RE:RE:RE:RE:My Biggest Issue with Last Quarter We're in a transition phase. Good news last quarter was that LTD decreased to $98m which is expected as the revenues decline, but Q2 being the highest LTD balance historically means we can expect a further decrease in Q3. Helps our equity value assuming earnings hold up.
Other than the last quarter, quarterly EBITDA ranges from $3m - $5m since Q2-18 (and I'm deducting lease costs that are now not included in reported EBITDA but are a true operating cash expense). When you consider $500k in capex, $1.5m in interest and $1.2m in dividends, the company doesn't have much, if any cash after paying taxes so I wouldn't expect a share buyback anytime soon.
The board is committed to a dividend (I go back to when they wanted to structure prefs at 12%) and the company is now exploring strategic options. I think it's too soon to assess the value of smart edge so I'm wondering if that was a ploy to increase the share price in the short term for whatever reason.
All this said, our earnings contain smart edge costs and when you remove these, the company would have enough to buy back shares. They just can't now with their committed investment in smart edge.