TSXV:DOC - Post Discussion
Post by
Possibleidiot01 on Apr 25, 2023 8:31am
tea leaves
- Use of cash in Q4 was $3.4 million. Normalized cash outflow Q4 was $4.6 million. As of December 31, 2022, the Company had $24.1 million of cash and cash equivalents. During the fourth quarter the Company repaid an incremental $4.4 million of debt, in part due to the divestiture of its pharmacy businesses.
Maybe this means cash flow was minus $200,000 if you take that debt repayment into account?
But severances may delay a return to positive EBITDA until the 4th quarter.
During the fourth quarter, the Company identified and actioned approximately $5.0 million in annual cost reductions to realign its cost base. After year end, during Q1 2023, the Company realized additional annualized cost reductions of $1.0 million. In addition, the Company is expecting to action another $4.0 million of annual net cost savings in Q2 2023. These synergies will come with a cost of severance, or working notice, which will impact cash flows in the first three quarters of 2023.
The cost savings achieved in the fourth quarter of 2022, in addition to the savings realized in the first quarter of 2023 and expected reductions in the second quarter of 2023, will bring the Company closer to Adjusted EBITDA breakeven. As of the date of this MD&A, the Company expects to achieve this milestone in the fourth quarter of 2023.
Market probably has a muted reaction? but what does a possibleidiot01 know?
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