Dynamic Technologies Group Inc - Class A ERILF

Working Capital

[liverless]

Some have been concerned about Empire's accounts receivable.  Some interesting developments there in Q2. 

In the second quarter, the accounts receivable actually rose, from $37 million to a little less than $43 million.  So on the surface that doesn’t appear positive.  But a closer looks suggests otherwise.

Empire saw an increase in unbilled construction contract receivables from $26 million to $37 million.  This is a big jump and likely reflects the new contract work that the company began in the quarter that has yet to flow through to revenue.  Meanwhile, the real concern with working capital, unpaid bills, declined.  Trade receivables declined from $9.7 million to $4.7 million quarter over quarter.

Its nice to see that number come down and it looks like the company used the cash to pay down accounts payable (which declined $2 million in the quarter) and to pay down almost $6 million of debt.