Check out the valuation placed on a laser eye clinic! As I understand, GBV wants a 50/50 arrangement with like minded professional for new clinics in the $1 million price range. Correct me if I'm wrong. I was under this assumption for quite awhile. With cash of about $4 million (less the new Manitoba clinic) they should have enough internal cash to open the "3-5 new clinics by year end."
This article places a clinic at $7.33 Million USD.
( x = 8.8 / .6 / 2 clinics )
Why don't companies like Prime Medical Services just buy out GBV? Again, please correct me if I'm off base.
PS Houses 79 Gundy and 89 Goepel has been the major seller this month. Both about net -43500 shares each. Gundy however has begun buying at $1.35. Overhead thinning out but bids are just as thin.
primemedical.com
==========================================================
Prime Medical Services, Inc. Enters Rapidly Growing Refractive (LASIK)
Surgery Business
AUSTIN, TEXAS, (August 30, 1999) - Prime Medical Services, Inc. ("Prime")
(NASDAQ:PMSI) announced today that it acquired a 60% interest in two laser
(refractive) surgery centers, operated by Barnet-Dulaney Eye Center (BDEC),
effective September 1, 1999. BDEC will retain the remaining 40% of the centers,
located in Phoenix and Tucson, and will continue to manage both centers. Prime
paid approximately $8.8 million in cash plus an earnout to be paid at the end of the
first year for this acquisition.
Ken Shifrin, Chairman of the Board of Prime, stated "Prime entered the lithotripsy
field in 1992 and eventually became the largest operator of lithotripters in the United
States. We believe that our entry into the rapidly growing refractive surgery field is
a natural, as there are many similarities between the lithotripsy and laser surgery
industries, including the importance of such factors as: quality of care, physician
relationships, measurement of outcomes data, and fleet management of high cost
medical equipment. Particularly exciting, the refractive surgery field has seen
spectacular procedural growth, due to the enthusiastic reaction from treated
patients. While this is our first acquisition in laser surgery, we are currently
evaluating other potential acquisitions. I believe that we can grow the laser surgery
business even faster than we have grown lithotripsy. Our strong financial position,
which includes excellent cash flows, approximately $25 million in cash and an
untapped $100 million line of credit, places Prime in a unique position to build a
sound business in the rapidly growing field of vision correction."
Joseph Jenkins, M.D., President of Prime stated, "Significantly, we have also
entered into a joint venture with the principals of BDEC, which is one of the premier
eye centers in the United States. This joint venture, which is 60% owned by Prime
and 40% owned by the principals of BDEC, plans to expand both through
additional acquisitions and the development of new laser centers. BDEC is
comprised of the following doctors: Ronald W. Barnet, M.D.; David D. Dulaney,
M.D.; Scott A. Perkins, M.D.; and Robert B. Pinkert, O.D. Drs. Barnet and
Dulaney are pioneers in the refractive surgery field and the practice has performed
over 19,000 LASIK procedures since 1995. The practice is managed by Mark
Rosenberg, who has extensive experience in marketing, opthamology and laser
center management. Mr. Rosenberg will become an officer in the joint venture and
Dr. Barnet and Dr. Dulaney will become members of the Board of Directors for the
joint venture."
Dr. Jenkins added, "We have significant experience in successfully developing joint
ventures with urologists to operate lithotripters. We will utilize this same philosophy
of strong physician relationships in expanding our laser center business."
Mr. Shifrin also stated, "Dr. Jenkins and I became so convinced of the benefits of
laser eye surgery during the negotiation and closing of this transaction that we both
had the procedure done at BDEC. For the first time in 30 years, neither of us is
wearing glasses. The simplicity of the LASIK procedure and the dramatic
improvement in vision within a few hours with very little discomfort is amazing."
Mr. Shifrin will be hosting a conference call today at 3:00 p.m. CST to discuss this
new line of business (dial 800-937-4597 to connnect). A recording of the
conference call will be available for 48 hours after the conference, dial
800-633-8284 or 619-812-6440, enter reservation number 13047991.
Prime currently operates a fleet of 63 lithotripters and two refractive surgery centers
in 34 states. These centers perform approximately 39,000 lithotripsy and 5,500
LASIK procedures on an annualized basis. Lithotripsy is a cost effective,
non-invasive method for treating kidney stones through the use of extracorporeal
shock waves which pulverize kidney stones and permit them to pass painlessly from
the body. LASIK refractive surgery, one of the most advanced forms of laser
vision correction, is designed to improve vision and reduce dependence on glasses
and contacts by correcting nearsightedness, farsightedness and astigmatism. In
addition, Prime offers thermotherapy services to hospitals and surgery centers to
treat benign prostatic hyperplasia (BPH). Thermotherapy uses microwaves to
apply heat to the prostate resulting in relief of the symptoms of BPH without
damaging surrounding tissues. Prime also provides installation, upgrade,
manufacturing, refurbishment, and repair services for major medical equipment
manufacturers and mobile medical services providers.
Statements in this press release that are not strictly historical, including statements
regarding plans, objectives and future financial performance, are "forward-looking"
statements that are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Although Prime believes that the
expectations reflected in such forward-looking statements are reasonable, no
assurance can be given that the expectations will prove to be correct. Factors that
could cause actual results to differ materially from Prime's expectations include,
among others, the existence of demand for and acceptance of Prime's services, the
availability of appropriate candidates for acquisitions by Prime, regulatory
approvals, economic conditions, the impact of competition and pricing, financing
efforts and other factors described from time to time in Prime's periodic filings with
the Securities and Exchange Commission. |
