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Team Health Holdings comfortable with leverage ratio, CFO says
By Jennifer Lanning Drey
Portland, Ore., March 24 - Team Health Holdings Inc. is comfortable with its current leverage ratio of roughly 2.9 times, David Jones, chief financial officer of Team Health, said during a Wednesday presentation at the Barclays Capital Global Healthcare Conference in Miami.
"We've obviously lived with higher leverage ratios, and we feel like this is a very good place for us. It gives us much more financial flexibility," Jones said.
Specifically, the company's leverage position will allow it to grow on an organic basis, as well as to commit additional resources toward acquisitions, he said.
The company also may decide to take out the remaining $50 million of its 11 ¼% senior subordinated notes, Jones said.
"There is an opportunity for us as we proceed to potentially take that out over time, but there's nothing imminent at this point," he said.
The company redeemed about $158 million of the 11 ¼% notes as part of its initial public offering.
During the presentation, Jones also highlighted Team Health's ability to generate free cash flow due to its relatively low capital expenditure requirements. The company generated about $74 million of free cash flow in 2009.
"We have a stable financial profile, and we have a lot of liquidity," he said.
Team Health is a Knoxville-based provider of outsourced medical staffing, management, administrative and other support services.
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