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Subject: Re: [CANSLIM] Date: Wed, 16 Jan 2002 22:04:50 +0100
Date: Wed, 16 Jan 2002 17:04:02 -0600
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Here's the company's official rebuttal to Herb's article:
Answers to questions raised during investors phone conference held on =
1/15/02 regarding Form 10Q ended 11/30/2001
Question regarding reserve for bad debt ?
Net revenue reported as upper line revenue is already net of reserve for =
uncollectibles from third party payers or contractual adjustments in =
compliance with the AICPA healthcare industry guideline. Accounts =
receivable reported on the consolidated balance sheets is also net of =
reserve for uncollectibles or contractual adjustments. Therefore, the =
reserve for uncollectibles or contractual adjustments is not reported as =
a separate line item like other non-healthcare industries does, but =
instead it is subtracted from both the gross revenue and gross accounts =
receivable to arrive at net revenue and net accounts receivable, =
respectively. However, the reserve for uncollectibles from patients is =
reported as a separarate line item in the consolidated statements of =
operations as "Provision for uncollectible accounts".
Questions regarding comparison of net revenue and net income between =
first quarter ended 11/30/01 to fourth quarter ended 8/31/01 ?
Net revenue of $13.8 million in first quarter ended 11/30/01 increased =
by $1 million or 8% from the fourth quarter ended 8/31/01.
Net income of $3.4 million in first quarter ended 11/30/01 decreased by =
$0.1 million or 3% from the fourth quarter ended 8/31/01 primarily due =
to year end audit adjustments that were booked to the fourth quarter =
ended 8/31/01. One of the most significant adjustments was reduction in =
"Provision for income taxes expense" due to tax saving benefits of =
exercised non-qualified stock options. Had it not been for the income =
taxes saving benefits, "Provision for income taxes expense" would have =
been $1.5 million instead of $1.1 million in the fourth quarter ended =
8/31/01, and net income would have been reduced by $0.4 million to 3.1 =
million and when compare to net income of $3.4 million in the first =
quarter ended 11/30/01, net income for the first quarter ended 11/30/01 =
had an increase of $0.3million or 10% from that of the fourth quarter =
ended 8/31/01.
Question regarding the reporting of the $240,000 being paid to Halcyon =
to acquire 20% of its minority interests ?=20
The payment of $240,000 was included in the $590,000 paid to related =
party in the consolidated statement of cash flow.
Question regarding why the Company can bought back 20 % minority =
interests in the Hospital from Halcyon for only $240,000 ?
It is in accordance with the buy back agreement provision to buy back at =
the book value.=20
----- Original Message -----=20
From: Eric Jaenike=20
To: canslim@lists.xmission.com=20
Sent: Wednesday, January 16, 2002 4:58 PM
Subject: Re: [CANSLIM] Date: Wed, 16 Jan 2002 22:04:50 +0100
Big article today by Herb Greenberg at Realmoney.com on DYII. Company =
specific. HUGE red flags on these guys. Realmoney.com is a subscription =
service with excellent info (I am a subscriber). You can get a free 10 =
day trial there if you want to check out the sight (or just the story on =
DYII).=20
Eric=20
Andreas Himmelreich <judgejimmy@web.de> wrote:=20
Pretty strange what is happening with DYII.
Stock has good fundamentals, yet its down 30%? Industry Group kind =
of OK as well, even winning Relative Strength.
Strange.
-
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<BODY bgColor=3D#ffffff>
<DIV>Here's the company's official rebuttal to Herb's article:</DIV>
<DIV> </DIV>
<DIV>Answers to questions raised during investors phone conference held =
on=20
<?xml:namespace prefix =3D st1 ns =3D =
"urn:schemas-microsoft-com:office:smarttags"=20
/><st1:date Year=3D"2002" Day=3D"15" Month=3D"1">1/15/02</st1:date> =
regarding Form 10Q=20
ended <st1:date Year=3D"2001" Day=3D"30" =
Month=3D"11">11/30/2001</st1:date></DIV>
<DIV>
<DIV class=3DSection1>
<P class=3DMsoNormal>Question regarding reserve for bad <SPAN =
class=3DGramE>debt=20
?</SPAN></P>
<P class=3DMsoNormal>Net revenue reported as upper line revenue is =
already net of=20
reserve for <SPAN class=3DSpellE>uncollectibles</SPAN> from third party =
payers or=20
contractual adjustments in compliance with the AICPA healthcare industry =
guideline.<SPAN style=3D"mso-spacerun: yes"> </SPAN>Accounts =
receivable=20
reported on the consolidated balance sheets is also net of reserve for =
<SPAN=20
class=3DSpellE>uncollectibles</SPAN> or contractual adjustments.<SPAN=20
style=3D"mso-spacerun: yes"> </SPAN>Therefore, the reserve for =
<SPAN=20
class=3DSpellE>uncollectibles</SPAN> or contractual adjustments is not =
reported as=20
a separate line item like other non-healthcare industries does, but =
