ONT - 1300 Smiles

McLovin said:

http://www.health.gov.au/internet/main/publishing.nsf/content/dental+care+services

Interesting about them being so dependent on one Medicare. Is that disclosed by the company?

Click to expand...

Medicare program ended 30th of November (two days ago)
MD of 1300 Smiles gave a speech recently at an ADIA breakfast during which he described the dental industry(his words, we always liked to think it was a profession) as like the bus in the movie Speed with him being the bus driver (such delusions of grandeur). The bomb about to explode was the closure of the Medicare scheme.

This is pretty true only the Bus he is driving is 1300smiles not the dental profession. The bomb has already exploded but it devasting effects will not be seen until 1st half 2013 reporting. Last half 2012 will be a bumper because the past three months everyone has been desparately trying to get their work finished while these plans were still in effect.
The business model was bulk bill medicare and have dentists sitting on their hands with appointments available. I believe the estimate that 40% of 1300's revenue was coming from this scheme is likely true. That is revenue not profit!

Can these Dentists attract patients who have to pay out of their own pockets? Sometime around August 2013 all will be revealed!!
According to the recent speech the MD is pinning his hopes for maintaining the company revenue on a Dental membership plan. Think gym membership?

thinker1 said:

Medicare program ended 30th of November (two days ago)
MD of 1300 Smiles gave a speech recently at an ADIA breakfast during which he described the dental industry(his words, we always liked to think it was a profession) as like the bus in the movie Speed with him being the bus driver (such delusions of grandeur). The bomb about to explode was the closure of the Medicare scheme.

This is pretty true only the Bus he is driving is 1300smiles not the dental profession. The bomb has already exploded but it devasting effects will not be seen until 1st half 2013 reporting. Last half 2012 will be a bumper because the past three months everyone has been desparately trying to get their work finished while these plans were still in effect.
The business model was bulk bill medicare and have dentists sitting on their hands with appointments available. I believe the estimate that 40% of 1300's revenue was coming from this scheme is likely true. That is revenue not profit!

Can these Dentists attract patients who have to pay out of their own pockets? Sometime around August 2013 all will be revealed!!
According to the recent speech the MD is pinning his hopes for maintaining the company revenue on a Dental membership plan. Think gym membership?

Click to expand...

half year ending Dec 2012 NPAT 4 million
half year ending June 2013 NPAT 2.4 million

40% drop in NPAT post CDDS
Despite acquiring 1/3 stake in DMA and a 6 chair Adelaide practice

Had a look at this today, I was looking at PSQ and thinking about competitors in the industry, and while they are not competitors, seeing ONT mentioned, I thought I would crunch its numbers through my hand cranked value calculator and see what it spat out.

Its interesting reading back thru the commentary from a few years ago, the negative analysts seem to have got it wrong as the company appears to be bubbling along nicely. I notice the CEO still has a grating mannerism in his messages to shareholders, its a bit much of a sales pitch and set my radar off a bit!

Generally it was once again a business that met most of my criteria for investibility - just too damn expensive! Well past my range of calculated IV.

Thats a few rocks turned over today for no reward, the search continues!

Results of Scheme Meetings and Special Dividend
1300 Smiles Limited (ASX: ONT) (1300 Smiles) is pleased to announce that 1300 Smiles shareholders have
today approved the scheme of arrangement under which Adams Aus BidCo Pty Limited will acquire
approximately 84% of the shares in 1300 Smiles, by way of a scheme of arrangement (Scheme).
Results Scheme Meetings
The resolutions to approve the Scheme, as set out in the Notices of Meeting attached to the Scheme Booklet
dated 12 October 2021, were approved by the requisite majorities of 1300 Smiles shareholders at the General
Scheme Meeting (for all 1300 Smiles shareholders other than the Founder Shareholders) and the Founder
Scheme Meeting.
The voting results of both Scheme Meetings are attached to this announcement.
Special Dividend
The 1300 Smiles directors have today determined to pay a fully franked special dividend of $1.00 for each 1300
Smiles share held by a 1300 Smiles shareholder as at the record date for the special dividend, being 7.00pm
(Sydney time) on Friday, 19 November 2021, subject to the Scheme becoming legally effective. Payment of the
special dividend is currently expected to occur on Friday, 26 November 2021.
Next steps
1300 Smiles will now apply to the Federal Court of Australia (Court) for orders approving the Scheme at the
hearing scheduled for Wednesday, 17 November 2021.
If the Court approves the Scheme, 1300 Smiles intends to lodge a copy of the order of the Court with the
Australian Securities and Investments Commission on Thursday, 18 November 2021. Once this occurs, the
Scheme will become legally effective and 1300 Smiles shares will be suspended from trading on the ASX with
effect from the close of trading on Thursday, 18 November 2021.
The key dates for implementation of the Scheme and payment of the special dividend are set out below*:
Event Date
Second Court Date Wednesday, 17 November 2021
Effective Date
The date on which Court orders will be lodged with ASIC (at which
point the Scheme becomes Effective) and announced to ASX
Last day of trading in 1300 Smiles shares – 1300 Smiles shares will be
suspended from close of trading
Thursday, 18 November 2021
Special Dividend Record Date Friday, 19 November 2021
Scheme Record Date
All 1300 Smiles shareholders on the Scheme Record Date will be
entitled to receive the Scheme Consideration
Wednesday, 24 November 2021
Special Dividend Payment Date Friday, 26 November 2021
Implementation Date
Provision of Scheme consideration
Wednesday, 1 December 2021
All dates are indicative only and, among other things, are subject to approvals from the Court and other scheme conditions
having been satisfied or waived. ONT reserves the right to vary the dates set out above. Any changes to the above
timetable will be announced on ASX.
ATO Class Ruling
1300 Smiles has applied for an ATO Class Ruling to confirm the key taxation implications of the Scheme, the
availability of franking credits attaching to the Special Dividend and whether the Special Dividend forms part of
the capital proceeds under the Scheme. The ATO has not issued the Class Ruling as at the date of this Scheme
Meeting. 1300 Smiles will make an announcement if the Class Ruling is published either on ASX or, if 1300
Smiles is no longer listed at that time, on its website.
This announcement is authorised for release to ASX by the Board.

DYOR

i hold ONT

am currently up 26% on this because i carefully averaged down in the dips

another ' kicked out onto the sidewalk with a handful of cash '

On December 2nd, 2021, 1300 Smiles Limited (ONT) was removed from the ASX's Official List in accordance with Listing Rule 17.11, following implementation of the scheme of arrangement between ONT and its shareholders in connection with the acquisition of approximately 84% of the issued capital in ONT by Adams Aus BidCo Pty Limited.