9-10% ebitda margins on track. Q3 ebitda was $1,585,647 and the company expects to get back to the 9-10% ebitda margins they have historically achieved. From MD&A I present the following:
"The adjusted EBITDA (1) recorded during the third quarter amounted to $1.6 million or 7.1% of revenue. This negative difference compared to a target adjusted EBITDA (1) between 9% and 10% of revenue is explained as follows:
• $0.2 million related to the disposal at a loss of 19 transport vehicles in connection with the termination of one of the two transport contracts as well as maintenance costs for other older vehicles
• $0.2 million due to lower revenue at Premier Soin and Code Bleu
• $0.1 million in transaction costs associated with the acquisition of CHCA
• $0.1 million related to accelerated spending for certain upgrades to our technology platforms"
Going forward, I believe the company can achieve $4-$5m in free cash flow with a reasonable chance to surpass this figure. The strong balance sheet can allow them to grow without the need to raise debt/equity.