They could go private. At the current enterprise value, I'm guessing you and I and a few others here on the board could buy the company.
LCI Health Care S&P
Price/Earnings 5.92 31.11 19.01
Price/Forecasted Earnings (FYF) 5.71 18.50 16.20
Price/Tangible Book (MRQ) -- 3.77 2.82
Price/Sales 1.57 1.85 1.75
Price/Cash Flow 4.36 16.75 16.34
I've been scanning the company's annual reports since 2008 to track their interest in the opioid business. It's clear that in 2008 they thought it was an important part of their future, but every year since then it has represented a smaller portion of total sales, until in the most recent quarter it was almost insignificant. I don't know what drove them away from it (maybe fear of tighter regulation?), but I don't think we need worry about it now.
Not really. We've just seen an atypically good few quarters, and results are quite volatile anyway, but the longer term picture looks good:
EPS Growth Rates (GAAP):
1 Yr 3 Yr 5 Yr
+24.1% +12.5% +35.6%
1 Yr Growth rate is trailing twelve months (TTM) compared to the previous twelve months. 3 and 5 Yr are compound annual growth rates (CAGR).
Revenue Growth Rates:
1 Yr 3 Yr 5 Yr
+13.6% +7.0% +14.7%
So the 12 cents was a bit low -- the actual number was 38 cents, which the company says is about what they expected. Idiot analyst? Stock manipulation? Typo?
True. And institutional investors don't seem to do much research to verify that the problem seen in one company is likely to be shared with others.
They were willing to be delisted to avoid a commitment to report by May 19, so we shouldn't expect anything before then. Other than that, who knows?
Pain meds don't seem to be that big an issue. From the conference call:
"Net sales of our largest product category, thyroid deficiency, were at $38.0 million or 23% of our net sales. Our two other largest categories, gastrointestinal and cardiovascular, had net sales of $21.7 million and $16.7 million, respectively, representing 13% and 10% of our net sales.
As for net sales of our remaining product categories, gallstone was $14.7 million, central nervous system was $14.3 million, pain management was $7.2 million, urinary was $6.5 million, glaucoma was $6.0 million, respiratory was $5.3 million, migraine was $5.1 million, antibiotic was $3.2 million, muscle relaxant was $1.2 million and obesity was $1.0 million. Net sales of the remaining product categories, other and gout, represented $12.7 million. In addition, we recorded $10.1 million of contract manufacturing revenues."
You folks are hard to please. You said the recent acquisition was bungled, so you should be pleased that the fellow who bungled it is leaving.