Allion Healthcare Inc. (NASDAQ: ALLI)
Allion Healthcare Inc. (ALLI) is a provider of specialty pharmacy and healthcare management services to HIV/AIDS and other chronically ill patients. Under the trade name MOMSPharmacy, the Company markets HIV/AIDS drug therapies as well as nutritional supplies. Through the Company’s Biomed America division, intravenous immunoglobulin and other health therapies are provided to patients nationwide.
Founded in 1983, the Company is headquartered in Melville, New York.
|
Share Statistics (22-Oct-09) |
|
FY 2007 |
FY 2008 |
% Chg |
Q2 2008 |
Q2 2009 |
% Chg |
|
| Symbol |
ALLI |
Revenue, $Mn |
246.7 |
340.7 |
38.1% |
86.4 |
99.7 |
15.4% |
| Current price |
$6.43 |
Gross marg. |
14.31% |
17.85% |
72.2% |
19.8% |
18.7% |
8.77% |
| 52wk Range: |
$2.60- 7.74 |
Oper. margin |
1.78% |
4.49% |
248% |
6.48% |
7.3% |
30.4% |
| Avg Vol (3m): |
223,711 |
Net margin |
1.34% |
2.20% |
127% |
3.36% |
3.2% |
10.3% |
| Market Cap. |
184.34M |
|
|
|
|
|
|
|
| Dil. Shares Outst. |
29.09M |
EPS, $ |
0.214 |
0.456 |
113% |
0.111 |
0.109 |
-1.80% |
Source: Reuters.com, SEC Filings
Financial Summary
| Financial Strength (22-Oct-2009) | Company | Industry | Sector | S&P 500 |
| Quick Ratio (MRQ) | 2.35 | 2.69 | 2.52 | 0.76 |
| Current Ratio (MRQ) | 2.81 | 3.17 | 3.03 | 0.91 |
| Long-Term Debt to Equity(MRQ) | 40.62 | 11.49 | 25.27 | 104.42 |
| Total Debt to Equity (MRQ) | 41.61 | 14.57 | 33.11 | 151.00 |
Source: Reuters.com, SEC Filings
Analyst Consensus
Five analysts polled by Thomson Reuters rate shares of ALLI a “Buy.”
Analyst Recommendations and Revisions
| 1-5 Linear Scale | Current |
1 Month |
2 Month |
3 Month |
| (1) BUY | 3 | 3 | 2 | 2 |
| (2) OUTPERFORM | 2 | 2 | 2 | 2 |
| (3) HOLD | 0 | 0 | 0 | 0 |
| (4) UNDERPERFORM | 0 | 0 | 0 | 0 |
| (5) SELL | 0 | 0 | 0 | 0 |
| No Opinion | 0 | 0 | 0 | 0 |
| Mean Rating | 1.40 | 1.40 | 1.50 | 1.50 |
Source: Reuters.com
Investment Highlights
ALLI is a provider of specialty pharmacy and healthcare management services to HIV/AIDS and other chronically ill patients. Under the trade name MOMSPharmacy, the Company markets HIV/AIDS drug therapies as well as nutritional supplies. Through the Company’s Biomed America division, intravenous immunoglobulin and other health therapies are provided to patients nationwide.
The Company operates two segments: Specialty HIV and Specialty Infusion. The Specialty HIV segment includes the following services:
l Specialty MOMSPaks aid in the reduction of errors in dosages and scheduling associated with multiple prescriptions;
l Assist with reimbursement from complex Medicaid and other state-administered programs such as the popular AIDS Drug Assistance Program (ADAP);
l Deliver medications and supplies to the patient in a discreet convenient manner and as prescribed by healthcare providers; and
l Education materials, counseling, treatment coordination and therapies compliance
The Specialty Infusion segment provides the following to patients suffering from Hemophilia, Autoimmune Disorders/Neuropathies, Primary Immunodefiency Diseases (PID), Respiratory Syncytial Virus (RSV), and HIV/AIDS.
l Specialized nursing to aid with scheduled administration of drug and other therapies prescribed by the patient’s physician;
l Education materials, counseling, treatment coordination and compliance; and
l Assist with reimbursement from complex Medicaid and other state-administered programs such as AIDS Drug Assistance Program (ADAP)
Recent News – Allion Acquired by Private Equity Firm for $199 million and Debt Assumption
On October 18, the Company announced that it entered into agreement to be acquired by an affiliate of H.I.G Capital LLC in a transaction worth approximately $278 million, which includes $199 million in cash and the assumption of $78 million of the Company’s debt.
