RE:RE:Volume back downPuerSimia wrote: 'Absolute disaster' says it all. The volumes are down as there's little interest at owning the stock at this time.
Their last financials continue to show their cash reserves are tanking. If it wasn't for moving the $400+ million from current liabilities over to non-current liabilities, their working capital deficiency would be over $300 million. That's a problem.
In my opinion, with the dismal inflationary numbers out recently, and talk of further rate increases, and dwindling cash, their only solution at this point is to recapitalize. IMO, the numbers are only going to get worse the longer they wait, and they don't have the cash to wait it out 6-12 more months.
I'll be waiting for a recapitalization, then buying on the cheap, maybe. Way too much risk at the moment.
The borrowing that moved from current liabilities to non-current liabilities was never included in their working capital changes.
Working capital changes aren't "deficiencies" either, they're usually timing based and match the fluctuations of account receivables, inventories and trade payables (not debt/borrowing). You can look at the variations in table 13.
What's hitting them hard cash wise are the deferred and contingent considerations. They still got quite a bit of them to pay this year and next. I think this is the reason why they have used the accordion feature of their revolver credit facility. They have $170 million available on it, so they should be okay cash wise until the end of 2024.