theinvestor22 wrote: I might have more to say later, but I did find the exchange between Neil Goldman of Goldman Capital Management and Nobilis particularly interesting. The first part is good clarification on what seems like a guidance decrease (see ASC 606) and the second relates to the actions being taken by the company on A/R collection. Personally, I think the jury is still out on the latter, but at least it's something...
Neil Goldman of Goldman Capital Management: “...If I take the receivable write-off of five eight [US$5.8M] which you didn't expect obviously in the original [guidance] you would've had increase in earnings...EBITDA over what you originally forecasted. It would've been sixty one point eight to sixty four point two and you were [originally at an EBITDA guidance of] fifty seven to sixty two if I remember."
Nobilis: “Yes, absolutely.”
Goldman: “And, so, the margins are significantly better by definition than the...”
Nobilis: “That's right.”
Goldman: “Okay. The receivable today is how much?”
Nobilis: “144 million...143 and a half."
Goldman: “And what would be your expectation in terms of reduction in the second half?”
Nobilis: “We're talking about, about a 20 million dollar reduction in the second half.
Goldman: “Are there plans to achieve that, or where's that coming from?”
Nobilis: “I do think we have. We've got some new leadership there. We're working with some third parties who are specialists on out-of-network collections and post ?? processes and we feel good about the results we're starting to see. We're already starting to see improvement there.”
Goldman: “So that would be a significant change in the fourth quarter also?”
Nobilis: “It would be.”