page 25 of the annual financials lists the fair value recognized of the assets and liabilities of last years acquisition. OCE
Comparing the balance sheet of the last published report of March 31 for the entity bought.
Shows the following simple changes to tangible assets and liabilities, Current assets dropped from $479k to $381k or $98k
The Total liabilities increased from $1.49 million to $2.34 million, $850k The total deterioration of the balance sheet tangible values being $948k. in just under 7 months.
The run rate being 140k per month leading into the purchase closure by QHR.
Post purchase results were an EBITDA loss of $160k plus share comp of $47k plus interest and dep. of 11k for a total of about $218k for 2 months and a week.
Revenue for OCE for the Q1 2012 was $597k or 199k per month. The revenue post close was $400k and a bit for a couple months and a week. Clearly, not much growth in revenue running rates from the beginning of the year to the end.
Most analysts list this division as a flat EBITDA contributor for 2013.
I am puzzled with their conclusions on a per share basis. Especially considering the cost to purchase this business and the comments that QHR was increasing the spend on sales and marketing.
Any comments welcome.