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Recent ShareScene.com Radio Broadcast (Tue, 22 Aug 2006 12:30PM):


Full Year Results for 2006 Dr Colin Goldschmidt, Managing Director


N.B. ShareScene.com Radio can normally be accessed by the 'RADIO' link, top of every page.



ShareScene.com Radio delivers investor presentations from ASX listed companies. Keep up to date with the latest corporate dealings of the shares you follow. Hear news direct from the source. Listen to directors and investor relations mangers discuss their company, give investor updates and brief on current results. ShareScene.com Radio keeps you informed about company announcements and events, and provides you daily market wraps and industry discussions.


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Macquarie giving mixed messages on Sonic; on the one hand they are worried earnings will fall into 2008 and on the other hand they are saying there are synergies in theur acquistions and expect another increase in SP and another acquistion in 2007.

Its close to a sell from my perspective

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No probs OG.



09:34, Tuesday, 19 December 2006




Sydney- Tuesday - December 19: (RWE Aust Business News) ******************************





Sonic Healthcare has take a major step forward in buying a US

based laboratory business to add to its American operations at a cost of

$230 million.


The company is already recognised as one of the world's largest

medical diagnostics companies, providing pathology and radiology services

to medical practitioners, hospitals, community health services, and their

collective patients.


On Friday, Sonic reported to the Australian Stock Exchange that

it had signed a deal with American Esoteric Laboratories which will give

it 100 per cent control.


Shares of Sonic rose strongly, advancing 69c to $14.25 yesterday.


The company was a Ferret to Stock Watch when the shares changed

hands at $4.60.


Since the last review Sonic Healthcare has expanded dramatically.


Meanwhile American Esoteric Laboratories, Inc. (AEL) reported

annual revenues in the order of $US130 million and employs over 700



AEL provides predominantly routine laboratory services, together

with esoteric testing, from laboratories based in Tennessee (Memphis and

Morristown) and Texas (Dallas and Tyler).


In addition, AEL also reaches into parts of Arkansas, Louisiana,

Mississippi and Missouri.


AEL was founded by Brian Carr (the current chairman and CEO) and

James Billington (President and COO) in June 2003 and, with the support

of two private equity investment groups, ABS Capital Partners (ABS) and

Oak Investment Partners (Oak), has acquired a number of clinical



AEL is owned 80 per cent by ABS and Oak, with the balance by



The purchase price reflects a prospective EBITDA multiple of

around 9.4 times.


Settlement is expected in the second week of January 2007

and is conditional upon US anti-trust approval.


The acquisition will be funded in US dollars via a six month debt

facility to be provided by Citigroup and Commonwealth Bank of Australia.


Sonic will consider a number of alternatives to refinance this

facility over coming months, including extension of its existing

syndicated facility.


The acquisition will be immediately earnings per share accretive.


AEL is currently in the process of rationalising its Dallas

operations with its most recently acquired laboratory (in Tyler, Texas)

and therefore the full earnings contribution of AEL will only impact on

Sonic's 2008 financial year.




Shares of Sonic Healthcare shares yesterday advanced 69c to

$14.25. The high for the year was $15.87 while the low was $11.12. The

all time high at $16.12. Dividend is 41c to yield 2.88 per cent.


Earnings per share 59.80c and pe ratio 23.83. The company has 293.3

shares in issue with a market cap of $4.2 billion.


Sonic Healthcare earlier this year reported a record net profit

of $172 million for the year to 30 June 2006, an increase of 27pc over

the comparative period.


The result was achieved on revenues of $1,656 million, 20pc

higher than the prior year.


Sonic's CEO and managing director, Colin Goldschmidt, said at the


"I am pleased to report that once again Sonic Healthcare has

delivered record earnings, in line with the guidance we gave in August



"This is Sonic's eleventh consecutive year of double-digit

earnings per share growth and I am confident that the quality of our

people and infrastructure in both Australian and offshore markets will

continue to drive strong growth into the future."


Sonic's board has declared a fully-franked final dividend of 26,

per share, making total dividends of 41, per share for the full year, a

14pc increase over the previous year.


Referring to the latest development, further potential synergies

between the Dallas operations of both AEL and Sonic's Texas-based

laboratory, CPL, will likewise only impact in FY 2008.


