Q: can you give an up date. can they turn the corner? debt is high, would anybody buy this company ?
5i Research Answer:
CRRX has been on a negative trend revenue wise with 5 straight quarters of declines. Recent quarterly results were also weak missing both EPS and revenue estimates with EPS coming in at a loss. While the debt load is high, CRRX has reduced this over the last few quarters. While the high debt, low cash makes CRRX an not as attractive of an acquisition target, the business itself could draw some appeal. With the negative momentum here it is tough to say what specifically CRRX has to do specifically to reverse the trend outside of growing revenue. Revenues have been in decline mainly due to a net reduction in the average number of beds serviced (lower volumes) which have also hurt net income.