Entourage Health Corp V.ENTG

Any one catch the call??

[InvestingFool50]

Any details???

[Nicksonsnowboar]

Basically, we are in trouble and we will not be around very much longer. Poor revenues,greater debt. I wonder when they are going to be putting up the For Sale signs

[CannAvenger]

go the website.  audio replay is on their website.

[InvestingFool50]

no shiat !! I'm at work, hoping to get a few quotes from call.

[CannAvenger]

management was on the ropes with respect to cash flow discussion.  didn't sound like they had a clue on what their revenue break even is.  analyst from mackie believes it is in the realm of $60mm.  they have a boat load of debt.  the $30mm Liuna facility was a bullet structure - so it is fully 'drawn' and accruing interest as of this call.   

[shenry24]

First, that $60mm estimate was snarkily thrown out there, and when dissected and refuted as "a much lower number", there was no additional contesting.   I will agree they had no clue what it might be, and I would have expected them to have such a figure prepared to give investors on this Q&A. The loan is fully "drawn", but not spent.  I was under the impression

[Investies]

Actually, I was a bit thrown off by Lincolns reaction to that question. Correct me if I'm wrong, but no one mentioned if that 60 million question was quarterly or annually. They even quoted excluding cash impairments margins were 52%. I think the analyst was speaking in annual terms and Lincoln took it quarterly, because even the blind can see we don't need 60m a q to break even

[InvestingFool50]

Has to be annually, at 5-8 million q'ly, even annually is high.

[CannAvenger]

He was thrown off because he didn't have an answer.  The 60 million was annually.  It's a fair question.  The company does $20mm+ revenue and burned $23mm+ in operating  cash flows in H1/20.  Throw in debt service and goes significantly higher if not PIK'd.

[Equitylongshort]

They did $18mm net in the first 6 months this year, in the midst of the coronavirius, where consumer spending habits shifted dramytically in Q2. The negative gross margin was because of 1 time non-cash charges. Back those out, b/c they aren't reoccurring, and gross margins are 50%. They will clear $40mm net this fiscal year and there is a ton of new product formats that already have order

[whitebeltdann]

a little off topic but i go there periodiclly,and the place is booming,so busy and super professional...i really dont understand the share price when they are 'growing' expodentially

[InvestingFool50]

I just listened to the call. I don't see why all the down side. Take away the inventory write down and the other 1 time things( I believe from past management) , they are cleaning things up. From what I understand of the credit facility , is like what was said at the end, it's not a revolving line of credit where you draw when you need it, it's a here's 30 and you have 2 yrs to pay