Addressing the lower revenues, this was their statement:“l
”Cash inflows of $11.6 million were below expectation due mainly to isolated issues at a small number of joint venture partner practices including:• An entity related to a joint venture partner was fined for administering radiation without a user licence in 2016, well before the acquisition of the practice by Smiles. The proceedings were not disclosed prior to completion, and have had a negative impact on the revenues of the business through the loss of patients. Smiles has obtained legal advice and commenced a claim against the vendor of the relevant practice in respect of multiple breaches of the acquisition agreement.• Smiles was saddened by the sudden and tragic death of the lead practitioner at one of its Sydney practices in July 2018. This resulted in temporary closure of the practice, and the loss of a number of patients due to the specialist nature of the work performed.”
Firstly, RIP to our colleague that tragically passed away.
Secondly, let’s assume the two practice examples given here are smaller ones (because they were so affected by a single practitioner), and let’s assume they shut down for a full month (unlikely but let’s just make that assumption). That basically explains approx $140k of revenue. They missed by $3,000,000 this quarter. There are smiles.inc people on these message boards.A msg for the directors: the market isn’t stupid. This explanation is disingenuous and it’s likely this will get dumped more.
