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DISCOVERY AIR INC 8.375 PCT DEBS T.DA.DB.A



TSX:DA.DB.A - Post by User

Comment by Mongoose11on Dec 10, 2012 8:25pm
132 Views
Post# 20710407

RE: Quarter Results

RE: Quarter Results

The only good thing about the Q-3 results is that debt was reduced by almost 10 million versus only 1 million in Q-3 last year. Hopefully this is the beginning of a new strategy since the recent "grow by expansion" strategy has been a total bust, at least so far.

The big hit to Q-3 profit this year (1,211k) compared to last (6,184k) was a write off of 4 aircraft for 3,723k. The fact that revenue gained 18% and profit is essentially flat means that the capital blown for the expansion this year (or at least a good chunk of the 44 million total in the first 9 months) would have been far more effectively deployed in reducing debt. I suspect that synergies between the far flung divisions are still poor as well.

Stop the expansion.....please. It's not working!!!!!!!!!!!!!

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