Global Growth Achieves Record Operating Results for The Firs
DURHAM, N.C., July 25, 2020 /PRNewswire/ -- Global Growth (https://www.globalgrowth.com/), a leading global healthcare and enterprise technology group, provided an update on previously forecasted operating results for 2020, reporting strong growth in cash from operations for the first half of the year. "In a highly challenging environment amid the COVID-19 pandemic, the Global Growth team produced extraordinary operating results," said founder Greg E. Lindberg.
"We are well on track to achieve full year adjusted EBITDA of close to $300 million as previously forecasted," Lindberg said. For the first half of the year ended June 30, 2020, Global Growth's non-insurance companies produced $136.2 million in adjusted EBITDA, 29% ahead of the prior year period. For the month of June, adjusted EBITDA was $31.6 million, 100% ahead of the prior year period.
"Thank you to every one of the 8,500 Global Growth team members for your persistence and determination to achieve breakthrough results in these difficult times," Lindberg said. "The performance of our group of companies in the first half of 2020 demonstrates the strength of our team and our 'first who, then what' business model," Lindberg said. "I am sincerely grateful for the hard work and dedication of every one of our global team members," Lindberg said.
Global Growth has over 100 business units worldwide serving customers in the areas of healthcare technology, electronic medical records, unified communications products and services, accounts receivable management services, B2B software, and other business and financial services.
"Global Growth companies announced numerous new customer wins in the first half of 2020, including winning business from several large financial institutions, government entities, and Fortune 500 companies," Lindberg reported. "Global Growth also completed two acquisitions in the healthcare and enterprise technology sectors in the year to date period," Lindberg said.
Global Growth focuses on high barrier-to-entry, high recurring-revenue businesses with strong underlying market growth potential in global niche markets. "We follow a contrarian model that puts decision-making in the hands of each company and keeps corporate bureaucracy to a minimum. We believe that the people who know our customers and employees must drive outcomes," said Global Growth's Chief Development Officer Bridgett Hurley.
For the full year of 2020, Global Growth's businesses are forecasting close to $1.4 billion in revenue.
A recent final draft valuation report prepared by a well-recognized national valuation firm found that Global Growth's assets were between $860 million and $1.46 billion in excess of liabilities on a fair market value basis as of December 31, 2019, Lindberg said.
"These net worth numbers are net of all liabilities owed by Global Growth companies to affiliated insurers and to third-party lenders," Lindberg said. "This means that the loans from our affiliated insurers to Global Growth companies are very well secured."
"North Carolina Insurance Commissioner Mike Causey falsely claimed to the Federal Bureau of Investigation and to the Wall Street Journal that there was a 'hole' in our insurance company balance sheets. Causey's statements are false and defamatory, as these numbers indicate," said Lindberg. "Sadly, the FBI and the Wall Street Journal accepted Causey's politically-motivated lies without question, costing our group of companies hundreds of millions of dollars in damages."
"I sincerely appreciate the perseverance of our team members to show the world the true extent of Causey's lies and deception that he put forth solely in an attempt to win this year's coming election," Lindberg said.
"A little over two years ago, Causey sent a gleeful text to the FBI stating that 'things are closing in on Greg Lindberg,'" Lindberg said. "Our team has proved Mike Causey wrong. Our business is flourishing despite Causey's best efforts to damage to our companies through his politically-motivated investigations, litigation, and false statements to the Wall Street Journal, his false statements to the FBI, and his perjury in Federal court," Lindberg said. "This is a victory for every American who stands up to politicians who abuse the power of their office for their own personal gain," Lindberg said.
Lindberg noted that the above asset values reported by the national valuation firm are net of the hundreds of millions of dollars in damages that Causey's false statements have inflicted on the Global Growth businesses. This same national valuation firm estimates that Causey's actions have damaged the Global Growth companies by in excess of $400 million.
Lindberg said that the Global Growth group of companies has filed a lawsuit in Federal court to recover these damages from Causey and the North Carolina Department of Insurance. A previous statement on that lawsuit was released here: https://www.prnewswire.com/news-releases/global-growth-chairman-provides-update-on-greg-lindberg-lawsuit-against-north-carolina-insurance-commissioner-mike-causey-301038988.html
Lindberg also reported that liquidity at Global Growth's insurance companies is strong, with Global Growth's US insurers having around $3 billion of cash and marketable securities. "Our insurance companies are highly liquid and Causey's false statements about our financial position have recklessly harmed the very policyholders that Causey was elected to protect," said Lindberg.
"For a financial services group, a regulator making false statements to the Wall Street Journal and others about asset values is like yelling 'fire' in a crowded theater," Lindberg says. "It's reckless and disregards the safety of everyone, most importantly policyholders," Lindberg said.
"Mike Causey used these false statements as justification to force our insurance companies into rehabilitation, depriving them of access to capital," Lindberg said. "Prior to Causey forcing our companies into rehabilitation, I routinely invested excess capital into the insurance companies to protect policyholders," Lindberg said. For example, Lindberg reported that he contributed $54 million to Global Growth's North Carolina insurers as additional paid in capital on December 31, 2018, just 6 months before these North Carolina insurers went into rehabilitation.
Also, as another example, Lindberg said that he personally covered a $17 million loss from an alleged fraud perpetuated by Oklahoma mortgage banker Ron McCord. "This is a good example of me putting money into the insurance companies to make them more secure solely for the benefit policyholders -- even when I did not legally or contractually have to. I funded $17 million into the insurance companies to cover this alleged fraud by Ron McCord within 24 hours of discovering it," said Lindberg.
A recent report by a nationally recognized valuation firm found that Global Growth "has not taken dividends from its [insurance] subsidiaries despite adequate capital available for such distributions," Lindberg said.
This same report found that Mr. Lindberg invested over $376 million in Global Growth's U.S. insurance companies – and never took a penny of dividends. "We capitalized our insurance companies with capital far in excess of minimum capital levels solely to protect policyholders," Lindberg said.
"We have always done the right thing for policyholders," said Lindberg, "but the same cannot be said about North Carolina Insurance Commissioner Mike Causey.
"With Global Growth's economic losses exceeding $400 million from Causey's abuse of power, the policyholders of our insurance companies lost over $400 million in backstop support. Some policyholders are unable to even redeem their policies because of the ongoing rehabilitation proceedings," Lindberg said.
"If Causey's behavior is condoned, our democracy is finished. I'm sure unscrupulous politicians of all stripes are watching Causey's moves carefully to see if they too can convince the FBI and Department of Justice, entirely-based on false statements, to investigate and prosecute some of their most troublesome political opponents," Lindberg said.
"Causey initiated an FBI investigation of me by lying to them (and subsequently to the court), saying in late 2017 that he had received and returned a $110,000 donation from me. The truth? No such donation occurred," Lindberg said.
"The best evidence of Causey's mindset in targeting me with a politically-motivated entrapment scheme comes from his own words. On the last day of the FBI investigation, Causey sent a celebratory text to the FBI entitled: 'How to make [people] your b*****s,'" Lindberg said.
"The abuse of the FBI, the Department of Justice, and the Federal Courts for political retaliation, as Mike Causey has done, is a recipe for tyranny in America," Lindberg said.
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SOURCE Global Growth