RE:Q4Revenues were good, but margins were a bit lower than I expected. In part this was due to mgmt compensation tied to the share price. Mgmt seemed confident on call that the revenue trends would continue to improve, even with a soft economy.
Most importantly, the company continues to generate gobs of cash. The cash on hand is back to $50 million at January 31. That's $2.67 a share in cash.
This year they should generate over $90 million in EBITDA, and the dividend represents about $11 million. So close to another $80 million in excess cash flow. That's over $4 a share.
Mgmt was asked about capital allocation priorities on the call. They said they generate more cash than they need to invest in the business, so they will continue to do as they did in Q4 (which was a $100 million share buyback).
GLTA