GREY:AIIFF - Post by User
Post by
Thethruthhurtson Mar 20, 2014 2:29pm
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Post# 22347437
Dust has settled -- what are the facts
Dust has settled -- what are the facts Yesterday's call was followed by today's down grade from Raymond James that followed the earlier and more accurate downgrade from Scotia. I'm not here to beat a dead horse but a good colleague of mine gave a very good summary of the situation.
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If they just let these businesses operate without all of the corporate overhead, they’d have close to $60 million of EBITDA. There is no way they can operate these businesses nearly as efficiently as the original owners did. Still too top heavy. Interestingly, no mention of debt levels in the press release. Whatever the year end debt is, we already know that they had to increase their debt position in Q1 2014 to fund their $8mm EBITDA loss.
The Company is worth $200 million. They have over $320 million of debt. They’re underwater on their mortgage.
After Q2 of this year, Armtec will have a major re structuring underway. The blame must be laid internally and the consequences must be measureable.
I see the white flag going up as no reinforcements can save this company.
# Armtec #the end of Armtec