RE:RE:RE:Some high level thoughtsThe picture is a little more complicated than that:
1. Corporate/Shared Services consumes massive amounts of cash every year. It has increased from $9.2mn (2020) to $11.1mn (2021). This needs to be funded by the operating entities.
2. Top line cash flow metrics are misleading since not all of the cash flow generated by the consolidated CRH / MyHealth is available to WELL to the extent that there are subsidiaries that are not wholly owned. In other words, on the consolidated financial statements there might be $51.9mn of segment EBITDA for CRH (Note 22), but only a part of that will be available to WELL, with the balance going to the principals that own the other 15-49% of the subsidiaries. A quick glance of the acquisition list in Note 23 shows that many of the majority acquisitions are in CRH, so it wouldn't be a stretch to believe that most of the EBITDA attributable to non-controlling interests of $18,395 (from the press release) came out of CRH, which would drop that segments share of EBITDA for WELL shareholders dramatically.
My view is that there are a lot of moving pieces here and investors should pay close attention to what WELL actually gets, rather than the headlines.
monty613 wrote:
why exactly do you think this?
the majority of their earnings and cashflow are from CRH Medical and MyHealth - both of which appear to be relatively stable, FCF generating businesses with a business history (ie. not startups).
just curious how the financial statements tell you they will need to raise cash at some point?