TSX:CUS.DB.D - Post by User
Post by
Khersonon Mar 13, 2015 9:06pm
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Post# 23520297
Business Improvement Program
Business Improvement ProgramWith all of the major ongoing problems that Canexus has, I find it odd that management would undertake a BIP at this point in time. Actually another poster brought up the same question and stated quite clearly that should not a BIP program have been ongoing all along? I couldn't agree more, so I took a closer look at exactly what the company is talking about and now I am left scratching my head!
In today's Presentation, one of the Key Initiatives under the BIP is Working Capital Reduction by accelerating the collection of accounts receivables and extending payment terms. I must admit that Canexus' proposal to extend payment terms is most odd, to say the least.
So, taking a closer look at the 2014 Year End Financials, because they actually are audited, does indeed shed some light on this very matter.
On page 8 of the 2014 YE, we find a charge of non-cash operating working capital of ($35.915) million.
Referring to Note 27b, Cash Flows, on page 49, we find that the total change in Non-Cash Working Capital is actually ($52.594) million, of which $43.898 million is trade and other payables! So, does Canexus actually owe almost $44 million dollars on their accounts payable from 2014, but never accounted for it in the year end financials against their cash income?
Maybe someone could take a closer look at this because I will admit that I am unsure exactly what this means. To add another twist to this tid bit of info., today's Presentation was not available on their website when I logged into their webcast 5 minutes before airtime...
Kherson