RE:RE:RE:RE:$325 million in long term debtmonty613 wrote: I wasn't actually referring to you in my post, but a few other posters. I do appreciate your accounting background (?) and the fact that your posts are well thought out and that you are open to a reasonable debate.
I am no financial wizard and never claimed to be, but many here are hyper focused on EPS and Income Statement. I won't beat a dead horse but this company has a sizeable non-cash expense because of the way CRH structures their contracts. obviously, given the level of M&A in the last year, the company also has a sizeable amount of "one-time expenses". I understand that roll-ups have a bad rap for playing with that number.
I am hyper focused on the debt service coverage of CRH and MyHealth as these are senior debt financed entities. banks don't lend companies this amount of money, at these spreads, without sufficient EV security or without the capacity to pay. both companies have stable and recurring revenues. in the event of any slippage, the senior debt could easily be re-financed based on the low LTV. I think both companies are solid cash compounders on this basis. I also don't think they have a working capital deficiency.
That poster doesn't have an accounting background.
The mere fact that "insolvency" is mentioned seriously by that poster, even as a "low risk", pretty much sums up how much of a joke his posts are. No company that generates over $10M of cash flow quarterly (after interest payments) and an EV leverage of about 25% are at any risk of insolvency. This is a baseless opinion unless results take a serious dive.
Heck, even a company loaded with debt like Dye & Durham isn't even pricing a "low risk of insolvency" in their stock.