Warning There seems to be some debate about the strength of this company, and how it is managing as the world moves to digital. I would caution shareholders to look at the following:
- revenue has been down every year since 2007
- EBITDA down every year since 2007
- More importantly, EBITDA down in Q1 of this year, despite the FSA acquisition supposedly "immediately accretive" bought last fall
- Sr debt/EBITDA (ratio for bank covenant) up every quarter for at least the last three quarters
- from the TD report - the company is trading at almost double the multiple of peers (e.g. TCLa, PBL) and yet has a higher debt level
Finally, look at the commentary from management. A year ago, statements were made like "most importantly, maintaining our annual distributions to unitholders at
.65 per unit," now they talk about "balancing" dividend policy and capital structure. I believe the dividend will be cut, and you don't want to be holding this when it is. I have long sold the stock, I am not short, but thought some facts might be of help.
Good luck to all.