IDX - Integral Diagnostics

[System]

Integral Diagnostics Limited (IDX) is an Australian healthcare services company whose main activity is providing Diagnostic Imaging Services to general practitioners, medical specialists and allied health professionals and their patients.

IDX provides services through a network of 44 sites, including 12 hospital sites, and operates under different brands in each of the States it operates in: Lake Imaging (Victoria), South Coast Radiology (Queensland) and Global Diagnostics (Western Australia). Lake Imaging also operates (and holds a 50% interest in) South West MRI, a business which provides MRI services in Western Victoria using an MRI Eligible Unit.

In FY2015, IDX provided close to 1 million patient images and generated $160.0 million of pro forma revenue, making it one of the largest providers of Diagnostic Imaging Services in Australia.

It is anticipated that IDX will list on the ASX during October 2015.

http://www.integraldiagnostics.com.au

 

[Country Lad]

IDX trading is interesting. All day the momentum has been strong but without the increase in price I would have expected with that momentum. I will watch tomorrow's trading with interest.

 

[HelloU]

bump
recent posts on CAJ made me go back and look at my position in this.......no idea where it ends....this is the one that got away from CAJ for those unfamiliar with the association and is worth some time imo.

 

[Trav.]

I got in $2.88 a couple of weeks ago after my buy signal and although $2.74 would have been better it shows that systems / back testing are theoretical and slippage is something that occurs in the real world.

I think $3.22 is the ATH (June 2018) and hopefully IDX has a run at this.

 

[CNHTractor]

Interesting trading day for INTEGRAL DIAGNOSTICS yesterday. Traded to a high of $3.30 following a recommendation from the Stock Doctor service, before closing at $3.12, still a hefty gain. Has opened 2% higher today.

In a relatively illiquid stock, it is interesting how the market can be moved by such a recommendation.

I recall a similar move by PWR HOLDINGS LIMITED [PWH] back in June this year after a similar recommendation from Stock Doctor

 

[Dona Ferentes]

IDX is pleased to announce the acquisition of Ascot Radiology, located in Auckland, New Zealand.

Ascot Radiology is highly complementary to IDX’s existing New Zealand business and:
• Contracts 22 of Auckland’s leading diagnostic imaging specialists in oncology, gynaecology, obstetrics, paediatrics, breast, chest and musculoskeletal imaging;
• Has a projected FY21 EBITDA1 contribution, normalised for one-off impacts of COVID19, of NZ$5.6m to NZ$6.4m (A$5.3m to A$6.1m2);
• Is EPS accretive in year one;
• Has high growth opportunities and strong margins; and
• Will generate cost and revenue synergy benefits.

The key terms of the deal include:
A purchase consideration of NZ$50m (A$47.7m2) on a cash and debt free basis, comprising NZ$40m (A$38.2m2) in cash and NZ$10m (A$9.5m2) in new ordinary IDX shares to be issued to 17 vendor doctors at completion of the acquisition, plus earn-out in CY21.

- market seems to like it; up 10%

 

[Dona Ferentes]

Motoring along OK in the 5 years since listing:

............ Earnings per share .................... ................................ Operating Margin % ......... ..........................Net Profit after Abnormals ........

Comfortable metrics though RoE has dropped in latest FY

• Industry growth rates in Australia impacted by COVID-19 in CY20
• Growth rates still materially below the long term average

With 221 reporting radiologists; 152 employees and 69 contractors, and 85 radiologist shareholders, IDX services regional areas of most states.

Market cap $960M; PE of 24; debt running pretty high

Recently has hit an all time high close to $5.00. The latest H results showed an improvement on the Covid slump but not enough to drive SP further
• Increased Operating NPAT by 61.1% to $23.2m
• Increased operating diluted EPS by 38.0% to 11.6cps
• Declared 1H21 dividends of 5.5cps
• Completed acquisition of Ascot Radiology

(Since inception)

 

[Dona Ferentes]

and, going the other way ... down 30 per cent today.