Dr Goldschmidt said: "The acquisition of AEL represents an

important second step in Sonic's US laboratory expansion strategy.


"When combined with CPL, AEL's size and geographical locations

provide Sonic with the critical mass and reach to further accelerate its



"AEL's operations are located in high population growth areas of

the US where there is potential for significant revenue growth at both

organic and acquisition levels."


Following completion of the transaction, Robert Connor, CEO of

Sonic's CPL, will assume the CEO role for Sonic's US laboratory

operations and David Schultz, president and COO of CPL, will assume the

COO role for Sonic in the US.


Brian Carr will be retained by Sonic on a consultancy basis.


Sonic says it intends to operate its major US subsidiaries using

its proven "federation" model, leaving management autonomy and

regionalised services in place.


Dr Goldschmidt also said: "The combination of the Sonic/CPL

medical leadership model and the strong management teams in place at CPL

and AEL will create a powerful force in the US laboratory market."




Sonic Healthcare Limited is the parent company of the 32

operating companies comprising the Sonic Healthcare group.


It is a public company; listed on the Australian Stock Exchange,

where it is classified as one of Australia's "Top 100" companies.


Sonic Healthcare has its head office at Macquarie Park in Sydney,

Australia; in the same building as the main Douglass Hanly Moir Pathology



It has 15 pathology companies in all including Douglass

Hanly Moir Pathology, Sullivan Nicolaides Pathology, Melbourne Pathology,

Diagnostic Medlab, The Doctors Laboratory, Diagnostic Services, Clinpath

Laboratories and The Schottdorf Group.


It has expanded into the UK market with acquisitions of TDL,

Omnilabs and TDL-UCLH joint venture.


Sonic expanded into Germany with the 56pc acquisition of the

Schottdorf Group one of Germany's largest pathology groups.


RADIOLOGY: Sonic operates its radiology division throughout

Australia, New Zealand and Hong Kong. SHL radiology companies are

Queensland X-Ray, SKG Radiology, Castlereagh Imaging, Hunter Imaging

Group, Mercy Radiology, Illawarra Radiology Group, Palmerston North

X-Ray, Castlereagh Hong Kong and Canterbury Medical Imaging.


IPN (Sonic stake 70pc): Independent Practitioner Network Ltd IPN

offers a range of health services including physiotherapy for the

treatment of injury or movement restrictions, sports medicine and the

treatment of muscles, joints, ligaments and tendons, podiatry, psychology

for the treatment of injury as well as personal development and

performance enhancement, dental, dietetics, massage therapy, hydrotherapy

and conditioning of the body and mind.





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Follow on from my post 22/8/06 - Egoli-


Sonic Healthcare wins legal challenge in NZ


20/03/2007 By: Nicholas Grove


Sonic Healthcare Limited (SHL) today said it was successful in its legal challenge of a decision to award a community laboratory services contract to Lab Tests Auckland Limited, a company majority owned by Healthscope Limited (HSP). Shares in Sonic jumped following the announcement of the decision, up 3.45% or 47c at 1411 AEDT.


Healthscope said the focus of the judicial review judgment was not on the quality of the service to be provided by Labtests, but rather on the process that led to the decision.


The current contract of Diagnostic Medlab is due to expire on 30 June 2007.


ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Â¦ÃƒƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“Today the High Court of New Zealand issued a judgment ruling that the Lab TestsÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢ contract is invalid and of no effectÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢,ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚ Sonic Healthcare said in a statement.


ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Â¦ÃƒƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“Arrangements will need to be made for the continuity of service of community pathology testing in Auckland.


ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Â¦ÃƒƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“Sonic and Diagnostic Medlab look forward to constructive discussions with the Auckland Region District Health Boards about future laboratory service provision.ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚ÂÂ


Healthscope said Labtests had at all times complied with the tender requirements and requests of the Auckland Region District Health Boards.


Labtests awaits further information on the process to determine the award of the contract, Healthscope added.


The company said there would be no impact on its earnings from todayÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s court decision for the current financial year.


ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Â¦ÃƒƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“Expenditure and commitments to date by Labtests on establishing the pathology operations to meet the contract requirement currently total NZ$18 million (A$15.8 million),ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚ Healthscope concluded.


At 1433 AEDT, shares in Sonic Healthcare were 40c higher at $14.03, while shares in Healthscope were 15c lower at $5.73.


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