recently.
was up earlier, now flat in a very weak market.
This is all #$%$....no, not your post, the company's report.
But, where do you see cash flow information. I see nothing that indicates any particular cash flow result for the quarter.
They claim difficulties in producing astaxanthin, yet inventories are way up vs end of the FY.
Apparently, the new equipment is NOT YET IN USE. "...increase in extraction costs as we make progress toward operating our new extraction plant at full capacity."
So, it looks as if they have a bunch of inventory that is "in process" and cannot be sold because it is unprocessed.
An article in the Austin Business Journal confirms that EZPW "may be looking to divest its Mexico-based financial services subsidiary."
According to the article, the unit posted a loss of $19.5 million in the quarter.
My understanding was that the loss was going to be a one-time thing because they were reclassifying any loan that wasn't entered into their IT system within 6 months as "delinquent" even if the payments on the loan were being made on time.
In my mind, this raises the possibility that the unit will be sold to cronies for a song based on the distorted earnings. basically, they can pawn their own subsidiary to some "insider" who knows he's getting a good deal.
This private equity / activist investor annonuced today that it had increased its stake in GNC from 4.3% to 6.3%, but it remains a "passive stake."
i think that's why the stock jumped $1 today.
Earnings are out tomorrow morning and the conference call starts at 8:30.
They have already told the Street that earnings would be at the high end of guidance.
So, the only major point of "unknown" that may be cleared up tomorrow is what they provide in terms of guidance.
The current consensus for the new fiscal year is $3.19/share.
Jimmy & Dog are both correct.
If ETP cut the distribution, ETE would get less in distribution payouts on the units it owns duirectly, but it would suffer a catastrophic drop in the amount of IDRs that ETP pays up to ETE for the privilege of having a GP in charge of it.
ETE desperately needs that cash flow in order to pay the debt service not only on its own obligations but on the debt it will incur when it closes the Williams deal.
You make serious charges but without specifying any claim.
What company failed?
I buy stocks, not frickin clues.