Premier Health of America Inc V.PHA

Q2 2024 Results

[colourama]

I think the summary of results are that things are still in transition. Bottom line is still being affected by one-time costs.

Something which is very nice to see is a sizeable reduction of debt:

Total long-term debt at Dec. 31 2023: $49.4M

Total long-term debt at March 31 2024: $43.5M

Total decrease in debt: $5.9M

Thoughts on quarter?

[Torontojay]

One of the best companies from a valuation standpoint I can find out there. Let me properly digest the financials before I respond.   

[Torontojay]

Billable hours trending  lower in Quebec. No surprise there.  If you eliminate non recurring expenses, ebitda is running at ~ $4m per quarter or $16m + for the year.  Free cash flow yield very attractive relative to market cap.  Accounts receivables is coming down and debt is being paid off.  Overall I'm looking for stability in their most recent acquisitions

[snootchybootchy]

It is truly confounding why this stock is trading down 15% based on these financials given how cheap this stock is already. Maybe investors are still concerned about the level of debt given that the Bank of Canada has not yet indicated when interest rates will be cut? Could that be the reason?  It's clear they can service this debt though.

[colourama]

The stock always seems to get irrationally hit hard. My guess is that investors see the billable hours decreasing and think the sky is falling. In Quebec, margins will be compressed but hours should stabilize. In Ontario, they had higher salary expenses and lower hours in anticipation of transitioning to the new contracts. SSI seems to be exactly as predicted. I think we need to see the increase

[CauseWhyNot]

Ouch! It wasn't good.. no reason gof the stock to go up, so people sell

[apainter]

I agree, not sure why the stock dropped so much, I picked up some at 29c