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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
Post by BlueHorseshoe02on Nov 16, 2017 6:25pm
118 Views
Post# 26980365

USA Corp Tax Cuts

USA Corp Tax CutsMFC paid 25M in corporate taxes in 2015 at the current 35% rate. At 20% that would drop under 15M and the 10M+ savings would flow straight to the bottom line increasing cashflow generation and reducing payout ratio without doing anything. 2016 was a special case with the acquisitions so with accounting tweaks they reported an earnings loss even though cashflow went up 5M from 45M in 2015 to 50M in 2016. 2017 is tracking higher than 50m, and with tax cuts/small patient growth/synergies this could easily generate 60-65m in cashflow in 2018 and a payout ratio with a 5 handle (55%). All this with no net debt.

This could easily be 20+ next year if US tax cuts are enacted with a 9% yield along the way.
Bullboard Posts