RE:RE:Overview of Q2/22Hey Pablo.Don't sell yourself short on interpreting the Statements well, even though you haven't been following the Pure Play recently. The game is still the same. Reduce debt as quick as posible. That's BD's & EM's priority. They've reiterated that in the last ER. It's easy to listen to it. In 1 hour you'll catch up. In fact, I wanted to hear it again, but time didn't allow.
Remember they're doing a lot of cleaning to the Financial Statements as well. But it's all paper work. One has to distinguish between Real Entries in the F/S, and Entries for the purpose of shifting the old or new numbers around. For instance I noticed recently that they've been QUITELY reducing net Asets Value, (Fair Value) by Billions in the last few years. This is partially due of course to the company's change to a Pure play and desposition of many assets,
As for increasing the Current Contract Liabilities you mention (highlighted in yellow), and their relation to the Revs? Your questions, on your observations are valid. Of course the Future Revs are connected to the increased capacity coming in 2023/4/5. So are other things connected to those expected increases of those Revs. Things like FCF, and pre-payments for Inventories to insure they're is NO supply interuptions on the production side. To have the parts they need for their future production. A lot of the trades and suppliers want more cash in advance (deposits) as well from Bombardier. Remember Bombardier gets cash Deposits up front from each Backlog order from it's clients. I'm sure their suppliers, want payments, either for any raw materials, and or the manufacturing of those Raw materials, by either Tier 1/2/3 suppliers which is paid up front as well, by Bombardier. So this whole thing is connected. As for us to know, what exactly is what? We have to look at the full picture of Current Contract Liabilities, and Current Contract Receivables as well. So again, everybody's knowledge is limited, when it comes to what the company is really doing, with their Finances in their statements until a pattern appears. That pattern will be more apparent in 2023/4/5. For exmple, one thing that I'm noticing on the LTD is. That they are going to throw $800M yearly to the LTD, from now till 2025. Only time will tell of course. But it may have something to do with keeping their Reserves up, while they're paying down LTD & also allowing Revs to catch up in 2023/4/5. This whole thing is all connected, however you see it. Cheers
PabloLafortune wrote: Thank you for the kudos 859. Keep in mind, my "knowledge" is from the statements its really sort of superficial. I'll explain.
in 15 months, the net debt has been reduced by $1.3B. The contract liabilities increased by 1.65B. Meaning that cashflow was negative 350M despite interest of ~$700M. Now regarding contract liabilities (which is closely related to backlog as we know), The long term portion ie more than a year is up 549M which is fine, manageable either way. But the short term contract liability ie within 12 months is up $1.1B (from $2.2B to $3.3B). What does that mean? Is there a ratio between current contract liabilities and revenues for example? Ie are we expecting a production increase? That's what I mean - my knowledge is superficial. BD and EM of course would know - maybe I should listen to the earnings call next time to get some hints, LOL.