RE:RE:Ex bullfrog numbers?Or looked at another way - Bullfrog was about 4mm of Ann Ebitda on top of about $30mm Total Ebitda or about 13% of Ebitda. The $35mm proceeds equates to about 75% of the entire Market Cap of the company! And pays down $35mm of Lease-adjusted debt of 95mm of about 33%. And on a Total EV basis, the proceeds were worth about 25%.
And if Bullfrog was sold at around an ~8x multiple (4mm Ebitda x 8 = $35mm), what do you think the other two segments would trade at? 7-8x? On 2023 Ebitda of 32mm Ebitda pro-forma for sale of Bullfrog you get $240mm (8x) less the remaining debt and leases of about 80mm and yhou are left with proceeds of 160mm / 90mm shs o/s = $1.80/sh. It is that simple.
So they sold only 13% of their Ebitda for 75% of their market cap! And they are paying down one-third of their debt. And the bank eased up on amortization payments, which will help free cash flow. Looks like it is now trading at 3.3x 2023 Ebitda pro forma for the sale. This is a transformational change and with a new CFO in place too boot.
...and the stock sells off.