NEW YORK, March 20, 2003 (PRIMEZONE) -- Rockport Healthcare Group, Inc. (OTCBB:RPHL) remains a "Speculative Buy," according to Investrend Research analyst Stephanie Loiacono, CFA.
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"Our target valuation for the year ending March 31, 2003, has been revised to $0.62 from $0.68 previously, on a fully diluted basis, reflecting the impact of lower than expected net earnings for the third fiscal quarter due to certain one-time charges during the quarter that caused earnings to be lower than our projections. Our expectations for the fourth fiscal quarter of 2003, however, are unchanged."
Loiacono said she has continued to "fine-tune her projections on gross profit and its impact on future net earnings, since as the company expands its business outside the state of Texas, it incurs additional network access fees for access to its network partner networks, which constrain gross profit."
On the other hand, she stated, Rockport continues to gain a stronger presence outside of its home base.
"Recent quarterly results demonstrate that Rockport continues to progressively grow revenue and earnings. The company's network now consists of over 283,000 physicians, hospitals and other healthcare providers across the U.S. This represents an increase of 28,000 healthcare providers compared to the same period last year," she stated.
She noted that Rockport had record revenues and earnings for its third fiscal quarter and nine month periods, ended December 31, 2002. Revenues increased 154% over last year's comparable quarter to $980,816. Net income was $20,775 compared to a net loss of $603,363 in the 2001 quarter.
"Fundamentals advanced considerably during the first nine months of fiscal 2003. We expect the trend of expanding revenues and earnings to continue throughout the remainder of this year and into fiscal 2004 and 2005. Rockport's ability to produce positive cash flow is a particularly important indicator to us that the risk of a serious capital deficiency has been reduced. Management continues to execute on its promise to improve profitability and cash flow."
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Stephanie Loiacono, CFA, has 18 years of experience in investments and commercial banking. Her investment expertise includes fixed income analysis, bond trading, private placement work and equity analysis. She also has entrepreneurial experience as chief investment officer for a start-up investment management company and as co-founder of a venture capital fund. Ms. Loiacono served in a leadership role supporting the CEO of a Fortune 500 company, and has substantial experience in project management, business development and fundraising.
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