My Point of view:
The company did an ok quarter.
- Minor growth in revenue over last year and slight growth over the prior Q (2.1M last Q; 2.3M this one - showing a nice increase on a 6 month basis -->4.55M vs. 3.90M)
- Profitability has improved over the last Q and is actually showing an eps figure (although slightly lower than last year but better on a 6 month basis)
- Cash increased from last Q (918k vs now 1.11M)
- positive Cash flow from operations of 185k
- Legal settlement payable continues to get paid down and should be almost done by start of 2017 which should drastically improve cash flow and give the company more runway.
- Restricted cash is showing a very healthy balance as at June 31st (this is the cash that is held on the prepaid cards) and could be a good indication of future Q's as the company earns more the more the cards are used and the larger the amounts that are held. (10.35M this Q vs. 7.6M last Q)
Plasma is currently the main source of earnings for the company (unlike some of the past years where it was "lumpy" caused by other "random sources" (pharma, promotional compaigns, etc..). Although it will be nice to see growth in revenue the company appears to be realigning with its priorities of focusing on the main revenue source in the plasma centers and being a leader in this payment space (I like the consistency of the revenue and also read articles that the plasma industry is expected to double over the next 5 years which should be great for 3PEa)
Management is focusing on growing the business, adding new plasma centers and expanding its offerings. We all would like to see a PR but it will take time as they want a "story" to tell. No point spending money on things they don't deem to be a necessity. I know we all would like more transparency (I would like more PR's too but know it will come in time). The company has a plan and is getting back on track after being derailed with that lawsuit and the investment community had too high of expectations after a skewed quarter in 2014 due to revenue recognition.
I'm tucking my 3Pea shares away and will wait patiently to let it unfold.
just my 2 cents.
Cheers,
E.
