SS: RE- AMHI otcbb " They have increased their revs by 30% over last year at same time. They expect to increase revs again this next 1/4 and this should be their strongest 1/4 to date. They seem to be doing business in Texas and Louisana. Picked by stock prowler.com GL, Walk
American HealthChoice, Inc. (OTC BB: AMHI)
2221 Justin Road, Suite 119-154
Flower Mound, TX 75028
Phone: (972) 538-0122
Shares Outstanding: 107.3 million
Public Float: 29.2 million
Market Capitalization: $2.9 million
Closing Price Friday: 2.7 cents
For the month of August 2004, Stockprowler.com has a very unusual speculation to present to its readers... a penny stock that has substantial and growing revenues! American HealthChoice, Inc. provides medical, physical therapy and chiropractic services through primary care medical clinics and chiropractic clinics. AMHI owns and operates 13 clinics in Texas and Louisiana. On July 21 American HealthChoice, Inc. announced revenues for the three month period ended June 30, 2004 were $2,546,000 compared to $1,960,000 in the same period in 2003. Dr. J.W. Stucki, CEO of AMHI stated, "We are very pleased with fiscal year 2004 revenues to date. The last two quarters have been substantially stronger than the same quarters in fiscal year 2003. These current quarter to previous year quarter increases, which are largely driven by our new Affiliated-Revenue program, should continue in our quarter numbers ending September 30, 2004, which historically is the strongest quarter of the fiscal year."
AMHI earlier announced that it had completed the issuance of 20,475,000 shares of its common stock to retire its obligations under a convertible debenture dated August 25, 2000, thereby causing the release of a first lien against the company's accounts receivable. According to Dr. Stucki, "The final conversion of this debt into equity is a positive step for AMHI shareholders. The Company now has the ability to better utilize a very significant asset as an integral part of its corporate finance structure. With revenues increasing and net receivables of approximately $6,000,000, we are no longer restricted to equity funding to finance growth and meet working capital requirements."
In June 2003, the AMHI initiated its Affiliated-Revenue Program to increase patient billings through arrangements with established clinics owned and/or operated by individual doctors. Under this program, AMHI directs patients to these clinics using its established network of patient referral sources comprised of independent marketers and other professionals. The company reports patient billings as revenue and the treating doctor's fee as an expense with payment at the time of collection. The primary financial benefit is additional operating income without new fixed costs such as employee salaries or office rent. The arrangement is equally attractive to the treating doctor because of the increased number of patients and the resulting increased income. To date AMHI has focused on clinics located in and around large Texas cities where there exists no AMHI owned clinics within a 30-minute travel time for prospective patients.
As of June 15, 2004, AMHI has arrangements with fifteen clinics, including two in Austin, two in the Dallas area, and six in the Houston area. According to Dr. J.W. Stucki, CEO of AMHI, "We anticipate adding three to four additional clinics to our Affiliated-Revenue program each quarter. This new source of patient billings will be responsible for a much larger percentage of American HealthChoice's revenue and operating income in the future."
Looks like an undiscovered gem to us! We like the fact that insiders own 72% of the outstanding shares... with the CEO holding 45%. That kind of confidence combined with growing revenues and an innovative "Affiliated-Revenue Program" with non-AMHI clinics says a lot about a company that restructured and is coming back from a Chp. 11 bankruptcy. Place your bets. We believe the train will be leaving the station shortly on this one!
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Good Trading... Stockprowler
