3/24/2009

Additional Company Data on the March Insider Buys

VTAL (Vital Images Inc)

http://finance.yahoo.com/q?s=VTAL

The closing price on Tuesday 03/24/09 was $10.71

Director Peet Greg purchased 5,000 shares on 03/05/09 for $9.15 and 5,000 at $9.00 on 03/09/09. Institutional investors have been reducing their positions based on the reported balances on 12/31/08. But value shop Royce and Associates still had the largest position although reduced at 8.37% of the TSO(total shares outstanding).

VTAL has A+ financial health with a solid balance sheet supported by ample cash flow from operations. But they’ve been reporting negative net income since December 2007.

One of my main concerns was the SGA expenses at 69% of revenue. The outstanding share balance has increased to 15,711,000 on 9/08 from the 09/8/2005 balance at 13,337,034.
But they have been buying back shares over the past year. For the 3 quarter period ending 12/31/08 they expended $36,114,000 to reduce the share outstanding from 17,364,000 to 15,711,000 09/30/08. Did they over pay for those share buybacks?

Additional points

Enterprise Value/Revenue = .44

P/S = 2.29
P/S 2008 = 3.50
P/S 2006 = 4.50
P/S 2005 = 6.90

Valuation based on P/S has been improving.

Revenue growth quarterly year over year = 4.40%

EV/Price = 2.07/10.71 = .1933
Cash rich with negligible debt

Per share data

Cash per share = 6.86
AR per share = 1.23
NTA = 11.66
CFFO = .48
Total Liabilities = 2.08
FCF = .09
GP = 3.58
Cash – Total Liabilities = 8.76


Industry = Business Software and services

ROA = -2.67
EBITDA/EV = -10.69
SGA_TtlYr / Rev_TtlYr = 0.6996
Shorts as a percentage of float = 3.40%

My introduction on this stock is only for informational purposes.

I have no position in VTAL.

No comments: