Atrium Innovations Inc ATBIF

Share buyback in 2012

[palinc2000]

How could the BOD allow management to use cash for share buybacks,Look at the high debt /equity ratio, ,,Could they not buy the convertible debentures,,,,which would have reduced not only the interest expense but also the the number of shares in the calculation of diluted earnings ,,,bu,t my preference would be to pay down debt

[Art365]

During the conference call, management explained that all the earn-out payments (related to previous acquisitions) had been terminated in Q4 2012. That means that beginning Q1 2013, approximately 40 million $ per year will be dedicated mostly or entirely to debt reduction.  

[palinc2000]

So what does that have to do with share buybacks in 2012

[Art365]

Sorry, I read your message with how they will use their free cash flow in mind, rather than how they used it in 2012.   I agree with you: even if the shares are extremely undervalued (in my opinion), I think that at this moment it is preferable to pay down debt rather than buy back shares. Besides reducing the interest expense, reducing the debt would do much to increase the value of the

[palinc2000]

I would rather see Board Members and management buy shares in the open market with their own personal funds.......How can Board members really exercise their fiduciary responsibility if they dont feel the pain when the share price underperforms so blatantly.?  

[Art365]

You are really negative about this company! Maybe I am more positive because I only bought recently, but I really believe that Atrium is finally on the upswing now (organic growth, debt reduction, etc). Anyway, I found this info from the 2012 assembly:    

[palinc2000]

If you go to sedi.ca you will find that Laurin bought around 5000 shares in the last 10 years.The rest of his holding comes from way way back when Atrium was a subsidiary of Aeterna ....his cost base must be around one dollar but I cant find the info. Fitzgibbons bought his shares mostly when he was appointed Ceo at around 18 dollrs..-20 dollrs--so the stock lost over 40percent  during his

[Art365]

If Laurin keeps such a number of shares, you can be sure that he has confidence, and he certainly isn't there to collect his fee!   The Quebec discount is something very real. For a decade, I have seen Loblaw having disappointing results quarter after quarter, excuses quarter after quarter, hundreds of millions of dollars wasted on its IT systems quarter after quarter, and yet remain a

[palinc2000]

Laurin picks up over 125K in fees along with other perks...Thats like a 10% yield on his ATB shares,,,,,I would love getting paid to wait too ATB is a public company with no trading..    How can you maxmize shareholder value of a public company with no trading..? Managing the share price is part of the duties of the BOD ,,,,, The time has come to act.......The BOD needs to wake up..

[Art365]

I found the info about fees paid to the administrators. You are right, and I find it outrageous. I guess it is comparable to what is paid by other public companies.   I agree with you that with such fees, they can wait very comfortably. Nevertheless, Laurin could probably pick up his 125K with less shares, so he must still be confident and motivated.   What can they do to "manage

[palinc2000]

- Issuing a PR indicating that the BOD has determined that the market has not recognized the full value and the decision to conduct a strategic review and the hiring of an investment Banker to assist in the Review would increase the share price 50 %  

[palinc2000]

-Hiring a new CEO  with a proven track record able to articulate a clear growth strategy would also give a major boost to the share price

[palinc2000]

I have looked at the companys website  and was  not able to find a clearly defined mission statement The most profitable public companies start by defining  themselves in a mission statement and all subsequent decisions are accepted only if they are in accordance with the mission Atb needs to define itself quickly

[Cardboard1]

I agree with your comments Palinc2000. This company is in disarray or trying all kinds of things and showing no real improvement. One only has to look at Adjusted EBITDA margins over the last 8 quarters. They are declining. Not only is the margin declining, but also the overall EBITDA amount. Then you have sales that have gone up this year, but it is mainly due to NA retail where products

[palinc2000]

The only Board Member with a proven track record is the CEO of Alimentation Couche Tard...a very successful public company.......He is probably too busy with growing his own company .than to protect the interest of Atrium s shareholders Seems that a lot of Board Members see their role as honorary with their fiduciary responsibilities the last thing on their mind..... Take a look at the Press

[palinc2000]

Compare the results of 2 CEO S,,,,,   https://finance.yahoo.com/q/bc?t=5y&s=ATB.TO&l=on&z=l&q=l&c=ATD-B.TO%2C+&ql=1