RE:RE:RE:Cash & Operating Free Cash Flow Q1 & Q4prophetoffacts wrote: "Excluding the changes in working capital, they had cash flows of $1.7M from their operations last quarter, which was used to pay $676k in dividends, $250k in lease payments, $506k in interests and $286k in capex during the last quarter." What about subtracting the emergency subsidy?
" The Company’s subsidiaries received $0.5 million in subsidies from the Canada Emergency Wage Subsidy (“CEWS”) and Canada Emergency Rent Subsidy"
You could argue that CEWS compensates lower revenue and that as the economy recovers, they will get that revenue back as well (so equal cashflows going forward). Otherwise, they would make temporary layoffs which would reduce their costs. I mean, you can take it out if you want, but then you'd have to adjust cashflows going forward based on the expected revenue growth as covid impacts fade away.
We'll see how it goes, they may have to temporarily cover capex with debt while their revenues haven't fully recovered.