Medical Facilities Corp T.DR

Alternate Symbol(s): MFCSF

Healthcare

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.

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Medical Facilities Corp

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Post by nozzpackon Aug 21, 2020 8:26am

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Post# 31437368

Looking Forward

DR earned $0.30 US per share in Q1/20First quarter 2020 started off strong before the facilities were impacted by COVID 19 in March," said Robert O. Horrar, President and CEO of Medical Facilities.

This was despite the fact that surgical cases saw a sharp decline in in the latter half of March and into the second quarter before reaching near full operational status by late june.

In addition, the opening of St. Luke's Surgery Center in St. Louis was delayed due to COVID 19, but that center will expect start performing cases in the this quarter.

So, for the second half of 2020, I see DR earning at least $0.60 US per share, an annual rate of about $1.20 US per share or about $1.60 per sharein CAD.

That means that DR is trading at less than 3 times net earnings, less than 1/3 of its peer valuation multiple.

Paying a nice dividend while we wait, I see at least $10 by exit 2020.