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Air Methods Moody's





Air Methods Moody's  

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Author: Here is what Aaron Todd said   Date: 11/20/2022 10:16:21 AM  +2/-1   Show Orig. Msg (this window) Or  In New Window

A. Todd stated several times during earnings calls that he wanted to maintain debt at no less than 2 times cash flow, no more than 4 times cash flow.  He wanted to maintain a strong balance sheet so the company could take advantage of acquisition opportunitites.  Today, after private "equity" (a bogus term since it is nothing more than a rename of the leveaged buyout shops of the 80's and 90's which "buy" companies with debt), debt is 9 times cash flow (per the Moody's report).


Private "equity" purchased the company at a share price of $43.  At the time, the stock was trading at $28 (and headed down).  Thus, they paid a 50 percent premium for the company.  You have to pay a premium to attract shares from potential sellers, but 50 percent for a company headed the wrong way?  The previous year, the company's stock traded in the $50 range.  You might say private "equity" paid too much and loaded the company up with debt to do the deal.

 
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Air Methods Moody's +9/-0 BigT 11/18/2022 12:38:31 PM