In a unanimous vote, the board of directors as well as a special committee of independent directors approved management’s decision to be acquired.
Details of the agreement include the receipt of $6.60 per share to ALLI stockholders, a more than 30% premium over the average share price of ALLI over the past five trading days prior to the announcement. The agreement is expected to close during the first quarter of 2010.
Technical Analysis
Source: http://stockcharts.com/h-sc/ui?s=alli
ALLI trades above its 13-day moving average. This bullish sign is, however, less significant because the 13-day moving average trends downwardly.
The MACD for ALLI currently indicates a moderately bullish signal. The MACD is above the signal line, a 9-day moving average. The MACD is below the critical level of 0, which implies that the underlying moving averages are trending higher. Overall, the chart is bearish to neutral.
Comparative Analysis
|
Company Name |
Ticker |
Price per |
Mrkt. Cap. |
P/E |
P/S |
||
|
Oct-22-2009 |
symbol |
Share, $ |
$ Mn |
2009 |
2010 |
2009 |
2010 |
|
|
|
|
|
|
|
|
|
| BioScript Inc. |
BIOS |
7.66 |
2,970 |
n/a |
13.46 |
0.20 |
n/a |
| Express Scripts Inc. |
ESRX |
80.62 |
22,110 |
25.43 |
18.00 |
1.03 |
n/a |
| CVS Caremark Corp. |
CVS |
37.24 |
53,750 |
16.84 |
12.65 |
0.59 |
n/a |
| Spec. Health Serv. Median |
|
|
|
16.61 |
n/a |
0.79 |
n/a |
| Allion Healthcare Inc. |
ALLI |
6.43 |
184.34 |
13.39 |
10.80 |
0.48 |
n/a |
Source: Thomson Financial
Insider Trading Activity
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NET SHARES PURCHSE ACTIVITY Inside Purchases – Last 6 Months Shares Transaction Purchases n/a 0 Sales 52,000 3 Net Shares Purchased (Sold) (52,000) 3 Total Insider Shares Held 8.84M n/a % Net Shares Purchased (Sold) (0.6%) n/a
Net Institutional Purchases – Prior Qtr to Latest Qtr Shares Net Shares Purchased (Sold) 511,859 % Change in Institutional Shares Held 3.8% Report DisclaimerDO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice. The information contained in our report should be viewed as commercial advertisement and is not intended to be investment advice. The report is not provided to any particular individual with a view toward their individual circumstances. The information contained in our report is not an offer to buy or sell securities. We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them. Our newsletter and website have been prepared for informational purposes only and are not intended to be used as a complete source of information on any particular company. An individual should never invest in the securities of any of the companies profiled based solely on information contained in our report. Individuals should assume that all information contained in the report about profiled companies is not trustworthy unless verified by their own independent research. Any individual who chooses to invest in any securities should do so with caution. Investing in securities is speculative and carries a high degree of risk; you may lose some or all of the money that is invested. Always research your own investments and consult with a registered investment advisor or licensed stock broker before investing. Information contained in our report will contain “forward looking statements” as defined under Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934. Subscribers are cautioned not to place undue reliance upon these forward looking statements. These forward looking statements are subject to a number of known and unknown risks and uncertainties outside of our control that could cause actual operations or results to differ materially from those anticipated. Factors that could affect performance include, but are not limited to, those factors that are discussed in each profiled company’s most recent reports or registration statements filed with the SEC. You should consider these factors in evaluating the forward looking statements included in the report and not place undue reliance upon such statements. We are committed to providing factual information on the companies that are profiled. However, we do not provide any assurance as to the accuracy or completeness of the information provided, including information regarding a profiled company’s plans or ability to effect any planned or proposed actions. We have no first-hand knowledge of any profiled company’s operations and therefore cannot comment on their capabilities, intent, resources, nor experience and we make no attempt to do so. Statistical information, dollar amounts, and market size data was provided by the subject company and related sources which we believe to be reliable. To the fullest extent of the law, we will not be liable to any person or entity for the quality, accuracy, completeness, reliability, or timeliness of the information provided in the report, or for any direct, indirect, consequential, incidental, special or punitive damages that may arise out of the use of information we provide to any person or entity (including, but not limited to, lost profits, loss of opportunities, trading losses, and damages that may result from any inaccuracy or incompleteness of this information). We encourage you to invest carefully and read investment information available at the websites of the SEC at http://www.sec.gov and FINRA at http://www.finra.org. |
