New Centric Health CEO David Cutler. Byron Capital analyst Douglas Loe believes Cutler has the necessary experience in the public markets and in the long-term care/eldercare, a market he believes Centric should pursue aggressively. Last Monday, Centric Health (TSX:CHH) appointed David Cutler as its new President and CEO. The company began looking for someone to fill the role in April after Daniel Carriere stepped down to pursue other interests.
Mr. Cutler joins Centric Health from Leisureworld Senior Care, which he joined in 1990 and grew to the position of Canada’s fifth largest operator of senior housing and the third largest licensed long-term-care provider in Ontario. Cutler also serves on the board of the Ontario Nursing Home Association,
Cutler, who will step into the role in September, said: “Centric has built an incredible platform and an exceptional team to capitalize on the opportunity inherent in the evolving Canadian health care landscape,” adding: “I look forward to the opportunity to play a meaningful role in pursuit of Centric’s mission to deliver innovative solutions centered on patients and health care professionals while generating long-term value for all stakeholders.”
Byron Capital analyst Douglas Loe says the appointment of Cutler fills a key leadership role with a credible long term care executive. Loe, who has met Cutler several times, says he has the necessary experience in the public markets and in the long-term care/eldercare, a market the Byron Capital analyst believes Centric should pursue aggressively. In a research update to clients Wednesday, Loe maintained his BUY rating and $2 twelve-month target on Centric Health.
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Founded in 2001, Toronto-based Centric Health provides a range of healthcare services including rehabilitation management, medical assessments, and physiotherapy. The company has quietly become a player in the Canadian healthcare services field, having grown its revenue from $15.7-million in fiscal 2008 to more than $200-million in 2011. The physiotherapy market has become a focus for Centric. In Q1 alone, the The company expanded its national footprint in the vertical with the acquisition of five physiotherapy businesses.
Loe says Centric’s strong first quarter results, reported May 15th, were partly the result of integrating all its recent acquisitions. He says the company’s second quarter should be both strong on revenue, where he forecasts $118.8-million, and in EBITDA, where he forecasts $14.8-million.
Shares of Centric Health closed Friday up 1.4% to $.74 cents.