RE:RE:qtr1 is weakest, qtr3 is seasonal strongest FCF (after maintenance capex) came in at $22MM - -- how did Cohodes come up with NEGATIVE $28MM? Anywone? This was a beat both top and bottom line. Q2 EBITA $70MM Consencus $64MM; Revenue $273MM Consensus $243MM. I see the stock price going up .
kingofbay@gmail.com wrote: Cohodes argues that EIF's cash flows cannot sustain its dividend payment primarily because he is subtracting growth capex from FCF (operating cash flow minus maintenance capex) which results in a negative number. So even with Q2's strong numbers, Cohodes can still argue that EIF's cash flow is negative despite his wrong calculation. Given that Regional One appears to be finished in acquiring new planes, EIF's growth capex will come down significantly going forward and will be cash flow positive and cover its dividend despite Cohodes incorrect FCF calculation. Hopefully that will put an end to his thesis once and for all!