RE:RE:Quebec versus Ontario I'm pleased with the quarter. The company has good pricing power as they are able to raise their prices in spite of lower hours worked.
I get about one-third of their cash flow goes towards paying taxes and paying interest on its debt. Capital maintenance and lease payments represents about one-fifth of that amount.
I would estimate a sustainable free cash flow annualized for the year at about $2.8- $3m. This is pretty impressive considering that ebitda margins can easily get back to 9-10% range which would put free cash flow well north of $3m.
I like the risk/reward trade off and think the sell off is overdone. If you have a full position, I would continue to be patient with it. This name is not going away.