Attached files
file | filename |
---|---|
8-K - UAHC 8-K - UNITED AMERICAN HEALTHCARE CORP | uahc8k.htm |
Exhibit 20.1
United American Healthcare Corp
Annual Meeting December 8, 2011
Management Presentation
Description of Business
•
|
From November 1993 to June 2009 UAHC Health Plan of Tennessee, Inc provided managed care benefits in the TennCare program
|
•
|
The TennCare operations are closed and substantially complete
|
•
|
June 18, 2010 UAHC acquired Pulse Systems LLC
|
Pulse Systems LLC
•
|
Provides contract manufacturing services to the medical device industry
|
•
|
Precision laser-cutting
|
•
|
Processing of thin-wall tubing
|
•
|
Restructured bank debt terms with the Fifth Third Bank in June 2011 to provide increased borrowings for capital equipment and expansion of services
|
Fiscal Year 2011 Financial Results
•
|
Net loss of $7.1 million – loss of $.73 per share
|
•
|
Pulse Systems LLC – Net income of $0.9 million
|
•
|
Corporate Operations had a loss of $8.4 million
|
•
|
Majority of corporate loss resulted from charge related to the change in fair value of the put obligation and professional fees
|
•
|
Cash and investments were $1,500,000 at year end 6/30/11
|
•
|
Most of cash is at Pulse and restricted pursuant to loan covenants
|
Quarter-1 Financial Results
•
|
Net loss of $640,000 – loss of $.06 per share
|
•
|
Pulse Systems LLC – Breakeven for the first quarter
|
•
|
Corporate Operations were loss of $657,000
|
•
|
Majority of corporate loss related to interest expense, professional fees and insurance
|
•
|
Cash and investments were $1,600,000 at end of Q-1
|
•
|
Most of cash is at Pulse and restricted pursuant to loan covenants
|
Significant Events
•
|
Closed Michigan offices and moved operations to Chicago, Illinois
|
•
|
Change of Management and reduction of operating expenses
|
•
|
Settled “STEP-Galloway” litigation in conjunction with St George Investments LLC
|
Ongoing Obligations
•
|
Monthly Working Capital - $10,000 to $20,000
|
•
|
Monthly D&O Insurance - $11,000
|
•
|
Monthly Pulse Sellers Note $50,000, Balance $300,000
|
•
|
Monthly Redemption of Pulse Preferred Units $40,000 and balloon payment of $1,360,000 June 2012
|
•
|
Monthly Payment to William Brooks of $10,000 until Mach 2012 and a final payment of $160,000 in cash or art due December 2011
|
•
|
A Payment to STEP in the amount of $225,409 payable from sale of art, or earlier of receipt of escrowed monies from the State of Tennessee or a refinancing of the Pulse Systems LLC Fifth Third credit facility or June 12, 2012
|
•
|
Fifth Third Bank loan to Pulse Systems LLC $2,437,500 due June 2013
|
Need for Additional Capital
•
|
The Company needs to find additional debt or equity capital to fund the ongoing obligations
|
•
|
Capital may be provided by affiliates such as members of the board of directors
|
•
|
Any financing may result in significant dilution of the Company’s existing shareholders
|
•
|
The Company is receptive to financing proposals from any shareholder
|