OTCPK:CSUWF - Post Discussion
Post by
retiredcf on Jul 25, 2017 8:09am
RBC
Outperform ($26.00 one-year price target)
Second-quarter earnings and ACFFO (TBA)
We expect Enercare’s Q2/17 EBITDA to increase to $83 million, from $75 million in Q2/16, due primarily to stronger rental revenue. We note that the acquisition of Service Experts closed mid-way through Q2/16, which slightly skews the gain in EBITDA. We estimate Q2/17 ACFFO/share (diluted) to increase to $0.48 (from $0.27 in Q2/16) due to the growth in EBITDA, offset partially by an increased the average weighted shares outstanding. Please note that we have changed how we define maintenance capex (allocated all HVAC capex into growth capex) starting in 2017 as water heater attrition continued to improve.
We expect investors to focus on the contribution from Service Experts, updates on the roll- out of rentals within the Service Experts business, and the rental mix.
The Bloomberg mean EBITDA estimate for Q2/17 is $83 million (three estimates with a range of $82 million to $84 million).
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