GREY:CRIUF - Post by User
Post by
1nguyenBozoon Jan 18, 2019 10:21pm
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Post# 29254611
Overreaction on delay of the distribution payment........
Overreaction on delay of the distribution payment........First of all, dividend (.0697/unit) is safe again for another 3months. Thanks CEO for fighting this . The payment wil be paid by quarter instead of montly distribution. I'm totally familiar with this type of payment occured in all cies when financial conditions not allowed. But why it takes 2 months for distribution record date and a 15 days after following its record date for distribution payment? Tough answer?....No....that's why an reaction of investors was overblown recently....
In my opinion, Cash flow and Liquidity are the very important keyes for keeping Business viable and Dividend sustainable.
In terms of financials of KWH, Cash flow of Q3 (3.8mil) is shrinking compared to Q1 (20.8mil) and Q2 (8.4mil) or Q3 2017 (5.3 mil).
Margin was down to 14.7% compared to Q1 (18%), Q2 (20.1%) and Q3 2017 (20.4%).
Cash & availability is 30.1mil compared to Q1( 50mil), Q2 (40.8) and Q3 2017 (49.4).
EBTIDA was 15.2 mil compared to Q1 (19.8mil), Q2 (16.0 ) and Q3 2017 (14.1)
Payout ratio is reaching to 147% compared to Q1 (77.7%), Q2 (106%) and Q3 2017 (63%).
But, Revenue is up to $359.4 mil compared to Q1 ($321.8), Q2 (269.1mil) and Q3 2017 (269.9 mil).
Attition is also up to 35000 compared to Q1 (21000), Q2 (2000) and Q3 2017 (61000).
A delay of distribution is showing me that Cash flow is not strong enough for the time being regarding the financials mentioned above and Liquidity have to be concerned if KWH want to maintain level of dividend for shareholders. Perhaps,
What about my thinking of a solid foundation capable of producing more than $100 mil.of Adjusted EBTIDA? $35 mil annual improvement to our adjusted EBTIDA ? Dividend for 2nd, 3rd quarter...? after exit of Solar business....God knows!
In the mean time, I still hang on for another quarter and still believe " Apres la pluie, le beau temps". According to Thompson, Kwh is still an undervalue stock , I still love KWH dividend but I have to start underweigh my position regarding my personal analysis of its financials and start shopping again for my portfolio.
Good luck to all value investors!
I hope Revenue will growth every quarter