WELL Health Technologies Corp T.WELL

Echelon Conference

[BigTT13]

The following summary of points was posted on the WELL Yahoo board by a member named Ethan in regards to the recent Echelon Conference. Interpret this information at your own discretion. This is not investment advice.

Here are some take-aways from the Echelon conference on WELL today:
* The WELL business is strong and performed well in Q4 and that strength has persisted in the new year so far. I believe Hamed indicated that he is “excited” to share financial results in the next earnings report
* The company’s reduction in share price is not at all correlated with company performance or prospects. I believe Hamed indicated that the company has never been stronger operationally.
* The company has a strong cash position and is generating significant cashflows and has the ability to reach $1B in sales at similar operating margins to today (ie. over 20%) within 4 years (plus or minus one year). This would be achieved purely based on the company’s own organic growth and tuck-ins completed with its own cash generation. (the analyst at Echelon really liked this and made a comment about it)
* Hamed said the company has been generating “millions in positive net cash from operations” before investing activities and pointed to the generation of approx $8M of positive cash from operations in Q3 and noted that this didn’t include a full contribution of certain acquisitions.
* The company is building a highly consequential “health system” in Canada and is number one and top 3 in a number of key categories in Canada and no other company in the country really matches them in terms of capabilities both as it relates to in-person and virtual capabilities. 
* The company’s performance on a per share basis (revenue and EBITDA per share) has been very strong and this is something they’d like to talk about more
* In the US, Circle and WISP are growing quickly and doing very well. CRH is likely to again generate significant cashflows this year, I believe he indicated that there would be >$40M USD in cashflow generated by CRH alone before tax and leverage costs.
* The company is not looking to issue stock and had originally set up the shelf prospectus back in August because of a potential US IPO but given how badly the US digital health comp group was performing they decided it was not the right time.
* The company's largest investors have been highly supportive (including Li Ka-shing’s group which was specifically mentioned) and have been in touch with the company often and have been supportive and buying stock over the last few months
* Hamed came across very positive and confident in the company and its prospects

Hope this is helpful - obviously its difficult to see the share price decline but its good to know management remains bullish and operations remain strong

Posted by Ethan on the WELL Yahoo Board
https://finance.yahoo.com/quote/WELL.TO/community/

[monty613]

thanks for sharing this. I spoke with Investor Relations yesterday who also told me they are *considering* issuing a broad business update via press release (similar to what they did for Virtual Services division back in November). that type of PR is always tricky so I am not sure if they will actually go through with it.