Hearing Economics

In a matter of months, the big shots at HearUSA went from thinking of the many ways they were going to spend their millions to losing their jobs and getting pennies on the dollar for their shares. (An insider’s view of Spring 2011 at HearUSA) I always thought this next-to-final chapter would be entitled “Clash of the Titans” with Oticon and Siemens

Ship’s log for the HearUSA Enterprise,March-May, 2011. March 17, 2011:  Siemens moves to exercise its rights as a secured creditor to take over HearUSA in an SEC petition containing the reassuring note that it “plans to continue operating HearUSA’s business, but … make significant changes to make them more profitable…”  Comment:  It’s about time. March 16-19, 2011:  Siemens USA President Brian

Last I checked, HearUSA was set to perish on the railroad tracks because it couldn’t or wouldn’t pay its loans to Siemens.{{1}}[[1]]Despite conflicting reports,  HearUSA claimed in its 2009 SEC Annual Report  that “The Company repaid approximately $8.1 million of Siemens debt from the proceeds of this transaction during 2009, as required under the agreement with Siemens.”[[1]] True to form, HearUSA’s

The HearUSA-AARP contract (posts 15 and 16 of this series) is captured best by the question:  What were they thinking? Siemens was thinking that it was a “crummy deal” according to one shareholder.   HearUSA’s CEO Steve Hansbrough seems to have been thinking how much smarter HearUSA was than manufacturers like Siemens.  In an interview with audiologyonline, Mr Hansbrough did not portray the manufacturers as the

This just in, as an addendum to this week’s post on AARP-HearUSA! Some of the 6,000,000 AARP members in need of hearing help — previously feared missing — have been found attending the recent AARP convention in Los Angeles. As predicted by HearUSA, they stood in line to have their hearing checked — at least 12 of them did.  Not

HearUSA anticipated targeted growth of 15-20% from the AARP agreement{{1}}[[1]] Morningstar Document. Form 10-K. Hearing USA Inc., filed 3/26/2010.[[1]] and offices mushrooming to 5000 “across all 50 states and the U.S. territories.”{{2}}[[2]]HearUSA Partnership with AARP. audiologyonline interview with Stephen Hansbrough, HearUSA CEO, 9/15/2008.[[2]]  Wildly optimistic can not do justice to those projections.  Revenues plunged in 2009, but that was a good year compared

On August 11, 2009, the ink finally dried on an exclusive licensing agreement between HearUSA and AARP{{1}}[[1]]The agreement was first signed on 8/8/08 but it took a year to iron out the details through several amendments. Technically, the agreement was with AARP Services Inc., the vendor that handles the for-profit side of AARP[[1]]  giving them a reported 9% boost in

As the end of 2008 approached, HearUSA, Inc.,  needed to sell assets to make its payables because–according to insiders–“everybody” (i.e., suppliers) was sending letters threatening Chapter 11 proceedings against HearUSA.   The stock tanked after October of that year, as the chart shows.  Trade payables to Siemens alone amounted to about $10 million.  Predictably, HearUSA came up with a bold

HearUSA showed a profit in each year from 2001 to 2003 based on the aggregate individual office production and expenses.  HearUSA could have started retiring some of its debt.  Instead, with HEARx management now firmly holding HearUSA reins, executive compensation{{1}}[[1]]At least $1.29 million for the top four offices in 2003. For that year,  Dr. Brown and Mr. Hansbrough had respective

Alas and alack, HearUSA’s honeymoon was short and the HEARX-Helix marriage was not a happy one.  From the get go, corporate cultures clashed as top players came out fighting for control. In one corner, Steve Forget represented Helix. In the other corner, Dr Brown and Steve Hansbrough were the HEARx  team. HEARx culture prevailed. West Palm Beach, Florida was the