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BRIGHTPATH EARLY LEARNING INC V.BPE

"BrightPath Early Learning Inc is engaged in the operation, acquisition and development of community based early learning and care centres across Canada."


TSXV:BPE - Post by User

Comment by teshon May 23, 2014 5:28pm
281 Views
Post# 22594239

RE:conference call

RE:conference callI thought the quarter was outstanding for a few reasons: 1. They beat where I thought they would in centre margins (gotta like those prices increases which don't affect occupancy) and AFFO (almost doubled the best prior qtr. 2. They executed in almost all of the areas that they said they would - finally a CEO who is the real deal. 3. They outlined in very credible terms how they will reach and exceed $10 million in EBITDA and developments already underway to get there. 4. Despite some of the negative reaction from posters to the impact on their Ontario growth plans (and there is good reason for concern) there might be a silver lining to it. It forces the company to focus on the highest margin/highest return markets in the use of their available capital and to establish a truly dominant position and brand in those markets. At the same time they are going to figure out how to maximize their returns from Ontario and eventually have some excellent acquisition opportunities at a much lower price due to the impact of the Ontario legislation. At that point they will bring their higher standard and lower costs due to their economies of scale so don't give up on Ontario in the long run. The shares closed at $.43 (approx. 11x AFFO) - a low multiple IMO. I believe that it should trade in the 15 to 20x range.
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