Q1 FY24
In Australia, first quarter revenue growth of 8.4% was achieved compared with the prior corresponding period. In comparison Medicare benefits for the States in which IDX operates have seen a 9.5% increase in weighted average benefits paid, adjusted for working days. In New Zealand, IDX achieved a 4.1% NZD increase in revenue compared with the prior corresponding period.

Clinical staff shortages, particularly in regional areas, and cost inflation have continued into FY24 driving labour costs to be higher than expected, adversely impacting Operating EBITDA. As such we have not seen the expected Operating EBITDA margin improvement in Q1 FY24 relative to 1H FY23.

IDX is responding to these pressures by accelerating productivity and efficiency initiatives. These actions are expected to lead to an improvement in 2H FY24 trading performance and Operating EBITDA margin compared to 1H FY24.

FY24 Capex, Depreciation and Finance Costs
For FY24 IDX expects:
• Replacement and growth capex to be in the range of $30m to $40m
• Depreciation of ~$45m, including depreciation of ~$17m for right of use assets under AASB16
• Finance costs of ~$22m, including finance costs of ~$5m for right of use assets under AASB16, and assuming a further 0.25% interest rate increase in November 2023.

 

[Dona Ferentes]

AGM today.

"Whilst I’m proud of this heritage and growth, I believe it’s important to briefly touch on the security price performance over the last 12 months, which has been noticeably impacted by our recent trading update. As a fellow securityholder I am as disappointed with the price performance as many of you are. After delivering materially stronger second half results in FY23, our YTD FY24 trading performance is not acceptable. ...

"Capital management remains a key priority for the Group. We remain comfortably within our bank covenants. We expect to improve our overall position as cost management and financial performance improves. Our capital structure is considered appropriate and fit for purpose. Net debt/EBITDA at 30 June 2023 of 2.9x is expected, based on current forecast, to gradually reduce over time towards the Group’s target leverage of 2.5x, and compares to IDX’s bank covenant of not greater than 3.5x....

degree of difficulty 4.8

 

[finicky]

Monthly chart.
That is not a chart to attract any chart follower I would hazard a guess. Negative volume approaching that of the year of Wuhan. There's a low probability it is capitulatory selling, a big vomit with a low nearby, but there's no way of knowing that till more candle(s).

Not Held

MONTHLY All Data

 

[galumay]

From a fundamental POV, plenty of downside risk IMO, @finicky. Still looks expensive to me, also has a lot of debt. Low ROE, ROIC. OCF being consumed by PPE & acquisitions. Nasty!

 

[Dona Ferentes]

results consistent with Trading update. ... trading up a bit.

While the Group achieved solid revenue growth of 7.2%, cost inflation and clinical staff shortages, particularly in regional areas, have continued into FY24 driving labour costs to be higher than expected, adversely impacting Operating EBITDA. As such we have not seen the expected Operating EBITDA margin improvement in 1H FY24 relative to 1H FY23. Higher interest funding costs further adversely impacted Operating NPAT. IDX is responding to these pressures by accelerating productivity and efficiency initiatives. IDX continues to provide patients and referrers with excellence in diagnostic imaging across Australia and New Zealand.

CEO of IDX Dr Ian Kadish said: “While the operating environment in 1H FY24 has proven to be challenging given higher than expected cost inflation and clinical staff shortages, we expect to deliver a materially stronger 2H FY24 profit result compared to 1H FY24, including through implementation of productivity and efficiency initiatives.

Despite the current cost challenges in a high inflation environment in FY24, the Company believes the fundamentals of the radiology industry are strong and the Company is well positioned to benefit from executing on these initiatives.”

 

[Ferret]

IDX up nearly 14% today, most of it on the close. Something up here?

 

[bk1]

Fairly lukewarm volume throughout the day until the last two hours then heavy buying.
Maybe its accumulation in action.