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Pivot Technology Solutions Inc. T.PTG

"Pivot Technology Solutions Inc offers IT solutions to businesses, government, education, and healthcare organizations. It operates through the following segments: ACS, ARC, ProSys, Sigma, TeraMach, Shared services. The company derives the maximum revenue from the ProSys segment which sells storage, server, and IT infrastructure consulting solutions to enterprises. Geographically, it derives majority revenue from the United States and also has a presence in other countries."


TSX:PTG - Post by User

Comment by cqfdon Jan 20, 2015 12:06pm
120 Views
Post# 23339511

RE:RE:The preferred shares

RE:RE:The preferred sharesKulewater, The way I see it, as long as they generate this much cash from operations ($13.3M in the first 9M of this year), they will be able to pay the prefs div, clean the balance sheet and then deal with the prefs. During the first 9 months of '14, PTG converted 3,726,600 prefs to common shares, so as of Sept 30th, there were 61,535,880 prefs remaining (see SEDAR). Also, "The Series A Preferred Shares also carry a mandatory conversion right, whereby at any time after June 30, 2013, the Company is permitted to require the holders to convert the Series A Preferred Shares into common shares of the Company. The Company has not exercised this conversion right to date." (see sedar). - The “Old ACS” is now paid, as of July 24th, 2014. - The “Old ProSys” is now paid, as of May 6th, 2014. - "On August 12, 2011, the Company acquired substantially all of the assets and liabilities of Austin Ribbon & Computer Supplies, Inc. (“Old ARC”). As part of the asset purchase agreement with the shareholders of Old ARC, contingent consideration had been agreed. The consideration is dependent on a measure of operating profit before tax of the acquired business during the three consecutive 12-month periods ending August 12, 2014. The fair value of the contingent consideration at the acquisition date was $3,060. At the conclusion of the 3 year earn out period, the undiscounted consideration was determined to be fixed at $2,500, and the fair value was determined to be $2,433 as at September 30, 2014. The Company recorded a charge of $2,433 related to the change in fair value of the contingent consideration for the nine months ended September 30, 2014. No payments were made during the nine months ended September 30, 2014." - They are now dealing with the "Old Sigma": "The fair value of the contingent consideration at the acquisition date was estimated to be $5,719, and was determined to be $6,796 as at September 30, 2014. The Company recorded a charge of $1,774 related to the change in fair value of the consideration for the nine months ended September 30, 2014. No payments were made during the nine months ended September 30, 2014." That's what I mean by "cleaning the balance sheet". After that, they will be able to deal with the prefs, either by buying them back (with the CF) of converting them. JMVHO. Do your own DD. Cheers CQFD
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