instead it=20
is subtracted from both the gross revenue and gross accounts receivable =
to=20
arrive at net revenue and net accounts receivable, respectively.<SPAN=20
style=3D"mso-spacerun: yes"> </SPAN>However, the reserve for <SPAN =
class=3DSpellE>uncollectibles</SPAN> from patients is reported as a =
<SPAN=20
class=3DSpellE>separarate</SPAN> line item in the consolidated =
statements of=20
operations as “Provision for uncollectible accounts”.</P>
<P class=3DMsoNormal>Questions regarding comparison of net revenue and =
net income=20
between first quarter ended <st1:date Year=3D"2001" Day=3D"30"=20
Month=3D"11">11/30/01</st1:date> to fourth quarter ended <st1:date =
Year=3D"2001"=20
Day=3D"31" Month=3D"8">8/31/<SPAN =
class=3DGramE>01</SPAN></st1:date><SPAN class=3DGramE>=20
?</SPAN></P>
<P class=3DMsoNormal>Net revenue of $13.8 million in first quarter ended =
<st1:date=20
Year=3D"2001" Day=3D"30" Month=3D"11">11/30/01</st1:date> increased by =
$1 million or=20
8% from the fourth quarter ended <st1:date Year=3D"2001" Day=3D"31"=20
Month=3D"8">8/31/01</st1:date>.</P>
<P class=3DMsoNormal>Net income of $3.4 million in first quarter ended =
<st1:date=20
Year=3D"2001" Day=3D"30" Month=3D"11">11/30/01</st1:date> decreased by =
$0.1 million or=20
3% from the fourth quarter ended <st1:date Year=3D"2001" Day=3D"31"=20
Month=3D"8">8/31/01</st1:date> primarily due to year end audit =
adjustments that=20
were booked to the fourth quarter ended <st1:date Year=3D"2001" =
Day=3D"31"=20
Month=3D"8">8/31/01</st1:date>.<SPAN style=3D"mso-spacerun: yes"> =
</SPAN>One=20
of the most significant adjustments was reduction in “Provision =
for income taxes=20
expense” due to tax saving benefits of exercised non-qualified =
stock=20
options.<SPAN style=3D"mso-spacerun: yes"> </SPAN>Had it not been =
for the=20
income taxes saving benefits, “Provision for income taxes =
expense” would have=20
been $1.5 million instead of $1.1 million in the fourth quarter ended =
8/31/01,=20
and net income would have been reduced by $0.4 million to 3.1 million =
and when=20
compare to net income of $3.4 million in the first quarter ended =
11/30/01, net=20
income for the first quarter ended 11/30/01 had an increase of =
$0.3million or=20
10% from that of the fourth quarter ended 8/31/01.</P>
<P class=3DMsoNormal>Question regarding the reporting of the $240,000 =
being paid=20
to Halcyon to acquire 20% of its minority <SPAN class=3DGramE>interests =
?</SPAN>=20
</P>
<P class=3DMsoNormal>The payment of $240,000 was included in the =
$590,000 paid to=20
related party in the consolidated statement of cash flow.</P>
<P class=3DMsoNormal>Question regarding why the Company can bought back =
20 %=20
minority interests in the Hospital from Halcyon for only $<SPAN=20
class=3DGramE>240,000 ?</SPAN></P>
<P class=3DMsoNormal>It is in accordance with the buy back agreement =
provision to=20
buy back at the book value. </P></DIV></DIV>
<BLOCKQUOTE=20
style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; =
BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
<DIV style=3D"FONT: 10pt arial">----- Original Message ----- </DIV>
<DIV=20
style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: =
black"><B>From:</B>=20
<A title=3Dericjaenike@yahoo.com =
href=3D"mailto:ericjaenike@yahoo.com">Eric=20
Jaenike</A> </DIV>
<DIV style=3D"FONT: 10pt arial"><B>To:</B> <A =
title=3Dcanslim@lists.xmission.com=20
=
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Wednesday, January 16, =
2002 4:58=20
PM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] Date: =
Wed, 16 Jan=20
2002 22:04:50 +0100</DIV>
<DIV><BR></DIV>
<P>Big article today by Herb Greenberg at Realmoney.com on DYII. =
Company=20
specific. HUGE red flags on these guys. Realmoney.com is a =
subscription=20
service with excellent info (I am a subscriber). You can get a free 10 =
day=20
trial there if you want to check out the sight (or just the story on =
DYII).=20
<P>Eric=20
<P> <B><I>Andreas Himmelreich <<A=20
href=3D"mailto:judgejimmy@web.de">judgejimmy@web.de</A>></I></B> =
wrote:=20
<BLOCKQUOTE=20
style=3D"PADDING-LEFT: 5px; MARGIN-LEFT: 5px; BORDER-LEFT: #1010ff 2px =
solid">Pretty=20
strange what is happening with DYII.<BR><BR>Stock has good =
fundamentals, yet=20
its down 30%? Industry Group kind of OK as well, even winning =
Relative=20
Strength.<BR><BR>Strange.<BR><BR>-<BR>-To subscribe/unsubscribe, =
email=20
"majordomo@xmission.com"<BR>-In the email body, write "subscribe =
canslim"=20
or<BR>-"unsubscribe canslim". Do not use quotes in your =
email.</BLOCKQUOTE>
<P><BR>
<HR SIZE=3D1>
<B>Do You Yahoo!?</B><BR>Send FREE <A=20
=
href=3D"http://rd.yahoo.com/mail_us/tag/?http://promo.yahoo.com/videomail=
/">video</A>=20
emails in <A=20
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href=3D"http://rd.yahoo.com/mail_us/tag/?http://mail.yahoo.com/">Yahoo!=20
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