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Strategies & Market Trends : CANSLIM - COAST TO COAST -- Ignore unavailable to you. Want to Upgrade?

To: froche who wrote (4338)	2/18/1999 3:16:00 PM
From: Walk Softly	Read Replies (2) \| Respond to of 6445

Here's a nugget..... "Operating expenses related to the fourth quarter of 1998 exceeded those of the third quarter by $9.32 per treatment, or by $12.8 million. Of the $12.8 million in increased operating expenses, $6.1 million was virtually all related to additional Renal Treatment Centers, Inc. (RTC) employee benefits accruals, principally arising upon conversion of a former RTC system to TRL's system. $2.5 million was related to increased medical supply costs incurred during the quarter. The remaining $4.2 million was related to miscellaneous expenses including professional fees and additional information system expenses. In total, it is expected that approximately 60% of these additional $12.8 million in expenses will not be incurred in future periods. Had the Company not incurred these expenses, earnings per share would have been at $0.35 for the quarter. " Zacks est was for .36.... so w/o special one time expense bubble .35 compares well to .36.... SEC is reviewing acqusition related charges which if anything were far to conservative, yielding a lower tax rate..... remember such charges are non-cash flow income deductible items.... so the money is still in the bank.... Basically TRL had such a great quarter they are trying to shelter as much income as possible..... agressive writedowns are usually favored by the SEC because of the weakness implied by carring goodwill on he balance sheets (goodwill is the premium one pays over the book value for a companies assets) when the markets figure this out we should have some decent upside potential... ES