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. |
