GREY:XEBEQ - Post by User
Post by
tamaracktopon Aug 11, 2022 4:58pm
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Post# 34889701
Surprised by the market reaction
Surprised by the market reactionI expected the stock to react positively to these numbers.
Adjusting for legacy contracts the numbers showed substantial improvement.
Q1 showed an ebitda ex legacy contracts of negative $6.4 million. In Q2 the adjusted loss was $3.4 million.
Net loss in Q1 was $18.4 million. Adjusting for legacy costs, net loss in Q2 was $11.4 million.
Gross margin ex legacy was 23%
The company is turning the corner but the market is obviously concerned about the balance sheet.
Working capital is getting skinny at $36 million, but Jim addressed that to an extent when he talked of selling less profitable assets.
I don't think a financing is in the cards.
He's only been at the helm for 4 months, and so far he's made the right moves.