RE:Q1 2019 results<< Seems positive but not very informative >>
Not quite. Not very informative because there was no good news. Read the financial report on SEDAR.
Loss of more than $5 million.
Net debt increased.
$30 million in sales but $7.5 million in cash G&A expenses.
Another $600k in restructuring costs.
Almost $3 million in interest expense.
There is no way the company will survive with that kind of bloated overhead.
Going Concern note is another beauty, but don't read it after you have just finished a meal.
There can be no assurance that:
the Company will be successful in achieving the results as set out in its operating plan or generate sufficient cash flows from operations to meet its obligations as they come due throughout 2019;
the Company will complete the execution of other strategic alternatives; the Company will meet conditions established by lenders in the amended agreements;
or that the lenders will continue to amend the Credit Facilities to mitigate any future breaches of covenants.
The Company’s ability to continue as a going concern materially affects the measurement of many amounts related to the Company in the consolidated financial statements. These measurements could be materially different than currently presented.