Monday, December 26, 2005
Q3 2005: $241K cash. $293K loan to some jackass director. Losing money badly, very negative cash flow.
UCIA (sec), non-medical management of extended-hour "doc-in-the-box" medical clinics in South Carolina and Knoxville TN. Revenues have increased every year since 2001 (they went bankrupt in 2001). Lost money in 2001, but have made increasing amounts of money each year since (14 cents, 25 cents, 33 cents, 76 cents in 2005 diluted). Blue Cross of SC owns 69% of the stock. Not much stock option dilution. Balance sheet is strong, lots of cash. Cash flow from ops is weak in 2005 due to AR and deferred taxes. Free cash flow tends to be around $2 million (was only $1.3 million in 2005). So about 13 cents of free cash flow fully diluted in 2005 (closer to 20 cents in prior years). So the stock might be worth between $2 and $3. It's selling for $3.40.
UCNN (sec), telecom business: call mgmt, long distance, toll-free, data. Lots of acquisitions. Balance sheet is ok. Revenues increasing each year. Operational income is negative in 2004 (positive in 2003 and 2002). Cash flow from ops is worse.
Balance sheet deteriorates during 2005. They continue to lose money. Cash flow from ops isn't quite as bad, but...