LTDHey everybody.
I will go through the highlights of the LTD again as a quick summery about Bombardier's accomplishments just as a reminder to everyone here of how well this company is performing so that you can make the righ decisions when trade.
Before I start. Thank you for the kind words Patient, I enjoy giving facts to the group here, to help them make informed decisions on their Investment.
Let's go right to the Begining.
BT sale in Jan 2021.
We get $6B. ALL US figures
Their NET proccedds was $3.6B including the Alstom shares. They also had another $2B in reserves but remember they needed to have Operating Income too of $1.5B. They were operating without a LOC. So heavy working Capital.
They owed $11.3B on LTD as of Jan 2021. Yes $11.3B including the LOC they had to repay off. Btw that's not even a full 2 years gone by yet since the closing of BT. On Feb 1st, 2023 it will be 2 years.
Now.
They have already paid the LTD down to $6B
That's $5B off the LTD from Jan 2021.
They will also pay another $1B total in all of 2022. Because starting in Q4/22 there will be heavy deliveries, and the Service will be closer to full throttle. This will be $2.2B Q4/22 of Revs in Q4/22, because we had over 42 planes to deliver. Again these are rough #'s just to make a point here. Plus we have $400M collateral money.
IMHO.
They will have paid LTD down to $5B by the end of 2022.
Because they will put almost all the cash left over from Q4/22 & all new cash from Q1/23 into LTD. This will bring LTD down to $5B in almost 2 years since the BT closing.
The point here is. That this Management starting with EM & BD will have reduced LTD by $6B in almost 2 years time since the closing of BT.
How did they accomplish this? They repaid $6B worth of LTD in 2 years. They only had $3.6B from the BT and $400M of that was used for collateral for the Alstom deal.
So by Q1/2023 They will have paid $6B of the LTD down in 2 years,
This a monumental task for a company the almost went Bankrupt by Jan 2021.
They only got $3.6B from BT and they had to put in another $3B from the Balance Sheet to come to this point. This is a great accomplishmant for EM & BD and they should be rewarded for their great work.
The point is that. Finally the math makes sense. Yes the Balance Sheet could be a little streched in some areas. But we will still have $1.3B in Reserves in Q1/2022. And the Balance Sheet will BALANCE (pun intended) itself out in the next couple years. My guess is, that 2023 & 2024 will be the transition years for FCF positiveness and the real financial STABILITY with Bombardier.
Nothing wrong with $3.8B NET DEBT at the end of 2023.
So Invest your money wisely and don't spend more than you can afford to lose.
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