RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Here it goesbandit69 wrote:
But they are real costs to a business.
the thing is WELL's depreciation and amortization is largely comprised of the amortization of CRH's contracts / JVs which are not real costs to the business.
on an accounting basis they have lost money in 2021 - they incurred one-time expenses to buy CRH and MyHealth among other companies. you're focused on the balance sheet, when it's the income statement and cashflow statement you should be focusing on.
they bought cashflows. if they stop acquiring, they have a portfolio of healthcare companies which generate stable and recurring profits. the leverage used was reasonable and much of it was from senior debt indicating the banks are comfortable with the ability of the companies to debt service.
hate EBITDA all you want, but for a growth company like this it's the best metric to focus on because of all the noise due to the acquisitions. i'm aware it can be played with but the company has provide detailed disclosures of the add-backs and I'm comfortable with them.
cheers.