CORPORATE PROFILE
Recovery Network, Inc. (NASDAQ: RNET)
October 16, 1998
Price and Common Stock Data Financial Strength (As of 6/30/98)
52-Week Range 1- 6 1/2
Shares Outstanding 9/16/98 5,977,920
Float 4,800,000
Market Capitalization 13,637,130
Current Assets $2,780,239
Current Liabilities $1,283,013
Total Assets $3,784,920
Total Liabilities $1,296,139
Shareholder's Equity $2,488,781
Current Ratio 2.17
Total Debt/ Equity .52
Total Cash $2,219,145
Per-Share Data Income Statements
Book Value $0.42
Earnings (ttm) ($1.38)
Sales (ttm) $0.15
Cash $0.37
*Estimated Earnings (1999) $0.05
*Estimated Earnings (2000) $1.05
Sales (year-end 6/30/97) $33,464
Sales (year-end 6/30/98) $894,758
Year-to-year sales growth 2674%
After-tax income (6/98) ($8,261,734)
*Estimated Sales (1999) $10,000,000
*Est. Earnings (1999) $335,000
*Estimated Sales (2000) $30,000,000
*Est. Earnings (2000) $9,060,000
Profitability
Profit Margin N/A
ttm= trailing twelve months
M= millions
* Estimates are for fiscal year-end June 30.
RNET has had extraordinary sales growth thus far. The year ended June 30, 1997 showed revenues of $33,464 for the entire year. The first quarter of the 1998 fiscal year had revenues of $28,137. The second quarter showed a 353% increase from the first to $99,401. The third quarter showed an increase of 283% from the second with revenues of $281,665. Finally to close out the fiscal year of 1998 the fourth quarter showed an increase of 172% with $485,555 and ending the fiscal year 1998 with total revenues of $894,758. A 2674% increase from the year-end June 30, 1997.
Summary
The Company
Recovery Network, Inc. is a digital media company utilizing its cable television and Internet networks and telephony platform to deliver behavioral health programming, services and products to a national audience. The company's primary market are those affected by social, behavior and mental health problems, including substance abuse, eating disorders, domestic violence, depression and child abuse. This market is estimated to be over 100 million people and costing the U.S. economy in excess of one-half trillion dollars annually in increased healthcare, absenteeism and law enforcement.
Recovery Network's partnership with TCI Digital Health Group a subsidiary of Liberty Media/TeleCommunications, Inc. company enables Recovery Network to deliver these services electronically to a mass audience in the privacy of their homes with unprecedented cost savings. The “convergence” of cable TV, the Internet and telephony over cable's digital set top box is ideally suited for Recovery Network's healthcare programming, products and services.
The Recovery NetworkTM, the Company's cable television network, which was launched nationally in September 1998 as, a 4-hour per day program block repeated 6 times a day, has distribution with Cablevision systems, Cox Communications, Telecommunications, Inc. and CableOne. The Company has a five year contract with Group W Network Services, a division of CBS Corporation (“Group W”), for Group W to supply a fully dedicated Digital Satellite Transponder master control and up link utilizing Scientific Atlanta's Power Vu equipment, affording the Company transmission of its signal throughout North America 24 hours a day, 7 days a week. Recovery Network has one of the largest video libraries of social and behavioral health programs and has produced programming with celebrities such as Whitney Houston, John Bradshaw and Tom Selleck. The programming is reality-based, benefits from the recent success of other reality-based shows like COPS, 911 and Oprah, and has strong viewer and community support.
Recovery Network's Internet and extranet business, Recovery Net Interactive, will offer state-of-the-art assessment tools, online expert second opinions, counseling, and an extensive clinically-oriented library of information and treatment options to individuals, employees as part of a EAP program paid for from insurance dollars and to managed care organizations. Recovery Interactive also has a monthly celebrity Chat Room promoted by the leading Internet provider Yahoo!
Recovery Network can provide an unprecedented “Telemedicine” service, the first of its kind to provide behavioral health services to thousands of individuals who were unable to get help in the past. The Company operates a toll-free telephone Help Line that provides our audience access both to information and help in their communities and to the Company's developing Recovery TeleCareTM, a specialized telephone counseling service available to callers at a cost.
Recovery Direct, a wholly-owned subsidiary formed to market products and services to the Company's national television, radio and Internet audiences, and to institutional, educational and correctional markets.
Recovery Talk Radio™, a nationally syndicated talk radio program reaching more than one million listeners. The show is broadcast in 50 cities and promotes Recovery Network Television to radio listeners.
Each one of Recovery Network's business lines-Recovery Television Network, Recovery Net Interactive Internet Business, Recovery Telecare Telephonic Counseling Business, Recovery Direct Product Sales could each yield significant shareholder value.
Recovery Network is not only a media concern, but also a digitally delivered behavioral healthcare provider that yields revenue opportunity beyond traditional cable TV businesses. |
