Big FAT Lie!

Discussion in 'Calloway Laboratories' started by anonymous, Dec 4, 2015 at 4:01 PM.

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  1. anonymous

    anonymous Guest

    I cannot believe they are going to swallow that line of bull. Are any other urine drug testing labs closing, or just this horribly mismanaged one?

    Jonathan Bock - Wells Fargo Securities

    Great. And then the last one, just relates to – these are names that you discussed before and it's just good, the candor and get the answers but it relates to Calloway Labs. So we see it marked to zero as of 9/30 and could one surmise that once you sit kind of at zero you should expect them to move from the unrealized loss to the full realized loss bucket as of 12/31 in light of it being marked at zero or do you have option value to protect?

    That’s the last update we look for and thank you for taking our questions.

    Brook Taube - Chief Executive Officer
    Yes, thanks Jonathan. We’ve obviously worked really hard at Calloway. I would say, it was August, if I miss, let me – I may have misremembered the date they were in active discussions to sell the business. We had assessed that that was in our best interest after trying to reestablish it with new product and new offerings. And then simultaneous, I think it was the end of September CMS reimbursement rate proposal came out and it was something like 40% to 50% rate cuts.

    Jonathan Bock - Wells Fargo Securities
    Okay.

    Brook Taube - Chief Executive Officer
    Basically put everyone bid off. It has a meaningful impact on public companies. It’s nearly catastrophic. So the company announced on October 7 that they were going to wind the business down. So we marked it at zero. Our assessment is there’s negligible recovery. You’ll see I would expect to realize loss come through in the next several quarters because they are actually liquidating, so there may be a tiny amount but our assessment at this point was that it was likely immaterial, hence that’s why marked it at zero.