RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Normalized Earnings Analysis of CRH MedicalRegister123 wrote:
if their cash is significantly lower than the balance on hand June 30, CRH's ability to both continue aquisitions and buy back stock will be restricted.....
i don't agree with this - remember they have access to a large credit line. i'd have to look up what the exact terms of their credit agreement are, but they are likely guided by a Debt Service/Cashflow driven covenant - ie. if new debt is deployed can the company adequately service it.
since this is a high margin business and their acquisitions are accrective, the acquisitions provide the necessary coverage to pay for the associated debt on the transaction.
this is basically what underpins the CRH growth story...