Conference CallMy Summary of the call:
- 4.7 million cash on hand approx 35 cents a share
- Payor discussions nearing final phase - can't provide any more detail - however significant progress has been made and he is optimistic that a resolution is achievable soon. - this is a crucial step in providing stable growth in the company
- Kirby achieving a 30% margin and case volume is up year over year.
- successful resolution will rebuild revenue in a major way at Palladium
- Resyndication of Palladium is slow due to claims made against Kramer and co. however major progress is still being made on this resyndication
- Claims being advanced on as quickly as possible
- Focussing on operating costs, more strict cost controls coming
Questions/Answers:
- mcap - currency hedges - nice gain on hedge - are you going to unwind some of that hedge....the answer is YES...close to break even and most likely execute when we get close to parity. Agree that the company does not need to be in the currency hedging business.
- litgation with Kramer - explain in layman terms - nature of claim against 8.3 million in escrow for purchase of palladium. Filed with triple, going through process that doesn't involve courts, will bring about quick resolution if successful without courts. Is the goal to get $8.3 mill? Can't comment on that.
- Balance sheet - accounts receivable 4.2 million - is part of that money, money that is in dispute? None of it relates to the payor. Allowance already made already of 5.5 million written off for the payor in q4 of 08
- Resolution to payor issue within 3 months maybe sooner
- Some currency hedges are in the money, why wouldn't you close some of them out. Sounds like they are going to close them all at once if dollar creeps up.
- Nature of loss if closed out at June 30 would have been 2 million.
- In last 2 weeks hedge is only about $500k in the red. Today it's $1 million loss on the hedge if closed out.
- Every month hedge is reduced somewhat.
- End of 2nd quarter they have $38 million hedged
I get the feeling a payor resolution is on the horizon. Much more optimistic call compared to the quarterly call that's for sure.