TSX:IBG.DB.E - Post by User
Post by
nkbourbakion Mar 08, 2017 9:50pm
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Post# 25954864
my take
my takeLooks like a solid quarter but the operating results don't strike me as particularly strong and I personally don't see anything here to excite the market in the near term. That said I love to see the continued balance sheet improvement. Should provide some protection in what could soon become a tough market.
Some random notes:
- The .24 eps is misleading. From this Q's $7.5M net income you should deduct $3M in non-operating "one-time" items. ($1.2M of forex gain and $1.8M of gain on revaluation of a liability, related to replacing old debs with the new series) Then add 6M to the overall share count due to full dilution by the Class B units, and you have about 0.12c / share in adjusted income.
- The adjusted EBITDA margin is the key metric here IMO and the substantial decrease due (in part) to weak UK is a concern. The non-adjusted EBITDA metric isn't very meaningful for the reasons stated above.
- $415M of work under contract for next 3 yrs was quoted in Q3 outlook. This number is now down to $331M. Yet backlog is up to 10 months as compared to 8.8 at end of Q3. I don't understand the magnitude of the drop, or how backlog has increased. Can anyone explain?
- Headline 15% YOY growth in the US is excellent. However Q4 revs in both the US and international segments are down over Q3. The US revenue decrease was marginal but pretax income from that segment was cut in half from Q3. International had a 14% drop in revs over Q3 and booked a net operating loss of $0.3M in Q4 compared to a profit of $1.4M in Q3. That swing alone accounts for a nearly 2% decrease in adjusted EBITDA margin.
- As of March 2017, the sinking fund contribution will be $2.2M per quarter, down from $3.5M.
Sorry for any errors above -- done very quickly.