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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Lazarus who wrote (61238)	11/16/2018 9:10:51 AM
From: E_K_S	Read Replies (1) \| Respond to of 78780

USNU out w/ their 10K yesterday Was having a hard time understanding the 10K as there are two new Partnerships which USNU has ownership interest in (USNC is a 20% owner of NeuroPartners LLC and owns 39% of CGK.) USNU receives a 4% fee for their 'management services' of these partnerships but now receives less of the net profits. As a result, profits this quarter were less; for 9 months $0.00 EPS vs $0.05. Still going thru the specifics but looks like some losses were booked from gama knife sale and closure of one office. It may take another quarter to determine if this new structure provides stable net income from the fees charged. They contracted for a new gama knife at $845K so not sure if partnerships get depreciation or it goes to the Parent. Total patient revenues higher in the new structure and the two partnerships had higher net income YoY. As a result, EPS were lower but that may/could be due to the new structure. For the future, new structure may/could allow new offices (ie Doctor Partnerships) to be bolted on to the USNU Parent w/ management fee revenue and some future % ownership. So maybe now there is a better path for growth w/o USNU putting up 100% of the capital for each new office. This new structure may/could aid 3rd party financing of new gama knife machines (their NYU office the hospital bought the older machine) w/ USNU paying for the cobalt re-load through a 3rd party lease financing agreement of $925K. Not sure of the impact to BV as shares out look the same as last year but a lot of shuffeling of assets from Parent to Partnership. That's my take. Business continues to look ok w/ modest growth. Company structure now includes two operating Partnerships w/ ownership interests. EKS