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Biotech / Medical : The Stock for 1999(Polymedica)PLMD(Medical Supply Co.) -- Ignore unavailable to you. Want to Upgrade?

To: Sam who wrote (2823)	9/4/1999 12:55:00 PM
From: Proton	Read Replies (1) \| Respond to of 3414

Re: Analysis of Secondary Offering Financial Impact Here, warts and all. If you pick at the assumptions or calculations, please offer alternatives (if I want whining, I'll go to my toddlers and teens!). FY 2000 (per share new basis): EPS dilution: (0.23) Interest reduction: 0.09 Investment income: 0.07 Net effect on EPS: (0.07) FY 2001: EPS dilution: (0.32) Interest reduction: 0.18 Investment income: 0.14 Net effect on EPS: 0.00 Assumptions: 1. "EPS Dilution" and "Net effect" based on current fiscal year earnings of 1.06/share and next year's 1.35/share (Zacks). 2. Working capital invested in 1-year T-bills yield to maturity of 5.20% (September 3 close). 3. Interest reduction and investment income accrue for one-half of FY2000, but EPS dilution based on entire FY. 4. No depletion of working capital within scope of analysis (in reality, one expects that management will make acquisitions or capital purchases, and we should expect those to have a greater return than the T-bill rate... assumptions 2 & 3 give a basis for calculating the impact of $30+ million of new cash). 5. No amortization of Guaranteed Senior Secured Notes due January 31, 2003 (10.9% coupon). 6. Shares issued & outstanding (from the S-3) Pre-offering: 9,319,913 Post-offering: 12,219,913 7. Offering price $26/share (depends on market reaction to S-3)