AMHI-.03 up 35%..Next Bluenote-Mover-DD'em inside...
The company is in the verge of a turnaround
And in the hot health care field. The stock
trades in wide spreads
but is poised to go higher over the next 6 months
Read the entire overview below and you’ll see why we like this one to move higher soon. News is expected this week on earnings.
AMHI Overview - The Company achieved profitability in
fiscal 2000 as a result
of actions initiated in 1998 and completed in September 2000.
In January of 2000 the Company completed the sale of the last of the Georgia
clinics acquired in 1996. Losses sustained at these clinics were the primary
reason for substantial operating losses reported by American HealthChoice in
fiscal years 1997, 1998 and 1999. In September 2000, the Company acquired
three established chiropractic clinics with gross patient revenue of
approximately
$4,000,000 and earnings before interest, taxes, depreciation and amortization
("EBITDA") of approximately $1,400,000 for the twelve months ended December
31, 1999. Lastly, management has continued steps begun in 1998 to increase
profitability at existing clinics and to reduce corporate overhead. Over the
past two years, the profit margins on personal injury and workers compensation
services have proven to be significantly higher than those for
services provided to patients under managed care contracts. The 1999
favorable court ruling effecting telemarketing in Texas has allowed the
Company to increase the number of patients at the existing clinics requiring
these types of services. The Company plans to acquire other established
clinics in Texas
from individual doctors, who provide these same services. The Company will
only consider acquiring clinics that are profitable and cash flow positive. In
this regard, the Company has developed an acquisition model that requires the
seller to meet predetermined cash flow targets over a three-year period before
receiving 100% of the purchase price.
American HealthChoice has reported net income in all four quarters for the
fiscal year ended September 30, 2000 and, in addition, the Company had net
income in the quarter ended December 31, 2000. Although net income is an
important measurement of a company's financial performance, the Management of
American HealthChoice has elected to focus on EBITDA results because it is a
more appropriate performance criterion. In this regard, the Company has set a
goal of $1,000,000 in EBITDA for the fiscal year ended September 30, 2001. |
