RE:RE:RE:RE:No price supportIf you examine FCF ....as defined by Knicks....for the past 4 quarters, they have paid out just about every red copper in to reduce credit debt and Leasing.
In Q1/21 for example, FCF was just over $10 million and they paid down senior debt by $7.2 m and leasing by $3 million.
If Knick is forecasting FCF of $20 million in 2021, applying the same intense relative focus on paying down senior debt and leasing , senior debt would be about $25 m at exit 2021.
I think they will do better than that.
The remaining 3 quarters will benefit by about $1 m per quarter from departed executive salary reductions in Q1 which cost us $2.9 million in cash outflows in Q1.
With receding debt, interest charges will diminish progressively as debt is paid down.
Further, they still have a bit of whiggle room in the excess of Receivables over Payables while continuing efficiency gains will boost gross margins.
So, I don't view exiting 2021 with senior debt close to $20 m as being unlikely.