TSX:AD.DB.A - Post by User
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retiredcfon Apr 28, 2022 8:55am
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CIBC
CIBCAlaris Equity Partners (Outperformer, $23.50 Price Target)
Alaris is scheduled to report earnings on Thursday, May 5 after market close. A conference
call will be held the following day at 11:00 a.m. ET (1-866-475-5449).
Our focus remains largely dedicated to the performance of private company partners and the
evolution of the weighted average earnings coverage ratio (ECR). The ECR remained at an
all-time high in Q4, while the payout ratio remained at an all-time low. In our view, this
provides an important margin of safety for Alaris, considering the prospect of a deteriorating
macroeconomic environment.
In Q1, Alaris completed a follow-on investment in Body Contour Centres (BCC), which
rendered BCC Alaris’ largest investment, representing over 15% of total run-rate distributions.
Subsequent to quarter-end (i.e., on April 1), Alaris announced the redemption of its
investment in Kimco, which we had expected for several quarters. The redemption leaves
Alaris with $137 million available on the senior credit facility and a senior debt to EBITDA
ratio of 1.9x. The run-rate payout ratio remains in the 60%-65% range. We expect to hear
more about the investment pipeline and outlook for capital deployment on the Q1/22 call.