RE:So little appreciated, so much potential, held back by debtLEG management is comfortable with debt and cash flow. They will use opportunities to reduce debt if and as presented, but cash flow for 2014 in the $2.20 range will pay the current level of capex and allow a reduction in debt, if desirable, by about $35 million.
Not saying there will not be some interesting catalysts, but that the company is under no duress to address the debt.
Per RBC, cash flow per share looks like this:
2011(a) 1.34
2012(a) 1.54 ( up 15% over 2011)
2013(e) 1.96 ( up 27% over 2012)
2014(e) 2.18 ( up 12% over 2013)
Meanwhile debt to cashflow is dropping, expected to end 2013 at 2.1 times and 2014 falls to 1.8 x , and could go below that if additional cash flow applied to debt rather than expanding capex.
Company wants debt to cash flow in the 1.6-1.8 range so they are on their way there organically without the need for asset sales etc.
Terr