TSXV:RHT.H - Post by User
Comment by
xdmmdx3on Feb 22, 2018 1:11pm
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Post# 27603143
RE:RE:RE:CEO getting grilled on margins
RE:RE:RE:CEO getting grilled on marginsSukroro:
"do you know of any company in the history of the world that has generated 80% EBITDA margins on a sustainable basis? Please stop believing everything management is telling you. I understand its a GREAT company with an even better management team but it will not generate EBITDA margins that high for a sustainable basis. If you would liek to bake in 80% in your model please do so but I will certianly not be doing that. " So you are essentially saying the CEO lied to everyone in the conference and on that conference call? She was recorded saying it. Plus it all makes sense actually. If running the network is a fixed cost, and as you incrementally add more patients, your costs do not rise, but your recurring revenues do, it makes sense that EBITDA margins can be that high. It is simple math really.
All you have to do is run the numbers, it is all in black and white for you.
Good luck to all,
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