TSX:STB.DB.A - Post by User
Post by
BlueCollar51on Feb 17, 2016 3:16pm
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Post# 24567578
On the surface the Q2 results look good
On the surface the Q2 results look goodUnder the hood not quite so good!
Revenue per share;
Q2 2015 = $1.89
Q2 2016 = $1.73
That is a Y/Y DECREASE of 8.4% per share
Net Cash from Operations per share;
Q2 2015 = $0.09
Q2 2016 = $0.054 ** excluding the $1.2m Oil and Gas Impairment
That is a Y/Y DECREASE of 39.8% per share
Total Debt
Q2 2015 = $315.631m
Q2 2016 = $280.561m
That is a Y/Y Decrease of $35m which looks good until we remember that $69.1m in Dilutive Equity was issued in Q3 2015 to pay down the debt. We can expect the Total Debt to increase as usual until the next Equity Raise. I would expect that in the not too distant future they will issue another Convertible Debenture to free up the Credit Facility.
There was a Y/Y $26.37m INCREASE in the “Off Balance Sheet” debt in the same period.
DRIP/NCIB Q1/Q2 2016
DRIP Shares Issued = 737,157
NCIB Shares Purchased = 289,973
Basically they used borrowed money to Buy Back 39% of the DRIP shares that were issued at a discount in the First half of Fiscal 2016.
Payout Ratio ?
On the conference call one of the Analysts asked about the POR. The non-answer was very evasive.
Student Transportation has a lot of work to do in the last half of Fiscal 2016 to get a decent Annual Result!
It remains to be seen if they will be able to achieve their goals going forward. They have a history of overpromising and under delivering.
As Always; Do Your Own Due Diligence; It’s Your Money !!