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Exchange Income Corp T.EIF.DB.J


Primary Symbol: T.EIF Alternate Symbol(s):  EIFZF | T.EIF.DB.L | T.EIF.DB.M | T.EIF.DB.K

Exchange Income Corporation is a Canada-based diversified acquisition-oriented company. The Company operates through two segments: Aerospace & Aviation and Manufacturing. The Aerospace & Aviation segment is comprised of three lines of business: Essential Air Services, Aerospace, and Aircraft Sales & Leasing. Its Essential Air Services includes both fixed wing and rotary wing operations. Aerospace includes its vertically integrated aerospace offerings that provide customized and integrated special mission aircraft solutions primarily to governments across the globe. Aircraft Sales & Leasing includes aftermarket aircraft, engine and parts sales and aircraft and engine leasing, along with aircraft management services. The Manufacturing segment is comprised of three lines of business: Environmental Access Solutions, Multi-Storey Window Solutions and Precision Manufacturing & Engineering. The Company also focuses on portable hydronic (glycol-based) climate-controlled equipment.


TSX:EIF - Post by User

Post by retiredcfon Nov 06, 2023 3:57pm
220 Views
Post# 35720096

Analysis of Debt

Analysis of DebtTotal debt/obligations are $1.8B, and this has ticked up over the past few years, due to acquisitions. But the debt maturity is spread out fairly well. Of this, about $1.2B is revolving credit, which would be subject to higher rates, typically. EIF notes it has enterered into some interest rate swaps, but details are light on those. But, to show its exposure, we note interest expenses in 2Q rose to $21M this year from $8M last year. It also has convertible debentures, but interest charges did not change much on those (coupons are fixed). Also, these can be paid off in equity if needed. Many of its businesses are economic sensitive, but it has managed past cycles fairly well. It was profitable throught the 2008 financial crisis and the 2020 pandemic. It did lose money in 2014. In the past decade average P/E has ranged from 14X to 43X, making the current 12X look attractive, at least vs history. (5iResearch)
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