RE:The Real Financials are on SEDAR Nowbandit69 wrote:
I am always amazed at how financials can be spun in to a news release that makes everything sound like the world is full of unicorns and butterflies and people lap it up.
Revenue statement = loss
balance sheet = current assets $120,988,000.00 current liabilities 149,555,000.00 strangely, the difference is 28,567,000.00. (How much was the bought deal again?)
cash from operations - 13,400,000. yes a whopping $13MM.
cash flow statement = cash beginning of period - 61,919,000.00 cash end of period - 36,055,000.00 (1/4 = 3 months in case you weren't aware) 61,919,000.00 - 36,055,000.00 = -25,864,000.00 cash. (cash flow positive? hmmmmm...)
just as you've spun this entire write-up?
Income Statement - there is ~$13MM in non-cash Dep/Amort which you've ignored (as always).
Balance Sheet - the Current Liab is high because of the demand nature of the debt and the Vendor Take Backs (earn outs). there isn't a working capital problem. surely you don't believe they actually have to pay $150MM within the year. aren't you an accountant?
Cashflow Statement - they paid down $30MM in debt which you've convieniently omitted. 'cashflow positive' refers to company operations. if a company takes some of their cash
on hand and invests it, or pays down debt, that doesn't mean they are cashflow negative.
the timing of the capital raise at $3.70 is clearly not ideal but the funds will be put to use and we should hear the reasons why on the call today. the accordions they have are for CRH and MyHealth only - the company can't leverage these businesses and buy something outside of that ringfence.