FormerXBC Inc XEBEQ

RE:RE:RE:RE:RE:RE:RE:Up to date consensus estimates

[Gann999]

This is directly from the company and nowhere do I see anything about legacy gradually wearing off as the year goes on. "Lastly, the Company has continued to experience the impact from legacy BGX contracts during the commissioning phase of several projects. Higher than anticipated costs were incurred to ensure that projects are running to specification for customers. Xebec is focused on moving the last of these projects to the serviceability stage as soon as possible which is expected to be positive for margins in the segment. Going forward, standardized and containerized products bring benefits in shorter installation and commissioning times, and less exposure to engineering, procurement and construction (EPC) work which reduces the risks seen in its legacy BGX activities." Focused on moving into serviceability as soon as possible no date given so we don't know. "Includes wrapping up the continued costs of legacy BGX activities which impacted adjusted EBITDA negatively by $2.6 million in Q1 2022" continued costs doesn't sound like gradually wear off to me. We should be honest with our expectations or we just set ourselves up for dissapointment.

tony08 wrote:

Gann999 wrote: They have already said legacy will still be impacting until the end of the year so not sure why you expect q3 and q4 to be unaffected

tony08 wrote:

For Q2 I only expect a slight improvement over Q1.

The real test will really start with Q3 and Q4......With the end of the legacy contracts and the start of the $143M contract revenue.
 

Then we will see if management are able to generate margins with these new revenues.

Sorry for the delay, I just read your post...

 

Correct me if I'm wrong, but if I remember correctly they said that the effects of the legacy contracts would gradually wear off by the end of the year.

 

I expect an improvement on this side, maybe not for Q3 but at least for Q4