Time to answer Jacks question from earlier today. The question was....Does anyone know who is running this company from an operational stand point? Are the offices just running themselves or is there a king bee inside the hive? I'm sure its not the restructuring company. They will be in place for corporate governance more than anything else. I'm just curious if all the offices are reporting to a central manager or maybe just the janitor in Pittsburgh.
Here is a more detailed answer. Travel Nursing (TNS) was basically built by Paul Gunnoe, his wife Martie and Jo Ann Edge (VP). TNS was merged with Pulse to make one giant Division with a 2005 budget of 85MM. This has been and is still being run by Paul Gunnoe. It is my understanding that he is bidding on at least that part of the company as he wants what was his, back.
Parker Services basically owns the Seattle market. While it is still very competitive and their margins were fairly low they were actually pretty profitable. They had revenue around 24MM in 2005. The Division president is Debbie Crandall. She knows the Admin staffing business, but isn't exactly President material. She manages by intimidation...but still in charge none-the-less.
Atlanta is the Physicians Locum Tenens. It is the largest facility at around 16,000 sq ft. It was budgeted for around 85MM but struggled a little and came up short by around 10MM. I am not clear who is in charge here.
JCNationwide has the big DHHS contract along with MSN (stock symbol MRN) I have heard a wide variation on the budget and results so I hate to throw a number out here. I believe the contact was for 250MM over 5 years. I believe they came with their own debt load of around 8MM. I believe Gunnoe has had his hands in this and choses to outsource the government bids. It is a division designed to be very profitable, but when A&M came in they fired the President of some 10 years and put Dr David Friend in charge. I don't think the position was replaced so I believe Gunnoe is more or less in charge, but fails to put the same focus on this part of the business.
Do the math and you will know why Peterson's group see a solid opportunity to salvage their investment, despite their lack of expertise in the med staffing arena.
I am sure they have a plan on who they want to bring in to help restructure the company, reduce or eliminate the debt, and possibly make a couple controlled acquisitions. At the end of the day....say 18 months from now they sell the company in the sub 10.00/share range and make a handsome profit along the way.
This is what is in it for him. The rest of the shareholders just happen to benefit. But it wasn't a plan to be our White Knight. It should just work out that way. We would do the same thing if we had the exposure, and yet the resources to control our own destiny.
Three cheers for JP!!! Hurray...Hurray..Hurray JP
I hope this answers your question Jack. I just can't say that I know if the at least 2 presidents really answer to the Conway/Jones team or what the real structure is beyond that.
Why
