RE:Normalized Earnings Analysis of CRH Medical
Interesting. PSDFinancier, you say, "Lastly, let's look at the FCF to EBITDA conversion. This business is CapEx light, but let's say $0.1M for CapEx. On interest, there was $59.7M of debt at the end of Q2, then they incurred $5.8M for the new FL acquisition, to get to $65.5M total. On 3.5% interest, that's $2.3M of cash interest." $5.8M in added debt? Could be it's half that. I took a look at how much cash they paid for WFAA, DDAB, and OGAA and compared that to the amount they borrowed. They put a lot of their FCF/earnings into these companies. They have equity of about half of what they bought. They have ONLY borrowed half. Sort of like putting 50% down to buy a home. The equity they have built is impressive! Agree? Note...the WFAA purchase was done August 1st. Seems strange it was reported in the 1st and 2nd quarter report that ended June 30th?