Financials are out - Q1 I looked over the financials this morning.
EL is still losing money and cash flows are tight, however gross margin is up to 36%.
The way I see it, EL is making the necessary strides to tighten cost at every line item. Even though revenue was down Q over Q (Due to TO closure), Gross margin was up, Expenses were down, and EBITDA is lower.
I will post my financial analysis later and what strategic implications there are for EL, but for now I just want to leave you with once comment made by the CEO:
"...Sales in Q1 were slower to close than I would have liked, but we have secured contracts recently with some of the largest nationally recognized brands in the US, and the pipeline is now filling at the rate we would like giving me optimism that we are on a good track.”
There is reason to be optomistic with EL. Im still a buyer at these levels...
It may take a few quarters, but good things are on hte horizon for EL.
Cheers.