GREY:ALARF - Post by User
Post by
SunsetGrillon May 08, 2018 11:53am
308 Views
Post# 27997958
Waiting for Full Scotia Rpt Down To $22
Waiting for Full Scotia Rpt Down To $22Missed CCall and waiting for replay to get hooked up - Scotia release this today
OUR TAKE: Although Q1/18 normalized EBITDA was in line with expectations, Alaris kicked off the year relatively quietly on the capital deployment front, with only the previously announced US$15M Heritage Restoration investment made to date, and what appears to be a partial redemption of a successful investment on the horizon. Although not impacting expected cash flows, but likely to further dampen sentiment, are significant reserves taken against the KMH and Group SM notes due to uncertainty surrounding their timing and collection. The KMH/Phoenix reserve of ~$14M was taken due to the negative outcome surrounding the KMH strategic processes, and the ~$12M reserve against the Group SM promissory note was due to its ongoing liquidity issues. We expect the focus of the call to be around the reserves taken for these investments, in addition to any further progress on the remaining challenged files. In addition, we expect an update on the capital deployment pipeline, which has remained relatively quiet in 2018 following a near-record year of deployment in 2017