Premier Health of America Inc V.PHA

Important notes

[Torontojay]

- Per Diem revenue declined by 35.1% from the previous quarter. It cannot be determined at this time if this decrease will be permanent or not. 

- Per Diem business currently represents about 17% of the companies revenues. 

- Solutions Staffing ( BC) is capable of achieving just under $8m in ebitda over 12 months. 

- Umana (Ontario) can achieve ~ $3.4m in ebitda 

- if we exclude Quebec, ebitda is under $11.4 m, however there are corporate costs that have to be absorbed from Quebec. 

- smaller agencies will eventually exit the industry in Quebec which will ultimately favour larger agencies in the long run. The company estimates many smaller agencies will disappear over the next 24 months. 

- during the quarter measures were taken to decrease general and administrative expenses which should result in bottom line savings of $1m.

[CauseWhyNot]

I think we have to take the Quebec government serious. No outsourcing by end of 2026. Metro area are done this year rural are done next year. Sounds like they are setting up their own "outsourcing" company for employees that want odd shifts and flexibility.. they need to leave Quebec now. Cut the loses and run. The bought 12 million in ebitda over the last few years.. and it's gone

[apainter]

EBITDA was 8.2M LY so what would be a conservative Rev for YE Sept 24-Even if it is flat at 42M then YE Rev would be about 166M-What would be estimated EBITDA for YE? any guesses

[snootchybootchy]

I personally think Quebec is still in play. 700 nurses have returned to the public system since last fall, spurred by one-time monetary bonuses to come back and work full-time for one year. After that one year, these nurses are going to find themselves in the same situation that made them get out of the public system in the first place, especially as we approach another peak season for influenza

[colourama]

I just don't see how the Quebec government's actions are solving anything. I'm all for improving healthcare and making it more cost-effective, but shutting down all private temp agencies is the solution? I don't think so. And by Oct for urban centres? I don't think so. Still, PHA suffers while the Quebec government continues this experiment.

[Torontojay]

Yup unfortunately Pha will have to suffer before the Quebec government begins to suffer. Then there will be light at the end of the tunnel. I think the provinces plan will backfire on them and people will revolt. 

[CauseWhyNot]

Unfortunately, PHA needs to get out of Quebec and cut costs on the losing business. We have an issue of interest payments.. if they don't they will run out of money. The current margins are not enough to support the debt load 

[colourama]

Company is looking like it is being priced for bankruptcy, unfortunately. Is a shame since a lot of the issues are not due to company mismanagement, but by outside actors (aka the provincial government) continually changing the playing field.

[profitprophet1]

Yup, I finally--far too late, but better late than never, sold the last of my shares this morning. So disappointing because I thought this company had a lot of promise. As you say though it's hard to do the uphill battle or the dance when the government keeps pulling the rug out from under your feet.