RE:RE:Filoux and ferretRead this post and agree XBC handling supply chain better than would have thought. Seems the new team with an operation focus are managing it well relative to others.
The debt increase though i was not disappointed with but quite relieved:
1) Overy half of the increase is from working capital build and mostly raw materials that is getting in front of the supply chain and having availability when others wont. $16mm in working capital investment in quarter and most is raw materials. I see this more as a positive as should lead to orders and higher backlog even at 7% coupon - price of business but at least they have business to offer.
2) Backlog up 25% or so despite not announcing any orders really during Q4. Brightmark was included in last quarter so think pretty impressive as well. Investor day should bring about some news imo and seems like RNG quoting will provide big news this year.
3) Agree on the Q4 lift from China helping Q4 EPS - it did. On the postive (not a writedown recovery) this was an upward revaluation of its investment as the entity is profitable and growing per the call.
So overall liquidity looks good for year or so - that should reduce the short thesis.
Some good some bad in the quarter i agree but the fear of falling to pieces was overly priced into the share price in recent weeks/months.
Good luck to all.
ferret_ca wrote: still here, not a bad quarter overall but still a few negatives not mentioned if you look at the balance sheet and read all the financials on sedar.
congrats to the longs , hopefully todays action isn't mostly shorts covering and it can hold it's gains and maybe continue. It does look a bit more investible but still not for me. it's a great day on the market all around. revenue was good, ebitda wasn't great but it was better than I expected. I can understand whu they decided not to give guidance with all the unkowns (war and supply chain issues).
here's what I didn't like, the big one was how much the long term debt has increased and most of it is at quite high interest rates, it was up just under 30m. 2nd was the back log imho was disappointing. 3rd they again had to restate some financials from 2020. and 4th the actual loss for 2021 looked better than maybe it actually was as they reclaimed 19m from previous writedowns on some assets ( or something like that can't recall exactly what it was but it partially explains maybe why the large increase in long term debt).
enjoy your nice up day and believe it or not, I do hope it continues, I never was short and never have been on any stock ( other than using options, and those were on much larger companies), hopefull the new mgmt are great on execution, lots of moving parts with xbc that's for sure.
cheers and gl ferret