Corporate News Blog - Nobilis Health Acquires Ownership Interest in Elite Surgical Affiliate’s Ambulatory Surgery Centers and Surgical Hospital
Research Desk Line-up: Tenet Healthcare Post Earnings Coverage
LONDON, UK / ACCESSWIRE / November 20, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for Nobilis Health Corp. (NYSE: HLTH), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=HLTH. The Company announced on November 16, 2017, that it has acquired 50.1% ownership interest in Elite Surgical Affiliates' portfolio of three ambulatory surgery centers (ASCs) and one surgical hospital in the greater Houston area. For immediate access to our complimentary reports, including today's coverage, register for free now at:
http://protraderdaily.com/register/
Discover more of our free reports coverage from other companies within the Hospitals industry. Pro-TD has currently selected Tenet Healthcare Corp. (NYSE: THC) for due-diligence and potential coverage as the Company announced on November 06, 2017, its financial results for Q3 2017. Tune in to our site to register for a free membership, and be among the early birds that get our report on Tenet Healthcare when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on HLTH; also brushing on THC. Go directly to your stock of interest and access today's free coverage at:
http://protraderdaily.com/optin/?symbol=HLTH
http://protraderdaily.com/optin/?symbol=THC
The acquisition is one of the largest made Nobilis till date. It is expected to create operational efficiencies of approximately $2 million and enhance Nobilis' in-network revenue.
Total Consideration of $60 Million
Nobilis had agreed upon a total purchase price of $60 million. The Company plans to fund the acquisition through expansion of its current credit facility by $50 million with BBVA continuing as its lead arranger.
For the remaining $10 million, the Company intends to use its cash on hand of $6.1 million, seller notes of around $3.5 million, and stock of $0.5 million.
Financial Implications of the Transaction
As a result of the acquisition, Nobilis would now own 13 locations in the Houston market. This includes nine surgical facilities and four clinics. Of this, ten locations would operate under in-network contracts with all of the major commercial payers.
Therefore, Nobilis would benefit from the economies of scale, resulting from the expanded platform of facilities. The transaction is expected to boost productivity, reduce staffing requirements, and lessen operating costs over time.
The trailing twelve months revenue and adjusted EBITDA for the period ended September 30, 2017, for the acquired facilities was $49.0 million and $30.3 million, respectively.
Nobilis anticipates operational efficiencies of nearly $2 million from the consolidation of one Elite ASC with one existing Nobilis ASC, both of which are currently located at the same address.
How Will the Acquisition Impact Nobilis?
Harry Fleming, Chief Executive Officer at Nobilis, stated that the acquisition would create a strategic opportunity for Nobilis to boost its in-network revenue as it adds nearly 76 physician partners to the Company's existing network of surgeons in the Houston market.
He added that the transaction is not just accretive to earnings, but it also enhances Nobilis' ability to deliver outstanding, cost-effective healthcare to its patients, and communities across the Houston area.
Likewise, Kenneth Efird, President at Nobilis, also highlighted the strategic benefits from the acquisition. He stated that the integration of Elite Surgical's assets with Nobilis would lead to a number of benefits, mostly in four important areas:
It would create operational efficiencies by leveraging the best practices from both Companies.
It would create an opportunity for Nobilis to improve conversion through the increase in referral-based business.
The pooled resources from both Companies would help expand marketing services to the physicians who are newly aligned with Nobilis.
Moreover, it would create an opportunity for Nobilis to expand its footprint within the Houston market.
Changes in Nobilis' Top Management
Nobilis also announced the modification in its top management. Dr. Donald L. Kramer will retire from the Board of Directors and Harry Fleming will take over as the Chairman of the Board, effective from November 16, 2017. Harry Fleming would retain his CEO title and would serve in the capacity of an Executive Chairman.
About Nobilis Health Corp.
Nobilis is a full-service healthcare development and management Company. It owns 31 locations across Texas and Arizona, including 5 hospitals, 13 ASCs, and 13 multi-specialty clinics. Apart from that, it partners with an additional 36 facilities across the country. Nobilis implements a unique patient acquisition strategy driven by its proprietary, direct-to-consumer marketing technology, focusing on a specified set of procedures that are performed at its facilities by local physicians.
Last Close Stock Review
Nobilis Health's share price finished last Friday's trading session flat at $1.45. A total volume of 410.79 thousand shares have exchanged hands, which was higher than the 3-month average volume of 272.10 thousand shares. The Company's stock price advanced 3.57% in the past six months. Shares of the Company have a PE ratio of 12.39 and currently have a market cap of $112.80 million.
Pro-Trader Daily:
Pro-Trader Daily (Pro-TD) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. PRO-TD has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles, and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.
PRO-TD has not been compensated; directly or indirectly; for producing or publishing this document.
PRESS RELEASE PROCEDURES:
The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email contact@protraderdaily.com. Rohit Tuli, a CFA® charter-holder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by PRO-TD. PRO-TD is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.
NO WARRANTY
PRO-TD, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. PRO-TD, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, PRO-TD, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.
NOT AN OFFERING
This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither PRO-TD nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://protraderdaily.com/disclaimer/.
CONTACT
For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:
Email: contact@protraderdaily.com
Phone number: (917) 341.4653
Office Address: Mainzer Landstrasse 50 Frankfurt am Main, Germany 60325
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
SOURCE: Pro-Trader Daily
