RE:RE:RE:RE:Top Pick on Market Call Today :>)What CPG calls FCF is of no interest to me; over the years I have developed a firm philosophy of Never Trust the Issuer.
Your statement, "FCF is what a company has left over after paying for operations to use for things such as paying down debt", I do not believe is exact because it is missing any reference to CFFI.
There is only one accounting definition for Free Cash Flow, from the 'Cash Conservation Equation' :
FCF = CFFO - CFFI
= [net dividends] + [net payments to debtholders and issuers]
I've checked my accounting books and rechecked CPG's statements, and it seems to me they are FCF-negative because they spent more cash on investing than was generated by operations (and accordingly, had to generate CFFF by borrowing and/or diluting).
However, M&A is not an area I know well. I'll keep looking.
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LiquidOctopusV2 wrote: Your definition of FCF appears to include the debt they took on for the Duvernay aquitision. Is that correct? If so, I'd argue that's not FCF. FCF is what a company has left over after paying for operations to use for things such as paying down debt. The Duvernay aquisition will upwardly increase FCF for CPG but required them to take on debt.
CPG was not FCF negative.
CPG calculates their FCF as Excess Cashflow - dividends. Dividends don't amount to much right now, so it's almost the same number. And, this is a standard usage of the term.
TickerTwit wrote: Nah, it's not you. Nuttall needs his reading checked. CPG was FCF-negative this quarter, and had to borrow to cover cash-used-in-investing. Until CPG learns to control spending, little will change.
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arizonabound wrote: Nuttall with the pump!
Funny, what I heard from management seemed to indicate they are still at least a couple quarters away from changing the dividend. Maybe I need my hearing checked?