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@Playa_2012This $IOM commentary is in response to a fellow investor from SiliconInvestor.
Hi CC, ok I had some time later last night to get to your IOM.v question (after tending to the kids and better half on what to wear for this weekend's festivities LOL).
The revenue "split" as you called it are actually 2 revenue streams. Professional and Technical revenue channels or better put, Private Medical and Government Backed Medical. The ultra-high margin is attributed to the ultra-low cap ex. Historical numbers while they were private are now public for 2016 and they started out in 2014/15. Preston Parsons, founder of IOM and former NFL Quarterback along with Matt Willer combined own 50% of the company.
In 2016 when they were a private company and before they went public this year, their full year net income was $4,013,779 USD on revenue of $5,529,648 USD.
2017 Q1 net income came in at $3,212,797 USD on revenue of $3,914,790 USD. Q1 and Q2 are stated to be their slowest quarters because of the sector billing cycle with Insurers. Back half of the year Q3 and Q4 is stated to be their busiest time. If they call $3.2 million net income for Q1 "a slow quarter" that is impressive. In some initial talks with management I discovered that Q2 will be a little softer than Q1. They expect about $2 million net income - again attributed to the top half of the year as "slower" on receivables. They expect revenues to continue to increase through organic growth (in Colorado) in patient cases and deployment of available capital for future relationship developments.
Here's my premise for owning IOM:
You asked "why am I so optimistic"? All of the above revenue and income has so far come from 1 US state Colorado. This week IOM announced the appointment of George Sims as Director of Business Development to initiate Multi-State expansion in the US. George held high rank in Smith & Nephew, Stryker and Orthofix (multi-billion dollar companies) over a 25 year span. He is a well respected and acclaimed name in the Medical Devices sector and has deep roots not only in the sector but with Preston Parsons from their Orthofix days. Management has stated that "setting up shop" for execution of their business model in favourable US states is "quick and painless" with ultra-low capex. George has built a bevy of relationships to see that through.
IOM has identified several other surgical verticals, outside of their current Spinal Neuromonitoring services, that present tremendous expansion opportunities. The market is starting to connect the dots that if all this cash generation has come from 1 US state, what happens when other US states and other vertical surgical services come into the fold?
This is why I think this has all the earmarkings to potentially be an $8 to $10 stock in due time. Institutions have already contacted IOM for analyst coverage. I believe Bloom Burton will also step in soon. OTC and Frankfurt listings are forthcoming. Management stated that they have a large contingent of potential investors in Colorado alone that want access to buy IOM through an OTC listing. So all in all this is what I have learned thus far and shared. Again, if there are any other questions feel free to contact their CEO Matt. Cheers.
Here's the latest IOM Deck:
Here's the latest Multi-State Expansion graphic: