Exchange Income Corp T.EIF

Alternate Symbol(s): EIFZF | T.EIF.DB.J | T.EIF.DB.L | T.EIF.DB.M | T.EIF.DB.K

Industrials Airlines

Exchange Income Corporation is a Canada-based diversified acquisition-oriented company. The Company operates through two segments: Aerospace & Aviation and Manufacturing. The Aerospace & Aviation segment is comprised of three lines of business: Essential Air Services, Aerospace, and Aircraft Sales & Leasing. Its Essential Air Services includes both fixed wing and rotary wing operations. Aerospace includes its vertically integrated aerospace offerings that provide customized and integrated special mission aircraft solutions primarily to governments across the globe. Aircraft Sales & Leasing includes aftermarket aircraft, engine and parts sales and aircraft and engine leasing, along with aircraft management services. The Manufacturing segment is comprised of three lines of business: Environmental Access Solutions, Multi-Storey Window Solutions and Precision Manufacturing & Engineering. The Company also focuses on portable hydronic (glycol-based) climate-controlled equipment.

TSX:EIF - Post by User

Exchange Income Corp

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Comment by EddySantanaon Jul 22, 2017 12:40pm

126 Views

Post# 26498049

RE:RE:RE:capitalized maintenance - is if discretionary?

EddySantana wrote: His main point is that these charges are not discretionary and he's right, especially for an airline peculiarly named "Exchange Income Fund". There's a reason EBITDA is not recognized in US GAAP and FCF is king - one is Midas, one is Medusa. With $EIF it only works if every big shareholder/brokerage ignores it in favour of equity raises to fund the dividend, but once sentiment shifts and flaws are made public they all start quietly tiptoeing for the exit, so look out below.

All of the other issues he raises allegedly regarding safety and poor regulatory oversight are biproducts of this accounting structure. For something more relatable, look at Crescent Point and their divi structure, it depends on willful ignorance from top to bottom.

The trend with all of his #shortcanada targets goes right to the highest echelons of Canadian government, banks and regulatory bodies.

PROtrading wrote: That's my problem. I love a good short thesis and I don't see one here yet. As others have pointed out there, there's near criminal inference that there are maintenance issues but zero proof.

I've flown many small regional airlines in the past and, no, it's not like flying a new plane but guess what, you can't buy new planes because they don't exist and the business case would not support it. Ask poor flyers to remote communities if they would be willing to pay 2x or 3x for the flights?

Idiot fandom followers on twitter are just drinking the kool-aid without checking official sources and when the press, specifically Terence from the Financial Post checks official sources, he gets ridiculed by Pied Piper and his 2bit mob instead of engaging in a rational discussion.

There's "short and distort" on a number of points here because it doesn't seem that the FCF is a strong enough argument by itself! Did he find a smoking gun or is he gathering up a bunch of little twigs for his little weaner roast? LOL

We'll know soon enough if the charts behave like that "other one", hey puma1. Our old friend @dumpsterfire69 is staying far away, playing with horsies and making cute little cartoons for Marc.... If she goes short here, I follow her playing Muse.... LOL

puma1 wrote:
the issue raised is not new, it ha been on the table at least 2 times in the last 3 years. do you calculate free cash flow before or after this number. the Globe quotes IFRS, but they miss the point. if these capitalized maintenance amounts are discretionary, the free cash flow calculation has to exclude the amount. this is the position the company has taken. it should be easy for them to add transparency to this number, and if EIF does that, the argument dissolves and the shorts will need to pick on some new issue.