Not a bad Quarter IMO - have a smaller position but still following closely every now and then.
The quarter largely met expectations and from reading the transcript from the conference call, appears to be some positive future developments that would push earnings higher in Q4-2021/2022. Here are my notes on pertinent items from the CC:
- Plasma continuing to improve and in getting back closer to pre-pandemic levels (especially in Q4) and yes agree regarding inflation. Higher inflation and no increased stimulus checks=people more likely to give plasma +amount given for plasma likely to increase so dollars loaded will likely increase. Plus more plasma centers added and cotninue to be added: "In the quarter we on boarded seven additional plasma centers bringing our total number of centers to 359." Currently we are expecting a total of 10 Additional centers to be on boarded by the end of the year."
- "During the third quarter, we launched three of the five new patient affordability programs we signed in the second quarter. We launched the fourth program in October, and the fifth program is on schedule and expected to launch in the fourth quarter." Ie. Patient affordability revenue likely to be higher in Q4 and 2022.
-"In the third quarter we renewed to form of prepaid programs and signed an additional pharma copay program, which is expected to also launch in the fourth quarter of pending FDA approval of the drug." Pharma revenue upside
-"Additionally, I am pleased to announce that we signed an agreement with Spentra, LLC this quarter to provide program management and processing services for their existing payroll card. Spentra is a pay access solution provider that offers a payroll card and patented money earned benefit which allows employees to access up to 50% of their net wages ahead of payday." - I don't know the significance of this of revenue share relating to this but this should have been press released! A good testament of their payment processing capabilities. Other payment processing revenue upside.
While it was small, they also increased their guidance for EBITDA at year-end and increased gross margin guidance (also likely to persist to 2022).
There appears to be good value here, you just need to get eyes back on it and i'm guessing most analyst are still in a "show me" mode where they will want to see the positive trend persist and management execute for a few quarters. (ie. note there were no analysts questions many feel away given they focused on other "hot stocks or sectors").
Best of luck.
E.
