Assure Holdings Corp. works with neurosurgeons and orthopedic spine surgeons to provide a turnkey suite of services that support intraoperative neuromonitoring activities during invasive surgeries. It employs its own staff of technologists and uses its own state-of-the-art monitoring equipment, handles scheduling and setup, and bills for all technical services provided.
Why we think IOM is a good investment opportunity:
-The Company has experienced 81.9% CAGR in procedures since 2017 due to organic growth and M&A. As a result of its recent acquisition of Sentry Neuromonitoring, it increased guidance to 17,000 procedures in 2021, which is a 70% lift compared to 2020.
Hospitals that are starting to outsource their non-core interoperative neuromonitoring processes will provide IOM with additional opportunities that could generate 1000s of procedures.
With a year-over-year surgeon retention rate of 97%, we see the offering as sticky with increasingly predictable revenues.
The Company generated a record ~$24m of total cash collected in 2020 vs. ~$16m in 2019.
Revenues in Q1, 2021 totaled $4.8M, prior to the completion of the Sentry acquisition. The Company expects to be cash flow positive this year.
There is a significant amount of upside as the Company due to the potential to grow through organic expansion into new states, expansion of reach in existing states, and M&A.