Premier Health of America Inc V.PHA

Estimates for Q4?

[colourama]

Does anyone have any estimates for the top and bottom lines in Q4? I haven't come up with any numbers but here is my list of things to look out for:

Positives:
- Full quarter of the CHCA acquisition
- Continued growth in the north
- One of the two transport contracts no longer a drag on financials (not sure if they have terminated the second)
- No further acquisition-related costs
- Costs on tech rollout finished?

Negatives:
- Higher interest rates on debt
- Soft quarter in terms of hours billed
- Inflationary pressures on wages/costs

If we weigh the positives against the negatives, what type of quarter are we expecting?

When does the selling end?

[Torontojay]

We should get an additional $500k -$1m in revenue from the full quarter of CHCA results which should provide an added boost of up to $100k in ebitda. I expect a further decline in revenue from Code Bleu and Premier Health which may negate the revenue increase from the latest acquisition. However, Premier Health Nordik should get a nice revenue bump given the commentary on Q3.  "

[colourama]

Torontojay, thanks for your analysis, I largely agree although I think the revenue number may be a little softer. The market is treating the company like it is going bankrupt.

[stockrook86]

Agreed, I think the company has great prospects with multiple tailwinds given the long-term backlogs in healthcare there should be more use of their services.  My only concern with the company overall is the debt taken on for the recent acquisiton and the fact it is floating rate. I don't think there will be any issues servicing it, but if debt markets really seize up, the lenders might

[colourama]

Stockrock86, I agree on all your points. The stock just doesn't seem to be able to get any support whatsoever. We are actually trading below book value now, so investors seem to think the company is unable to pay down its debt? Who knows what others are thinking, but they are probably taking large losses to try and invest somewhere else.

[Torontojay]

  Regarding the debt situation I'm not at all worried. Off the top of my head it's $21m in debt in $9m in cash and I think I have interest rate at 5.8% (going from memory)  At $21m in debt, interest expense is $1.21m and yes this will increase as the bank of Canada keeps raising rates which will impact the prime rates offered.  With $9m in cash, they can pay off the