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Medical Facilities Corp T.DR

Alternate Symbol(s):  MFCSF

Medical Facilities Corporation is a Canada-based company, which owns a diverse portfolio of surgical facilities in the United States. The Company owns interest in four specialty surgical hospitals (SSHs) located in Arkansas, Oklahoma, and South Dakota, and one ambulatory surgery centers (ASC) located in California. ASCs are specialized surgical centers that only provide outpatient procedures, whereas SSHs are licensed for both inpatient and outpatient surgeries. The SSHs and ASC provide facilities, including staffing, surgical materials and supplies, and other support necessary for scheduled surgical, pain management, imaging, and diagnostic procedures. In addition, two of the SSHs provide urgent care services. The Company's subsidiaries include Arkansas Surgical Hospital, LLC, Oklahoma Spine Hospital, LLC, Black Hills Surgical Hospital, LLP, Sioux Falls Specialty Hospital, LLP, and The Surgery Center of Newport Coast.


TSX:DR - Post by User

Bullboard Posts
Comment by kennethjwon May 16, 2017 1:36pm
197 Views
Post# 26250613

RE:RE:RE:RE:RE:Negative EPS ???

RE:RE:RE:RE:RE:Negative EPS ???
I would have to disagree that management is paying us more than the business is earning.  For example, the Cash Available for Distribution has always been in excess of distributions (see payout ratio).

And to say there are no net earnings isn't really accurate ("earnings" isn't the greatest measure of a business IMO).

The EPS figure will always fluctuate quarter to quarter depending on the share price and FX rate (both factors in determining the fair value of the exchangeable interest liability).

Another example where EPS will hurt your judgement: Q1-17 was soft because a key physician was unavailable at UMASH and they weren't able to perform complex high-margin procedures.  However, the company will still amortize the property/equipment for a full quarter, so you're taking a full quarter (non-cash) amortization hit on what will be soft results.

Lastly, this is why nobody was getting overly excited when the Q4-16 quarterly EPS was $0.91 (over twice as high as any other quarter in the last 8 quarters).

I am happy to build a position in this stock at $16, its 52 week low.
Bullboard Posts