TSX:IBG.DB.E - Post by User
Post by
Oakboy1110on May 10, 2020 12:26pm
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Post# 31009062
Confusion with IBI's reporting of Adjusted EBITDA
Confusion with IBI's reporting of Adjusted EBITDABecause IBI is conforming with the definition within its lending agreement, their adjustments to Adjusted EBITDA includes the impact of net cash rent paid. Then in the narrative in the MDA they detail what adjustment needs to be made to make their numbers comparable to their peers. Just tell your lender that the auditor can give them a side letter and then make the financial statements comparable to your peers.
An example of the confusion is their reported net debt to EBITDA, on page 30 of the first quarter MDA. They indicate that the net debt to ADJ EBITDA is 2.1. This is not a comparable number to their peers.
The comparable number would be 1.47
IBI. STN. WSP
Net Debt to comparable Adj. EBITDA. 1.47. 1.3. 1.3